The Effects of Globalisation on Firm and Labour Performance

This book examines driving factors and the effects of globalisation on economic development through firm and product-level data. The book is organised into four themes, i.e., productivity, innovation, wage and income gap, and within-firm reallocation of resources. The comprehensiveness and richness of firm and product-level data shed light upon the channels through which trade and investment affect firms’ competitiveness and unveil factors shaping firms’ heterogeneous responses towards globalisation. The book looks at Asian economies as well as Australia and how they have experienced substantial structural change and become more integrated into the global economy and will be a useful reference for those who are interested in learning more about the relationship between globalisation and firm performance. This book will appeal to policy makers and researchers interested in the impact of globalisation on firm performance.

List of Figures 1 Introduction 1 CHIN HEE HAHN, DIONISIUS NARJOKO, HA THI THANH DOAN AND SHUJ IRO UR ATA 2 The link between innovation and export performance of Australian SMEs 10 ALFONS PALANGKAR AYA 3 Trade reforms, competition, and innovation in the Philippines 34 R AFAELITA M. ALDABA 4 FDI forward linkage effect and local input procurement: evidence from Indonesian manufacturing 62 SADAYUKI TAKI I AND DIONISIUS NARJOKO 5 Exporting, productivity, innovation and organization: evidence from Malaysian manufacturing 81 CASSEY LEE 6 Trade liberalization and the wage skill premium in Korean manufacturing plants: do plants’ R&D and investment matter? 93 CHIN HEE HAHN AND YONG-SEOK CHOI 7 Trade, technology, foreign firms, and the wage gap: case of Vietnam manufacturing firms 113 SHANDRE MUGAN THANGAVELU 8 Does real exchange rate depreciation increase productivity?: analysis using Korean firm-level data 134 BO-YOUNG CHOI AND JU HYUN PYUN 9 Worker training, firm productivity, and trade liberalization: evidence from Chinese firms 169 QING LIU, LARRY D. QIU AND MIAOJ IE YU 10 Trade protection and firm productivity: evidence from Thai manufacturing 188 JUTHATHI P JONGWANICH AND ARCHANUN KOHPAIBOON 11 Overseas expansion and domestic business restructuring in Japanese firms 214 KEIKO ITO AND KENTA IKEUCHI 12 The impacts of import tariff reduction on income growth and distribution in urban China 241 MI DAI AND Y IFAN ZHANG 13 Overseas production expansion and domestic transaction networks 263 K AZUNOBU HAYAK AWA AND TOSHIYUKI MATSUUR A 14 The exchange rate and exporting: evidence from the Indonesian manufacturing sector 282 CHANDR A TRI PUTR A AND DIONISIUS NARJOKO

Chin Hee Hahn is Professor of Economics at Gachon University and the editor-in-chief of The Korean Economic Forum of Korean Economic Association. Dionisius Narjoko is a senior economist at the Economic Research Institute for ASEAN and East Asia (ERIA). Ha Thi Thanh Doan is an economist at the Economic Research Institute for ASEAN and East Asia (ERIA). Shujiro Urata is Professor of Economics at Graduate School Asia-Pacific Studies, Waseda University, Senior Research Advisor, Economic Research Institute for ASEAN and East Asia (ERIA).