IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v133y2011i1p2-11.html
   My bibliography  Save this article

Inventory investment and sectoral characteristics in some OECD countries

Author

Listed:
  • Chikán, Attila
  • Kovács, Erzsébet
  • Matyusz, Zsolt

Abstract

This paper discusses the effects of sectoral structure on the long run macroeconomic inventory behaviour of national economies. Data on 15 OECD countries are included in the analysis, which is based on correlation and cluster analysis methodologies. The study is part of a long-term research project exploring factors influencing the inventory behaviour of national economies. First, we introduce some basic characteristics of macroeconomic inventory formation in the 15 OECD countries. We argue that our previous results on the existence of specific characteristic features of macroeconomic inventory investment are justified, hence it makes sense to study the factors influencing these features. We then examine the contribution of various sectors to the production of in the countries involved and the relationship between sectoral structure and inventory intensity (annual inventory change/Gross Value Added). We find that the high share of agriculture and manufacturing increases inventory intensity, that the increasing share of services has a negative effect and that the role of construction and trade is not obvious. The relatively low stability of the statistical results warns us to be cautious with our judgements. Further, case-by-case analysis would be required to obtain more solid results.

Suggested Citation

  • Chikán, Attila & Kovács, Erzsébet & Matyusz, Zsolt, 2011. "Inventory investment and sectoral characteristics in some OECD countries," International Journal of Production Economics, Elsevier, vol. 133(1), pages 2-11, September.
    • Handle: RePEc:eee:proeco:v:133:y:2011:i:1:p:2-11
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S092552731000294X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Marco Malgarini, 2008. "Inventories and Business Cycle Volatility: An Analysis Based on ISAE Survey Data," Journal of Business Cycle Measurement and Analysis, OECD Publishing, Centre for International Research on Economic Tendency Surveys, vol. 2007(2), pages 175-197.
    2. Chikan, Attila & Kovacs, Erzsebet & Tatrai, Tunde, 2005. "Macroeconomic characteristics and inventory investment: a multi-country study," International Journal of Production Economics, Elsevier, vol. 93(1), pages 61-73, January.
    3. Humphreys, Brad R. & Maccini, Louis J. & Schuh, Scott, 2001. "Input and output inventories," Journal of Monetary Economics, Elsevier, vol. 47(2), pages 347-375, April.
    4. Guariglia, Alessandra & Mateut, Simona, 2010. "Inventory investment, global engagement, and financial constraints in the UK: Evidence from micro data," Journal of Macroeconomics, Elsevier, vol. 32(1), pages 239-250, March.
    5. Blinder, Alan S & Maccini, Louis J, 1991. " The Resurgence of Inventory Research: What Have We Learned?," Journal of Economic Surveys, Wiley Blackwell, vol. 5(4), pages 291-328.
    6. Lovell, Michael C., 1994. "Researching inventories: Why haven't we learned more?," International Journal of Production Economics, Elsevier, vol. 35(1-3), pages 33-41, June.
    7. Irvine, F. Owen, 2005. "Trend breaks in US inventory to sales ratios," International Journal of Production Economics, Elsevier, vol. 93(1), pages 13-23, January.
    8. Irvine, F. Owen, 2003. "Long term trends in US inventory to sales ratios," International Journal of Production Economics, Elsevier, vol. 81(1), pages 27-39, January.
    9. Hirsch, Albert A., 1996. "Has inventory management in the US become more efficient and flexible? A macroeconomic perspective," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 37-46, August.
    10. Dimelis, Sophia P., 2001. "Inventory investment over the business cycle in the EU and the US," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 1-8, May.
    11. Stern, Andrew, 2001. "Multiple regimes in the US inventory time-series: A disaggregate analysis," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 45-53, May.
    12. Chikán, Attila & Kovács, Erzsébet, 2009. "Inventory investment and GDP characteristics in OECD countries," International Journal of Production Economics, Elsevier, vol. 118(1), pages 2-9, March.
    13. Humphreys, Brad R., 2001. "The behavior of manufacturers inventories: Evidence from US industry level data," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 9-20, May.
    14. Irvine, F. Owen & Schuh, Scott, 2005. "Inventory investment and output volatility," International Journal of Production Economics, Elsevier, vol. 93(1), pages 75-86, January.
    15. Irvine, F. Owen, 2003. "Problems with using traditional aggregate inventory to sales ratios," International Journal of Production Economics, Elsevier, vol. 81(1), pages 41-50, January.
    16. Chikan, Attila & Tatrai, Tunde, 2003. "Developments in global inventory investment," International Journal of Production Economics, Elsevier, vol. 81(1), pages 13-26, January.
    17. Dimelis, Sophia P. & Lyriotaki, Maria-Niki, 2007. "Inventory investment and foreign ownership in Greek manufacturing firms," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 8-14, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Obermaier, Robert, 2012. "German inventory to sales ratios 1971–2005—An empirical analysis of business practice," International Journal of Production Economics, Elsevier, vol. 135(2), pages 964-976.
    2. Chikán, Attila & Kovács, Erzsébet & Matyusz, Zsolt & Sass, Magdolna & Vakhal, Péter, 2016. "Long-term trends in inventory investment in traditional market and post-socialist economies," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 14-23.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:133:y:2011:i:1:p:2-11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.