Michael Ka Yiu Fung

Job turnover in China : a case study of Shanghai's manufacturing enterprises

This paper studies the job turnover among manufacturing enterprises in Shanghai during the period from 1989 to 1992. Various indicators of job turnover are calculated. The empirical results demonstrate that types of ownership and firm size are significant factors in accounting for the changes in job generation and job reallocation. Among various types of enterprise, international joint ventures and small firms are more able to create jobs and to generate job reallocation.

Measuring the technological leadership of international joint ventures in a transforming economy

Abstract Technical efficiency is introduced as an objective criterion for measuring the performance of international joint ventures in China. By using the technique of stochastic production frontier, we compute the estimates of time-invariant and time-varying technical efficiency in four major manufacturing industries in Shanghai. We show that international joint ventures are in general more technically efficient than domestic firms. In addition, the efficiency gaps between the international joint ventures and domestic firms in the industries of textile, machinery and equipment, and electronics and telecommunications equipment are widening in our sample period although the industrial reforms and active technology policies have improved the productivity of domestic firms. However, in the clothing industry, the technical efficiency of domestic firms, especially state-owned firms, is comparable to the efficiency leader, international joint ventures. These results are useful to assess the competitive advantages of international joint ventures in the Peoples Republic of China.

PATENT LENGTH AND PRICE REGULATION IN AN R&D GROWTH MODEL WITH MONOPOLISTIC COMPETITION

This paper considers the effects of patent length and price regulation in an RD increasing the cap on the price of patented products promotes growth below the monopoly-pricing level. Each policy instrument can raise welfare unless excessively used, and their welfare ranking depends on parameterizations. It is desirable, on welfare grounds, to limit patent protection along both dimensions, namely by limiting patent length and capping the price of patented products. Such limits raise welfare despite reducing the growth rate.

Analysing passenger network changes: The case of Hong Kong

Abstract Passenger throughput at Hong Kong International Airport (HKIA) has shown steady growth since its opening. Various aspects relating to HKIA have been studied in prior literature. This paper investigated changes in HKIAs passenger network for the period of 2001–2012 and used the gravity model to examine the key factors explaining its passenger traffic flows. The findings suggested that HKIAs passenger network has changed significantly and expanded to many new different destinations. Two regions (East Asia and Southeast Asia) were the most important markets for HKIA, and most key destinations connected by Hong Kong showed healthy growth. Nine factors could explain passenger traffic flows between Hong Kong and its key destinations: Hong Kong GDP per capita, GDP per capita of destinations connected by HKIA, distance, airport hub status of the destination airport, tourist destinations connected by HKIA, numbers of passenger airlines in service, bilateral trade flows, speaking a common language and having strong cultural/colonial links with Hong Kong, and the route presence of Cathay Pacific.

Economic Contribution to Hong Kong of the Aviation Sector: A Value-Added Approach

The emergence of air transport has greatly facilitated long-distance travel and the exchange of goods. The industry also contributes substantially to the economy. Our study measures the benefits that the aviation industry has brought to the Hong Kong economy using the value-added (VA) approach. We find that air transport itself and services that are incidental to the sector (direct benefits) contributed about 2.54 percent of gross domestic product (GDP) at factor cost (at current prices) in 2003, while trade services and the tourism industry (indirect benefits) contributed 4.48 percent. Hence, the total benefit brought by the aviation industry was 7.02 percent of GDP at factor cost (at current prices) in 2003. This demonstrates that the industry is a major component of the Hong Kong economy, and our findings should aid in understanding the effects of recent changes in aviation policies, which have altered the business environment of the aviation market.

Estimating Technical Efficiencies of Airports in the Greater China: Stochastic Output Distance Function Method vs. Data Envelopment Analysis Method

In this paper, we study the technical efficiencies of Chinese airportsby using multi-output stochastic output distance function analysis. The benefits of this approach are as follows: 1) It allows multiple-output and multiple-input analysis to be conducted in just one equation. However, in single-output production frontier analysis, two stages of empirical estimation are required.; 2) The estimated values of output distance are in fact the technical efficiency scores. We compare and contrast the estimated technical efficiencies computed based on the stochastic output distance function method with those computed based on DEA method. In terms of the ranking of efficiency scores, we conclude that both methods are consistent with each other.

Measuring the Efficiency of Ariports in China with the DEA and Endogenous-Weight TFP Methods.

The study of Chinese airport efficiency has been largely neglected, despite the Chinese civil aviation industrys recent impressive growth. The authors used the Data Envelopment Analysis and Endogenous-Weight Total Factor Productivity methods to study Chinese airport operational efficiency at 41 facilities, including regional airports, regional hubs, and international hubs. The studys empirical results show that among Chinese airports there is a statistically significant operational efficiency variation, and that strongly increasing returns to scale are exhibited by most Chinese airports, especially relatively efficient ones. Accordingly, a significant widening of the efficiency gap between Chinese airports may occur if investment is focused solely on efficient airports. A policy may need to be devised by the Civil Aviation Administration of China, therefore, not only to improve the operational efficiency of major airports, but also to maintain balanced regional airport development nationwide.

Development of Air Transport Industry in the Asia‐Pacific Region

The volume of air passengers and cargo in the Asia-Pacific region has grown significantly over the past decade due to the strong impetus of economic growth as well as trade and economic integration at both the regional and global levels. Although public funds have been the main source of financing for airports in most parts of the region, governments have increasingly resorted to privatization or are seriously considering it as a form of private sector participation enabling new airports to be built or existing airports to be upgraded. The present paper provides a brief survey of airport privatization in the Asia-Pacific region, discusses the relevant issues, and introduces the following five papers published in this special section on the air transport industry in the Asia-Pacific region.

Note on the Productivity Convergence of Airports in China

The present paper uses a Malmquist index measure of productivity growth to study the productivity convergence of 25 airports in China during the period 1995–2004. By decomposing the Malmquist index, we find evidence for the convergence of the efficiency level of airports, but not the productivity and technology levels. These results imply that the more productive airports are pushing the frontiers of technology faster by adopting new technology, and that the relative efficiency level of the laggards increases quickly and catches up with the efficiency level of the leaders over time.

The Air Cargo and Express Industry in Hong Kong: Economic Contribution and Competitiveness

With the support of DHL, FedEx, UPS, and TNT (Conference of Asia Pacific Express Carriers [CAPEC] members), we explore the economic contribution and competitiveness of Hong Kong?s air freight and express industry. Our findings show that the industry makes a significant contribution to Hong Kongs economic development and employment. Secondary data analysis reveals that with the rapid development of several airports in the Pearl River Delta region, the competitive position of Hong Kongs air freight and express industry is declining. To identify factors affecting the industrys competitiveness, we conduct interviews and a large-scale survey. The data collected indicate that customer request, customs efficiency, cost, and fast and reliable delivery are the main factors that influence user decisions regarding shipping via Hong Kong. Holdups at China Customs constitute one of the main reasons for cross-border shipment delays and cause great monetary loss among shippers. We also provide recommendations for government policy makers and service providers.