The International Economy
Online ISSN : 1884-4367
Print ISSN : 2186-6074
ISSN-L : 1884-4367
Volume 17
Showing 1-2 articles out of 2 articles from the selected issue
2012 JSIE-Kojima Kiyoshi Prize Lecture:
  • Kenji Kondoh
    2015 Volume 17 Pages 1-14
    Published: January 20, 2015
    Released: May 19, 2015
    [Advance publication] Released: January 22, 2015
    JOURNALS FREE ACCESS
    We develop a two-country model with two industries: the smokestack manufacturing industry, which generates pollution, and the transboundary renewable resource industry. With no trade, migration occurs from the foreign country, with lower manufacturing productivity, to the home country. If the gap in pollution abatement technology, which is superior in the home country, dominates the productivity gap, both countries gain from migration. Under a free trade equilibrium, we also show that if the marginal harvest of the resource industry in the home country is lower than marginal damage of manufacturing while that is higher in the foreign country, migration still causes positive effects on the stock of renewable resources, which should improve both countries’ welfare.
    JEL Classification: F22, Q20
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Articles:
  • Hiroyuki Kuwahata
    2015 Volume 17 Pages 15-32
    Published: January 20, 2015
    Released: May 19, 2015
    [Advance publication] Released: January 22, 2015
    JOURNALS FREE ACCESS
    Recent years have witnessed that firm hierarchies are becoming flatter amid globalization. Span of control (Span) has broadened and the number of levels (Layer) within firms has declined. Motivated by these changes in the world, international trade theory has recently incorporated a rich organizational model into trade and heterogeneous firm contexts. However, empirical evidence for this theory has been so far limited because of the constrained data availability. This paper fills a part of this gap by exploiting a unique firm-level organization data in Japan, by which we can ascertain the relationship between a firm’s organization and its characteristics. Globalization, which is measured by the firm’s foreign sales ratio, has a positive link with Span, but has a negative link with Layer. This finding implies that organizational change is one source of learning effects of globalization.
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