nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2006‒09‒30
three papers chosen by
Bernardo Batiz-Lazo
Bristol Business School

  1. Competitive Screening and Market Segmentation By Gerald D. Jaynes
  2. The Regional Dimension of Knowledge Transfers - A Behavioral Approach By Tom Brökel; Martin Binder
  3. Taxation and the international strategy of Japanese multinational enterprises. By Céline Azémar; Gregory Corcos; Andrew Delios

  1. By: Gerald D. Jaynes
    Date: 2006–09–22
  2. By: Tom Brökel; Martin Binder
    Abstract: Innovations are inherently connected to knowledge transfers. The need of face-to-face contacts to transfer tacit knowledge is commonly argued to cause a regional dimension of innovative activities. The paper presents an alternative explanation based on a model of boundedly rational actors who search for knowledge. It is shown that a regional dimension exists in these processes that results from a regional bias in an actor’s search activities. Social embeddedness, a shared regional identity and limited spatial mobility foster this bias. We argue that insights from research on these topics can help to define the geographic size of a region.
    Keywords: Regional Economics, Innovation, Knowledge Transfers, Tacit Knowledge, Bounded Rationality Length 31 pages
    JEL: B52 D83 O31 R12
    Date: 2006–09
  3. By: Céline Azémar; Gregory Corcos; Andrew Delios
    Abstract: This paper analyzes the effect of statutory tax rates on the location of Japanese capital in emerging countries. Considering the fact that the difference between Japan and foreign tax rates can engender transfer pricing manipulation to diminish tax liabilities, and that some firms are more able to manipulate transfer pricing, such as wholly-owned ventures and high technology affiliates, we investigate the sensitivity of Japanese capital to foreign tax rates by distinguishing wholly-owned ventures from joint-ventures and high R&D affiliates from low R&D affiliates. Based on country, parent firm and sector characteristics an investment equation is estimated on a sample of 3774 Japanese affiliates in 49 emerging countries. We obtain a greater semi-elasticity between investment and the statutory tax rate for wholly-owned affiliates and R&D intensive parents. We interpret these results as indirect evidence for abusive transfer pricing to be one of the determinants of FDI flows.
    Date: 2006

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