James R. Markusen | |
---|---|
Born | Minneapolis, Minnesota | April 26, 1948
Nationality | American |
Occupation(s) | Economist, academic and author |
Academic background | |
Education | B.A., Economics PHD, Economics |
Alma mater | Boston College |
Thesis | Cooperative and Non-cooperative Control of International Common Property Resources (1975) |
Academic work | |
Institutions | University of Colorado |
James R. Markusen is an American economist,academic,and author. He is Distinguished Professor (emeritus) at the University of Colorado,Boulder. [1]
Markusen is known for his works using analytical theory,numerical simulation,and empirical estimation. Among his authored works are publications in the American Economic Review , the Quarterly Journal of Economics ,and the Journal of International Economics , [2] as well as books such as Multinational Firms and the Theory of International Trade. [3]
Markusen is a Research Associate at the National Bureau of Economic Research,a Research Fellow at the Centre for Economic Policy Research,London, [4] and an affiliate at CESifo,Munich. [5] He has served as the co-editor of Journal of International Economics.
Markusen completed his B.A. in Economics in 1970 from Boston College. Later in 1973,he obtained a PHD in Economics under the supervision of James E. Anderson and John G. Riley from the same institution. [6]
Markusen began his academic career in 1972 by joining the University of Western Ontario as a professor of economics and served until 1990. In 1990,he joined the University of Colorado,where he held multiple appointments including serving as a university Distinguished Professor,Stanford Calderwood Professor of Economics from 2000 to 2003 and continues to hold the position of Distinguished Professor emeritus at the same institution. From 2008 to 2010,he served as a professor of economics at University College Dublin. In 2017,he became an Adjunct Professor at Shandong University,a position he held until 2020. [1]
Between 1999 and 2004,he worked as a research associate at the Centre for Economics and Business Research,Copenhagen. Concurrently,he served as an Economic Policy Panelist at the Centre for Economic Policy Research London in 2000 and 2001. Since 1996,he has been a Research Fellow at the Centre for Economic Policy Research,London,and also held the position of research associate at the Institute for International Integration Studies at Trinity College Dublin since from 2003 to 2004. Additionally,he has been a research associate at the National Bureau of Economic Research since 1990. [7]
Markusen's research has focused on analytical theory,empirical estimation,and numerical simulation. He has authored publications spanning the areas of multinationals,international trade,modeling and simulation,and microeconomics including books,book chapters,and articles in peer-reviewed journals. [2]
Markusen's international trade and economics research has contributed to the identification of factors that influence trade patterns. His early research investigated how multinational firms can strategically manage their valuable knowledge capital when expanding abroad,considering options like exporting,licensing,and subsidiary acquisition,while analyzing the factors influencing these choices and their impact on international specialization patterns. [8] Focusing his research efforts on the complex decision-making process of whether and how various issues should be combined in international trade negotiations,he along with Ignatius J. Horstmann proposed a formal framework using a two-issue bargaining model,highlighting the potential benefits and trade-offs of both separate negotiations and linked negotiations. [9] His 2007 synthetic analysis with Anthony J. Venables explored how countries' participation in the global economy,considering factors like trade costs and trade fragmentation,impacts their production specialization,trade volume,and welfare levels,revealing that while fragmentation generally increases trade and welfare,some countries may experience negative effects. [10] In related research,he used gains-from-trade theory to analyze the effects of trade expansion through fragmentation and offshoring of new goods and intermediates and highlighted how changing trade dynamics in fragmented economies can affect the conditions under which countries benefit from liberalization. [11] More recently in 2014,his study proposed an alternative approach to international trade analysis by examining the relationship between the characteristics of goods and services in production and consumer preferences and established a strong correlation between skilled-labor intensity and income elasticity. [12]
Markusen in his research has extensively explored the role of multinationals in the international economy. Beginning with a 1984 article,Markusen changed the focus of multinational-firm research from a macroeconomic capital market orientation to one emphasizing location and production,thereby integrating multinationals with microeconomic trade theory. His early and subsequent work advanced the view that multinationals are primarily "horizontal" firms in which affiliates roughly replicate the firms' core activities abroad to serve local markets,rather than "vertical" firms in which affiliates are links in production chains. [13]
In his 1995 study,Markusen examined real-world data concerning multinational corporations and developed a theory on the idea of knowledge capital as a transferable element to distant production units,elucidating the reasons that drive international production. [14] In related research,he suggested that firms can geographically separate knowledge-based activities from production,resulting in vertical and horizontal multinational corporations,with skilled-labor intensity driving the former and joint-input characteristics driving the latter. [15] While examining the different theories of multinational firms,he developed his hybrid Knowledge Capital Model,which combined elements of both vertical and horizontal models,and provided a representation of the determinants of foreign direct investment. [16] In his assessment of a firm's mode of operation, [17] his work concluded that the choice between direct market entry and using a local agent depends on factors like market size and the potential for asset dissipation through agent opportunistic behavior,lower profits,with direct investment being favored in larger markets with lower downside profit-risk. [18]
Focusing on the role of multinational firms in international economics,Markusen's book titled Multinational Firms and the Theory of International Trade provided insights into the interplay among scale economies,expenses related to trade,factor endowments,and instances of imperfect competition. [3] A. Kokko,while reviewing the book commended Markusen's efforts in presenting a consistent general-equilibrium-theory of Multinational Firms and said "Markusen has succeeded on all three counts,although it may be somewhat of an exaggeration to say that it has been done easily:it has taken some 20 years and plenty of innovative methodology to reach a stage where the work can be summarized in one book." [19] Concentrating his research efforts on investment liberalization and its impact on the location of firms,his study bridged the gap between the industrial organization approach and general-equilibrium trade theory,providing an understanding of international trade. [20] Furthermore,his work highlighted the limitations of existing research in the field of multinational enterprises and emphasized the need for more formal and comprehensive theoretical frameworks that can effectively link assumptions with conclusions. [21] Moreover,in his 2021 book titled Broadening Trade Theory:Incorporating Market Realities Into Traditional Models,he provided a view of trade theory by exploring the roles of multinational firms,demand-side dynamics,and various policy implications that have been less explored in mainstream trade economics. [22]
Markusen's modeling and simulation research has resulted in the development of new theories and models of international trade. [23] [24] [25] [26] In his early research,he developed a theoretical model for multinational enterprises based on shared input efficiencies,and analyzed the trade-offs between technical efficiency gains and increased market power,along with broader welfare implications for different countries. [13] Later in 1995,he presented a model that challenged some prevailing assumptions from the 'new trade theory' and offered an alternative perspective on the dynamics of international economic relationships. [27] In 2000,he along with Anthony J. Venables developed a model of international trade with positive trade costs and endogenous multinational firms,showing how trade costs impact trade patterns,and incentivize factor mobility and agglomeration. [28] His 2001 study with Mattias Ganslandt introduced modeling approaches for representing international trade standards and technical regulations and advocated for their incorporation into an applied general-equilibrium framework using authentic data. [29] Focusing his research efforts on modeling the offshoring of white-collar services,his work proposed using existing trade theory as a foundation,while adapting and combining relevant concepts into simple models,to analyze the offshoring of white-collar services and its effects in response to technological and institutional changes. [30] Moreover,in 2009,he analyzed the interaction between optimal trade policy and firm pricing using a generalized model incorporating product differentiation and revealed that when similarity exists in substitution elasticities at national and sub-national levels,the capacity of small economies to enhance terms of trade via trade imbalances is constrained. [31]
Markusen's regional economics research has investigated how factors such as infrastructure and education,impact economic development across different regions. In collaboration with Nancy Olewiler and others,he presented a two-region economic model in which a polluting firm's market presence and environmental policies were influenced by the level of disutility from pollution,leading to either competition through higher environmental standards or through undercutting pollution tax rates between regions. [32] [33] In his analysis of domestic-content rules in regional trade agreements,his study suggested that domestic-content rules in regional trade agreements,especially in industries with foreign multinationals heavily reliant on imported inputs,can lead to anti-competitive effects,potentially decreasing industry output and shifting economic rents to domestic firms. [34] While examining the impact of Free Trade Area of the Americas (FTAA) on investment strategies of multinational firms outside the region,his work highlighted that while FTAA integration offers opportunities for third-country firms,the competitive advantages enjoyed by insider firms from the Americas could potentially lead to less substantial benefits for the former. [35] [36] More recently in 2022,he investigated changes in employment concentration and specialization across industries and occupations in United States regions and proposed a model where regional specialization is influenced by function-specific productivity differences. The research also demonstrated that decreasing costs of sourcing functions from different regions leads to reduced sector concentration and regional specialization but increased function concentration and specialization. [37]
Markusen's microeconomics research has identified microeconomic factors driving external economies,analyzed their impact on production and welfare using a general-equilibrium model,and explored how resulting industry production functions relate to established trade and growth theories. [38] Moreover,he developed a unified model to analyze the impact of foreign-owned firms on domestic wages and suggested that being employed by a highly productive company,whether from one's own country or from abroad,leads to favorable outcomes for personal productivity. [39]
An oligopoly is a market in which pricing control lies in the hands of a few sellers.
Comparative advantage in an economic model is the advantage over others in producing a particular good. A good can be produced at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to trade. Comparative advantage describes the economic reality of the gains from trade for individuals, firms, or nations, which arise from differences in their factor endowments or technological progress.
In economics, internationalization or internationalisation is the process of increasing involvement of enterprises in international markets, although there is no agreed definition of internationalization. Internationalization is a crucial strategy not only for companies that seek horizontal integration globally but also for countries that addresses the sustainability of its development in different manufacturing as well as service sectors especially in higher education which is a very important context that needs internationalization to bridge the gap between different cultures and countries. There are several internationalization theories which try to explain why there are international activities.
A foreign direct investment (FDI) refers to purchase of an asset in another country, such that it gives direct control to the purchaser over the asset. In other words, it is an investment in the form of a controlling ownership in a business, in real estate or in productive assets such as factories in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment or foreign indirect investment by a notion of direct control.
A market anomaly in a financial market is predictability that seems to be inconsistent with theories of asset prices. Standard theories include the capital asset pricing model and the Fama-French Three Factor Model, but a lack of agreement among academics about the proper theory leads many to refer to anomalies without a reference to a benchmark theory. Indeed, many academics simply refer to anomalies as "return predictors", avoiding the problem of defining a benchmark theory.
International business refers to the trade of goods and service goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It includes all commercial activities that promote the transfer of goods, services and values globally. It may also refer to a commercial entity that operates in different countries.
The gravity model of international trade in international economics is a model that, in its traditional form, predicts bilateral trade flows based on the economic sizes and distance between two units. Research shows that there is "overwhelming evidence that trade tends to fall with distance."
Stephen Herbert Hymer was a Canadian economist. His research focused on the activities of multinational firms, which was the subject of his PhD dissertation The International Operations of National Firms: A Study of Direct Foreign Investment, presented in 1960, but published posthumously in 1976, by the Department of Economics from Massachusetts Institute of Technology. Charles P. Kindleberger, his thesis supervisor, submitted it for publication, as mentioned by him on the introduction of Hymer's thesis dissertation.
In international economics, international factor movements are movements of labor, capital, and other factors of production between countries. International factor movements occur in three ways: immigration/emigration, capital transfers through international borrowing and lending, and foreign direct investment. International factor movements also raise political and social issues not present in trade in goods and services. Nations frequently restrict immigration, capital flows, and foreign direct investment.
Mark Casson is a British economist and academic. He is a professor of economics at the University of Reading in England. He served as Head of the Department of Economics from 1987 to 1994 and is currently the Director of the Centre for Institutional Performance at the same institution.
The eclectic paradigm, also known as the OLI Model or OLI Framework, is a theory in economics. It is a further development of the internalization theory and published by John H. Dunning in 1979. Modern Trade Theory incorporates this paradigm using the Grossman-Hart-Moore Theory of the firm
The home market effect is a hypothesized concentration of certain industries in large markets. The home market effect became part of New Trade Theory. Through trade theory, the home market effect is derived from models with returns to scale and transportation costs. When it is cheaper for an industry to operate in a single country because of returns to scale, an industry will base itself in the country where most of its products are consumed in order to minimize transportation costs. The home market effect implies a link between market size and exports that is not accounted for in trade models based solely on comparative advantage.
Rajneesh Narula, is an economist and academic. He is Professor of International Business Regulation and Director of the John H. Dunning Center for International Business at Henley Business School, University of Reading in Reading, UK.
Internalization theory is a branch of economics that is used to analyse international business behaviour. Internalization theory focuses on imperfections in intermediate product markets. Two main kinds of intermediate product are distinguished: knowledge flows linking research and development (R&D) to production, and flows of components and raw materials from an upstream production facility to a downstream one. Most applications of the theory focus on knowledge flow. Proprietary knowledge is easier to appropriate when intellectual property rights such as patents and trademarks are weak. Even with strong protections firms protect their knowledge through secrecy. Instead of licensing their knowledge to independent local producers, firms exploit it themselves in their own production facilities. In effect, they internalise the market in knowledge within the firm. The theory claims the internalization leads to larger, more multinational enterprises, because knowledge is a public good. Development of a new technology is concentrated within the firm and the knowledge then transferred to other facilities.
The Reading School of International Business is widely understood in the field of international business (IB), management and economics to embody a stream of conceptual, and theoretically-driven empirical research, and consists of a group of economists that have a common approach to analyzing multinational enterprise and foreign direct investment. Some are based in the Department of Economics and in Henley Business School at the University of Reading, England, but membership is international. The Reading School builds upon the pathbreaking theoretical work of Peter Buckley and Mark Casson on internalization theory. This was complemented by simultaneous work by John Dunning as he developed the eclectic paradigm of international business as an envelope explanation containing three principal drivers of foreign direct investment, comprising ownership (O); location (L); and internalization (I). The Reading School approach continues through the work of its academic disciples around the world, as well as through The John Dunning Centre at Henley Business School, University of Reading, under the directorship of Rajneesh Narula.
Elizabeth Asiedu is a professor of economics at the University of Kansas. She has facilitated research that is centered around foreign aid, foreign directed investment (FDI), and gender. She is a founder of the Association for the Advancement of African Women (AAAWE), as well as the current president of the organization. Asiedu is an editor of the Journal of African Development.
Robert Christopher Feenstra is an American economist, academic and author. He is the C. Bryan Cameron Distinguished Chair in International Economics at University of California, Davis. He served as the director of the International Trade and Investment Program at the National Bureau of Economic Research from 1992 to 2016. He also served as Associate Dean in the Social Sciences at the University of California, Davis from 2014 to 2019.
Shaomin Li is a Chinese-American sociologist, economist, academic, author, and artist. He is a professor of Management and International Business, Eminent Scholar, and Chair of the Department of Management at Old Dominion University (ODU).
{{Infobox academic | name = Assaf Razin | image = | image_size = | caption = | birth_date = 1941 | birth_place = Shamir, Israel | death_date = | death_place = | occupation = Economist, academic and author | boards = First International Bank of Israel
Gan-Shmuel Foods | spouse = Shula Razin
Rezaul Kabir is a management scholar specializing in corporate finance and corporate governance. He has conducted cross-disciplinary, empirical and policy-oriented research collaborating with scholars from many different countries. Some of his famous works are on capital market regulation, ownership and control of corporations, capital structure, executive compensation, financial crisis, political connections, and microfinance. Most of his research papers are publicly available on the Social Science Research Network.