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on Post Keynesian Economics |
| By: | Beck, Thorsten; Laeven, Luc |
| Abstract: | Drawing on the recent literature on economic institutions and the origins of economic development, we offer a political economy explanation of why institution building has varied so much across transition economies. We identify dependence on natural resources and the historical experience of these countries during socialism as major determinants of institution building during transition. Using natural resource reliance and the years under socialism to extract the exogenous component of institution building, we also show the importance of institutions in explaining the variation in economic development and growth across transition economies during the first decade of transition. |
| Keywords: | economic development; institutions; transition economies |
| JEL: | O10 P20 |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5718&r=pke |
| By: | Carlin, Wendy; Charlton, Andrew; Mayer, Colin |
| Abstract: | This paper uses a new data-set to examine how internal capital markets and foreign ownership affect investment. Our data allow us to compare investment behaviour of listed subsidiaries with stand-alone firms while controlling for investment opportunities of parent and subsidiary firms. We evaluate how the size of ownership and the geographical proximity of majority owners to their subsidiaries affect firm investment efficiency. We find that the investment of subsidiaries is more sensitive to investment opportunities than that of stand-alone firms and falls when investment opportunities of parent firms improve. This suggests that there are internal capital markets that reallocate funds towards units with better investment opportunities. We find that investment allocation is most efficient where parents have modest ownership stakes and are distant from their subsidiaries and when subsidiaries operate in well developed financial markets. These results indicate that influence costs imposed by dominant parents may outweigh their potential informational benefits, especially when subsidiaries are located in countries with weaker financial development. |
| Keywords: | foreign ownership; internal capital markets; investment |
| JEL: | F21 G31 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5764&r=pke |
| By: | José M. Menudo (Department of Economics, Universidad Pablo de Olavide); José Mª O’kean (Department of Economics, Universidad Pablo de Olavide) |
| Abstract: | This paper deals with the French economic thought throughout the eighteenth and nineteenth centuries. A series of distinctive concepts were developed to come to a clear understanding of the economic problems which the French authors were interested in. J.A. Schumpeter called these economists 'the French tradition'. The arguments presented in this paper aim at illustrating the process of construction of this framework of theoretical concepts which can be regarded as an unsuccessful alternative to the British classical economics. However, this fruitful view of the economy has left a legacy of important contributions to economic theory.. |
| Keywords: | Classical and Preclassical, Economic Methodology, Entrepreneurship, Production and Organisations. |
| JEL: | B1 B41 M13 D2 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpaper:06.24&r=pke |