Economic Patriotism, the Clash of Capitalisms, and State Aid in the European Union

This article analyses the political economy of state aid in the European Union (EU) using the concepts of economic patriotism and models of capitalism. State aid is analysed as a form of economic patriotism, which is conceived here as economic interventions which seek, by a number of means, to advance the perceived economic self-interest of particular groups and actors (firms, workforces, or sectors) defined according to their territorial status. The article argues that the paradox of neo-liberal democracy generated by liberal international markets, overlapping economic governance regimes (such as the EU and the World Trade Organisation), and nationally delimited political mandates presents new problems for policy-makers attempting economic interventions like state aid. Forms of economic patriotism are partly shaped by national institutional and social configurations and state traditions. Within EU economic governance, this generates a ‘clash of capitalisms’ whereby liberal EU anti-trust and competition policy norms proscribe certain state aid and industrial policy measures favoured by some European states. As traditional industrial policy becomes decreasingly viable, new modes of economic patriotic interventionism are enacted within contemporary processes of market-making, and the re-regulatory activity framing European markets. The paper focuses on French state aid responses to the global economic crisis, noting how the retreat of neo-liberal ebullience within the EU provides a conducive environment for resurgent French dirigiste approaches to state aid, indicating that the politics of economic patriotism and state aid will continue to be important features of the European political economic landscape in the years ahead.     

Corporate Social Responsibility Theories: Mapping the Territory

The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. This article tries to clarify the situation, “mapping the territory” by classifying the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, in which the corporation is focused on the satisfaction of social demands; and (4) ethical theories, based on ethical responsibilities of corporations to society. In practice, each CSR theory presents four dimensions related to profits, political performance, social demands and ethical values. The findings suggest the necessity to develop a new theory on the business and society relationship, which should integrate these four dimensions.     

A politico-economic view of the debt-servicing capacity of emerging economies

While there are a multitude of approaches to analysing a country's debt-servicing capacity, these display a number of weaknesses, notably as regards the integration of political and economic risk factors. This article presents a stylised politicoeconomic model that highlights a number of determinants which have so far been neglected in the literature.     

WTO贸易救济制度的政治经济学分析

在当前金融危机的背景下,反倾销、反补贴、保障措施等贸易救济措施的贸易保护性质在实践中不断得到加强,并已演变成为重要的贸易保护工具和维护国内特定产业利益的有效手段,其矫正作用已经被扭曲了。本文运用新政治经济学的"公共选择"理论探讨了WTO贸易救济政策供给的动因,揭示了目前国外对我国实施贸易救济措施的政治经济原因。     

Rising Income Inequality: Do Not Draw the Obvious Conclusions

Inequality is dominating the political debate in various countries still characterised by sluggish economic recovery and high unemployment. The drivers of higher income inequality since 1995 have been globalisation, technological change and migration. At the same time, these factors have had an undeniably positive impact on aggregate income. While populist parties advocate more nationalistic-oriented approaches, we argue that the appropriate policy response to this dilemma is to alleviate the social costs of globalisation rather than rejecting the aggregate economic benefit.     

Solidarity economy and political mobilisation: Insights from Barcelona

The solidarity economy has been interpreted as being characterised by a political dimension: however, empirical and theoretical analysis supporting this statement is still embryonic. Drawing on a qualitative study in the city of Barcelona, this article analyses the political dimension of the solidarity economy and its transformative character with respect to neoliberalism by engaging with critical approaches related to the social movement studies. The main objectives were to investigate factors enabling the upsurge of solidarity economy organisations and how the opposition of social movement participants to neoliberal rationalities impacts on the way the solidarity economy is conceived and implemented in practice. The results highlight three main dimensions in which the political dimension is reflected, and some general as well as context‐specific factors enabling the upsurge of solidarity economy organisations. Findings show how the compensative rationale that distinguishes most approaches in the field of social entrepreneurship studies is contested by the solidarity economy: its transformative character is reflected in discourses and practices that define the solidarity economy as a prefigurative socio‐economic project.     

In Search of System Understanding and Control

Technology, standardization, and global integration have created a world of ever-increasing financial and economic complexity. However, measurement and modeling have not kept pace with these developments: new approaches to recognize and embrace the complexity of an open social-economic system are necessary. In particular, it is necessary to address five fundamental challenges to system modeling and forward-looking examinations of human behavior: fallibility, reflexivity, time inconsistency, domain inconsistency, and the “Lucas critique.” It is of particular importance to recognize that human life operates in an integrated domain of economic, political, spiritual, family, social, and cultural aspects. To support the needs of analysis, new types of data are necessary. The article presents several specific areas in which modeling and measurement must be improved to meet the demands for economic analysis in the 21st century.     

Varieties of business history: Subject and methods for the twenty-first century

This paper deals with different approaches to business history. It argues that conflicting choices about methodology and subject can enrich a discipline, but that some of the current disputes among business historians produce unnecessary opportunity costs and block a more integrated understanding of how firms function in their larger social, political and economic contexts. The paper provides examples of how the separation in the field works against writing business history that is at once rigorous and appeals to broad audiences. It also suggests two approaches for bridging methodological differences. The first calls for reviving some basic historiographical notions. The second involves developing a closer relationship with business to gain more access to private, primary source materials. German experiences are drawn on to show how mutually beneficial academic–business cooperation can be.     

Political and Institutional Factors in Regime Changes in the ERM: An Application of Duration Analysis

This paper analyses the functioning of the European Exchange Rate Mechanism (ERM). To that end, we apply duration models to estimate an augmented target‐zone model, explicitly incorporating political and institutional factors into the explanation of European exchange rate policies. The estimations are based on quarterly data of eight currencies participating in the ERM, covering the complete history of the European Monetary System. Our results suggest that both economic and political factors are important determinants of ERM currency policies. Concerning economic factors, the money supply, the real exchange rate, the interest rate in Germany and the central parity deviation would have negatively affected the duration of a given central parity, while credibility and the price level in Germany would have positively influenced such duration. Regarding political variables, elections, central bank independence and left‐wing administrations would have increased the probability of maintaining the current regime, while unstable governments would have been associated with more frequent regime changes. Moreover, we show how the political augmented model outperforms the model which just incorporates pure economic determinants, both in terms of explanatory power and goodness of fit.     

The democratic method of obtaining capital—culture,governmentality and ethics of mass investment

The past thirty years have witnessed a range of complex changes in global and national political–economic landscapes. One of the most dramatic aspects of these changes is the “globalization” of finance capital. “Finance” is often said to be at the center of a new and globalizing set of financial spaces in which “everyday” actors are increasingly asked to participate. However, these developments are often depicted in the critical literature in epochal terms as political–economic configurations arising out of macro‐structural episodes of change. In contrast to these approaches, this paper argues for a “cultural economy” for finance as a way of both situating recent developments in a more specific and historically subtle manner and underscoring the ways in which “finance” is lived and constituted at a “minor” or everyday level. By assessing the advertising initiatives of three campaigns of “mass investment” from earlier moments of the twentieth century, this paper foregrounds some of the contexts out of and against which neo‐liberal modes of globalized finance arise, concluding that more historically‐situated accounts could lead to more contingent, and hence, contestable analyses of “global finance”.     

Pacific basin interdependencies

Japan's meteoric economic rise, the hardly less impressive growth of a number of newly industrialised countries in South-East Asia and the enormous mineral wealth of the region have long caused academic and political observers to show keen interest in the economies of the Pacific. Proposals for institutionalised economic cooperation in this region have been under discussion since the mid sixties but have increased in number and significance in recent years; this paper analyses their objectives, limitations and chances.     

Managing human resources in Hong Kong: 1997 and beyond

Financial transition is not Hong Kong's only concern after 1997. This paper examines issues that senior human resource management executives must address as Hong Kong's deadline approaches. Within Hong Kong's particular political context, Farh, Leung and Tse identify the major social and economic trends that directly affect the management of heman resources and discuss the key implications of these trends with regard to personnel planning, recruitment and selection, training and compensation.     

The Limits of Corporate Social Responsibility: Techniques of Neutralization, Stakeholder Management and Political CSR

Since scholarly interest in corporate social responsibility (CSR) has primarily focused on the synergies between social and economic performance, our understanding of how (and the conditions under which) companies use CSR to produce policy outcomes that work against public welfare has remained comparatively underdeveloped. In particular, little is known about how corporate decision-makers privately reconcile the conflicts between public and private interests, even though this is likely to be relevant to understanding the limitations of CSR as a means of aligning business activity with the broader public interest. This study addresses this issue using internal tobacco industry documents to explore British-American Tobacco’s (BAT) thinking on CSR and its effects on the company’s CSR Programme. The article presents a three-stage model of CSR development, based on Sykes and Matza’s theory of techniques of neutralization, which links together: how BAT managers made sense of the company’s declining political authority in the mid-1990s; how they subsequently justified the use of CSR as a tool of stakeholder management aimed at diffusing the political impact of public health advocates by breaking up political constituencies working towards evidence-based tobacco regulation; and how CSR works ideologically to shape stakeholders’ perceptions of the relative merits of competing approaches to tobacco control. Our analysis has three implications for research and practice. First, it underlines the importance of approaching corporate managers’ public comments on CSR critically and situating them in their economic, political and historical contexts. Second, it illustrates the importance of focusing on the political aims and effects of CSR. Third, by showing how CSR practices are used to stymie evidence-based government regulation, the article underlines the importance of highlighting and developing matrices to assess the negative social impacts of CSR.     

The determinants of international migration: Unbundling the role of economic,political and social institutions

International migrants may relocate because of economic, political and social factors in their origin or destination countries. Using global bilateral migration flows from 103 countries over the period 1990–2000, we explore whether emigrants self-select based on economic, political and social institutions. Our study adds social dimension as a potential determinant of migration and separates the pull and push effects of political, economic and social institutions. Our results indicate that economic, political and social institutions are significant pull factors of migration; economic freedom has the most substantial pull effect followed by the political institutions; social institutions have the weakest pull effect on migration. Moreover, economic and social institutions are significant push factors of migration, while political institutions do not show any push effect. Furthermore, educated migrants are more sensitive to the destination economic, political and social institutions than less-educated migrants, and less-educated migrants are more sensitive to the social institutions at the origin.     

Organizing for Society: A Typology of Social Entrepreneuring Models

In this article, we use content and cluster analysis on a global sample of 200 social entrepreneurial organizations to develop a typology of social entrepreneuring models. This typology is based on four possible forms of capital that can be leveraged: social, economic, human, and political. Furthermore, our findings reveal that these four social entrepreneuring models are associated with distinct logics of justification that may explain different ways of organizing across organizations. This study contributes to understanding social entrepreneurship as a field of practice and it describes avenues for theorizing about the different organizational approaches adopted by social entrepreneurs.     

Structural change and the bid-ask spread: evidence from the Johannesburg Stock Exchange (JSE)

This article quantifies the size of the implicit bid-ask spread and examines the impact of three structural changes on the relationship between the bid-ask spread and its determinants on the Johannesburg Stock Exchange (JSE). A sample of 135 firms was analyzed using a time series over the period from January 1991 to February 1996. It was found that the size of the spread is substantially larger on the JSE and that the independent variables (price, volatility and trading volume) explain a smaller proportion of variation in the spread than on developed exchanges. The evidence shows that the spread decreased after tax structural change, but increased after both political and economic structural changes. The size of the spread decreased on average from 1.71% to 1.24% following tax structural change and increased from 1.67% to 1.83% and from 1.10% to 1.24% following political and economic structural changes, respectively. The evidence also shows that the impact of tax, political and economic structural changes on the relationship between the spread and its determinants is not statistically significant. The results show that while the independent variables explain from 23.45 to 48.2% of the variation in the spread, there is no statistically significant change in the coefficients of the independent variables between before and after structural change regressions.     

Integrating Experiential Learning and Cases in International Business

In no other discipline is experiential learning more important than in the complex field of International Business (IB), which aims to prepare students to work and manage across political, economic, national, and sociocultural boundaries. This paper discusses various types of experiential learning activities and approaches to IB teaching, and expands on how the case method can be more effectively used to facilitate student learning and increase engagement. Leveraging class diversity and providing opportunities for “virtual exchanges” in the case-based approach can significantly enhance the development of intercultural competence. Resources for finding cases, developing one's own cases, and publishing them in peer-reviewed outlets are also provided.     

The effect of trade and political institutions on economic institutions

This study examines the relationship between trade and the quality of economic institutions under different political institutions. It uses panel data of 138 countries from 1984 to 2010 and employs instrumental variables and identification through heteroscedasticity to mitigate the problem of endogeneity. The findings suggest that the effect of trade on economic institutions reduces significantly in the presence of extractive political institutions. The findings indicate that ‘trade’ is not a sufficient tool for improving economic institutions; rather, trade policies need to be embedded in distinct political institutions to trigger the substantive improvement of economic institutions.     

The Hierarchy of Consumer Participation and Patterns of Economic,Social, and Political Participation1

This article examines relationships between the hierarchy of consumer participation and propensities for general political and community participation. The results of an empirical study reveal how patterns of participation, knowledge seeking, and decision making are interrelated and deeply rooted in the sociopolitical culture. Cluster analysis reveals that economic, social, and political bias are cumulative in individuals, creating differential patterns in the American political culture resulting in a comparative advantage for some and a structural disadvantage for others. The findings have important implications for understanding behavior in democratic polities, market economic systems, political, economic, and social participation, citizen/consumer education and protection, and policymaking.     

The Enlarged EU and Russia-What Do Visegrad-Countries Contribute to EU-Russian Economic Relationship?

Abstract

The European Union's economic strategy on Russia had not been clearly and consistently worked out by the time of the 2004 May enlargement; major questions still needed to be answered. Since new member-states had not been really involved into the process of shaping EU policy toward its ‘strategic partner’, their approaches should be also included into the EU Russia-policy in the future. Though enlargement certainly brings about growing importance and new perspectives into the EU-Russia dialog, it will create new problems or deepen some old ones as well.

Beside Baltic-states, that have their special interests and attitudes-Visegrad-countries (Poland, Hungary, Slovakia and to a less degree the Czech Republic) are the most interested new-members in this dialog. They may turn to be either the most active ones in taking part of shaping EU-Russian economic and political dialog from among the 10 newcomers or the most influential ones in doing so. The role of Poland in this process is undoubtedly unique.

Notwithstanding the fact that characteristics of bilateral economic relations (Polish-Russian, Hungarian-Russian, etc.) are common to a great extent, it seems to be unlikely that these countries will intend or will be able to cooperate on this issue. The reasons for potential and already sensible divergence in their attitudes toward Russiacontrary to their more or less similar approaches regarding Ukraineare rooted more in politics then in different economic interests. Analysing figures concerning bilateral trade and investment flows indicates these common features. Energy is in the focus of Russian-Visegrad4 economic relations.