New business formation in a rapidly growing economy: the Irish experience

The extraordinary growth of the Irish economy since the mid-1990s—the ‘Celtic Tiger’—has attracted a great deal of interest, commentary and research. Indeed, many countries look to Ireland as an economic development role model, and it has been suggested that Ireland might provide key lessons for other EU members as they seek to achieve the objectives set out in the Lisbon Agenda. Much of the discussion of Ireland’s growth has focused on its possible triggers: the long-term consequences of the late 1980s fiscal stabilisation, EU structural funds, education, wage moderation and devaluation of the Irish punt. The industrial policy perspective has highlighted the importance of inflows of foreign direct investment, but a notable absence from the discourse on the ‘Celtic Tiger’ has been any mention of the role of new business venture creation and entrepreneurship. In this paper we use unpublished Irish VAT data for the years 1988–2004 to provide the first detailed look at national trends in business birth and death rates in Ireland over the ‘take-off’ period. We also use sub-national VAT data to shed light on spatial trends in new venture creation. Our overall conclusions are that new business formation made no detectable contribution to the acceleration of Ireland’s growth in the late 1990s, although we do find evidence of spatial convergence in per capita business stocks.     

Sex, Personality, and Sustainable Consumer Behaviour: Elucidating the Gender Effect

Sustainable consumer behaviour—behaviour motivated or influenced by social and/or environmental considerations—is an important topic in public policy and consumer psychology. Research on the antecedents of sustainable consumer behaviour has found a robust “gender effect”: women are more likely than men to express concern about consumption’s broader impacts and to act upon those concerns. The mechanisms underlying the gender effect have not been well elucidated. At the same time, more limited research has found that sustainable consumer behaviour is also influenced by personality: more agreeable and more open consumers are more likely to place importance on and to act on social and environmental concerns. Separate research in personality psychology has shown that women tend to be more agreeable than men. The authors integrate these findings to propose and test a model in which personality mediates the effect of sex on sustainable consumer behaviour. The personality differences mediating this effect are the same ones elsewhere subsumed within “gender” differences. Our findings clarify the mechanisms underlying the observed sex effect, confirm the utility of personality constructs in clarifying differences in consumer attitudes and behaviours, and have compelling implications for public policy.     

The Impact Evaluation of Sustainable Consumption Policy Instruments

Putting sustainable consumption into practice is a challenge that requires the effort and coordination of numerous societal domains and actors. The paper deals with the contribution of policy making and policy evaluation. More specifically, it addresses the question of how to evaluate the effectiveness of policy instruments dedicated to rendering household consumption more sustainable. Despite the extensive literature on instrument effectiveness, sustainability assessment, and consumer behaviour, only a few accounts deal with the specific characteristics and impacts of policy instruments for sustainable consumption. Against this backdrop, a framework is suggested for the ex post analysis of effects resulting from such policy instruments. Instrument effects include changes in consumption patterns (“outcomes”), subsequent changes in the state of the environment, society and/or economy (“impacts”), and side effects. Step-by-step guidance is provided through the evaluation process. The approach helps to assess the extent to which sustainable consumption policy instruments have achieved their stated goals, but also encourages a critical reflection of these goals. In addition to evaluating instrument effects, the framework serves to explain these effects. It does so on the basis of theoretically grounded hypotheses that tackle drivers of and barriers to instrument effectiveness, thus exploring this relatively new policy field. Methodologically, a combination of qualitative methods (narrative reconstruction) and quantitative methods (e.g., material flow analysis) is recommended to causally link policies to changes in consumption patterns and impacts on sustainability.     

Discursive Confusion over Sustainable Consumption: A Discursive Perspective on the Perplexity of Marketplace Knowledge

This paper works towards a discursive, practice-based perspective on explaining the “knowledge-to-action” gap observed in the consumer policy literature on sustainable consumption. Based on an empirical study that focuses on fashion and clothing markets, the objective is to elaborate on the nature and implications of the discursive polyphony that consumers face when striving for more sustainable consumption practices. Overall, it is concluded that part of the gap can be attributed to the discursive confusion that arises from a simultaneous existence of multiple, continuously changing and partly clashing discourses of sustainable consumption as well as the associated discursive struggle that consumers need to deal with when trying to make sense of their roles and responsibilities in sustainable development.     

Something unforeseeable happened? Natural rate theory and economic crisis

“Natural rate theory” — the application of the efficient market hypothesis to labour markets — has guided economic policy since the 1970s and laid the foundations for the design of major European institutions in the 1990s. Unfettered markets were declared to be stable, and consequently public policies and regulations were regarded as distortions. This led to a division of labour in which central banks were responsible only for price stability, governments for labour market reforms and unions for low wages. The European discussion focused almost exclusively on labour market reforms to reduce unemployment. Against the background of the recent dramatic drop in economic activity, this paper confronts natural rate theory with actual economic trends and argues that the predictions of the theory hardly fit the facts.     

Endorsing Sustainable Food Consumption: Prospects from Public Catering

The aim of this article was to analyse an attempt to promote sustainable consumption by shaping the conditions for consumption. In particular, the focus lies on sustainable public catering as an approach to shaping both the supply of and demand for sustainable meals. In order to capture the processes of governing consumption, the way is traced in which rationalities (ways of thinking and calculating), technologies (means and instruments), visibilities (concrete manifestations), and identities (types of agents assumed) related to a policy intervention for sustainable public catering are interpreted and recreated by three main groups of actors involved: policy makers, catering professionals, and consumers. This analysis highlights the active role of practitioners in realizing policies for sustainable consumption. It has implications for policy makers and analysts: Reflexive policies should heed to actors’ unfolding interpretations as they can take the policy process in different directions.     

基于经济增长的中国最优消费规模:1978—2006

中国长期实行"重投资、轻消费"的政策,消费率一直偏低。以限制消费为代价的经济增长不仅无法实现社会福利最大化和居民效用最大化,而且也是不可持续的。消费不足导致经济增长乏力,然而消费过度会导致投资不足从而阻碍经济增长,因此经济中存在最优的消费规模。在检验消费规模和经济增长关系的基础上,建立消费的内生增长模型,利用1978—2006年间29年的经验数据,求得中国消费率的最优值为66.46%,据以提出扩大消费以扩大内需、促进经济增长的政策建议。     

Sustainable Consumption Research as Democratic Expertise

Academic proponents of sustainable consumption have marshaled considerable evidence over the past decade to support calls for more efficacious lifeways among residents of the world’s developed countries. Policymakers continue, however, to resist these recommendations because sustainable consumption runs counter to dominant tenets of neo-liberal economics and conventional political objectives. Unless investigators in the field can identify a cadre of clients that is interested in forming tacit partnerships, the concept of sustainable consumption is likely to remain little more than a prospective pursuit. This article suggests that there are some nascent indications that these kinds of alliances are developing. For sustainable consumption to take root in the policy sphere, it will be necessary to more actively foster these relationships and to cast this form of knowledge as a form of democratic counterexpertise that challenges elite economic and political institutions that regularly appropriate and deploy consumer science to advance their own interests.     

Style consumption: its drivers and role in sustainable apparel consumption

This study proposes style consumption (SC) as a way to foster sustainable apparel consumption. In doing so, we identify explanatory and outcome variables of SC and also examine gender differences in these variables. Based on an online survey with 586 consumers, we find that frugal apparel consumption (FAC), fashion consciousness (FC) and ecologically conscious consumption (ECC) enhance the likelihood of SC. SC in turn increases environmental apparel purchase (EAP) and sustainable apparel divestment (SAD). The results also suggest significant gender differences both in motivational and behavioural variables included in the model. Specifically, females are significantly higher than males in FAC, FC and ECC. The tendency of SC, EAP and SAD were also higher for females than males. In addition, we find that gender is a significant factor mediating the effect of FC and that of ECC on SC.     

The North–South politics of necessity: regulating for basic rights between national and international levels

The paper explores three key initiatives at the international level in relation to access to water that demonstrate a convergence between consumerism, markets and a right of access to basic goods and essential services. It argues that these initiatives are an instance of a regulatory politics that is increasingly the common coin of debates about providing basic necessities in the context of a strong policy preference for market-based systems of provision. The paper begins with an overview of some key contemporary policy issues relating to access to water, followed by a conceptual analysis of how these issues link regulation, markets and rights. The second half of the paper draws an empirical map of current developments in the area, focusing in particular on the political implications—both explicit and implicit—of the global politics of necessity for relationships between developed and developing countries.     

False Promises? A Sociological Critique of the Behavioural Turn in Law and Economics

Economic bestsellers like Freakonomics and Nudge that mainly address outsiders of the economic discipline are also consumed by lawyers. The latter has already become an important reference in the field of consumer law and policy. In principle, this is nothing to complain about but part of law’s encounter with science, namely the social sciences. Notably, the law and economics movement proved successful in importing economic perspectives into legal discourse. However, it would seem questionable if the law followed each trend on the academic book market. While there has been an increasing emphasis on economic perspectives at the expense of sociological perspectives within the field of law, economy, and society, a major shift can now also be observed in the field of law and economics. With the behavioural turn in law and economics, homo oeconomicus seems to be transformed into Homer Economicus, and consumer law prone to be Simpsonized. In this paper, the turn from neoclassical law and economics to behavioural law and economics will be analysed from a third, namely sociological perspective: the economic sociology of law. In this framework, it is possible to compare and confront the “old” homo oeconomicus rationalis and the “new” homo oeconomicus behaviouralis with a third model—homo oeconomicus culturalis—which demonstrates the limits of the previous models, not least with regard to explaining the recent financial crisis. While governance by nudges might look, at first sight, as a tempting idea, I will question the normative side of this project and emphasize its possible effects on our legal culture and, thereby, our human condition.     

Companies Promoting Sustainable Consumption of Employees

Activities aimed at promoting sustainable consumption need to be introduced into everyday settings, as sustainable consumption behaviour needs to become part of daily living. Therefore it is worthwhile reflecting on social settings where consumption plays a minor role, but where people nonetheless learn and experience new attitudes and behaviours. The workplace is an important focal point of adults’ daily routines. This paper examines companies’ role in promoting sustainable consumption of their employees.     

Sustainable Consumption Governance: A History of Promises and Failures

What are the implications of the current international political, and economic settings for consumer policy, and, in particular, those regarding sustainable consumption? In terms of improvements in the efficiency of consumption, the settings have induced efforts to this effect and show potential for further progress. In terms of necessary changes in consumption levels and patterns, however, little progress has been made since the Rio Summit nor is there likely to be any in the near future. These two dimensions of sustainable consumption need to be differentiated, as there is a substantial amount of controversy regarding our ability to achieve sustainable consumption on the basis of improvements in efficiency alone. The paper traces these differences with respect to the work of the major international governmental organizations (IGOs) engaged in developing sustainable consumption governance. It argues that the lack of commitment to strong sustainable consumption among IGOs can be explained by their “weakness” as actors in global governance and the existence of strong opposing interests among consumers and business actors.     

Fiscal Realities for the State and Local Governments

The U.S. economic slump of 2008, as usual for all economic slumps, has taken a dramatic toll on state and local government revenues and budget surpluses. As predictable as this is when properly modeled, states in particular have been even less well prepared than normal. Therefore, it appears that government budget officers, policymakers and their economic advisors, and private-sector economists need help in understanding the external and internal drivers of budget outcomes. A primary goal of this study is to quantify the highly regular, cyclical revenue patterns that emerge when actual revenues are purified of legislated changes. This should assist policy formulation today—as states consider higher tax rates or borrowing—by promoting an understanding of what is temporary and what is permanent in the current revenue weakness. Moreover, if these lessons are learned, future revenue forecasting and budget planning at the state and local levels should be materially enhanced. A second goal is to examine the true sources of the exceptional expenditure growth that precluded the normal buildup of a solid surplus during the economic boom of 2003–2007. The principal culprit is shown to be state and local government pay inflation that has far exceeded private sector norms for the past three years rather than an exceptional medical care burden, as some might think.     

Framing Sustainable Consumption in Different Ways: Policy Lessons from Two Participatory Systems Mapping Exercises in Hungary

Sustainable consumption as a complex phenomenon at the boundaries of different (ecological, economic, social) systems requires theoretical approaches that do justice to its complex causality and dynamism. Participatory systems mapping offers a tool to achieve this purpose. Its policy relevance lies in its ability to include diverse views, multiple actors, and offer options for policy intervention. The research reported here applied participatory systems mapping in order to define and identify system boundaries for sustainable consumption and uncover perceived causal relationships among the determining factors of sustainable consumption. By revealing the mental models of an expert and a conscious consumer panel on sustainable consumption in general, we can shed light on the cognitive constructions of sustainable consumption and identify most important boundaries that were chosen and their implications on policy-making. The expert panel framed the boundaries as lack of sustainable consumption, while the conscious consumer panel employed a positive framing as strong communities in sustainable consumption. The two panels also differed in their focus on scale: Experts targeted the national scale, while conscious consumers concentrated at the local scale.     

Speculative attack against the Hungarian forint

In mid-January 2003 a severe speculative attack was launched against the exchange rate of the Hungarian forint. The attack was very unusual in the history of foreign exchange speculations, since it was aimed at enforcing the appreciation — and not the depreciation — of the currency targeted. The specific nature of this kind of speculation is closely related to Hungary’s accession to the European Union in general and to EMU in particular. Since the other Central and Eastern European acceding countries face similar problems and challenges, the Hungarian experience may involve some instructive lessons on monetary and economic policy for them too.     

Economic Implications of Mexico's Sudden Demographic Transition

Mexico is in the midst of an unprecedented demographic transition that is changing the size and age structure of its population. The most salient demographic change—and clearly the precursor of most other demographic changes—is the abrupt decline in the country’s fertility rate from 6.5 in the early 1970s to the current 2.2 mark, one of the fastest declines in the world. This dramatic reduction of fertility rates has created a “boom generation” that is currently in its prime working years and that will gradually age and retire. As Mexico experiences sub-replacement fertility rates over the next decades, old-age dependency ratios will escalate to unprecedented levels, carrying significant economic implications, both in Mexico and in the United States. After reviewing the economic literature on the link between demographics and economics, this paper attempts to shed some light on the relationship between Mexico’s demographic patterns and economic development since 1950, offering possible explanations for the apparent lack of an expected connection. The paper then discusses the implications of Mexico’s demographic projections on both sides of the border.     

虚拟水贸易对生态环境的影响分析

目前我国不合理的用水方式给生态环境造成了严重的污染与影响,不利于经济的长远发展。虚拟水贸易加剧了缺水地区的用水压力;水资源过度开采,造成地下水漏斗,海水倒灌;影响土地的利用结构,导致土地沙漠化;挤占生态用水,影响生物多样性。生态环境保护目标下虚拟水贸易发展的对策是:促进产业结构优化;坚持可持续发展政策,保护地下水资源;继续推进退耕还林、还草工程;控制人口增长,调整饮食结构和消费模式。     

Lessons for African Economies from Irish and East Asian Industrial Policy

When comparisons in terms of industrial policy lessons to be learned have taken place, it has tended to be solely vis-a-vis the ‘development state’ East Asian experience. This paper broadens the analysis and considers lessons which African countries can learn from other so-called ‘tiger’ economies including Ireland and the East and South Asian countries. We recognise that the latter are indeed clearly significant as many African countries at the time of independence had economic structures and levels of income quite similar to East Asian countries, yet have grown at vastly different rates since then. Exploring why this has been the case can thus offer important insights into possibilities for industrial policy. Yet this comes with some health warnings over East Asian experience. We suggest that another important contribution can come by looking at the Irish example, given its emphasis on corporatism rather than simply relying on state direction in the operation of industrial policy. The Irish model is also more democratic in some senses and has protected workers’ rights during the development process in contrast to the often highly dirigisite East Asian model. Overall we suggest that some immediate actions are needed, notably with regard to the financial system in small African economies. Without such changes, a poorly functioning financial system will continue to keep investment at low levels. In relation to the small size of the African economies, the paper recommends regional integration and sufficient overseas development assistance (ODA) for infrastructural development. It is also critical to note that the various small African economies each face their own industrial and economic development challenges, and that a ‘one size fits all’ approach is not appropriate; rather the key is to tailor policies and systems to the unique opportunities and development challenges in each African country.     

International briefing 16: training and development in the Republic of Ireland

This paper explores the landscape of training and development in the Republic of Ireland, a country with an impressive economic record in recent years. Both the Irish economic context and business context are explored. The national system for training and development and the surrounding policy and strategy context are set down. Survey data are drawn upon to examine the nature of training and development at organizational level. Here influence on training and development, levels of expenditure, the number of days per employee category and the dominant methods employed training and development are all discussed. Finally the academic study of training and development in the Republic of Ireland is examined.