Heli Arminen

Emerging market patterns in the recycled paper trade

The international recovered paper trade serves two important functions: increasing raw material availability in the paper and board industry and providing economic incentives to recycle. The purpose of this paper is to shed further light on emerging patterns in this trade by empirically analysing the changes in the bilateral trade flows of recycled paper between 1992 and 2008. According to our estimations, two important changes occurred in the 1990s and 2000s. First, the growing importance of developing economies in global recycled paper trade plays a significant role in import demand as a determinant of trade flows. Second, the changes in global trade patterns necessitate investigating the transportation cost measures used in applied research.

Structural changes and effects of R&D investments in the pulp and paper industry

This study examines the strategic investment choices made in pulp and paper industry (PPI) within the last two decades. We first describe investments, initiated projects, and closures of pulp and paper mills and profitability of the 22 largest pulp and paper companies in North America, Western Europe and Japan. We then examine the development and impact of R&D investments by comparing the timing of R&D investments with changes in profitability. The results indicate that the relationship between R&D and profitability is company specific. Our findings indicate further that the logic of R&D investment differs across firms; in some companies, changes in profits cause changes in the R&D investment level, whereas in others the opposite holds. It also seems that the sample companies have not actively sought new market opportunities through innovation activity, but rather by geographical re-location of production.

Online content: who is willing to pay and for what?

Many newspapers are struggling to convert their online news into profitable products, and one of the means to this end is to charge fees for using online news services. At the same time, however, consumers have not been willing to pay for online news services. According to recent findings, consumers do not choose between online news and printed newspapers, but they use both types of news media simultaneously. In this study, we identify four consumer segments, based on their multiplatform media use patterns, and assess whether these segments differ in their levels of willingness to pay for online content. Our empirical work indicates that the consumer segments, which use interactive or entertainment content in the online news services are more willing to pay for online content compared to those who only seek news in both media. Also, implications with respect to customer value and online content development are discussed.

Corporate social and financial performance in different industry contexts: the chicken or the egg?

Purpose - The purpose of the paper is to examine empirically Granger causality relationships between corporate social performance (CSP) and corporate financial performance (CFP) in four different industries. Design/methodology/approach - The paper uses the Granger causality test to analyse the causality relationships between CSP and CFP in clothing, energy, food and forest industries in the USA. The panel data used combined CSP and CFP measures over the years 1991-2009. CSP strengths and concerns are handled as distinct constructs. Findings - There is some evidence of bidirectional causality between CSP and CFP in the clothing, energy and forest industries; but in the food industry, CSP appears not to Granger-cause CFP. The results encourage accounting for the industry in empirical analyses, as well as the use of more than one measure for CFP in the analyses. Originality/value - The direction of causality between CSP and CFP has been specifically addressed in only a few studies. Because the causality relationship may, in addition, be concealed when multi-industry data are used, this paper contributes to the literature by examining the Granger causality between CSP and CFP in four different industry contexts using two different measures of CFP.

Exploring the factors affecting the Clean Development Mechanism in the developing countries

The primary goal of the Clean Development Mechanism (CDM) of the Kyoto Protocol is to reduce the costs of greenhouse gas emission abatement for Annex I countries (developed countries). Furthermore, the mechanism aims at sustainable development in the developing economies. However, there has been an uneven distribution of CDM projects among the developing countries, and a major share has gone to only a few developing economies such as India, China, Brazil and Mexico. In this paper, we explore the factors that have affected the number and scope of CDM activities in the developing countries. We use the Poisson and censored regressions as our estimation methods. Our results suggest that the quality of institutions and the size of the potential host country have been particularly important determinants of the number of CDM projects hosted so far in the developing countries. The main policy implications include the importance of increasing the pace for fulfilling the institutional requirements of the CDM, improving the government structure to become free from corruption and engaging more in capacity building in order to attract more CDM projects. But improvements also in the infrastructure, most specifically in electricity capacity, are crucial in order to make the CDM activities viable in the developing countries.

Trend breaks in Finnish inventory intensities: a small open economy perspective

In this paper, we analyse econometrically the Finnish inventory to value added ratios (i.e., inventory intensities) within manufacturing and two subcategories, the wood and paper industry and manufacture of electrical products. The focus is on the period 1980–2009. In addition to revealing the statistically significant break points in the inventory intensity, we estimate the numbers, timings and magnitudes of the structural breaks. After determining the break points, we connect them to transaction, buffering and speculative motives for holding inventories. The properties of the break points observed suggest that the motives continue to play a role in modern small open economies and, therefore, they can be utilised by managers when trying to forecast the behaviour of inventories.

Simultaneous Equations Modeling in the Energy-Growth Nexus

Abstract This chapter presents a simplified simultaneous equations model that can be used in the energy-growth nexus (EGN). Key concepts related to simultaneous equations modeling (SEM) are illustrated. SEM estimation methods with cross-sectional, time-series and panel data are also covered, and the framework is used to demonstrate the methods in practice. This chapter concludes with recommendations for future research.

GDP, FDI, and exports in East and Central African countries: a causality analysis

This study examines Granger causality among gross domestic product (GDP), foreign direct investment (FDI), and exports in seven East and Central African countries using time series and panel data from 1989 to 2011. We employ a vector error correction model to examine the interrelationship among the variables for Tanzania, while we employ a vector autoregressive model for the other countries. The findings suggest unidirectional causality from exports to GDP in Burundi, Tanzania and Uganda. The results also indicate causality from FDI to GDP in Rwanda, Tanzania and Uganda, while GDP appears to Granger-cause FDI in Rwanda and Tanzania. Furthermore, FDI Granger-causes exports in Uganda, while exports Granger-cause FDI in Rwanda. The results also show that GDP Granger-causes exports in the Democratic Republic of the Congo. Bidirectional causality is only observed between FDI and GDP in Rwanda and Tanzania. The results from the panel data analysis indicate that there is bidirectional causality between FDI and exports and unidirectional causality from exports and FDI to GDP.