Productivity and the Decision to Export: Micro Evidence from Taiwan and South Korea

While there is widespread empirical evidence indicating exporting producers have higher productivity than nonexporters, the mechanisms that generate this pattern are less clear. One view is that exporters acquire knowledge of new production methods, inputs, and product designs from their international contacts, and this learning results in higher productivity for exporters relative to their more insulated domestic counterparts. Alternatively, the higher productivity of exporters may simply reflect the self-selection of more efficient producers into a highly competitive export market. In this paper we use micro data collected in the manufacturing censuses in South Korea and Taiwan to study the linkages between a producer's total factor productivity and choice to participate in the export market. We find differences between the countries in the importance of selection and learning forces. In Taiwan, transitions of firms in and out of the export market reflect systematic variations in productivity as predicted by self-selection models. Firms with higher productivity, ex ante, tend to enter the export market and exporters with low productivity tend to exit. Moreover, in several industries, entry into the export market is followed by relative productivity improvements, a result consistent with learning-by-exporting forces. In South Korea, the evidence of self-selection on the basis of productivity is much weaker. In addition, unlike Taiwan, we find no significant productivity changes following entry or exit from the export market that are consistent with learning from exporting. Comparison of the two countries suggests that in Korea factors other than production efficiency play a more prominent role as determinants determinants of the export decision.

The Complementary Role of Exports and R&D Investments as Sources of Productivity Growth

This paper examines two potential channels of knowledge acquisition that underlie firm productivity growth in the Taiwanese electronics industry: participation in the export market and investments in R&D and/or worker training. We focus on the argument that a firm's own investments in R&D are necessary for the firm to assimilate knowledge or expertise gained from foreign contacts and thus are an important component of the process of learning-by-exporting. Firm-level panel data from 1986, 1991, and 1996 is used to investigate a firm's decision to invest in these two activities and to assess the effects of these investments on the firm's future total factor productivity. The empirical model consists of four equations. The firm's decisions to export and invest in R&D and/or worker training are modeled with a bivariate probit model that recognizes the interdependence of the decisions. We then estimate how participation in these investment activities alters the firm's future productivity trajectory while controlling for the potential selection bias introduced by endogenous firm exit. The primary empirical findings are that, on average, firms that export but do not invest in R&D and/or worker training have significantly higher future productivity than firms that do not participate in either activity. In addition, firms that export and invest in R&D and/or worker training have significantly higher future productivity than firms that only export. These findings are consistent with the hypothesis that export experience is an important source of productivity growth for Taiwanese firms and that firm investments in R&D and worker training facilitate their ability to benefit from their exposure to the export market.

Firm-level evidence on productivity differentials, turnover, and exports in Taiwanese manufacturing

Recent dynamic models of firm entry and exit emphasise the relationship between a firm's productivity and the decision to enter or exit. If firm turnover is driven by productivity differentials then the reallocation of resources across firms at the micro level can have important implications for aggregate or industry-level productivity change. Using comprehensive firm-level panel data from the Taiwanese Census of Manufactures for the years 1981, 1986, and 1991, this paper documents the extent of firm turnover in both the domestic and export markets, uses index numbers to measure differences in total factor productivity between entering, exiting, and continuing firms, and quantifies the contribution of firm turnover to industry productivity improvements. We find significant differences in productivity across manufacturing firms and these differences are reflected in turnover patterns. Cohorts of new firms have lower average productivity than incumbents but are themselves a heterogeneous group. The more productive members of the group survive and, in many cases, their productivity converges to the productivity level of incumbents. Exiting firms are also less productive than survivors. Differences in productivity are also reflected in movements of firms in and out of the export market. Firms that remain exporters over multiple years have the highest productivity while beginning exporters, whether they are new firms or older firms, follow behind them. All are more productive on average than firms that exit the export market who, in turn, are more productive than firms that never exported. These patterns are consistent with the view that both the domestic and export market sort out high productivity from low productivity firms and that the export market is a tougher screen. Unlike the findings for most other countries, the differential productivity between entering and exiting firms is an important source of industry-level productivity improvements in the Taiwan manufacturing sector

Productivity, output, and failure

노트 : The views expressed herein are those of the authors and not necessarily those of the National Bureau of Economic Research

Role of the Perigenual Anterior Cingulate and Orbitofrontal Cortex in Contingency Learning in the Marmoset.

Two learning mechanisms contribute to decision-making: goal-directed actions and the "habit" system, by which action-outcome and stimulus-response associations are formed, respectively. Rodent lesion studies and human neuroimaging have implicated both the medial prefrontal cortex (mPFC) and the orbitofrontal cortex (OFC) in the neural basis of contingency learning, a critical component of goal-directed actions, though some published findings are conflicting. We sought to reconcile the existing literature by comparing the effects of excitotoxic lesions of the perigenual anterior cingulate cortex (pgACC), a region of the mPFC, and OFC on contingency learning in the marmoset monkey using a touchscreen-based paradigm, in which the contingent relationship between one of a pair of actions and its outcome was degraded selectively. Both the pgACC and OFC lesion groups were insensitive to the contingency degradation, whereas the control group demonstrated selectively higher performance of the nondegraded action when compared with the degraded action. These findings suggest the pgACC and OFC are both necessary for normal contingency learning and therefore goal-directed behavior.This research was supported by a Programme Grant [G0901884] from the Medical Research Council UK (MRC) to ACR, and a Wellcome Trust Senior Investigator Award [104631 /Z/14/Z] to TWR. SAWJ was supported by a BCNI-MRC studentship. The authors wish to thank C. H Parkinson and R. Underwood for preparation of the histological material. T.W.R. consults for Cambridge Cognition, Lilly, Lundbeck, Teva, Shire Pharmaceuticals and Merck, Sharp and Dohme. He has received research grants from Lilly, Lundbeck and GSK. The remaining authors have no potential competing financial interests to disclose.This is the final version of the article. It first appeared from Oxford University Press via http://dx.doi.org/10.1093/cercor/bhw06

Safety and efficacy of fluticasone propionate in the topical treatment of skin diseases

Fluticasone propionate - the first carbothioate corticosteroid - has been classified as a potent anti-inflammatory drug for dermatological use. It is available as 0.05% cream and 0.005% ointment formulations for the acute and maintenance treatment of patients with dermatological disorders such as atopic dermatitis, psoriasis and vitiligo. This glucocorticoid is characterized by high lipophilicity, high glucocorticoid receptor binding and activation, and a rapid metabolic turnover in skin. Although skin blanching following fluticasone propionate exceeds that of corticosteroids of medium strength, several clinical trials demonstrate a low potential for cutaneous and systemic side-effects, even in difficult-to-treat areas like the face, the eyelids and intertriginous areas. Even among paediatric patients with atopic dermatitis, fluticasone propionate proved to be safe and effective. These pharmacological and clinical properties are reflected by the high therapeutic index of this glucocorticoid

Comprehensive analysis of type 1 fimbriae regulation in fimB -null strains from the multidrug resistant Escherichia coli ST131 clone

Summary\ud \ud Uropathogenic Escherichia coli (UPEC) of sequence type 131 (ST131) are a pandemic multidrug resistant clone associated with urinary tract and bloodstream infections. Type 1 fimbriae, a major UPEC virulence factor, are essential for ST131 bladder colonization. The globally dominant sub-lineage of ST131 strains, clade C/H30-R, possess an ISEc55 insertion in the fimB gene that controls phase-variable type 1 fimbriae expression via the invertible fimS promoter. We report that inactivation of fimB in these strains causes altered regulation of type 1 fimbriae expression. Using a novel read-mapping approach based on Illumina sequencing, we demonstrate that ‘off’ to ‘on’ fimS inversion is reduced in these strains and controlled by recombinases encoded by the fimE and fimX genes. Unlike typical UPEC strains, the nucleoid-associated H-NS protein does not strongly repress fimE transcription in clade C ST131 strains. Using a genetic screen to identify novel regulators of fimE and fimX in the clade C ST131 strain EC958, we defined a new role for the guaB gene in the regulation of type 1 fimbriae and in colonisation of the mouse bladder. Our results provide a comprehensive analysis of type 1 fimbriae regulation in ST131, and highlight important differences in its control compared to non-ST131 UPEC

Clinical signs of trachoma are prevalent among Solomon Islanders who have no persistent markers of prior infection with Chlamydia trachomatis.

Background: The low population-prevalence of trachomatous trichiasis and high prevalence of trachomatous inflammation-follicular (TF) provide contradictory estimates of the magnitude of the public health threat from trachoma in the Solomon Islands. Improved characterisation of the biology of trachoma in the region may support policy makers as they decide what interventions are required. Here, age-specific profiles of anti-Pgp3 antibodies and conjunctival scarring were examined to determine whether there is evidence of ongoing transmission and pathology from ocularChlamydia trachomatis (Ct)infection.Methods:A total of 1511 individuals aged ≥1 year were enrolled from randomly selected households in 13 villages in which >10% of children aged 1-9 years had TF prior to a single round of azithromycin mass drug administration undertaken six months previously. Blood was collected to be screened for antibodies to theCtantigen Pgp3. Tarsal conjunctival photographs were collected for analysis of scarring severity.Results:Anti-Pgp3 seropositivity was 18% in 1-9 year olds, sharply increasing around the age of sexual debut to reach 69% in those over 25 years. Anti-Pgp3 seropositivity did not increase significantly between the ages of 1-9 years and was not associated with TF (p=0.581) or scarring in children (p=0.472). Conjunctival scars were visible in 13.1% of photographs. Mild (p<0.0001) but not severe (p=0.149) scars increased in prevalence with age.Conclusions:Neither conjunctival scars nor lymphoid follicles were associated with antibodies toCt,suggesting that they are unlikely to be a direct result of ocularCtinfection.Clinical signs of trachoma were prevalent in this population but were not indicative of the underlying rates ofCtinfection. The current World Health Organization guidelines for trachoma elimination indicated that this population should receive intervention with mass distribution of antibiotics, but the data presented here suggest that this may not have been appropriate

Quark propagator, instantons and gluon propagator

The Schwinger-Dyson formalism is used to check the consistency of instanton model solutions for the quark propagator with recent models of confining gluon propagators. We find that the models are not consistent. A major discrepancy is the absence of a vector condensate in the instanton model that is present in the solutions with nonperturbative confining gluons.Comment: Latex file, no figure