tag:blogger.com,1999:blog-18156735.post2198808664413174526..comments2023-10-29T17:43:27.054+07:00Comments on café salemba: (Another) Natural Resource CurseUnknownnoreply@blogger.comBlogger5125tag:blogger.com,1999:blog-18156735.post-35491636663906519922007-10-04T10:40:00.000+07:002007-10-04T10:40:00.000+07:00Ah..I see now. That makes sense. Just a little tid...Ah..I see now. That makes sense. Just a little tidbit, when people talk about production network, they usually refer to the paper that you just gave the link. It's by Ng and Yeats. But, they rely on indexes such as RCA. They didn't really modelled the production network, they just showed you the indexes and based on that, concluded that there's an increasing trend towards production network.Pashahttps://www.blogger.com/profile/03040951834210426940noreply@blogger.comtag:blogger.com,1999:blog-18156735.post-59479319031486567832007-10-03T10:28:00.000+07:002007-10-03T10:28:00.000+07:00Oops, Pasha, yes you're right. It's a typo. I mean...Oops, Pasha, yes you're right. It's a typo. I meant <A HREF="http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/EXTEAPREGTOPINTECOTRA/0,,contentMDK:20551648~pagePK:34004173~piPK:34003707~theSitePK:580005,00.html#5" REL="nofollow">Revealed <B>Comparative</B> Advantage</A>. Now, it's corrected.Rizalhttps://www.blogger.com/profile/00173988218021291027noreply@blogger.comtag:blogger.com,1999:blog-18156735.post-6723794307213924092007-10-03T09:32:00.000+07:002007-10-03T09:32:00.000+07:00Rizal, What do you mean by "revealead competitive ...Rizal, <BR/><BR/>What do you mean by "revealead competitive advantage"? I find the term "competitive advantage" confusing. Here's why:<BR/><BR/>Porter said: "a competitive advantage, sustainable or not, exists when a company makes economic rents, that is, their earnings exceed their costs (including cost of capital). That means that normal competitive pressures are not able to drive down the firm's earnings to the point where they cover all costs and just provide minimum sufficient additional return to keep capital invested."<BR/><BR/>Notice the last sentence. Isn't that just another term for monopolist?Pashahttps://www.blogger.com/profile/03040951834210426940noreply@blogger.comtag:blogger.com,1999:blog-18156735.post-2903299653728244882007-10-02T01:52:00.000+07:002007-10-02T01:52:00.000+07:00The problem is, for national resource rich countri...The problem is, for national resource rich countries, engaging in production network, that is, redeploying capacity, deliberately setting for new products with competitive advantage, is costlier than for otherwise limited resource ones, even when (right) market price incentive is actually big. What can we do about it?Rizalhttps://www.blogger.com/profile/00173988218021291027noreply@blogger.comtag:blogger.com,1999:blog-18156735.post-44496056844685598842007-10-01T22:39:00.000+07:002007-10-01T22:39:00.000+07:00I couldn't agree more. This is the main reason why...I couldn't agree more. This is the main reason why Indonesia should enggage in production net-work. Specialization in non-resources tradable will minimize the risk of price volatilitydedehttps://www.blogger.com/profile/02871295963119954081noreply@blogger.com