Purpose Due to the growing percentage share of urban dwellers, the physical distribution of products faces altering conditions. This research explores the effects that urbanization has on the performance of a fast-moving consumer goods distribution network. A focus is set on changes in distribution cost, the cost-minimal network design, and greenhouse gas emissions. Design/methodology/approach The analyses are based on a quantitative distribution network model of an existing manufacturer of consumer goods. Findings The results indicate that the foreseen population shift will affect the network's economic and environmental performance. Effects are, among others, due to differences in the efficiency of supplying urban and nonurban regions. The combined effects of urbanization and the development of the population size will even more affect the network's performance. Originality/value Research dealing with distribution logistics and urbanization primarily focuses on city logistics. In this paper, the object of analysis is the entire distribution system.

Purpose The purpose of this paper is to investigate the problem of fiscal sustainability for a panel of developing Asian economies. Design/methodology/approach In this study, cross-section dependence and heterogeneity are controlled while estimating the fiscal reaction function, which shows how governments react to the accumulation of public debt. The study employs the common correlated effects mean group estimator in Pesaran (2006) for a panel of 22 developing Asian economies for the period 1999‒2017. Findings It is found that the fiscal sustainability issue in the region is not so benign as in previous studies. Overall, fiscal policy is unsustainable, even for the nonlinear fiscal rule. Country-specific long-run coefficients are also examined in the study. Research limitations/implications The findings show that many developing economies in the region could not satisfy the intertemporal budget constraint, which raises concerns about debt sustainability in the area, especially for the post-crisis period. Originality/value This study investigates whether governments can maintain the sustainability of public finances in the long-run, if the ratios of public debt over GDP and primary deficit over GDP continue their recent problematic trends. Another novelty is controlling for heterogeneous effects among the countries in the region to give a more precise picture of debt sustainability. The empirical evidence also supports that insolvency risk can occur at low levels of public debt.

Purpose – The purpose of this paper is to estimate benefits to debt reduction by using the natural experiment provided by the debt relief programs: the Heavily Indebted Poor Countries Initiative launched by the International Monetary Fund and World Bank in 1996 and the Multilateral Debt Relief Initiative extension in 2005. Design/methodology/approach – The authors apply a time-shifted difference-in-differences strategy to evaluate the effects of this intervention. The date of each country’s decision to participate in the program is used as one treatment point while the date of the completion of the debt relief program is used as another treatment point. The exercise compares different economic outcomes such as domestic and foreign investment, schooling, and employment of the treated observations to the counterfactual of untreated country-years. The period between the decision and completion points is a short run while the period after the completion point is considered a long run. Findings – The authors found that debt relief increased capital investment as much as 1.63 percent in the short run and 5.79 percent in the long run. However, there was no effect on foreign direct investment suggesting that debt overhang does not affect incentives of foreign investors. Output and schooling enrollment increased both in the short and long run. Originality/value – This paper exploits a natural experiment of debt relief in a number of developing countries to shed light on the possible benefits to debt reduction. The authors are able to separate the short- and long-run effects of debt reduction. The finding that domestic but not foreign investment responds to debt reduction is suggestive of the differences in incentives across these two sources of investment.

This study investigates the determinants of total factor productivity in manufacturing firms in Vietnam using the cross-classified multilevel model. This model enables the study to provide a more proper estimation and to make clear distinctions between firms, region-specific effects, and sector-specific effects. This study combined a data set of Vietnamese manufacturing firms and sectoral variables gathered from the annual data of the Vietnam Enterprises Survey, Technology Competitiveness Survey, and some regional variables from the General Statistics Office’s Province Competitive Index during the period from 2011 to 2014. The study found that the main source of firm total factor productivity heterogeneity mostly originates at the firm level. In addition, the interaction between regional (provincial) and sectoral factors also contribute considerably to total factor productivity heterogeneity among firms. At the firm level, both firm size and expenses on technology have a significant positive effect on firm total factor productivity. In addition, firms with exporting activities seem to have a higher total factor productivity. At the regional level, the provinces with a high ratio of well-trained employees may have a positive impact on firm total factor productivity in that province. At the sectoral level, the concentration of sectors in a province may benefit firms belonging to that sector in that province. More interestingly, the study also indicates that the concentration of sectors in a province may benefit firms located in the provinces with a ratio of better trained employees. These findings could lead to policies not only at the firm level but also at the regional level and sectoral level to enhance total factor productivity.

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