Inventories in National Economies | springerprofessional.de

Springer Professional

Top

2018 | Book

Read chapter Read first chapter

Inventories in National Economies

A Cross-Country Analysis of Macroeconomic Data

Authors: Attila Chikán, Erzsébet Kovács, Zsolt Matyusz, Magdolna Sass, Dr. Péter Vakhal

Publisher: Springer London

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

Login to get access

About this book

This book introduces a new approach in the field of macroeconomic inventory studies: the use of multivariate statistics to evaluate long-term characteristics of inventory investments in developed countries. By analyzing a 44-year period series of annual inventory change in percentage of GDP in a set of OECD countries, disclosing their relationship to growth, industry structure and alternative uses of GDP (fixed capital investments, foreign trade and consumption), it fills a gap in the economic literature. It is generally accepted that inventories play an important role in all levels of the economy. However, while there is extensive literature on micro- (and even item-) level inventory problems, macroeconomic inventory studies are scarce. Both the long-term processes of inventory formation and their correlation with other macroeconomic factors provide interesting conclusions about economic changes and policies in our immediate past, and present important insights for the future.

Advertisement

Table of Contents

Frontmatter

Chapter 1. Introduction: The Nature and Structure of the Inventory Problem

Abstract

This part is an introduction of the concept and role of inventories in the economy. We explain why holding inventories is a necessary component of economic activity and why item-level, firm-level and national-level inventories present themselves as natural focuses of analysis. Reasons of holding inventories on these three levels are discussed. Item-level inventories are hold to meet specific demand components, firm-level inventories are subject to company management as an important contribution to smooth and cost-effective operation, while national inventories are aggregates of lower-level inventories influenced by the structure of the economy and economic policy factors. Our attention is focused in this book on national inventories, three characteristics of which can be analysed: level, change and fluctuation. We provide reasons why we find analysing long-term trends of national inventories as a useful contribution to our general knowledge of operation of the economies.

Attila Chikán, Erzsébet Kovács, Zsolt Matyusz, Magdolna Sass, Péter Vakhal

Chapter 2. Review of the Literature

Abstract

The inventory behaviour at different levels of the economy is analysed by various research disciplines. Operations research, operations management, marketing provide insight into item-level and firm-level problems. Moreover, firm-, sector- and country-level inventory developments as well as international comparisons are analysed by the economics, international economics, international business and finance/accounting literature. In this literature review considering the purpose of the book, we only deal with the economics-related literature and do not consider business and operations approaches.

Attila Chikán, Erzsébet Kovács, Zsolt Matyusz, Magdolna Sass, Péter Vakhal

Chapter 3. Methodology

Abstract

This chapter is divided into two major parts. Section 3.1 is about country and data selection. We first present the selection of our data source, and then we introduce the time horizon and final set of countries to be analysed. The variables used in the analyses are shown, and we give details about the missing data. Section 3.2 gives a brief overview of the tools and methods we used throughout our research.

Attila Chikán, Erzsébet Kovács, Zsolt Matyusz, Magdolna Sass, Péter Vakhal

Chapter 4. Analysis of Inventory Behaviour of OECD Countries

Abstract

The most aggregate view of inventory investment tendencies of our set of countries is the one looking at the average of country-wise annual inventory investment over the investigated time horizon. Having the complete data set of the 20 TMEs for the full time horizon, it is possible to see the main tendencies. In Sect. 4.1, we analyse the aggregate inventory behaviour. We start with the 20 TMEs over the full time horizon, and then, we close in on the second sub-period and add the other 6 TMEs and 6 PSEs to the set of countries. The focus is on the examination of the mean and standard deviation of aggregate dI/GDP. After that, we continue with a country-level analysis of dI/GDP, again investigating the 20 TMEs first, and then add the other countries. We explore the main tendencies through descriptive statistics, and we visualize the relationship between the mean and standard deviation of dI/GDP.

Attila Chikán, Erzsébet Kovács, Zsolt Matyusz, Magdolna Sass, Péter Vakhal

Chapter 5. Stability of Macroeconomic Variables

Abstract

In Chap. 4, we have seen some important characteristics of long-term inventory processes. If we want to see the relationship of these to the other GDP components, we have to examine long-term characteristics not only the GDP components but also some other macroeconomic factors, which according to previous research are in close relationship with inventories. So, in this section, we take a closer look at the factors listed in Sect. 3.1: components of the GDP (private and government consumption, gross fixed capital formation, exports and imports), growth, per capita GDP as an indicator for development and indicators of structural characteristics (manufacturing and trade sectors, openness, centralization of income).

Attila Chikán, Erzsébet Kovács, Zsolt Matyusz, Magdolna Sass, Péter Vakhal

Chapter 6. Inventory Developments in Individual Countries

Abstract

In this part, we take the 32 countries in the sample one by one and provide an overview of their economy from the inventory researcher’s point of view. The purpose of the chapter is to give a background for interpreting and analysing results about individual countries shown in various chapters of the book. Therefore, this chapter serves as kind of a reference background for the interpretation and evaluation of different country results.

Attila Chikán, Erzsébet Kovács, Zsolt Matyusz, Magdolna Sass, Péter Vakhal

Chapter 7. Summary and Conclusions

Abstract

This Chapter contains a summary of the individual parts of the book in order to give an overview of the results and provide the bridges between them. We devote a chapter to each of the six previous parts, lead the reader through the main conclusions and get at the final conclusion which validates our starting research hypothesis: macroeconomic inventory investments are a worthy area of research, which can lead to important and useful conclusions.

Attila Chikán, Erzsébet Kovács, Zsolt Matyusz, Magdolna Sass, Péter Vakhal

Title: Inventories in National Economies
Authors: Attila Chikán
Erzsébet Kovács
Zsolt Matyusz
Magdolna Sass
Dr. Péter Vakhal
Copyright Year: 2018
Publisher: Springer London
Electronic ISBN: 978-1-4471-7371-7
Print ISBN: 978-1-4471-7369-4
DOI: https://doi.org/10.1007/978-1-4471-7371-7