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  • Articles  (123,386)
  • Elsevier  (121,845)
  • Annual Reviews  (832)
  • Blackwell Publishers Ltd.  (709)
  • American Meteorological Society
  • Economics  (123,386)
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  • 1
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Review of income and wealth 48 (2002), S. 0 
    ISSN: 1475-4991
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Individual well–being has its resources by income and time. Though income traditionally is on the focuses of well–being analyses, the connected time dimension is often neglected. One important dimension of individual welfare regarding time and income is the possibility to harmonize desired with actual working hours connected with the income dimension. This paper will analyze this working hour tension by a ten year panel analysis for Germany. Besides descriptive measures of the subjective tension over a decade from the mid 1980s to the mid 1990s, the panel econometric analyses will quantify personal and household influences in explaining the working hour tension as one further important economic well–being measure.
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  • 2
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Review of income and wealth 48 (2002), S. 0 
    ISSN: 1475-4991
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Per capita gross domestic product (GDP) is a poor indicator of economic well–being. It measures effective consumption poorly (ignoring the value of leisure and of longer life spans) and it also ignores the value of accumulation for the benefit of future generations. Since incomes are uncertain and unequally distributed, the average also does not indicate the likelihood that any particular individual will share in prosperity or the degree of anxiety and insecurity with which individuals contemplate their futures. We argue that a better index of economic well–being should consider: current effective per capita consumption flows; net societal accumulation of stocks of productive resources; income distribution; and economic security. The paper develops such an index of economic well–being for the U.S., U.K., Canada, Australia, Norway and Sweden for the period 1980 to 1999. It compares trends in economic well–being to trends in GDP per person. In every case, growth in economic well–being was less than growth in GDP per capita, although to different degrees in different countries.
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  • 3
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Review of income and wealth 48 (2002), S. 0 
    ISSN: 1475-4991
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: This paper explores how annual earnings mobility offsets annual earnings inequality, using matched CPS data. Mobility in the economy is estimated using nonparametric quantile regression, for which we adapt state–of–the–art smoothing techniques. Mobility is measured through the churning process (changes in earnings given initial earnings) in order to identify different mobility patterns for different earnings groups. For instance, upward mobility in high earners is far weaker than its converse, downward mobility for low earners. We assess the (positive or negative) contribution to offsetting of each pattern in mobility. Innovations in our approach also allow us to identify trends and minute changes in mobility, and to pinpoint which changes in mobility have offset the increases in inequality observed over the decades.
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  • 4
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Review of income and wealth 48 (2002), S. 0 
    ISSN: 1475-4991
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The effects of the German unemployment compensation system on aggregate savings and the distribution of wealth are studied in a general equilibrium 60–period OLG model. The distribution of wealth is derived as an endogenous function of the parameters characterizing the unemployment compensation system, which comprises unemployment insurance (Arbeitslosengeld), unemployment assistance (Arbeitslosenhilfe), and welfare payments (Sozialhilfe), the latter two being subject to a means test. As our main results: (i) both aggregate savings and wealth equality are a monotone decreasing function of unemployment benefits; (ii) optimal unemployment compensation declines over the spell of unemployment; (iii) asset–based means tests are shown to reduce welfare if the allowable wealth level is below the average wealth in the economy.
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  • 5
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Review of income and wealth 48 (2002), S. 0 
    ISSN: 1475-4991
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: This paper presents empirical evidence on how education is related to income distribution in a panel data set covering a broad range of countries for the period between 1960 and 1990. The findings indicate that educational factors—higher educational attainment and more equal distribution of education —play a significant role in making income distribution more equal. The results also confirm the Kuznets inverted–U curve for the relationship between income level and income inequality. We also find that government social expenditure contributes to more equal distribution of income. However, a significant proportion of cross–country variation in income inequality remains unexplained.
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  • 6
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Review of income and wealth 48 (2002), S. 0 
    ISSN: 1475-4991
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Book reviewed in this article:Joachim Merz and Manfred Ehling (eds.), Time Use –Research, Data and Policy
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  • 7
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Review of income and wealth 48 (2002), S. 0 
    ISSN: 1475-4991
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Geographic targeting is perhaps the most popular mechanism used to direct social programs to the poor in Latin America. This paper empirically compares geographic targeting indicators available in Peru. To this effect, I combine household–level information from the 1997 Peru Living Standards Measurement Survey (LSMS) and district–level information from the 1993 Peru Population and Housing Census. I then conduct a series of simulations which estimate leakage rates, concentration curves, the impact of transfers on poverty as measured by the headcount index, poverty gap and P2 measures of the FGT family, and non–parametric (kernel) densities when transfers are based on alternative indicators. I conclude that there is substantial potential for geographic targeting in Peru. However, the differences in outcomes across geographic targeting indicators are small, and are not statistically significant. These results are in keeping with earlier work which suggests that (among reasonable alternatives) the choice of geographic targeting indicator does not have an important bearing on poverty outcomes, and are at odds with more recent research which stresses the advantage of poverty maps which “impute” consumption or income.
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  • 8
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: The industrial rise of the Third Italy has been characterized by the growth of dynamic networks of flexible small and medium–sized enterprises (SMEs) that are spatially concentrated in specialized industrial districts. This network type of coordination has been associated with horizontal, trust–based relations rather than vertical relations of power and dependency between local organizations. This would lower transaction costs (essential for local systems with an extreme division of labor), facilitate the transmission and exchange of (tacit) knowledge (and thus, learning and innovation), encourage cooperation mechanisms (such as the establishment of research centers), and stimulate political–institutional performance (e.g. through regulation of potential social conflicts).From an evolutionary perspective, the focus is on the dynamics of industrial districts drawing from current experiences in Italy. In this respect, this paper concentrates on two main features of industrial districts that have largely contributed to their economic success in the past, that is, their network organization and the collective learning process. The evolution of industrial districts is described in terms of organizational adjustments to structural change. The way in which the size distribution of firms has changed is discussed (in particular the role of large companies), how the (power) relationships between local organizations have evolved, what are the current sources and mechanisms of learning, and to what extent institutional lock–in has set in. Finally, a number of trajectories districts may go through in the near future are presented.
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  • 9
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    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: State governments offer a variety of programs to assist technology intensive entrepreneurial firms yet there is a limited understanding of how firms use these programs. This paper provides a framework for categorizing state technology programs and uses detailed case studies to examine how these programs augment firms’ capabilities. It is concluded that firms made extensive use of state programs that provide access to university intellectual property and research facilities. In addition, firms participated in programs that provided incentives for faculty to conduct joint research with industry. Finally, state venture capital programs, though small relative to federal R&D grants or venture capital, appear to nurture firms’ development.
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  • 10
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    Electronic Resource
    Oxford UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: This paper proposes an evolutionary reading of rural development referred to cases of rapid industrial growth, where a strong concentration process has involved the main urban centers and the successful industrial districts. This territorial development pattern has gradually extinguished rural society and its institutional basis, creating a clear separation between new central and peripheral areas. The consequent effects on local economy and social dynamics reveal the long-term risks raised in terms of development sustainability. An empirical study of two Italian provinces is also carried out to show how this framework can be helpful in interpreting real historical patterns.
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  • 11
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    Electronic Resource
    Oxford UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: After a long period of industrialization based on import substitution (ISI), Mexico started to open up its economy by accessing the General Agreement on Tariffs and Trade (GATT) in 1986. The export-promotion strategy was transformed into one of regional integration with the signing of the North American Free Trade Agreement (NAFTA) in 1994. The paper explores the impact of the opening of the economy on regional disparities in Mexico using σ and β-convergence analyses. Four different samples have been employed to control for possible data bias linked to the inclusion of oil-producing and maquiladora-based states. The results show that whereas the final stages of the ISI period were dominated by convergence trends, trade liberalization (GATT) and economic integration (NAFTA) have led to divergence. In particular, the NAFTA period is related to divergence regardless of the type of analysis chosen and the sample used.
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  • 12
    Electronic Resource
    Electronic Resource
    Oxford UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: This paper examines return migrants and new migrants to Montana: Who are they? Why do they move? Do return migrants move for different reasons than new migrants? Data from the 1994–1997 Montana Poll, a representative survey of Montana households, are used. A comparison of socio-economic differences of return and new migrants shows that the two migrant types are very similar in terms of education, income, and age. This stands in contrast to the findings of others who maintain that return migrants are negatively selected with respect to education. Logistic regressions were employed to identify the effect of age and place ties on reasons for moving. Return migrants and new migrants move to Montana for very similar reasons, with family being the most important primary reason for moving. Moving for lifestyle reasons, such as environmental quality and urban amenities, were found to systematically change with age. This could explain why people return to a place they left earlier in life. While other research on return migration compared return migrants and other migrants who left the same place of origin, this paper offers a comparison of return migrants and other migrants who seek out the same destination. Results from the Montana Poll suggest that the same destination attracts return migrants and new migrants with similar socio-economic characteristics who move there for very similar reasons.
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  • 13
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    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 32 (2001), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: One of the debates around new firm formation across sub-national territories focuses on whether regional differences in industrial structure are more important influences than regional differences in individual industry performance. The present research, using Value Added Tax (VAT) registration data, attempts to make a contribution to this debate in the United Kingdom (UK) context using a shift-share covariance model. Firm de-registrations and, as a consequence, net changes in firm stocks are also analyzed with similar questions in mind. The findings show that although the effects of industrial mix are significant across most regions, in several key regional contexts the industrial competitive effect dominates. The issue of the role of regional industrial concentration forms a second major theme of this paper. This basically involves a questioning as to whether concentration is a positive or negative force for new firm formation. The results of this research indicate that industrial concentration, measured through localization, is more important for firm deaths than for firm births (although significant for both), but not particularly relevant to the understanding of the net outcome of entry and exit processes. In the UK, regions with higher levels of industry concentration seem to be associated overall with relatively lower levels of both firm births and deaths.
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  • 14
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    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 32 (2001), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Non-metropolitan areas of the U.S have experienced significant structural economic changes in recent decades. These changes have raised concerns that some non-metropolitan workers may face significant costs to employment displacements associated with economic adjustments. This paper explores the roles that linkages to metropolitan labor markets, area labor market conditions, and individual attributes play in determining the rates of exit from unemployment to employment among non-metropolitan area residents. Adjacency to a metropolitan area is found to significantly increase transition rates from unemployment to employment among displaced non-metropolitan workers, but local economic conditions are found to have relatively weak or insignificant effects on transition rates. Also, lack of post-high school education and minority status both significantly reduce rates of exit from unemployment in non-metropolitan areas following employmentdisplacement.
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  • 15
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    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 32 (2001), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Restructuring through foreign outsourcing, whereby greater imports of manufactured inputs substitute for blue-collar labor, is shown to intensify when industries experience declines in sales. The magnitude of this effect was four to seven times greater in California industries experiencing a 20 percent sales decline from 1987-1992, relative to those industries whose sales dropped by 5 percent. Foreign outsourcing explains a quarter to two-fifths of the rise in payroll inequality between blue and white collar workers in California and perhaps five to ten percent of the rise in the remainder of the U.S. Past work linked growing inequality with foreign outsourcing and restructuring with economic downturns. Here, foreign outsourcing is used as an example of a particular efficiency augmenting measure, which occurs predominantly, though not exclusively, in troubled industries.
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  • 16
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 32 (2001), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: This paper uses the Longitudinal Research Database (LRD),a unique, detailed, plant-level database that covers the entire U.S. manufacturing sector in five-year intervals to examine how the manufacturing sector in Appalachia has evolved over the past thirty years (from 1963 to 1992). The research focuses on three questions:1) Is the Appalachian Region attracting new manufacturing plants at the same rate as the rest of the country? 2) Does Appalachian manufacturing employment exhibit low wage, low productivity characteristics, compared with the rest of the country? 3) Is Appalachia still heavily reliant on branch plants? The results show the manufacturing base of Appalachia in 1992 looks very much the same as it did in 1967. Compared to the rest of the country, Appalachian manufacturing is still more reliant on branch plants and is characterized by lower wage and lower productivity establishments. This result is not due to a lack of entry—manufacturing plant entry rates and manufacturing job formation associated with entrants in Appalachia are only slightly lower than for the U.S. as a whole. Job destruction rates caused by exits are actually lower than in the U.S. as a whole.
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  • 17
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    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: The U.S. machine tool (MT) sector has undergone substantial restructuring over the past three decades. Despite signs of a commercial rebound in recent years, however, a number of critical issues remain for this industry. Not all firms share these concerns, in that differences exist between producers located in the core manufacturing belt and those located elsewhere. This paper examines the characteristics, competitive problems, and markets of firms located in these two regions. Survey data from a sample of 104 machine tool companies reveal that significant core–periphery differences exist with regard to firm–specific difficulties and markets served. The data also show that firms in the periphery have been growing significantly faster than firms in the core. The paper concludes with a discussion of the likely reasons for regional variability in the characteristics of firms in this industry. Directions for future research are also suggested, notably with regard to the interplay between national regulatory conditions and the competitive performance of MT firms.
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  • 18
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    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Despite an increase of 200,000 jobs in business and professional services in the Atlanta metropolitan area between 1982 and 1997, the central city saw employment as a percentage of these services drop by approximately 20 percent. Most growth occurred in the northern suburbs, resulting in a dispersed distribution of business and professional services in Atlanta. To understand the spatial distribution and suburbanization of business and professional services in Atlanta, regression analysis was carried out for 1982 and 1992. Flexible female workers, corporate headquarters, well –educated professionals, and highway access turned out to be important location determinants, with the latter two being increasingly responsible for the suburbanization of business and professional services.
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  • 19
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    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Recent years have witnessed widespread expansion of state and regional planning programs in the United States. A major purpose of these efforts is to reduce urban sprawl—low density, discontinuous, suburban–style development, often characterized as the result of rapid, unplanned, and/or uncoordinated growth— by promoting jurisdictional cooperation and regulatory consistency across metropolitan areas. This paper evaluates the efficacy of this approach by examining the relationship between governmental fragmentation and several measurable outcomes of urban development: density, urbanized land area, property value, and public expenditures on infrastructure. The four dimensions are modeled in a simultaneous equations framework, providing substantive evidence on how fragmentation and other exogenous factors affect metropolitan growth patterns. Fragmentation is associated with lower densities and higher property values, but has no direct effect on public service expenditures; less fragmented metropolitan areas occupy greater amounts of land due to the extensive annexation needed to bring new development under the control of a central municipality. The findings of the analysis lend support to state and regional planning efforts aimed at increasing cooperation among local governments, but also suggest that further research is needed in order to evaluate whether or not they produce their intended effects.
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  • 20
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    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Discussions of immigration, settlement and adjustment within the U.S. do not typically refer to immigrant status (i.e., refugee versus family preference), and instead refer to the foreign–born population as an aggregate. Distinguishing between refugees and other immigrant arrivals likely means differences with respect to their geographic distribution and embodied human capital owing to differences associated with the reasons for immigration (forced versus voluntary), period of arrival, and immigration policy. The lack of differentiation by group within the existing literature is typically due to a shortfall of detailed information relating to admission status within publicly released data files. Yet concrete knowledge of differences by admission category is important in understanding overall patterns of settlement and adjustment within the foreign–born population. This paper therefore explores potential differences with respect to settlement and endowed human capital between immigrants and refugees. Identification of the major sources of refugees within Immigration and Naturalization Service data files allows the refugee population to be identified within the 1990 Public Use Microdata Sample (PUMS), therefore increasing the range of variables and measures associated with the refugee population available to researchers, and points to the diversity of the refugee population.
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  • 21
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    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: This paper presents an analysis of a public assistance program for small–scale entrepreneurship in peripheral areas. Public assistance compensates for market inefficiencies where the decision rules of financial institutions discriminate against otherwise viable small firms in capital markets. Lending institutions perceive high risk in providing debt capital when little information is present. Using empirical data from Israel, the determinants of this risk are estimated and the role of location in creating this information asymmetry is stressed. These results empirically establish that (1) location matters in determining the risk profile of the firm, (2) locationally targeted programs can reduce the information asymmetries that make peripheral firms unattractive to lenders, and (3) these programs can also generate positive welfare effects. Finally, there is speculation on the potential role of ICT (information and communications technology) in increasing the visibility of small firms in remote locations and creating a more symmetrical flow of information.
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  • 22
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    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Ethnic entrepreneurship has become a popular concept in a modern multi–cultural society. This paper seeks to offer an overview of the potential of ethnic entrepreneurship for solving inter alia the structural unemployment problems of ethnic groups in cities. There is a general lack of empirical evidence on this issue in the current literature. The present paper aims to fill this gap by addressing in particular the critical success conditions for ethnic entrepreneurs. The focus of the research is on variations in success across three ethnic groups in the Amsterdam area. By means of structured personal interviews with many ethnic entrepreneurs, a systematic qualitative data base was created. The paper sets out to identify empirically the driving forces for business success, such as education or the role of informal networks. The explanatory framework deployed for the identification of these qualitative success factors for distinct ethnic groups is based on a particular, recently developed artificial intelligence method, viz. rough set analysis. This multidimensional classification approach appears to be able to identify various important factors for the motivation and performance of ethnic enterprises. Two major findings emerge from this investigation: (i) performance conditions vary across ethnic groups, and (ii) informal networks are crucial for business success.
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  • 23
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    Oxford UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Rocky Mountain states have experienced unprecedented growth as agricultural land is converted to residences. Preservation efforts meet with protest from private landholders claiming public efforts undermine private property rights. This paper explores the degree to which respondents think management of agricultural lands is a public versus a private matter. Data are from a Sublette County, Wyoming, mail survey. Results are relevant to many western counties having public lands and high growth rates. They suggest that landowners, wage earners, college graduates, and those who value the county’s rural community lifestyle support public management strategies. Well-established residents and those with economic reasons for living in the county support private management strategies.
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    Oxford UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: This research examines changes in four sectors of livestock production, pork, dairy, fed cattle, and beef cows, from 1978 to 1997 by county metropolitan character. Relative changes in the amount of production and the number of producers in a county as well as changes in the average scale of production are examined. The purpose is to identify whether structural differences have emerged between metropolitan and nonmetropolitan Corn Belt counties as a result of industrialization in livestock production. The analysis identifies a divergence in the amount and scale of pork production in metro versus nonmetro regions from 1987 to 1997, coinciding with a period of substantial industrialization in that sector. Little divergence is identified in the scale of dairy, fed cattle, and beef cows operations during the same time period. The findings have implications for farmland preservation and agricultural viability in exurban regions of the Corn Belt.
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    Growth and change 32 (2001), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Books reviewed: Hong Kong as a Global Metropolis, by David R. Meyer. Globalization and Networked Societies: Urban-Regional Change in Pacific Asia, by Yue-man Yeung. Regional Cohesion and Competition in the Age of Globalization, edited by Hirotada Kohno, Peter Nijkamp and Jacques Poot. Employee Benefits and Labor Markets in Canada and the United States, edited by William T. Alpert and Stephen A. Woodbury. The Atlanta Paradox, edited by David L. Sjoquist. The Economics of Sports, edited by William S. Kern. Environmentally Sustainable Economic Development, by Asayehgn Desta.
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    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
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    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Books reviewed:Mona Domosh and Joni Seager, Putting Women in Place: Feminist Geographers Make Sense of the WorldGerald Hodge and Ira M. Robinson, Planning Canadian Regions
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    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: This paper analyzes the effect of self–employed persons’ education on the success of their firms during the economic downturn and upturn of the 1990's. It is found that the business cycle affects the relative closure rates of firms run by self–employed with any level of education. Exit probability is lower for the highly educated during bust, but higher in boom. This is accounted for by two facts. First, running a small firm is argued to be a less attractive choice to wage work, particularly for the highly educated, due to lower earning prospects, less stable stream of earnings, and the cultural tradition of working in large corporations. Second, the highly educated faced a higher outside demand for their labor than did the less educated during economic upturn. Finally, it was found that regardless of the state of aggregate economy, firms run by the highly educated have higher growth probabilities than those run by less educated persons.
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    Oxford UK and Boston, USA : Blackwell Publishers Ltd.
    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: This study analyzes the evolution of China’s regional inequalities during the reform period of 1978–1998 based on three geographical scales, both output and livelihood indicators of economic well-being and three measures of inequality. The results indicate that interprovincial and regional inequalities declined between 1978 and 1990, but have widened steadily since 1990. Urban-rural disparity diminished before 1984, then experienced a decade-long surge afterwards to peak in 1994 at a much higher level and since 1994, it has been declining again. The levels of regional inequalities in China appear to be sensitive to changes in government development strategies and regional policies. Differential growth of the provincial economies shaped by the coast-oriented and urban-biased development strategies as well as selective open-door policy implemented by the Chinese government after the reform is the key to understanding the wax and wane in China’s regional inequalities. This paper discusses the factors that account for the changing regional inequalities in post-reform China and argues that government policies are likely to continue to influence the future trajectories of inequality change.
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    Growth and change 33 (2002), S. 0 
    ISSN: 1468-2257
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    Topics: Geography , Economics
    Notes: Books reviewed:Char Miller, Fluid Arguments: Five Centuries of Western Water ConflictMichael Dear, (ed.) From Chicago to L.A.: Making Sense of Urban TheoryMartin Dangerfield, Subregional Economic Cooperation in Central and Eastern Europe: The Political Economy of CEFTAKenneth Button and Roger Stough, Air Transport Networks: Theory and Policy Implications
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    Growth and change 32 (2001), S. 0 
    ISSN: 1468-2257
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    Topics: Geography , Economics
    Notes: Over the past one and a half decades, smaller cities and nonmetropolitan areas in Mexico have attracted manufacturing plants, led by the export manufacturing sector. Maquiladoras in particular are increasingly locating their plants in such places in the “deep interior” Mexico—outside of the border states. Using 1980 and 1990 Mexican census data for 19 growth centers and 27 high-emigration municipios (counties) in Central Mexico, this paper suggests that foreign-owned assembly (maquiladora) jobs decentralized significantly over the 1980s, locating closer to emigrant municipios. An examination of 17 emigrant municipios in the industrialized states of Jalisco and Guanajuato found that an emigrant municipio's accessibility to maquiladora jobs, and jobs indirectly related to maquiladora growth, was positively related to its overall employment growth, which was, in turn, negatively related to its U.S. migration rate over the decade. Although the migration reduction inherent in these relationships is relatively small, it could be accelerated by U.S. and Mexican policies giving incentives for more peripheral locations of export-oriented and other manufacturing.
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    Growth and change 32 (2001), S. 0 
    ISSN: 1468-2257
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    Topics: Geography , Economics
    Notes: Do the returns to business tax incentives differ according to the initial economic conditions of the area providing tax relief? Past research studies have provided conflicting answers to this question. Bartik (1991) concluded that rates of return to business tax incentives are likely to be greater for less affluent areas than for wealthier areas offering equivalent incentives. In contrast, Fisher and Peters (1998) determined that tax incentives tend only to offset higher taxes on businesses located in low income areas. This study examines this issue using a unique data set that allows for a fresh look at this issue. We find that the returns to subsidized investment are greater in lower unemployment and higher income areas. This suggests that tax incentives reinforce pre-existing economic differences across areas.
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    Financial accountability and management 18 (2002), S. 0 
    ISSN: 1468-0408
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    Topics: Economics
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    Financial accountability and management 18 (2002), S. 0 
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    Journal of regional science 42 (2002), S. 0 
    ISSN: 1467-9787
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    Topics: Geography , Economics
    Notes: This paper examines the effects of state economic development incentives on the growth of 366 Ohio manufacturing and nonmanufacturing establishments that launched major expansions between 1993 and 1995. Growth is measured as the actual employment change that occurred in these establishments and as the employment growth announced when expansions were launched. Empirical findings indicate that incentives have very little (or even a negative) effect on actual growth and they have a substantial positive effect on announced growth. Findings also suggest that establishments that received incentives overestimated their announced employment targets more than establishments that did not receive incentives.
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    Journal of regional science 42 (2002), S. 0 
    ISSN: 1467-9787
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    Topics: Geography , Economics
    Notes: In this paper the excise tax policy of U.S. state governments is analyzed with special attention to how this policy is influenced by the level of excise taxation in neighboring states, “border-tax effects,” and the relative size of the market located across state boundaries. Using a panel data set, state policies towards the taxation of cigarettes, all alcoholic beverages, beer, distilled liquor, motor fuel, and insurance are investigated within the context of a vote-maximizing model of collective decision making. The role of the industry in that state whose goods and services are singled out for special taxation is also examined.
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    Journal of regional science 42 (2002), S. 0 
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    Notes: This paper examines the importance of the distribution of consumers in Hotelling’s circle on the comparison between the optimal and the market equilibrium levels of diversity. It finds that when most consumers are located very close to the firms, the result of Salop—that the equilibrium number of firms is larger than the optimal one (surplus maximizing)—can be reversed.
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    Journal of regional science 42 (2002), S. 0 
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    Topics: Geography , Economics
    Notes: Books reviewed:Gordon L. Clark, Maryann P. Feldman, and Meric S. Gertler (eds.), The Oxford Handbook of Economic GeographyPeter Meusburger and Heike Jöns (eds.), Transformations in Hungary: Essays in Economy and SocietyAllen J. Scott (ed.), Global City-Regions: Trends, Theory, PolicyJames O. Wheeler, Yuko Aoyama, and Barney Warf (eds.), Cities in the Telecommunications Age: The Fracturing of GeographiesBarry Bluestone and Mary Huff Stevenson, The Boston Renaissance: Race, Space, and Economic Change in an American Metropolis
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    Journal of regional science 42 (2002), S. 0 
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    Topics: Geography , Economics
    Notes: This paper estimates the effects of welfare reforms on a state’s employment and wage rates. Welfare reforms include: pushing welfare recipients into the labor force, financial incentives to recipients for working, wage subsidies to employers of recipients, and community service jobs for recipients. The effects of these policies are analyzed using a newly estimated model of state labor markets. Simulations show that jobs found by welfare reform participants cause sizable displacement effects for nonparticipants. Displacement effects of labor supply policies are highest when a state’s unemployment is high, whereas displacement effects of labor demand policies are highest when a state’s unemployment is low.
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    Pacific economic review 7 (2002), S. 0 
    ISSN: 1468-0106
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    Topics: Economics
    Notes: This paper analyzes a model of two-way movement of physical capital, and examines the effects of direct investment liberalization on resource allocation, income distribution and commodity trade. If either country or both countries liberalizes investment under exogenously given commodity prices, some factor owners in a country will gain but some others will lose. If capital movement affects commodity prices, all factor owners in a country may be better off after multilateral investment liberalization. In these cases, it will be much easier for the home country to sign an agreement liberalizing investment flows.
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    Pacific economic review 7 (2002), S. 0 
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    Pacific economic review 7 (2002), S. 0 
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    Topics: Economics
    Notes: Do political variables play a significant role in trade disputes and does the World Trade Organization (WTO) ameliorate disputation? This paper uses US data to assess the role of the WTO and political variables in trade disputes. The data suggest that political factors are significant in the initiation of trade disputes and in their length of adjudication. The WTO disputes that require the formation of adjudication panels take fewer months to complete than under the General Agreement on Tariffs and Trade system, but overall the WTO appears not to play a significant role in reducing the number of disputes or shortening their duration.
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    Financial accountability and management 18 (2002), S. 0 
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    Topics: Economics
    Notes: Interpretations and explanations of experience that make consequences interpretable and actions imaginable are said to be given by accounts. Formal accounting systems used in economic, social and political institutions are seen as portraying their political realities. The purpose of this study is to explore connections and tensions between the realities portrayed in the accounting systems and the governance structures of local governments in two counties, one in Norway and one in Russia. The formal accounting and governmental systems of these two counties are described, analyzed and compared using accounting and democratic governance perspectives. The article ends with a discussion of interrelationships and tensions between accounting and democratic governance. Through comparing the democratic governing structures of these two counties with the accounting systems employed, three main conclusions are presented. Firstly, it is shown that principal–agent relations influence accounting procedures that symbolize democratic governance. Secondly, the accounting language applied does not portray local politicians. Thirdly, accounting norms do not reflect democracy and democratic governance. In summary, the study shows that even very formalized accounting offers flexibility by way of giving meaning to processes and structures in organizations characterized by strictly formalized structures.
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    Financial accountability and management 18 (2002), S. 0 
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    Topics: Economics
    Notes: This paper tests a theory of public budgeting as a long–run and short–run process. In this model, political decision makers strive to achieve budgetary balance over the long–run but are constrained in the short–run and follow incremental decision–making. First, the budget equilibrium theory is elaborated upon and is used to explain the relationship between revenues, expenditures, and debt along with control variables one being provincial general elections. Second, the interaction between these variables is tested with a vector error correction model for each of the Canadian provinces using annual data between 1961 and 2000. The results show that in the long–run the driving force of provincial budgeting was expenditure control initiatives in seven of the ten provinces. In the short–run, incrementalism occurred in all of the provinces and a political business cycle was evident in six provinces.
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    Creativity and innovation management 11 (2002), S. 0 
    ISSN: 1467-8691
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    Topics: Economics
    Notes: The present paper introduces a view of how ideas develop in organizations that goes beyond the traditional focus on either individual or structural conditions for creativity and innovation. An interview study was conducted with key actors in a large Swedish telecom company. A model was then constructed where idea development is viewed as a process of combining and integrating various informal, yet powerful qualities of the organization. The paper argues that successful idea development depends on the capacity of actors and ideas to move on ‘organizational highways, alleys and by–lanes’. A number of suggestions are presented for how to stimulate the processes of creativity and innovation from this perspective.
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    Creativity and innovation management 11 (2002), S. 0 
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    Topics: Economics
    Notes: The aim of the paper is to examine the innovation initiatives and processes followed by two subsidiaries of a German multinational company operating in Europe and Asia and to compare the innovativeness of their operations in these two locations. The study examined the innovation processes followed by the two subsidiary firms operating in Germany and Malaysia, the actual problems faced by them, the critical success factors involved in the implementation, and the work climates of the firms. Interestingly, it was found that both firms followed similar innovation processes. Nevertheless, different types of problems and critical success factors were applicable to both firms. The results showed that the Malaysian subsidiary faced more behavioural problems while the German subsidiary encountered more technical problems. Further, the study showed that a lack of knowledge was the common problem faced equally by both firms. The study demonstrated that the German subsidiary had better working climate compared to its counterpart in Malaysia. Finally, the German subsidiary was found to be more innovation–active than the Malaysian subsidiary as it introduced more types of innovation, interacted with more types of entity in the external environment and introduced more types of training.
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    Review of international economics 9 (2001), S. 0 
    ISSN: 1467-9396
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    Topics: Economics
    Notes: This essay is a short introduction to the work of Robert A. Mundell, winner of the Nobel Prize for Economics in 1999. It is a contribution to a special issue of Review of International Economics.
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    Review of international economics 9 (2001), S. 0 
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    Notes: This introduction to a special edition of Review of International Economics summarizes a collection of articles that originated in a conference on “Is Globalization of Capital Markets a Boost or a Hindrance to Development?” that was sponsored by the Program in Economic Policy Management (PEPM) at Columbia University during 16–17 April 1999.
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    Notes: The Asian crisis and the creation of the euro have jump-started once again discussion of exchange rate systems, currency areas, and international monetary reform. The role of power in the international monetary system is discussed and its relevance to analysis of the new euro area as an instigator of change in the power configuration of the system. The dollar, euro, and yen areas have achieved a high degree of price stability, but international efficiency is seriously undermined by exchange rate gyrations of these three currencies. The best path to international monetary reform leads through a new international currency called the INTOR based on a G-3 monetary union platform possibly linked to gold.
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    Notes: The paper models the choice between currency boards (CBs) and adjustable pegs (or managed floating). Countries adopting CBs have grown faster and inflated less on average than countries adopting other regimes. The explanation hinges on key features of CBs: policy discipline and inflation credibility. The authors find separating equilibria in which a weak government chooses a CB as a discipline device while a tough government chooses a standard peg for its policy flexibility. Paradoxically, the weak government can then outperform the tough government on average. In simulations performed, CBs welfare can exceed peg welfare even when unemployment persistence is strong.
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    Notes: This paper documents empirical regularities in the foreign aid flows to developing countries over three decades. In spite of a large body of literature on foreign aid and its impact on recipients, surprisingly little is known about its business cycle characteristics. The authors show that for the vast majority of African recipients, aid flows are a major source of income that is highly volatile and, most importantly, overwhelmingly procyclical. For recipients outside of Africa, there is a similar—if somewhat less pronounced—pattern of aid procyclicality. In contrast, there is little evidence of aid procyclicality with the business cycle of donors. In light of the very high volatility of output in developing countries, the procyclicality of foreign aid flows from the recipients’ perspective raises serious questions related to their welfare and growth.
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    Notes: This paper analyzes daily covered interbank interest differentials for three emerging markets before and after the 1997/98 financial crises, and compares them with those of four developed economies. It examines descriptive statistics of covered differentials and the long-run equilibrium (cointegrating) relationship between their interest rate and forward discount components. Mean differentials and their volatility were moderate before crises, but increased dramatically during crises. The main reasons are temporarily effective capital controls, large bank default risk premia, and capital market imperfections. The evidence for a cointegrating vector consistent with covered interest parity is strong, implying that, despite large short-term deviations, covered interest parity does hold as an equilibrium relationship.
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    Review of international economics 9 (2001), S. 0 
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    Notes: This paper pulls together existing theory and evidence to assess whether international financial liberalization, by improving the functioning of domestic financial markets and banks, accelerates economic growth. The analysis suggests that the answer is “yes.” First, liberalizing restrictions on international portfolio flows tends to enhance stock market liquidity. n turn, enhanced stock market liquidity accelerates economic growth primarily by boosting productivity growth. Second, allowing greater foreign bank presence tends to enhance the efficiency of the domestic banking system. In turn, better-developed banks spur economic growth primarily by accelerating productivity growth. Thus, international financial integration can promote economic development by encouraging improvements in the domestic financial system.
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    Notes: The paper presents a model of a small open economy with a fragile banking sector and imperfect international capital mobility. In this model, increased international integration of the market for bank deposits makes bank runs more likely, resulting in a welfare loss for the business sector. Bank depositors may gain or lose depending on the parameters. When depositors gain, whether the gains exceed the losses to the business sector depends on the size of the holdings of foreign assets relative to the deadweight costs of bank runs. Thus, limited international financial integration may not be desirable.
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    Notes: Reform of local capital markets and relaxation of capital controls to attract foreign portfolio investments (FPIs) has become an integral part of development strategy. The proximity of market openings and large, sudden shifts in international capital flows gave credence to the notion that the liberalization was the primary culprit in precipitating the recent Asian crisis. Hence, this paper reassesses the benefits and costs of FPIs from the perspective of the recipients. Specifically, it discusses the various FPI contributions and presents empirical evidence regarding the relationship between FPIs and market development, degree of capital market integration, cost of capital, cross-market correlation and market volatility. It is clear that the evidence on benefits of FPIs is strong, whereas the policy concerns regarding resource mobilization, market comovements, contagion, and volatility are largely unwarranted. The authors make some policy suggestions regarding preconditions for capital market openings, market regulation, and liberalization sequencing.
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    Notes: This paper examines the effects of capital account liberalization on the long-run growth of a developing economy. A general-equilibrium, endogenous growth model is constructed in which corruption forms an integral part of the governance system of the country. By undermining the profitability of innovations, corruption lowers the rate of return to capital and reduces the rate of technological change. The impact of international financial liberalization on long-run growth in this model can be either positive or negative. A drop in growth is obtained when the level of corruption is high enough to cause domestic rates of return to capital before liberalization to drop below those in the rest of the world. In this case, liberalization generates capital outflows, which act as a constraining force on innovation, reducing the rate of technological change and lowering output growth. On the other hand, if the level of corruption is sufficiently low, the capital account liberalization will serve as a boost to the country’s technical change and growth.
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    Notes: Economists universally regard tariffs to be inflationary and free trade to be deflationary, a view that this paper challenges. It is argued that while rotectionism has generally created inflation in developing economies, the experience of the United States was totally different. Tariffs in the US were never associated with rising prices, and trade liberalization with declining prices. High tariffs were always followed by sharp drops in the cost of living. A theoretical model is developed to explain the deflationary effects of tariffs in the United States. Thus tariffs produce inflation only in nonmarket or ualistic developing economies, but not in advanced economies.
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    Notes: The objective of this paper is to examine the predictability of real exchange rates during the period following Bretton Wood. The uniqueness of the model is that it allows for time-varying-coefficient and Markov-switching eteroskedasticity. Evidence is provided to show that the model, with appropriate specification, is superior to the random walk in terms of out-of-sample redictability even when forecast horizons are short.
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    Notes: In the late 1960s and early 1970s there was a strong revival of interest in the role of factor-market distortions in those branches of our subject which rely on the Lerner–Samuelson two-by-two model of production. Among the legacies from that period were several comparative statical propositions which seemed counterintuitive or paradoxical. However, the revival lost momentum when confronted with Neary’s observation that the major paradoxes are associated with unstable equilibria and therefore rarely observed. On the other hand, there are now seen to be several errors in Neary’s analysis. For example, in the important case of a closed economy (and, by interpretation, in the case of a large open economy) he overlooked the fact that paradoxes can be associated with stable equilibria.
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    Notes: Some recent literature has explored physical and policy linkages between trade and the environment. This paper explores linkage through leverage in bargaining, whereby developed countries can use trade threats to achieve improved developing-country environmental management, while developing countries can use environmental concessions to achieve trade discipline in developed countries. A global numerical simulation model is used to compute bargaining outcomes from linked trade and environment negotiations. Results indicate joint gains from expanding the trade bargaining set to include the environment. However, compared with bargaining with cash side-payments, linked negotiations on policy instruments provide significantly inferior outcomes for developing countries.
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    Notes: This study uses a Granger causality procedure to investigate the relationship between financial development and economic growth. The authors estimate a vector autoregression (VAR) model for nine OECD countries and China. They argue that a time-series approach is superior to a cross-sectional one and that the VAR framework avoids technical problems common in other time-series models. Evidence is presented of bidirectional causality between financial development and growth in half of the countries and reverse causality in three others. There is little support for the hypothesis that finance “leads” growth, and caution must be exercised in making general conclusions about this relationship.
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    Notes: Suppose a country imports a homogeneous good from n foreign countries/producers and wants to eliminate tariffs on imports from m 〈 n of them. If foreign producers differ in their marginal costs, which ones will be among the m that are granted free trade? This paper shows, among other things, that under constant marginal cost and fairly general assumptions about demand it will be the least efficient producers.
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    Notes: This paper studies the budgetary and trade implications of European Union (EU) membership of Eastern European countries under various agricultural policy scenarios. The author uses a six-region, 13-sector general-equilibrium model with many explicitly modeled agricultural and trade policies. It is found that EU membership of Eastern European countries, including their adoption of the EU’s Common Agricultural Policy (CAP), leads to a surge in Eastern Europe’s agricultural exports. Moreover, the EU’s agricultural expenditure increases by 26%. A reform of the CAP following the Agenda 2000 proposal does not reduce the cost of enlargement if Eastern European farmers receive compensation payments.
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    Topics: Economics
    Notes: The paper examines the optimal pollution standard for a large open economy. Using a two-country partial-equilibrium framework, the optimal standards are charaterized for autarky, free trade, and free trade together with cooperation among countries in setting standards. If pollution is local, at the free-trade equilibrium, the exporting country imposes a stricter standard than does the importing country. The ranking may be reversed if pollution is transnational. A surpriising implication is that if pollution is local, cooperation may imply a less stringent standard for both the exporting country and the importing country.
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    Topics: Economics
    Notes: Simulations demonstrate that when unit-root behavior is rejected in a Levin and Lin panel test, it is incorrect to infer that all series are stationary. Recent tests proposed by Im, Pesaran and Shin, and by Sarno and Taylor, are also incapable of determining the mix of I(0) and I(1) series in a panel setting. This paper introduces a new unit-root test that allows the researcher to discern which series are I(0) and which ones are I(1). The test has double to triple the power of single-equation augmented Dickey–Fuller tests.
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    Topics: Economics
    Notes: This paper investigates the ability of the Stability and Growth Pact to prevent governments in the “euro zone” from running excessive budget deficits. It is shown that in a static two-country game, the Pareto-optimal strategy of no excess deficits cannot be systematically enforced, whatever the toughness of the sanction under the Pact. However, in a multiperiod setting, the Pareto-optimal configuration of no excess deficits would prevail even if no sanctions were applied to deviant governments. In this case, neither a heavily punitive SGP, nor a centralized budget appears to be helpful in the EMU context.
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    Topics: Economics
    Notes: A standard empirical finding in international finance is that countries with high nominal interest rates experience appreciations of their currencies, in contrast to predictions based on uncovered interest parity (UIP). However, tests of UIP have almost exclusively relied on data on short-term interest rates. In this paper, UIP is tested on long-term government bond yields. Since the presence of coupon payments induces a measurement error between the observed data and true returns, several different proxies for the latter are constructed. Furthermore, instrumental variable techniques are used. In contrast to thetypical finding, the results are rather favorable to UIP.
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    Notes: Until the late 1980s, it was a stylized fact that when a country adopted an IMF program, additional loans from non-IMF sources would be triggered. Subsequent empirical research cast doubt on this catalytic effect; a country’s past involvement with the IMF appeared to be negatively correlated with new lending. This paper examines directly the response of lenders to the presence of IMF conditional agreements in developing countries in the 1973–89 period. While total lending does appear to increase in response to the presence of some IMF agreements, the effect varies over time, and across recipients and lenders.
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    Notes: Books reviewedPeter Drysdale and David Vines, (eds) Globalization and the Theory of Input TradeInge Kaul, Isabelle Grunberg, and Marc A. Stern, The Spatial Economy. Cities, Regions, and International TradeInge Kaul, Isabelle Grunberg, and Marc A. Stern, (eds) Globalization and History: The Evolution of a Nineteenth-Century Atlantic EconomyPeter Drysdale and David Vines, (eds) Europe, East Asia and APEC: A Shared Global AgendaInge Kaul, Isabelle Grunberg, and Marc A. Stern, (eds) Global Public Goods: International Cooperation in the 21st CenturyChristiaan Grootaert and Harry Anthony Patrinos, (eds) The Policy Analysis of Child Labor: A Comparative StudyFumio Hayashi, Understanding Saving: Evidence from the United States and JapanHarry P. Bowen, Abraham Hollander, and Jean-Marie Viaene, Applied International Trade AnalysisHasegawa Harukiyo and Glenn D. Hook, (eds) Japanese Business Management: Restructuring for Low Growth and Globalization
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    Notes: The potential welfare gains from further liberalizing agricultural markets are shown in this paper to be huge, both absolutely and relative to gains from liberalizing textiles or other manufacturing, according to new simulation results of the Global Trade Analysis Project. The probability of the WTO delivering sizeable farm protection cuts in the next round of multilateral trade negotiations would be greater if industrial and service sector negotiations were undertaken simultaneously as part of a comprehensive new round. The immediate challenge for analysts and negotiators is to identify and assess feasible policy packages that facilitate genuine agricultural reform rather than encourage inefficient re-instrumentation of farm support measures. Such assessment will require significant improvements in both analytical tools and databases.
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    Notes: The Uruguay Round’s built-in agenda for future WTO negotiations omitted further liberalization in manufactures, yet this paper shows that there are large potential gains to be had from such tariff cuts, especially in the developing countries. In order to fully estimate the benefits of adding industrial products to a future multilateral trade round, we need to take into account the levels of protection in other sectors—most notably agriculture and services—in which many trade flows are highly distorted. This paper examines the nature of the second-best linkages among sectors using a balance-of-trade function approach. The importance of these linkages is evaluated using a numerical general equilibrium model. It is found that, in most cases, the second-best spillovers do not greatly affect the results, implying that the estimated gains from manufacturing reforms will be largely independent of their sequencing. However, in a few regions, most notably the EU, the second-best effects play a significant role.
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    Notes: The authors present tests of excess volatility of exchange rates which impose minimal structure on the data and do not commit to a choice of exchange rate “fundamentals.” The method builds on existing volatility tests of asset prices, combining them with a procedure that extracts unobservable fundamentals from survey-based exchange rate expectations. The method is applied to data for the three major exchange rates since 1984, and broad evidence is given of excess volatility with respect to the predictions of the canonical asset-pricing model of the exchange rate with rational expectations.
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    Notes: This paper examines the special role that trade liberalization in service industries can play in stimulating not only trade in services but also in goods. International trade in goods requires inputs from several services industries (trade services, such as transportation, insurance, and finance) in order to complete and facilitate international transactions. Restriction on the ability of national service providers to provide these services across borders and within foreign countries creates additional costs and barriers to international trade above those that would arise in otherwise comparable intranational exchange. As a result, trade liberalization in services can yield benefits, by facilitating trade in goods, that are larger than one might expect from analysis of the services trade alone. This paper explores this idea using simple theoretical models to specify the relationships between services trade and goods trade. The paper also notes the role of services trade in a model of international industrial fragmentation, where production processes can be separated across locations but at some cost in terms of additional service inputs. The incentives for such fragmentation can be larger across countries than within countries, owing to the greater differences in factor prices and technologies available. However, the service costs of international fragmentation can also be larger, especially if regulations and restrictions impede the international provision of services. As a result, trade liberalization in services can also stimulate fragmentation of production of both goods and services, thus increasing international trade and the gains from trade even further.
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    Notes: The paper is concerned with trade in transport services (not cabotage but rather international shipping, transport, and related logistical services) and the importance of competition and market structure in the sector. It examines implications of liberalization for profits, trade, and national gains from trade. Though past GATS (General Agreement on Trade in Services) maritime negotiations involved the maritime nations, this paper also flags interests of consuming nations (particularly poorer developing countries). Issues raised in the analytical section are illustrated through a computational example, to provide a rough sense of orders of magnitude and the importance of the issues raised for basic gains from improved market access.
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    Notes: In this paper, the authors adapt the latest version of the Michigan Model of World Production and Trade to incorporate cross-border services trade and foreign direct investment (FDI). Firms are taken to be monopolistically competitive. Each firm produces products differentiated by the original R&D that defines the basic product and by location of production. Each firm faces a fixed cost in the country where production occurs, and sets an optimal mark-up for sales from each location. Firms locate production for export or for local consumption depending on the type of barriers faced. Barriers to trade in services take the form of an additional cost of employing variable capital and labor. The paper reports the impact on welfare, trade, factor prices, sectoral output, economies of scale, and activities of multinationals following the introduction of national treatment of multinational firms in all countries.
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    Notes: This paper is concerned with the value of the WTO’s Trade Policy Review Mechanism, particularly its transparency role and its potential role in policy stability, for investor confidence in developing countries. The implications of reduced risk and uncertainty regarding trade policy for investor confidence, and ultimately for the capital stock and the long-run structure of production, are examined in an analytical model. Certainty equivalence is employed to assess the general equilibrium effects of risk and uncertainty. Their reduction can boost risk-adjusted returns, leading to an increase in long-run levels of capital.
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    Notes: This paper studies the relationship between inflation and unemployment by focusing on the effect of inflation rate uncertainty on real wages, employment and output. The effect of inflation on employment is shown to depend on the relationship between the mean rate of inflation and the variability of its forecasts. This can explain why the Phillips curve is negatively slopped in some periods and undetermined or positively slopped in others.
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    Notes: One of the principal arguments for inclusion of core labor standards in the WTO is that weak labor standards provide an illegitimate boost to competitiveness and may result in a “race to the bottom” in labor standards worldwide. This paper shows that, if the violation of labor standards results from discrimination against particular workers in export industries, employment, output, and competitiveness will be reduced since employment is determined by the short side of the market. If the problems arise from abuse of market power by employers, competitiveness will be similarly reduced. Only if freedom of association and collective bargaining were intended to allow workers in some sectors to restrict output and drive up wages would the absence of these standards raise competitiveness. However, if product markets are competitive, it is likely that association rights would increase output and competitiveness by raising productivity. The competitiveness argument seems either to reflect analytical confusion or to represent a cover for protectionist interests.
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    Notes: This study examines foreign direct investment into developing countries, and the stake those countries have in liberalizing or restricting these long-term investments. Of particular interest is the stake the developing countries might have in committing to codes or multilateral agreements on investments. Clear advantages to commitment are identified, involving attracting investments that would not occur otherwise. But disadvantages are also identified, involving the possible loss of rents to host countries that might have been captured in the absence of binding codes.
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    Notes: This study provides additional evidence of a significant long-run relationship between the relative price of nontradables and real output, consistent with the productivity-bias hypothesis of Balassa and Samuelson. The results, however, also indicate that additional permanent supply shocks, specifically real oil prices, need to be considered. In every case, relative prices are significantly affected by permanent innovations in real output and real oil prices. The general lack of evidence of cointegration, however, points to the possibility that additional long-run determinants of relative prices have been omitted.
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    Notes: Can reduced trade barriers promote a collusive understanding about not exporting into each others domestic markets? Reduced trade costs increase the short-run gains from starting exporting, but can also make the long-run punishment of such a strategy harsher. If collusion on prices is supported by a trigger strategy, a reduction in trade costs weakens competition in the sense that collusion is easier to sustain. In a corresponding model with collusion on quantities, this conclusion is reversed. The authors also discuss how results change if grim trigger strategies are replaced by stick-and-carrot punishments.
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    Notes: Long-run monetary neutrality specifies that nominal disturbances do not affect long-run real exchange rates. However, the “over depreciation” of the US dollar in the late 1980s, after its strong appreciation earlier in the decade, suggested to a number of observers that nominal disturbances alter long-run real exchange rates; that is, money supply shocks entail real exchange rate hysteresis. Using data from the G-7 countries and the post-1973 float, the paper measures the long-run effects of relative money supply disturbances on real US dollar exchange rates. Little evidence of hysteretic monetary policy effects is found.
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    Notes: This paper investigates trade balance and current account behavior in response to various shocks when the economy produces and consumes both traded and nontraded goods. Previous analyses of these problems have interpreted current account behavior in terms of tension between parameters that measure intratemporal and intertemporal elasticity, respectively. This paper provides a simple general criterion for whether trade and current account behavior is “perverse”vis-à-vis the standard one-good model results: behavior is perverse if and only if traded and nontraded goods are Edgeworth complements; that is, if the cross-partial of the instantaneous utility function is positive.
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    Notes: J. S. Mill suggested that the destruction of old preferences and their replacement by new are among the greatest benefits imparted by free trade. However, Mill’s argument relied on a possibly controversial ethical judgment. The present note approaches the question posed by Mill with only the conventional Paretian ethical baggage, and shows that, if all agents are rational in a sense to be made clear and if the wellbeing of each agent is independent of irrelevant alternatives, then trade is potentially gainful.
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    Notes: The paper analyzes a model of strategic trade policies in the presence of international cross-ownership of firms that are heterogenous both in terms of costs and in terms of extent of foreign ownership. The equilibrium pattern of taxes and subsidies is characterized for any arbitrary cross-ownership profile, and any number of heterogenous firms. The equilibrium subsidy (or tax) given to any firm is shown to depend, in a separable manner, on the firm’s characteristics and on the covariance of the distribution of cost and foreign ownership across firms. A neutrality theorem is proved concerning the Nash equilibrium of the game between governments: in equilibrium, the pattern of trade, the value of each firm, and world welfare are independent of the ownership pattern.
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    Notes: Aggregate demand externalities are the source of the cumulative processes of the new economic geography. In this paper these externalities drive the endogenous emergence of the pattern of international specialization in integrating economies. A distinguishing feature of this work is that it considers two aspects of market integration simultaneously: reduction of trade costs, and liberalization of the public procurement market. The first dimension has been widely studied. Adding the second dimension, which is on the policy agenda of the WTO and the EU, yields insights concerning the pattern of international specialization, income inequalities, and welfare.
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    Notes: Owing to their low bargaining power and high negotiation costs, microstates face severe disadvantages when dealing with the outside world. Forming a group with neighboring nations might be an effective instrument to address this problem. This paper presents a model in which the decision to form, expand or join a regional club is based on negotiation costs and bargaining power rather than on the traditional costs and benefits of trade integration. The model is used to determine the optimal and the equilibrium group size under various entry conditions. The welfare implications of the entry conditions are also examined.
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    Notes: When imports surge, governments often must seek simultaneously to satisfy protectionist pressures through increased tariffs, induce adjustment to foreign competition, and minimize consumer costs of protection. The WTO’s safeguard clause can be viewed as an attempt to resolve these potentially conflicting goals since it allows governments to offer an implicit contract to protected industries to induce adjustment. In this paper, we show that with asymmetric information about costs, protected industries behave strategically which leads to under-adjustment. The safeguard clause therefore cannot optimally resolve the conflict among domestic political objectives.
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    Notes: This paper shows that the “price wars during booms” logic of Rotemberg and Saloner (American Economic Review, vol. 76, 1986, 390–407) provides an explanation of contagious currency crises. The idea is as follows. When a group of countries relies on exports to a common foreign market, pressures for competitive devaluations arise. In response, competing exporters peg their exchange rates to the currency of their export market. However, it must be in each country’s self-interest to adhere to its peg, and a common adverse external shock can make an existing (implicitly) cooperative arrangement unenforceable. Maintaining the arrangement requires a collective devaluation that reduces the unilateral incentive to devalue.
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    Notes: This paper provides an empirical analysis of the impact of consumer learning over time on the demand for Japanese cars, using both a multinomial logit demand model and the Berry–Levinsohn–Pakes demand model (Econometrica, vol. 63, 1995, 841–90). The data suggest that learning about particular models, manufacturers, and Japanese cars as a group had a positive impact on the demand for individual models during the 1970s and 1980s.
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    Notes: This paper models the interactions of a labor union and a monopoly firm under an import quota in a small open economy. The distorted equilibrium is depicted in a diagram, in which wages and employment in both sectors, and the monopoly rent, can be identified. The imposition of an import quota in the unionized sector reduces monopoly rent, union employment, and wages in both sectors, compared with the case of autarky. In addition, the paper presents several surprising comparative statics results. For instance, an increase in the world price causes the protected (i.e., “wrong”) sector to shrink, wages to decrease, and national income to rise if the initial world price is low.
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    Notes: A firm can serve overseas customers by exporting or by producing in the foreign market. Thus, ceteris paribus, one might expect increases in overseas investment to displace exports. However, most empirical work has found a positive relation between the two variables. The authors use a panel dataset containing 25 years’ of data on 932 Japanese manufacturing firms to investigate the effect direct investment abroad has on exports. For the full sample of firms, complementarity is found. The relationship, however, varies across firms. Those that are unlikely to ship intermediates to overseas production affiliates exhibit substitution.
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    Notes: In April of 1998, the World Trade Organization pronounced the US Sea Turtle Conservation Act in violation of the GATT. This paper presents a stylized Heckscher–Ohlin–Samuelson model in which the fatal entrapment of sea turtles in nets of the shrimping industry is a negative externality that reduces global utility. Three trade equilibria are simulated: free trade, trade ban, and free trade with subsidization. With free trade, a transfer of abatement capital from the North to the South results in a Pareto improvement upon the trade ban. The simulations indicate that a cooperative outcome which obtains global efficiency may be feasible but is improbable.
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    Notes: This study uses a large panel of industrialized and developing countries to investigate the link between exchange rate volatility and exports. Although the empirical literature on this relationship is extensive, a clear consensus about its nature and importance is yet to emerge. Using fixed- and random-effects models to capture cross-country differences, pooled export equations are estimated for the entire panel and various subsets of countries. The results, which are robust across different volatility measures, indicate that negative effects exist for LDC exports, especially from Latin America and Africa, but not for exports from Asian LDCs or industrialized countries.
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    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: This paper uses three panel unit-root tests and finds that real per capita GDP for OECD countries and a European subsample converge stochastically for the period 1948–87 but not for the entire sample of 1900–87. For the postwar period, the differential in income gaps or speed of adjustment is eliminated at an annual rate of 4–8% for OECD economies, and 6–9% for European economies.
    Type of Medium: Electronic Resource
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  • 100
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishers Ltd.
    Review of international economics 9 (2001), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: As ceilings on foreign shareholdings are withdrawn during liberalization, multinationals enter through fully owned subsidiaries that compete with their own joint ventures, unless local partners permit them to raise their stakes. In a framework of quantity competition, this paper demonstrates that an entry threat is more credible when joint venture investment is reversible, the units are independently managed and the local stake is high. Further, profitability of horizontal merger between the units encourages a share reallocation, while its absence favours a new subsidiary. Under irreversible investment, the threat is less credible and both share reallocations or new subsidiaries are less likely.
    Type of Medium: Electronic Resource
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