Published articles and Book chapters:

1.   Divestiture and its implications for innovation and productivity growth in U.S telecommunications

Anusua Datta. Southern Economic Journal, Jan 2003, Vol. 69, Iss. 3, pg 644

Abstract:

This study has sought to determine the impact of policy changes that led to the breakup of the monopoly structure of US telecommunications on productivity and research activities of AT&T. A simultaneous-equations model is used to examine the relationship between research intensity, market share, firm size, and total factor productivity before and after divestiture. The results show that the effect of divestiture on productivity is negative but that competition has a significantly positive effect. Contrary to popular argument, competition led to significant increases in R&D investment by AT&T. The study also finds a strong and positive relationship between R&D and productivity in the post-divestiture period, marked by its absence in the post-divestiture years. Scale economies remain important, indicating the industry continues to favor large firms.

2.   Time-Series Tests of Convergence and Transitional Dynamics

Anusua Datta. Economics Letters. 2003, Vol. 81, pg 233

Abstract:

Time-series analysis of the “convergence hypothesis” has relied on standard cointegration techniques to test for the existence of convergence among groups of countries. However such models are based on the strong assumption that the long-run relationship between two series is time-invariant and linear. The assumption of ‘structural stability’ can erroneously lead to the rejection of convergence where it exists, if the process is nonlinear or is subject to structural shocks. The convergence debate is re-examined using time-series data on OECD countries, and relaxing the assumption of structural stability. Kalman filtering procedure is adopted, to capture dynamic behavior. The results from the study help to reconcile the seeming contradiction in the conclusions drawn from cross-section and time-series tests.

3.    The Changing Structure of U.S. Textiles: Productivity Implications

Susan Christoffersen,  Anusua Datta. The Journal of Business and Economic Studies.  Fall 2004.Vol.10, Iss. 2;  pg. 28.

Abstract:

International competition has intensified in the textile industry, which has forced structural changes on this industry. In this study, we investigate the nature of structural change in the domestic textile industry and its impact on productivity growth. From the results of the regression analysis we can conclude that greater capitalization and R&D; have a positive effect on total factor productivity (TFP). The impact of increased foreign competition is somewhat ambiguous. Regression results based on variables measured in levels suggest that foreign competition forces domestic textile industry to become more efficient and therefore increases TFP. However, the effect of the growth in import penetration on TFP growth is insignificant and maybe negative. Finally, productivity gains from investment in information technology are not evident in the textile industry and, if any, they appear to be negative.

4.    Telecommunications and economic growth: a panel data approach

Anusua Datta, Sumit Agarwal. Applied Economics,  2004.Vol.36, Iss. 15;  pg. 1649.

Abstract:

Telecommunication investment is increasingly identified as one with a strong potential to improve economic productivity and growth. The objective of this study is to investigate the long run relationship between telecommunications infrastructure and economic growth, using data from 22 OECD countries. A dynamic panel data method is used for estimation, which corrects for omitted variables bias of single equation cross-section regression. The 'fixed-effects' specification accounts for country specific differences in aggregate production functions. The results show a significant and positive correlation between telecommunications infrastructure and growth, after controlling for a number of other factors.

5.    Production Costs, Scale Economies and Technical Change: In U.S. Textile and Apparel Industries

Anusua Datta, Susan Christoffersen, Atlantic Economic Journal, June 2005,       Vol. 33, pg 201

Abstract:

The elimination of quotas in textiles and apparel pose new threats from import competition. To survive the sectors need to find least-cost methods of production. The production-cost structure of the U.S. textile and apparel industries is examined using a dual cost framework. A translog cost function is used to measure substitution elasticities between inputs, scale economies and the nature of technical change. The scope for factor substitution in textiles remains limited with all substitution elasticities being less than unity. Labor and materials are complements in apparel production, but there is evidence of substitution between capital and labor. The rate of technical change is higher in textiles than in apparel. Given the intense import competition from low wage countries, in both industries technical progress is labor saving. Overall economies of scale are larger in apparel, however, scale economies have continued to increase in textiles.

6.    Regional Trade Pacts and the Competitiveness of the U.S. Textile Industry

Anusua Datta, D.K. Malhotra, Philip Russel. Competitiveness Review. January 2006, Vol 16. (forthcoming)

Abstract:

The U.S. textile industry has gone through much upheaval in the past two decades. As protective barriers are gradually phased out the industry is faced with stiff foreign competition. Regional trade pacts, such as NAFTA and CBI, on the other hand help to improve the competitiveness of the domestic textile industry. This paper looks at the trends in U.S. textile trade with the various trading zones and the various factors influencing textile imports and exports. We examine the impact of the new global environment, the regional trade pacts, NAFTA and CBI on the changing nature and pattern of trade. The overall trends indicate a significant decline in imports from the EU countries, Asia remains significant, but NAFTA and CBI countries are quickly gaining ground over the old trading partners. The OECD remains the most significant destination for U.S. textile exports followed by NAFTA and Latin American countries.

Book Chapter:

7.    Economic Growth, R&D Spillovers and Convergence

Anusua Datta, Hamid Mohtadi and Mohsen Bahmani-Oskooee. Next Economic Growth: New Factors and New Perspectives, NOVA Publishing Company, New York. (forthcoming)

Abstract

New growth theory suggests that positive externalities from R&D activities can influence subsequent growth paths. Also international R&D spillovers should imply economic convergence. Cross-sectional examination of these hypotheses, assume stationarity of country growth rates and are subject to sample selectivity bias. We examine convergence using a time-series approach, focusing on per capita income deviations of each country from a reference country. Results show convergence for most OECD countries and divergence for most developing countries. OECD countries show a strongly positive own R&D effect. Further international R&D spillovers and trade are found to be associated with accelerating catch-up for most countries that converge.