On the Link Between Exchange‐rate Regimes,Capital Controls and Monetary Policy Autonomy in Small European Countries, 1979–2000

We investigate international monetary‐policy transmission under different exchange‐rate and capital‐account regimes in eleven small, open economies during the 1980s and 1990s. We find no systematic link between ex‐post monetary‐policy autonomy and exchange‐rate regimes. Capital controls appear to have provided a degree of temporal insulation from foreign monetary policy shocks, though not strict autonomy. The results are consistent both with short‐term autonomy for small countries even under fixed exchange rates and an open capital account, and with long‐term dependence under flexible exchange rates and an independent stability target. Results also indicate that euro‐area market interest rates are significantly more responsive to the development of the corresponding US rate than were the previous national rates.     

Public education in developing countries: Cost-effectiveness of education policies and endowments growth

The article analyses the general equilibrium effects of education as a user and producer of resources considering some features of the sector typical in developing countries, such as the presence of inefficiencies, in a model that nevertheless remains close to the Heckscher–Ohlin paradigm. Short- and long-term effects of education are considered and it is shown that the overall effects are linked to the efficiency with which endowments are produced. The analysis has implications for policymakers in developing countries with failing educational systems, as it suggests a relation between cost-effectiveness of policies and growth and not between enrolments and growth or between public expenditure in education and growth as it is usually tested in growth regressions.     

Product innovation and decision-making autonomy in subsidiaries of multinational companies

This paper investigates the relationship between subsidiary decision-making autonomy and their development of product innovations. Using survey data from 563 subsidiaries located in six European countries, we show how the degree of decision-making autonomy, as well as the functional area in which the subsidiary has decision-making autonomy, affect the probability of a subsidiary developing product innovations. We find that higher decision-making autonomy increases the probability of a subsidiary developing a product innovation. This effect is particularly pronounced, but not restricted to, decision-making in the area of R&D or the adoption of technologies. The positive effect extends also to functional areas such as investment, finance, supplier selection as well as marketing and sales. In addition, our study suggests that higher degrees of novelty of product innovation still benefit from subsidiaries’ autonomy, but may require higher degrees of managerial involvement by headquarters.     

Education bias of trade liberalization and wage inequality in developing countries

The aim of this article is to examine the impact of increased trade on wage inequality in developing countries, and whether a higher human capital stock moderates this effect. We look at the skilled–unskilled wage differential. When better educated societies open up their economies, increased trade is likely to induce less inequality on impact because the supply of skills better matches demand. But greater international exposure also brings about technological diffusion, further raising skilled labour demand. This may raise wage inequality, in contrast to the initial egalitarian level effect of human capital. We attempt to measure these two opposing forces. We also employ a broad set of indicators to measure trade liberalization policies as well as general openness, which is an outcome, and not a policy variable. We further examine what type of education most reduces inequality. Our findings suggest that countries with a higher level of initial human capital do well on the inequality front, but human capital which accrues through the trade liberalization channel has inegalitarian effects. Our results also have implications for the speed at which trade policies are liberalized, the implication being that better educated nations should liberalize faster.     

Social representations as a diagnostic tool for identifying cultural and other group differences

The aim of this research is to develop a procedure for data collection within a social representations perspective that may be of use in diverse contexts in which investigators wish to understand and compare the norms and values associated with a particular social object in different social or cultural groups. The social representation of sport is studied in two culturally distinct countries, Morocco and France, with the use of an innovative procedure derived from the Model of Basic Cognitive Schemes (Rouquette, 1990, 1994b). The results reveal a difference in the appropriation of values related to sport in the two countries: the social representation of sport for the Moroccans is focused around hard work related to sport (the education, discipline, and training necessary to achieve competitive performance), whereas for the French, importance is also given to the recreational aspects of sport (sport for pleasure, as a leisure activity and as a way to relax). © 2005 Wiley Periodicals, Inc.     

Business Cultural Intelligence Quotient: A Five‐Country Study

Cultural intelligence (CI) has often been linked to performance at the individual, team, and firm levels as a key factor in international business success. Using a new measure of CI, the business cultural intelligence quotient (BCIQ), our study provides empirical evidence on several key antecedents of CI using data on business professionals across five diverse countries (Austria, Colombia, Greece, Spain, and the United States). The findings suggest that the most important factors leading to cultural intelligence, in order of importance, are the number of countries that business practitioners have lived in for more than six months, their level of education, and the number of languages spoken. We find that cultural intelligence varies across countries, suggesting that some countries have a higher propensity for cross‐cultural business interactions. By teasing out the common antecedents of BCIQ among professionals, our findings may help with screening and training professionals for international assignments. Future research may examine the environmental (country‐specific) factors associated with a higher propensity for cultural intelligence (such as immigration, cultural diversity, languages spoken, and international trade) to explain the effect of country of origin on cultural intelligence in the professional community. © 2016 Wiley Periodicals, Inc.     

Management education in Ibero-America: An exploratory analysis and perspective

Considering the importance of management education for society and the pedagogical inadequacies that pose a threat to academic institutions, this article develops an exploratory approach for evaluating and monitoring the quality of management education within an Ibero-American context. Latin American countries and Spain tend to think of themselves as an Ibero-American region, so the overview of key issues in management education in this article is pertinent to the entire region. The data is important to policymakers who wish to enhance the quality of higher education, since well-trained managers contribute to successful business strategies and superior organizational performance. Unfortunately, there is almost no empirical work available on the performance and effectiveness of higher education in Ibero-American countries. Our study helps bridge that gap by providing useful data for evaluating and reflecting upon some of the variables associated with management education in a sample of Ibero-American universities.     

The value of an educated population for an individual's entrepreneurship success

Human capital obtained through education has been shown to be one of the strongest drivers of entrepreneurship performance. The entrepreneur's human capital, though, is only one of the input factors into the production process of her venture. In this paper we will analyze to what extent the education levels of other (potential) stakeholders affect the entrepreneur's performance. The education level of consumers may shape the demand function for an entrepreneur's output, whereas the education level of employees may affect the entrepreneur's productivity and thereby shape her supply function. Based on this, we hypothesize that the performance of an entrepreneur is not only affected positively by her own education level but also by the education level of the population. We find empirical support for this hypothesis using an eight year (1994–2001) panel of labor market participants in the EU-15 countries. An implication of our finding is that entrepreneurship and higher education policies should be considered in tandem with each other.     

The volatility effect of diaspora's location

Remittances can transmit volatility from host to home countries for some common patterns of diaspora's geographical distribution. In a migration portfolio model, the overall risk of volatility of any set of diaspora location is decomposed into a contagion and a concentration risks: a diaspora located in more volatile destinations induces a higher contagion risk, while a diaspora located in few destination countries increases the concentration risk. A series of estimations on a large panel of developing countries over 1995–2015 provide evidence for these two risks. Estimation of a structural model confirms that the geography of diaspora has an indirect impact on the origin country's aggregate instability through remittances.     

The notion of informal learning within policies for the validation of nonformal and informal learning: A comparison between Austria and Italy

In 2012, European Union Member States committed to implement policies for the Validation of Nonformal and Informal Learning (VNFIL). In this article, we examine Austria and Italy and ask how VNFIL policies in these two countries relate to informal learning (IL) and how this can be interpreted from a workplace learning (WPL) perspective. The notion of IL in VNFIL is largely based on a psychological understanding of learning. We argue that a WPL perspective complements this understanding and serves to better understand learning at work. Based on assumptions concerning the influence of national education and training systems on VNFIL, a comparison is made along three categories: the preferred type of VNFIL, the notion of IL, and the references to workplaces. Despite preferences for summative types of VNFIL, Austria acknowledges a range of types, while Italy is still in the process of development and prefers the so-called autonomous type. Findings suggest a minimalistic understanding of IL in Austria contrasting with Italy, in which IL is seen as firmly embedded within Lifelong Learning. The references to workplaces are weak in both countries. We finally address the role of employers as a delicate issue for VNFIL, when embedded in educational policies.     

The impact of the Belt and Road Initiative on the expansion of China's higher education in overseas markets along the route

Due to the differences in economic and social conditions among the Belt‐and‐Road (B&R) countries, resources exchange might bring significant effect on companies and organizations in these countries. In recent years, vigorously developing university education and attracting more outstanding international students have become important means for “B&R” countries to expand education market and enhance international influence. However, there is limited research discussing the impact of “B&R” on the internationalization of higher education. Taking the sponsoring country (China) of the “B&R” strategy as an example, this article explores the impact of this strategy on Chinese universities' expansion in the education market, and further analyzes the important relevant factors from the perspectives of international competitiveness. The findings show that the B&R Initiative has a significant impact on the expansion of Chinese universities in overseas markets along the route. Furthermore, we have found “push” factors related to China's macro and micro environments, and “pull” factors associated with countries along the B&R route.     

Start-ups by the unemployed: characteristics,survival and direct employment effects

Fostering and supporting start-up businesses by unemployed persons has become an increasingly important issue in many European countries. These new ventures are being subsidized by various governmental programs. Empirical evidence on skill-composition, direct job creation and other key variables is rather scarce, largely because of inadequate data availability. We base our analysis on unique survey data containing a representative sample of over 3,100 start-ups founded by unemployed persons in Germany and subsidized under two different schemes: the bridging allowance (BA) and the start-up-subsidy (SUS). We are able to draw on extensive pre- and post-founding information concerning the characteristics of the business (start-up capital, industry, etc.) and of the business founders (education, motivation, preparation, etc.). Our main results are: (1) The two programs attracted very different business founders (higher skilled for the BA, more female persons for the SUS), and different businesses were created (less capital intensive for the SUS). (2) We find that formerly unemployed founders are motivated by push and pull factors. (3) Survival rates 2.5 years after business founding are quite high (around 70%) and similar for both programs and across gender. (4) However, the newly developed businesses differ significantly in terms of direct employment effects. While around 30% of the founders with the BA already have at least one employee, this is true for roughly 12% of the founders with the SUS.     

The informative and persuasive functions of advertising: A moral appraisal — A comment

This paper argues that the informative and persuasive dichotomy of advertising is an empty concept. All advertising messages perform only one function and that function is to persuade. It is pointed out that in a moral appraisal of an advertising message, a distinction between rational and irrational persuasion can be made. Rational persuasion is consistent with the autonomy of the consumer and hence moral. Some forms of irrational persuasion may have an adverse effect on consumer autonomy and, therefore, should be viewed as immoral. Hossein Emamalizadeh is Assistant Professor of Marketing at the Ball State University. His latest publications are Bait-and-Switch Advertising: A Conceptual Approach, and The Spatial Location of Banking Facilities in Central Business Districts of Nine Major Cities of the United States, both published by the Academy of Marketing Science in 1983.     

US affiliates,infrastructure and growth: A simultaneous investigation of critical mass

A structural model of a small open economy is developed that demonstrates how the impacts of infrastructure on GDP, factor productivity, and multinational industrial location can be decomposed into direct and indirect general equilibrium effects. The model is then estimated on a panel of 28 countries and it is found that schools and telecommunications have a positive and significant direct effect on domestic growth and that there are greater marginal returns for countries with higher investment levels; a result that is suggestive of a critical mass story. However, once spurious correlation of firm location and the indirect effects through wages and multinational activity are accounted for, the total effects of telecommunications and schools on growth are found to be higher than direct estimates would suggest. The results reveal important implications for understanding the channels through which infrastructure influences growth.     

The Liberating Power of Commercial Marketing

The aim of this article is to explore the impact of commercial marketing on personal autonomy. Several philosophers argue that marketing conflicts with ideals of autonomy or, at best, is neutral to these ideals. After qualifying our concept of marketing and introducing the distinctions between (i) divergent and convergent marketing and (ii) being autonomous and acting autonomously, we demonstrate the heretofore unnoticed positive impact of marketing on autonomy. Specifically, we argue that (i) convergent marketing has a significant potential to reinforce autonomous action and (ii) divergent marketing has a significant potential to reinforce the state of being autonomous.     

Persuasive advertising,autonomy, and the creation of desire

It is argued that persuasive advertising overrides the autonomy of consumers, in that it manipulates them without their knowledge and for no good reason. Such advertising causes desires in such a way that a necessary condition of autonomy — the possibility of decision — is removed. Four notions central to autonomous action are discussed — autonomous desire, rational desire and choice, free choice, and control or manipulation — following the strategy of Robert Arrington in a recent paper in this journal. Replies are made to Arrington's arguments in favour of advertising. It is also claimed that the argument developed by Philip Nelson, which concludes that even if persuasive advertising does override autonomy, it is still in the interests of consumers to be subjected to it, is seriously mistaken. Finally, some caveats concerning informative advertising are presented. The author has recently received the degrees of B. A. and B. Phil. at Oxford University, and is presently working on a D. Phil. thesis, in which an ideal utilitarian/perfectionist theory is developed. It is hoped that this theory will supply plausible solutions to a number of problems in practical ethics. He has had an article, The Argument from Marginal Cases, published in Journal of Applied Philosophy, II, 2, 1985, and another, The Avoidance of the Problem of Evil: A Reply to McGrath will be published this year in Analysis.     

Convenience food consumption in the Nordic countries and St. Petersburg area

Building on the theoretical framework provided by sociological research on eating practices, family meals, self‐cooked meals and time use, this study examines national differences and similarities in the use of convenience food in Northern Europe. The study draws on two quantitative sets of data, the primary data set (N = 8248) collected in 2012 in Denmark, Finland, Norway and Sweden, and the complementary data set (N = 800) collected in St. Petersburg area in 2013. In general, consumers’ attitudes towards convenience food were negative. Time saving was an important motivator for convenience consumption in all countries. The effects of other attitudes were diffuse and factors such as low cost, health effects, and taste of convenience food, affected convenience consumption differently in different countries. In the four Nordic countries women used less convenience food than men. In Finland and in Norway older respondents used convenience food less often than the young. Generally, the use of convenience food was most frequent among those living alone. The effects of education and occupation were small, implying that the phase of life is more important than social stratification in explaining convenience food consumption. In the St. Petersburg data, there were no differences related to social background.     

Materialism,fashion consumers and gender: a cross‐cultural study

The purpose of this study was to examine the relationships among materialism, gender and fashion consumer groups from two countries – one representative of an individualistic culture (US) and one representative of a collectivistic culture (Korea). Participants were 397 students from a university in Korea (n = 221) and a university in the US (n = 176) who completed the questionnaire. The materialism construct showed adequate reliability for participants in both cultures. Fashion change agents scored higher on materialism (centrality and success) than fashion followers. Females scored higher on materialism than males which seemed to be based on higher scores on the centrality subscale. Participants from the US and Korea differed on all three subscales of materialism with US participants scoring higher on centrality but lower on success and happiness than Korean participants. The findings of this study provide valuable implications for fashion marketers and retailers in Korea and US. The findings are limited to Korean and US consumers and cannot be generalized to other cultures. This paper fills a gap in the literature by comparing materialistic values between genders and fashion consumer groups in an individualistic culture (US) and a collectivistic culture (Korea).     

Home birth: Consumer choice and restriction of physician autonomy

It is frequently argued that home birth is morally irresponsible because it involves the taking of risks on behalf of the fetus. Against this position, I argue three things. First, the fact that home birth involves risks does not necessarily entail that choosing or attending one is morally unacceptable, irresponsible or wrong. Second, parents have a prima facia prerogative to decide on behalf of their fetuses and children whether risks should be taken. While this prima facia prerogative can be overridden, reasonable and widely accepted criteria for doing so are not met in the case of home birth. Third, since the current attitudes and behaviours of physicians with regard to home birth constitute a de facto morally and socially unjustifiable overriding of an informed parental decision, physician autonomy should be restricted so as to preserve the autonomy of the medical consumer.Paul Thompson is Associate Professor of Philosophy in the University of Toronto. He has numerous publications in philosophy of science and in applied ethics and currently is finishing a book on theory structure in biology.Previous versions of this paper were read at the University of Waterloo and York University. I am grateful for constructive comments on both occasions and especially those of Jan Narveson and Donald McNiven. I also am grateful to physicians John McCulloch and Maarten Bokhout for helpful comments on earlier drafts.     

Intra-industry trade and heterogeneity in pollution emission

This paper develops a model of intermediate goods firms heterogeneity with respect to a pollution parameter to analyze the effects of intra-industry trade on final good output, pollution and welfare. By focusing on intra-industry trade we consider trade between similar countries. We analyze both trade between developed countries, and trade between developing countries. In our model, final good producers pay an environmental tax on the total pollution emitted in their country. Therefore, final good producers determine the overall level of pollution by demanding ‘cleaner’ or ‘dirtier’ intermediate goods. To focus on intra-industry trade we consider only intermediate goods firms trade. We analyze three scenarios: closed economy; open economy with no impediments to trade; and open economy with transportation cost. Our main findings are: i. a developing country closed to trade faces lower final good output and higher total pollution and is thus worse off than a developed country; ii. countries are better off under trade than under autarky, regardless of their development level; and iii. an open economy with low transportation costs are better off than an open economy with no impediments to trade.