IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v5y2017i4p45-d119541.html
   My bibliography  Save this article

Effects of Cost Factors on National Manufacturing Based on Global Perspectives

Author

Listed:
  • Fangtao Liu

    (School of Public Policy and Management, Tsinghua University, Beijing 100084, China)

  • Yong Ding

    (School of Mechanical, Electronic and Control Engineering, Beijing Jiaotong University, Beijing 100044, China)

  • Jia Gao

    (Business School, University of International Business and Economics, Beijing 100088, China)

  • Pu Gong

    (School of Public Policy and Management, Tsinghua University, Beijing 100084, China)

Abstract

Currently, the real economy is the important basis for the development of a country, especially after the global financial crisis in 2008. Given that the manufacturing industry is the main part of the national real economy, many developed and developing countries have paid considerable attention to its significance. This study focused on cost factors given that they influence national manufacturing development. Initially, this study proposed two elements, namely, manufacturing development scale and manufacturing development level, to evaluate national manufacturing development from two aspects: quantity and quality. Subsequently, we extracted a series of cost factors on the bass of the theoretical framework and literature, including labor costs, financing costs, tax and rental costs, energy and raw materials, foreign trade exports and business environments. On the basis of the data of 13 main manufacturing countries around the world from 2000 to 2015, we tested the influence degree of each cost element index on the scale and level of national manufacturing industry development through a two-way fixed effects model and incorporated it with the development of China’s manufacturing industry as a case study. Finally, we deduced the future development trend of the manufacturing industry by specifically analyzing the cost factors affecting the development of this industry and provided policy suggestions. The main innovation and contribution of this study including: to comprehensively evaluate the national manufacturing development from two aspects, namely, “quantity” and “quality”; to identify the impact of national cost of the six elements; to demonstrate and determine the extent of its impact on the development trend of manufacturing sector and carry out pre-judgment through empirical research on each indicator; to provide policy recommendations targeted for each of the indicators.

Suggested Citation

  • Fangtao Liu & Yong Ding & Jia Gao & Pu Gong, 2017. "Effects of Cost Factors on National Manufacturing Based on Global Perspectives," Economies, MDPI, vol. 5(4), pages 1-16, November.
    • Handle: RePEc:gam:jecomi:v:5:y:2017:i:4:p:45-:d:119541
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/5/4/45/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/5/4/45/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Takahiro Sato & Atsushi Kato, 2014. "Greasing the Wheels? The Effect of Corruption in Regulated Manufacturing Sectors of India," Discussion Paper Series DP2014-07, Research Institute for Economics & Business Administration, Kobe University.
    2. Janet Ceglowski & Stephen S. Golub, 2012. "Does China Still Have a Labor Cost Advantage?," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 12(3), pages 1-30, August.
    3. World Bank, 2011. "The Changing Wealth of Nations : Measuring Sustainable Development in the New Millennium," World Bank Publications - Books, The World Bank Group, number 2252.
    4. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 4.
    5. Janet Ceglowski & Stephen Golub, 2007. "Just How Low are China's Labour Costs?," The World Economy, Wiley Blackwell, vol. 30(4), pages 597-617, April.
    6. Miketa, Asami, 2001. "Analysis of energy intensity developments in manufacturing sectors in industrialized and developing countries," Energy Policy, Elsevier, vol. 29(10), pages 769-775, August.
    7. Zhen Xu & Jianbai Huang & Feitao Jiang, 2017. "Subsidy competition, industrial land price distortions and overinvestment: empirical evidence from China’s manufacturing enterprises," Applied Economics, Taylor & Francis Journals, vol. 49(48), pages 4851-4870, October.
    8. Christian Ragacs & Klaus Vondra, 2009. "Austria’s Exports to Eastern Europe: Facts and Forecasts Likely Impact of Slowing Exports on Growth in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 29-43.
    9. Kepplinger, D. & Templ, M. & Upadhyaya, S., 2013. "Analysis of energy intensity in manufacturing industry using mixed-effects models," Energy, Elsevier, vol. 59(C), pages 754-763.
    10. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 3.
    11. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 2.
    12. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 2.
    13. William E. James & Oleksandr Movshuk, 2004. "Shifting International Competitiveness: An Analysis of Market Share in Manufacturing Industries in Japan, Korea, Taiwan and the USA," Asian Economic Journal, East Asian Economic Association, vol. 18(2), pages 121-148, June.
    14. Giuliana Battisti & P. Stoneman, 2007. "The prices of material and intermediate inputs in UK manufacturing: identifying the contributions of world prices and domestic factor costs," Applied Economics, Taylor & Francis Journals, vol. 39(7), pages 859-882.
    15. Munisamy Gopinath & Mukti P. Upadhyay, 2002. "Human Capital, Technology, and Specialization: A Comparison of Developed and Developing Countries," Journal of Economics, Springer, vol. 75(2), pages 161-179, March.
    16. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 4.
    17. GUISAN, Maria-Carmen, 2008. "Manufacturing and Economic Development: Inter-sectoral relationships in Europe, America, Africa and Asia-Pacific, 1999-2006," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 8(2), pages 73-88.
    18. Richard Chisik & Bill Battaile & Harun Onder, 2014. "The Distribution of Natural Resource Rents and the Dutch Disease," Working Papers 042, Ryerson University, Department of Economics.
    19. Atsushi Kato & Takahiro Sato, 2014. "The effect of corruption on the manufacturing sector in India," Economics of Governance, Springer, vol. 15(2), pages 155-178, May.
    20. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 3.
    21. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chiemela Victor Amaechi & Idris Ahmed Ja’e & Ahmed Reda & Xuanze Ju, 2022. "Scientometric Review and Thematic Areas for the Research Trends on Marine Hoses," Energies, MDPI, vol. 15(20), pages 1-31, October.
    2. Yifei Li & Yuhang Bai, 2023. "Research on the Impact of Global Economic Policy Uncertainty on Manufacturing: Evidence from China, the United States, and the European Union," Sustainability, MDPI, vol. 15(14), pages 1-18, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kritana Prueksakorn & Cheng-Xu Piao & Hyunchul Ha & Taehyeung Kim, 2015. "Computational and Experimental Investigation for an Optimal Design of Industrial Windows to Allow Natural Ventilation during Wind-Driven Rain," Sustainability, MDPI, vol. 7(8), pages 1-22, August.
    2. Hualin Xie & Jinlang Zou & Hailing Jiang & Ning Zhang & Yongrok Choi, 2014. "Spatiotemporal Pattern and Driving Forces of Arable Land-Use Intensity in China: Toward Sustainable Land Management Using Emergy Analysis," Sustainability, MDPI, vol. 6(6), pages 1-17, May.
    3. Stephan E. Maurer & Andrei V. Potlogea, 2021. "Male‐biased Demand Shocks and Women's Labour Force Participation: Evidence from Large Oil Field Discoveries," Economica, London School of Economics and Political Science, vol. 88(349), pages 167-188, January.
    4. Tie Hua Zhou & Ling Wang & Keun Ho Ryu, 2015. "Supporting Keyword Search for Image Retrieval with Integration of Probabilistic Annotation," Sustainability, MDPI, vol. 7(5), pages 1-18, May.
    5. T. Karski, 2019. "Opinions and Controversies in Problem of The So-Called Idiopathic Scoliosis. Information About Etiology, New Classification and New Therapy," Biomedical Journal of Scientific & Technical Research, Biomedical Research Network+, LLC, vol. 12(5), pages 9612-9616, January.
    6. Wesley Mendes-da-Silva, 2020. "What Makes an Article be More Cited?," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 24(6), pages 507-513.
    7. Wisdom Akpalu & Mintewab Bezabih, 2015. "Tenure Insecurity, Climate Variability and Renting out Decisions among Female Small-Holder Farmers in Ethiopia," Sustainability, MDPI, vol. 7(6), pages 1-16, June.
    8. Wei Chen & Shu-Yu Liu & Chih-Han Chen & Yi-Shan Lee, 2011. "Bounded Memory, Inertia, Sampling and Weighting Model for Market Entry Games," Games, MDPI, vol. 2(1), pages 1-13, March.
    9. David Harborth & Sebastian Pape, 2020. "Empirically Investigating Extraneous Influences on the “APCO” Model—Childhood Brand Nostalgia and the Positivity Bias," Future Internet, MDPI, vol. 12(12), pages 1-16, December.
    10. Taeyeoun Roh & Yujin Jeong & Byungun Yoon, 2017. "Developing a Methodology of Structuring and Layering Technological Information in Patent Documents through Natural Language Processing," Sustainability, MDPI, vol. 9(11), pages 1-19, November.
    11. He-Yau Kang & Amy H. I. Lee & Tzu-Ting Huang, 2016. "Project Management for a Wind Turbine Construction by Applying Fuzzy Multiple Objective Linear Programming Models," Energies, MDPI, vol. 9(12), pages 1-15, December.
    12. A. B. Atkinson & Stephen P. Jenkins, 2020. "A Different Perspective on the Evolution of UK Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(2), pages 253-266, June.
    13. Haiyan Xu & Yanhui Ding & Jing Sun & Kun Zhao & Yuanjian Chen, 2019. "Dynamic Group Recommendation Based on the Attention Mechanism," Future Internet, MDPI, vol. 11(9), pages 1-15, September.
    14. Adina Letiţia Negruşa & Valentin Toader & Aurelian Sofică & Mihaela Filofteia Tutunea & Rozalia Veronica Rus, 2015. "Exploring Gamification Techniques and Applications for Sustainable Tourism," Sustainability, MDPI, vol. 7(8), pages 1-30, August.
    15. Ahmad N. Alkenani & Mohammad Ashraf & Ghulam Mohammad, 2020. "Quantum Codes from Constacyclic Codes over the Ring F q [ u 1 , u 2 ]/〈 u 1 2 - u 1 , u 2 2 - u 2 , u 1 u 2 - u 2 u 1 〉," Mathematics, MDPI, vol. 8(5), pages 1-11, May.
    16. Shang-Yuan Chen & Jui-Ting Huang, 2012. "A Smart Green Building: An Environmental Health Control Design," Energies, MDPI, vol. 5(5), pages 1-16, May.
    17. Yanhong Feng & Xu Yu & Gai-Ge Wang, 2019. "A Novel Monarch Butterfly Optimization with Global Position Updating Operator for Large-Scale 0-1 Knapsack Problems," Mathematics, MDPI, vol. 7(11), pages 1-31, November.
    18. Xiaoshu Cao & Feiwen Liang & Huiling Chen & Yongwei Liu, 2017. "Circuity Characteristics of Urban Travel Based on GPS Data: A Case Study of Guangzhou," Sustainability, MDPI, vol. 9(11), pages 1-21, November.
    19. S. B. Reshetnikov & M. R. Skirdov, 2017. "Analysis of methodological approaches to determination and assessment of the human capital," Russian Journal of Industrial Economics, MISIS, vol. 10(1).
    20. Mi Jung Son & Jin Han Park & Ka Hyun Ko, 2019. "Some Hesitant Fuzzy Hamacher Power-Aggregation Operators for Multiple-Attribute Decision-Making," Mathematics, MDPI, vol. 7(7), pages 1-33, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:5:y:2017:i:4:p:45-:d:119541. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.