Just-in-Case Inventories : A Cross-Country Analysis
The authors find that raw materials inventories in the manufacturing sector in the 1970s and 1980s were two to three times higher in developing countries than in the United States, despite the fact that in most developing countries real interest ra...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/04/2191897/just-in-case-inventories-cross-country-analysis http://hdl.handle.net/10986/18262 |
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okr-10986-182622021-04-23T14:03:42Z Just-in-Case Inventories : A Cross-Country Analysis Guasch, J. Luis Kogan, Joseph RAW MATERIALS INVENTORIES VALUATION MANUFACTURING SECTOR DEVELOPING COUNTRIES REAL INTEREST RATES COMPETITIVENESS INFRASTRUCTURE REGULATORY FRAMEWORK MARKET DIFFICULTIES CROSS-COUNTRY EXPERIENCE STANDARD DEVIATIONS INDUSTRIAL STATISTICS ACCOUNTING ACTUAL COSTS AFFILIATES BASIC METALS CENTRAL GOVERNMENTS COAL COMPETITIVENESS COST OF CAPITAL CURRENT EXPENDITURES DEFICITS DEVELOPED COUNTRIES ECONOMIC GROWTH ECONOMICS LITERATURE ECONOMIES OF SCALE ECONOMISTS EMPIRICAL ANALYSIS EMPLOYMENT EXPECTED VALUE EXPORT GROWTH EXPORTS FIXED COSTS GDP GDP DEFLATOR GDP PER CAPITA GROSS SALES GROSS VALUE GROWTH RATE IMPORTS INCOME INEFFICIENCY INFLATION INFLATION RATE INSURANCE INTEREST RATE INTERMEDIATE GOODS INVENTORIES INVENTORY INVENTORY MODELS LOW INTEREST RATES MARGINAL COST MERCHANDISE MERCHANDISING OBSOLESCENCE OPTIMIZATION PENALTIES PRODUCTION COSTS PRODUCTION TECHNOLOGY PUBLIC ENTERPRISES PURCHASING QUALITY ASSESSMENT RENT SEEKING RETAIL RETAILING SAVINGS SOCIAL SERVICES STATISTICAL ANALYSIS STOCKS SUPPLIERS TAX REVENUE TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT VALUE ADDED VOLATILITY WORKING CAPITAL INDUSTRIAL STATISTICS ACCOUNTING The authors find that raw materials inventories in the manufacturing sector in the 1970s and 1980s were two to three times higher in developing countries than in the United States, despite the fact that in most developing countries real interest rates were at least twice as high. Those significantly high levels of inventories are a burden and an obstacle to country competitiveness and need to be addressed. Poor infrastructure and ineffective regulation, as well as deficiencies in market development, rather than the traditional factors used in inventory models (such as interest rates and uncertainty), are the main determinants and explain these differences. Cross-country estimations show that a one standard deviation worsening of infrastructure increases raw materials inventories by 11 percent to 37 percent, and a one standard deviation worsening of markets increases raw materials inventories by 18 percent to 37 percent. These findings are robust across a number of different proxies and specifications, including an industry-level specification that controls for fixed country effects. 2014-05-12T18:45:52Z 2014-05-12T18:45:52Z 2003-04 http://documents.worldbank.org/curated/en/2003/04/2191897/just-in-case-inventories-cross-country-analysis http://hdl.handle.net/10986/18262 English en_US Policy Research Working Paper;No. 3012 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Caribbean Latin America |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
RAW MATERIALS INVENTORIES VALUATION MANUFACTURING SECTOR DEVELOPING COUNTRIES REAL INTEREST RATES COMPETITIVENESS INFRASTRUCTURE REGULATORY FRAMEWORK MARKET DIFFICULTIES CROSS-COUNTRY EXPERIENCE STANDARD DEVIATIONS INDUSTRIAL STATISTICS ACCOUNTING ACTUAL COSTS AFFILIATES BASIC METALS CENTRAL GOVERNMENTS COAL COMPETITIVENESS COST OF CAPITAL CURRENT EXPENDITURES DEFICITS DEVELOPED COUNTRIES ECONOMIC GROWTH ECONOMICS LITERATURE ECONOMIES OF SCALE ECONOMISTS EMPIRICAL ANALYSIS EMPLOYMENT EXPECTED VALUE EXPORT GROWTH EXPORTS FIXED COSTS GDP GDP DEFLATOR GDP PER CAPITA GROSS SALES GROSS VALUE GROWTH RATE IMPORTS INCOME INEFFICIENCY INFLATION INFLATION RATE INSURANCE INTEREST RATE INTERMEDIATE GOODS INVENTORIES INVENTORY INVENTORY MODELS LOW INTEREST RATES MARGINAL COST MERCHANDISE MERCHANDISING OBSOLESCENCE OPTIMIZATION PENALTIES PRODUCTION COSTS PRODUCTION TECHNOLOGY PUBLIC ENTERPRISES PURCHASING QUALITY ASSESSMENT RENT SEEKING RETAIL RETAILING SAVINGS SOCIAL SERVICES STATISTICAL ANALYSIS STOCKS SUPPLIERS TAX REVENUE TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT VALUE ADDED VOLATILITY WORKING CAPITAL INDUSTRIAL STATISTICS ACCOUNTING |
| spellingShingle |
RAW MATERIALS INVENTORIES VALUATION MANUFACTURING SECTOR DEVELOPING COUNTRIES REAL INTEREST RATES COMPETITIVENESS INFRASTRUCTURE REGULATORY FRAMEWORK MARKET DIFFICULTIES CROSS-COUNTRY EXPERIENCE STANDARD DEVIATIONS INDUSTRIAL STATISTICS ACCOUNTING ACTUAL COSTS AFFILIATES BASIC METALS CENTRAL GOVERNMENTS COAL COMPETITIVENESS COST OF CAPITAL CURRENT EXPENDITURES DEFICITS DEVELOPED COUNTRIES ECONOMIC GROWTH ECONOMICS LITERATURE ECONOMIES OF SCALE ECONOMISTS EMPIRICAL ANALYSIS EMPLOYMENT EXPECTED VALUE EXPORT GROWTH EXPORTS FIXED COSTS GDP GDP DEFLATOR GDP PER CAPITA GROSS SALES GROSS VALUE GROWTH RATE IMPORTS INCOME INEFFICIENCY INFLATION INFLATION RATE INSURANCE INTEREST RATE INTERMEDIATE GOODS INVENTORIES INVENTORY INVENTORY MODELS LOW INTEREST RATES MARGINAL COST MERCHANDISE MERCHANDISING OBSOLESCENCE OPTIMIZATION PENALTIES PRODUCTION COSTS PRODUCTION TECHNOLOGY PUBLIC ENTERPRISES PURCHASING QUALITY ASSESSMENT RENT SEEKING RETAIL RETAILING SAVINGS SOCIAL SERVICES STATISTICAL ANALYSIS STOCKS SUPPLIERS TAX REVENUE TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT VALUE ADDED VOLATILITY WORKING CAPITAL INDUSTRIAL STATISTICS ACCOUNTING Guasch, J. Luis Kogan, Joseph Just-in-Case Inventories : A Cross-Country Analysis |
| geographic_facet |
Latin America & Caribbean Caribbean Latin America |
| relation |
Policy Research Working Paper;No. 3012 |
| description |
The authors find that raw materials
inventories in the manufacturing sector in the 1970s and
1980s were two to three times higher in developing countries
than in the United States, despite the fact that in most
developing countries real interest rates were at least twice
as high. Those significantly high levels of inventories are
a burden and an obstacle to country competitiveness and need
to be addressed. Poor infrastructure and ineffective
regulation, as well as deficiencies in market development,
rather than the traditional factors used in inventory models
(such as interest rates and uncertainty), are the main
determinants and explain these differences. Cross-country
estimations show that a one standard deviation worsening of
infrastructure increases raw materials inventories by 11
percent to 37 percent, and a one standard deviation
worsening of markets increases raw materials inventories by
18 percent to 37 percent. These findings are robust across a
number of different proxies and specifications, including an
industry-level specification that controls for fixed country effects. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Guasch, J. Luis Kogan, Joseph |
| author_facet |
Guasch, J. Luis Kogan, Joseph |
| author_sort |
Guasch, J. Luis |
| title |
Just-in-Case Inventories : A Cross-Country Analysis |
| title_short |
Just-in-Case Inventories : A Cross-Country Analysis |
| title_full |
Just-in-Case Inventories : A Cross-Country Analysis |
| title_fullStr |
Just-in-Case Inventories : A Cross-Country Analysis |
| title_full_unstemmed |
Just-in-Case Inventories : A Cross-Country Analysis |
| title_sort |
just-in-case inventories : a cross-country analysis |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/04/2191897/just-in-case-inventories-cross-country-analysis http://hdl.handle.net/10986/18262 |
| _version_ |
1764439504910811136 |