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on Economics of Strategic Management |
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Issue of 2011‒09‒05
24 papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Gebreeyesus, Mulu (UNU-MERIT); Mohnen, Pierre (UNU-MERIT, Maastricht University) |
| Abstract: | This study focuses on innovation in a cluster of informal shoemaking firms in Ethiopia - namely the Mercato footwear cluster. It examines how differently those firms are embedded in networks and how heterogeneous they are in absorptive capacity, and how this heterogeneity affects their innovation performance. Business interactions with buyers, suppliers and other producers are the major channels through which knowledge flows into the cluster. These business networks are mainly built on trust and long-term relationships and tend to be selective. The study reveals that despite homogeneity in social background the firms in the cluster behave and perform differently. Based on econometric analysis we document a positive and strong effect of local network position and absorptive capacity on innovation performance. |
| Keywords: | industrial clusters, networks, innovation performance, informal sector, Africa, Ethiopia |
| JEL: | O17 O31 O33 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2011043&r=cse |
| By: | Priit Vahter |
| Abstract: | This paper studies learning-by-exporting, based on survey data of knowledge flow indicators. Most of the earlier related papers investigate the effects of exporting on productivity of firms, and often find little evidence of learning effects. This study looks more in detail into the mechanism of these effects. It investigates whether exporting is associated with increase in intensity of knowledge flows to the firm from the firm’s clients, relative to other knowledge sources. I use measures of learning about the new technologies from two pooled innovation surveys and firm level exporting data of manufacturing firms in Estonia. Unlike the majority of earlier studies that use productivity data, I find evidence consistent with learning-by-exporting. Exporting in the past is associated with more learning from the firm’s clients in next periods. |
| Keywords: | exporting, learning, knowledge transfer, Central and Eastern Europe |
| JEL: | F12 L1 |
| Date: | 2011–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wdi:papers:2010-1011&r=cse |
| By: | Art Kovacic |
| Abstract: | Over the last decade Slovenia has achieved clear and positive macro-economic results that have placed it among the most sucessful transitions countries. The basic indicators show that it has been integrating and catching up with European Union member states at an ever increasing pace. Despite this, the challenges of a global economy-where only innovation and entrepreneurship can compete succesfully, and the relative lag in the competitive capacity of our economy behind numerous other countries in the world rankings, require drastic changes to be made to Slovenia’s economic structure to adopt as much as possible to the demans of the knowledge based economy. That means the transformation from an economy with low added value whose competitiveness is based on low operative costs into an economy based on production and service activities whose competitive advantages are high added value, quality, innovation and entrapreneurship. Entrepreneurship and the diffusion of innovation, which considerably increase the speed at which new high-quality and low cost products replace existing products, are two driving forces of the knowledge based economy and they are changing the economic structure of leading countries.... |
| Keywords: | national competitiveness, benchmarking, development strategy, industrial policy |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wdi:papers:2010-1009&r=cse |
| By: | Priit Vahter; Jaan Masso |
| Abstract: | The emerging literature on the characteristics of innovation processes in the service sector has paid relatively little attention to the links between innovation and productivity. In this paper we investigate how the innovation-productivity relationship differs across various subbranches of the service sector. For the analysis we use the CDM structural model consisting of equations for innovation expenditures, innovation output, productivity and exports. We use data from the community innovation surveys for Estonia. We show that innovation is associated with increased productivity in the service sector. The results indicate surprisingly that the effect of innovation on productivity is stronger in the less knowledge-intensive service sectors, despite the lower frequency of innovative activities and the results of earlier literature. Non-technological innovation only plays a positive role in some specifications, despite its expected importance especially among the service firms. An additional positive channel of the effects of innovation on productivity may function through increased exports. |
| Keywords: | innovation, services, productivity |
| JEL: | O31 O33 L80 |
| Date: | 2011–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:wdi:papers:2010-1012&r=cse |
| By: | Andersson, Martin (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Thulin, Per (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | Schumpeter claimed the entrepreneur to be instrumental for creative destruction and industrial dynamics. Entrepreneurial entry serves to transform and revitalize industries, thereby enhancing their competiveness. This paper investigates if entry of new firms influences productivity amongst incumbent firms, and the extent to which altered productivity can be attributed sector and time specific effects. Implementing a unique dataset we estimate a firm-level production function in which the productivity of incumbent firms is modeled as a function of firm attributes and regional entrepreneurship activity. The analysis finds support for positive productivity effects of entrepreneurship on incumbent firms, albeit the effect varies over time, what we refer to as a delayed entry effect. An immediate negative influence on productivity is followed by a positive effect several years after the initial entry. Moreover, the productivity of incumbent firms in services sectors appears to be more responsive to regional entrepreneurship, as compared to the productivity of manufacturing firms. |
| Keywords: | entrepreneurship; entry; business turbulence; incumbent firms; productivity; region; business dynamics |
| JEL: | D20 L10 L26 O31 R11 |
| Date: | 2011–08–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0256&r=cse |
| By: | De Silva, Dakshina G.; McComb, Robert P. |
| Abstract: | If localization economies are present, firms within denser industry concentrations should exhibit higher levels of performance than more isolated firms. Nevertheless, research in industrial organization that has focused on the influences on firm survival has largely ignored the potential effects from agglomeration. Recent studies in urban and regional economics suggests that agglomeration effects may be very localized. Analyses of industry concentration at the MSA or county-level may fail to detect important elements of intra-industry firm interaction that occur at the sub-MSA level. Using a highly detailed dataset on firm locations and characteristics for Texas, this paper analyses agglomeration effects on firm survival over geographic areas as small as a single mile radius. We find that greater firm density within very close proximity (within 1 mile) of firms in the same industry increases mortality rates while greater concentration over larger distances reduces mortality rates. |
| Keywords: | Firm Survival; Agglomeration; Localization; and Knowledge Externalities |
| JEL: | O18 R12 |
| Date: | 2011–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32906&r=cse |
| By: | Lucio Cassia; Tommaso Minola; Stefano Paleari |
| Abstract: | The objective of this article is to analyze the relationship between entrepreneurship and change in technological domains, with the focus on possible causal relations in both directions. It aims at investigating how technological changes generate opportunities that entrepreneurs or entrepreneurial organizations can properly exploit, and shedding light on how entrepreneurial behavior can be a promoter of change in both technology-intensive and technology-adopting businesses. Finally, we contribute to the literature on technology entrepreneurship by suggesting an explicit theoretical relationship between innovation dynamics (or techniques) and the entrepreneurial behavior of firms. |
| Keywords: | technology entrepreneurship, technological change, knowledge-base innovation, entrepreneurial orientation |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:brh:wpaper:1103&r=cse |
| By: | Narula, Rajneesh (Henley Business School, University of Reading); Santangelo, Grazia D. (Facoltà di Scienze Politiche, University of Catania) |
| Abstract: | This paper takes a closer look at the role of location advantages in the spatial distribution of MNE R&D activity. In doing so, we have returned to first principles by revisiting our understanding of L and O advantages and their interaction. We revisit the meaning of L advantages, and offer a succinct differentiation of L advantages. We emphasise the importance of institutions, and flesh out the concept of collocation L advantages, which play an important role at the industry and firm levels of analysis. Just because a country possesses certain L advantages when viewed at a macro-level, does not imply that these are available to all industries or all firms in that location without differential cost. When these are linked to the distinction between location-bound and non location-bound O advantages, and we distinguish between MNEs and subsidiaries it allows for a clearer understanding of the MNE's spatially distributed activities. These are discussed here in the context of R&D, which - in addition to the usual uncertainties faced by firms - must deal with the uncertainties associated with innovation. Although prior literature has sometimes framed the centralisation/decentralisation, spatial separation/collocation debates as a paradox facing firms, when viewed within the context of the cognitive limits to resources, the complexities of institutions, and the slow pace of the evolving specialisation of locations, these are in actuality trade-offs firms must make. |
| Keywords: | FDI, foreign investment, direct investment, multinationals, transnational corporations, MNEs, eclectic paradigm, collocation, locational advantage, country specific advantages |
| JEL: | F23 L52 O14 O19 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2011045&r=cse |
| By: | Luosha Du (University of California, Berkeley); Ann Harrison (World Bank); Gary Jefferson (Department of Economics, Brandeis University) |
| Abstract: | We investigate how institutions affect productivity spillovers from foreign direct investment (FDI) to China’s domestic industrial enterprises during 1998-2007. We examine three institutional features that comprise aspects of China’s “special characteristics”: (1) the different sources of FDI, where FDI is nearly evenly divided between mostly Organization for Economic Co-operation and Development (OECD) countries and the region known as “Greater China”, consisting of Hong Kong, Taiwan, and Macau; (2) China’s heterogeneous ownership structure, involving state- (SOEs) and non-state owned (non-SOEs) enterprises, firms with foreign equity participation, and non-SOE, domestic firms; and (3) industrial promotion via tariffs or through tax holidays to foreign direct investment. We also explore how productivity spillovers from FDI changed with China’s entry into the WTO in late 2001. We find robust positive and significant spillovers to domestic firms via backward linkages (the contacts between foreign buyers and local suppliers). Our results suggest varied success with industrial promotion policies. Final goods tariffs as well as input tariffs are negatively associated with firm-level productivity. However, we find that productivity spillovers were higher from foreign firms that paid less than the statutory corporate tax rate. |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:brd:wpaper:33&r=cse |
| By: | Bergman, Karin (CIRCLE, Lund University); Ejermo, Olof (CIRCLE, Lund University) |
| Abstract: | Sweden has seen a rise in business R&D intensities and dependence on exports to make its economy grow since the early 1990s. This paper examines the role of foreign sales for stimulating R&D as compared to a domestic sales effect. In line with the literature, we find in cross-sections from 1991 to 2001 that R&D rises proportionally to sales. But among manufacturing firms foreign sales is distinctly more strongly associated with an increase in R&D than domestic sales. For service firms domestic sales are as important as foreign. The results are consistent with the hypotheses that manufacturing firms more easily separate production from R&D, that they economize on transport costs and are subject to learning-by-export effects. In general, the results highlight the dependence and the role of openness for stimulating R&D in a small economy, especially among manufacturing firms. |
| Keywords: | R&D; size; exports; Sweden |
| JEL: | O32 |
| Date: | 2011–08–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2011_005&r=cse |
| By: | Raphael Anton Auer; Philip Ulrich Sauré |
| Abstract: | We develop a general equilibrium model of vertical innovation in which multiple firms compete monopolistically in the quality space. The model features many firms, each of which holds the monopoly to produce a unique quality level of an otherwise homogenous good, and consumers who are heterogeneous in their valuation of the good's quality. If the marginal cost of production is convex with respect to quality, multiple rms coexist, and their equilibrium markups are determined by the degree of convexity and the density of quality-competition. To endogenize the latter, we nest this industry setup in a Schumpeterian model of endogenous growth. Each firm enters the industry as the technology leader and successively transits through the product cycle as it is superseded by further innovations. The intrinsic reason that innovation happens in our economy is not one of displacing the incumbent; rather, innovation is a means to di-erentiate oneself from existing firms and target new consumers. Aggregate growth arises if, on the one hand, increasingly wealthy consumers are willing to pay for higher quality and, on the other hand, private firms' innovation generates income growth by enlarging the set of available technologies. Because the frequency of innovation determines the toughness of product market competition, in our framework, the relation between growth and competition is reversed compared to the standard Schumpeterian framework. Our setup does not feature business stealing in the sense that already marginal innovations grant non-negligible prots. Rather, innovators sell to a set of consumers that was served relatively poorly by pre-existing firms. Nevertheless, "creative destruction" prevails as new entrants make the set of available goods more di-erentiated, thereby exerting a pro-competitive e-ect on the entire industry. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:snb:snbwpa:2011-10&r=cse |
| By: | Lucio Carlos Friere-Gibb; Nielsen Kristian |
| Abstract: | The entrepreneurial dynamics of urban and rural areas are different, and this paper explores ’individual creativity’ and social network factors in both places. The probabilities of becoming an entrepreneur and of surviving are analyzed. The results are based on longitudinal data combined with a questionnaire, utilizing responses from 1,108 entrepreneurs and 420 non-entrepreneurs. Creativity is only found to be relevant for start-up in urban areas, but it does not influence survival in any of the two areas. The social network matters, in particular in rural areas. By combining the person and the environment, common entrepreneurship beliefs can be questioned and entrepreneurship theory benefited. |
| Keywords: | Entrepreneurship; Urban; Rural |
| JEL: | L26 O18 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:11-01&r=cse |
| By: | Frank Bickenbach; Wan-Hsin LIU |
| Abstract: | This paper describes the Chinese economic and institutional reform process as a gradual transition of an informal, relation-based governance system into a more formal and rule-based governance system. The consequences of macro-level institutional reforms on the importance of personal relationships for the firm-level governance of business operations are discussed. Theoretical considerations based on the New Institutional Economics suggest that, in a transition economy such as China, companies’ incentives to reduce the reliance on personal relationships should depend on firm characteristics such as the age, size and the internationalization of the firm. We confront these suppositions with empirical data obtained from a company survey performed among 222 (electronics industry) companies operating in the PRD, China. From this we obtain some, though often weak, evidence in favor of the suppositions |
| Keywords: | formal and informal institutions, relation-based governance, firm characteristics, China, company survey |
| JEL: | L20 L63 P0 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1728&r=cse |
| By: | Zucchini, Leon; Kretschmer, Tobias |
| Abstract: | Competitive dynamics research has focused primarily on interactions between dyads of firms. Drawing on the awareness-motivation-capability framework and strategic group theory we extend this by proposing that firms’ actions are influenced by perceived competitive pressure resulting from actions by several rivals. We predict that firms’ action magnitude is influenced by the total number of rival actions accumulating in the market, and that this effect is moderated by strategic group membership. We test this using data on the German mobile telephony market and find them supported: the magnitude of firm’s actions is influenced by a buildup of actions by multiple rivals, and firms react more strongly to strategically similar rivals. |
| Keywords: | Competitive rivalry; competitive dynamics; strategic groups; mobile telecommunications |
| JEL: | D83 M10 L11 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:msmdpa:12308&r=cse |
| By: | Raymond Mataloni, Jr. |
| Abstract: | This paper examines whether the productivity of U.S. business establishments is related to the extent to which their parent firms are globally engaged--from being an exporter to being a fledgling multinational that has taken a few cautious forays into foreign markets to being a seasoned multinational with extensive foreign operations. Theory suggests that multinationals possess proprietary assets that confer a productivity advantage over their domestically-oriented rivals, and that this advantage is positively correlated with the global scope of a firm’s operations. That is, those firms with the greatest productivity advantage are able to absorb the costs and overcome the risks of operating in a wide range of foreign countries, from those where it is relatively riskfree and economical to operate, to those where it is risky, difficult, and costly. This connection between the multinational’s widening of its geographic scope of operations and its productivity can be self-reinforcing. Once a multinational has successfully operated in a risky environment, it may benefit from learning effects that can lower the cost and risk of further enlargement of geographic scope. The positive correlation between a firm’s global engagement and its level of productivity has already been demonstrated. This paper extends that research by testing whether the correlation holds up when productivity is measured at the level of the individual establishment, rather than at the level of the consolidated business enterprise. It also examines whether the correlation between global engagement and productivity exists in non-manufacturing industries. Finally, it examines whether linkages between the multinational’s domestic and foreign operations, in the form of imports of goods by the parent company from its foreign affiliates, enhance the productivity of the multinational’s domestic business establishments. The findings confirm the positive correlation between global scope and productivity and demonstrate that it holds for both manufacturing and non-manufacturing industries. The effect of imports of goods from foreign affiliates on the productivity of the establishments of their parent firm depend on the geographic location of the affiliates: Imports from affiliates in high-income countries tend to be associated with high productivity whereas those from affiliates in low-income countries tend to be associated with low productivity. The study was made possible by combining BEA enterprise-level data on the U.S. operations of U.S. multinational firms with data on all U.S. business establishments collected by the Census Bureau in the U.S. economic census covering 2002. |
| Keywords: | multinationals, exporting, productivity |
| JEL: | D24 F23 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:11-23&r=cse |
| By: | John P. Weche Geluebcke (Institute of Economics, Leuphana University Lueneburg, Germany) |
| Abstract: | This study provides first comprehensive analyses of foreign-controlled enterprises in the German service sector based on new micro data from official statistics. Various performance measures were examined by comparing unconditional and conditional means and quantile regression techniques were applied. Results reveal persistently superior performance for foreign-controlled affiliates when compared to German-owned affiliates. In contrast, the relationship for profitability is exactly the opposite. Labor productivity becomes insignificant when the comparison group consists of domestically-owned affiliates with a high degree of internationalization. A breakdown by country of origin shows that European affiliates pay lower wages and export less compared to other foreign affiliates and that there is no productivity advantage in favor of US firms like in manufacturing. |
| Keywords: | foreign ownership, firm performance, inward FDI, service sector, multinational enterprise |
| JEL: | F15 F21 F23 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:213&r=cse |
| By: | Luciano Nakabashi (Universidade Federal do Paraná); Adolfo Sachsida (IPEA e CNPq); Ana Elisa Gonçalves Pereira (Universidade Federal do Paraná) |
| Abstract: | The Brazilian municipalities show an enormous inequality on its development level. Even within the states considered relatively prosperous, there are huge internal disparities on income levels. The richest Brazilian municipality's GDP per capita is about 190 times greater than the poorest municipality's, according to IBGE (2000) database. A possible explanation for this phenomenon relies on institutional theory. Many theoretical and empirical studies, mainly based on cross-country data, emphasize the role played by institutions on the determination of long run development. Nevertheless, there still is little research concerning the income differences within the national territory and its connection to institutional quality. The literature points out that institutions matter for the level of economic development because of their effects on political power distribution, generation of economic opportunities, innovation, human capital accumulation, and so on. Based on this assumption, the present study main goal is to analyze the effects of Brazilian municipalities' institutional quality on their GDP per capita levels. The results indicate that institutions are relevant and its importance is greater for large municipalities. On the other hand, human capital human capital is more important to small municipalities. To address the endogeneity problem inherent to the relationship between institutions and development, we employ the 2SLS method. |
| Keywords: | institutions, income level, brazilian municipalities |
| JEL: | C13 O11 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fup:wpaper:0116&r=cse |
| By: | Marie-Ange VEGANZONES (Centre d'Etudes et de Recherches sur le Développement International); Patrick PLANE (Centre d'Etudes et de Recherches sur le Développement International); Tidiane KINDA (Fonds Monétaire International) |
| Abstract: | Firm productive performances in five Middle East and North African (MENA) economies and eight manufacturing industries are compared to those in 17 other developing countries. Although the broad picture hides some heterogeneity, enterprises in MENA often performed inadequately compared to MENA status of middle-income economies, with the exception of Morocco and, to some extent, Saudi Arabia. Firm competitiveness is a more constant constraint, with a unit labor cost higher than in most competitor countries, as well as investment climate (IC) deficiencies. The empirical analysis also points out how IC matters for firm productivity through the quality of infrastructure, the experience and education of the labor force, the cost and access to financing, and different dimensions of the government-business relationship. These findings bear important policy implications by showing which dimensions of the IC, in which industry, could help manufacturing in MENA to be more competitive in the globalization context. |
| Keywords: | Manufacturing firms, productivity, investment climate, developing countries, Middle East and North Africa (MENA) |
| JEL: | O57 O14 D24 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cdi:wpaper:1282&r=cse |
| By: | SEKKAT; Patrick PLANE (Centre d'Etudes et de Recherches sur le Développement International); Ridha NOUIRA |
| Abstract: | Recent literature suggests that a proactive exchange rate policy in accordance with price incentives (i.e. undervaluation) can foster manufactured exports and growth. This paper is built on these recent developments and investigates, using a sample of 52 developing countries, whether such a proactive exchange rate policy is adopted. The results show that during the period 1991-2005 a number of countries has used undervaluation to foster the price competitiveness of manufactured exports. |
| Keywords: | Exchange rate, Misalignment, Undervaluation, Exports diversification |
| JEL: | O53 O24 O14 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cdi:wpaper:1281&r=cse |
| By: | Hampf, Benjamin |
| Abstract: | In this paper we present a new approach to evaluate the environmental efficiency of decision making units. We propose a model that describes a two-stage process consisting of a production and an end-of-pipe abatement stage with the environmental efficiency being determined by the efficiency of both stages. Taking the dependencies between the two stages into account, we show how nonparametric methods can be used to measure environmental efficiency and to decompose it into production and abatement efficiency. For an empirical illustration we apply our model to an analysis of U.S. power plants. |
| Keywords: | nonparametric efficiency analysis, pollution abatement, network DEA, materials balance condition, fosil-fueled power plants |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:dar:ddpeco:53901&r=cse |
| By: | Wagner, Joachim (Leuphana University Lüneburg) |
| Abstract: | This paper documents the relationship between firm survival and three types of international trade activities - exports, imports and two-way trade. It uses unique new representative data for manufacturing enterprises from Germany, one of the leading actors on the world market for goods, that merge information from surveys performed by the Statistical Offices and administrative data collected by the Tax Authorities. It contributes to the literature by providing the first evidence on the role of imports and two-way trading for firm survival in a highly developed country. Descriptive statistics and regression analysis (with and without explicitly taking the rare events nature of firm exit into account) point to a strong positive link between firm survival on the one hand and imports and two-way trading on the other hand, while exporting alone does not play a role for exiting the market or not. |
| Keywords: | exports, imports, firm survival |
| JEL: | F14 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5924&r=cse |
| By: | Mohsen Afsharian (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Anna Kryvko (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Peter Reichling (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg) |
| Abstract: | The paper empirically analyzes the impact of the degree of efficiency on key performance fig-ures of publicly traded European banks in the period from 2005 to 2009. Efficiency is meas-ured by constructing non-parametric frontiers using the technique of data envelopment analysis on the cost, revenue, and profit sides. Decomposition of overall efficiency provides a detailed insight into effective risk and performance drivers in the banking industry. The results of our paper suggest that an increase in pure technical efficiency is related to more volatile assets, which is reflected in lower market values. Allocative and scale efficiency, however, boost capi-tal market performance. |
| Keywords: | Data Envelopment Analysis (DEA), Efficiency, European Banks, Bank Performance |
| JEL: | C33 C61 D24 G21 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:mag:wpaper:110018&r=cse |
| By: | Breau, Sébastien; Brown, W. Mark |
| Abstract: | Do exporters and foreign-controlled establishments pay their workers higher wages than non-exporters and domestic-controlled establishments? This paper draws on an employer-employee dataset to explore the existence of exporter and foreign-controlled wage premiums in the Canadian manufacturing sector. Trade and foreign direct investment (FDI) are central to the process of globalization. Over the last 50 years, advocates of greater trade and FDI liberalization have been guided by the notion that removing barriers to both stimulates economic growth. An extensive body of work using newly available micro-data files has emerged comparing the productivity levels of exporters against those of non-exporters, and of foreign-controlled firms against those of domestic firms. |
| Keywords: | Business performance and ownership, Manufacturing, Business ownership |
| Date: | 2011–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp1e:2011021e&r=cse |
| By: | Vittorio Corbo; Klaus Schmidt-Hebbel |
| Abstract: | Latin America has been strongly affected by the international crisis and recession since late 2008. In comparison to historical experience, how has Latin America coped with the global crisis, which has been the role of different transmission mechanisms, and how have the region’s structural and policy conditions affected its sensitivity to foreign shocks? Moreover, what policies can protect the region better from world crises and shocks, and to which extent should it rely on a strategy of close trade and financial integration into a world economy punctuated by shocks and crises? This paper addresses the latter questions in three steps. First, by assessing empirically the sensitivity of growth in the region’s seven major economies during 1990-2009 to large number of structural and cyclical factors, based on high-frequency panel-data estimations. Second, by using the latter results to decompose the amplitude of GDP reductions in both recessions according to the individual and combined contribution of the different growth factors. Third, to derive the main implications of the results for the choice of macroeconomic regimes and development strategies. |
| Keywords: | Growth, Macroeconomic adjustment, Latin America |
| JEL: | O47 E6 O54 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnstan:0429&r=cse |