The effect of moving capital abroad on the domestic labour market is ambiguous. We examine the relation between capital outflow and unemployment with the use of panel data techniques. The result shows that in developing countries, the outward direct investment is beneficial to employment and the effect of portfolio investment abroad on domestic employment is negative. However, the association between outward investment and employment is insignificant in industrial countries.
The rate corridor regime, relying on lending and deposit facilities to set ceilings and floors for interbank overnight rates, has been practiced by many central banks. This paper modifies the theoretical model proposed by Bech and Klee (2011) to discuss the seller's bargaining power in Taiwan interbank overnight market under rate corridor system. We apply two-limit Tobit model to estimate the bargaining power. The empirical results show that the repo rate, policy indicator and index for reserves concentration have significantly positive relationship with seller's bargaining power. Meanwhile, the results imply that the interbank overnight rates rise with these three variables. The conclusions could be clearly observed from the predictions on the paths of the interbank overnight rate under various scenarios.
The needs of customization are increasing gradually. It leads to various and customized products and service. The issue "Mass Customization" also comes out for discussion. We use a game-theoretical model to discuss the competition between the firms with and without customization capability. We assume that the firm without customization capability can adjust the product characteristics by inputting advertising or selecting market location. We find that when the firm with customization capability chooses to customize products, the other firm that selects the market location as competition strategy would make itself more professional. Moreover, the firm with customization capability has the potential effect on decreasing other firms' profit. We also discuss how the relative size between the cost coefficient of market location and the cost coefficient of advertising input would affect the strategic choice of the two firms.
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