nep-net 2005-07-18 papers

on Network Economics

Issue of 2005‒07‒18
two papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

Import competition and the exit of firms in belgian manufacturing By Coucke, Kristien
Risk Management for the Poor and Vulnerable By Ari A. Perdana

Import competition and the exit of firms in belgian manufacturing

By:	Coucke, Kristien
Abstract:	In this paper we investigate the different effects of import competition on the exit behaviour of different types of firms. We find that import competition in Belgian manufacturing has a strong positive effect on the exit behaviour of firms that are not part of a multinational network. However, domestic firms with outsourcing activities (through a network of independent firms) experience a less important crowding out effect. Strong import competition especially increases the exit behaviour of larger domestic firms. But also multinational firms that do not specialise their production process through sourcing of less cost efficient activities abroad, have a higher probability to exit in industries characterised by strong import competition. The finding that import competition also increases the competitive pressure between multinational firms, reflects the increased importance of specialisation of production processes and vertical oriented FDI during the last decade. Note
Keywords:	exit, import, multinational presence
Date:	2005–07–14
URL:	http://d.repec.org/n?u=RePEc:vlg:vlgwps:2005-14&r=net

Risk Management for the Poor and Vulnerable

By:	Ari A. Perdana (Centre for Strategic and International Studies)
Abstract:	This paper reviews some literatures on the mechanisms available for the poor in managing risk. Lacking access to formal mechanisms of risk management, the poor rely on informal mechanisms, which are built based on the existing social networks and trust. But when the shocks are big or affecting the entire community, these informal mechanisms may not be adequate. Some policy interventions are then required to help improving the ability of poor people in managing risk. Policy intervention should aim to provide access for the poor on saving, credit and insurance. Microfinance schemes have been applauded as a successful ‘best practice’ in providing access to saving and credit. However, microfinance institutions still have some room for improvement by expanding their role in providing insurance schemes.
Keywords:	poverty, vulnerability, risk management, microfinance
JEL:	E21 E51 E52
Date:	2005–05
URL:	http://d.repec.org/n?u=RePEc:eab:macroe:527&r=net

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