Implementing partial tax harmonization in an asymmetric tax competition game with repeated interaction

This paper investigates the conditions under which partial harmonization for capital taxation is sustained in a repeated interactions model of tax competition when there are three countries with heterogenous capital endowments. We show that regardless of the structure of the coalition (i.e., full or partial tax coordination), whether partial tax harmonization is sustainable or not crucially depends on the extent to which the capital endowment of the medium‐sized country is similar to that of the large or small country. The most noteworthy finding is that the closer the capital endowment of the median country is to the average one, the less likely the tax harmonization including the median country is to prevail and the more likely the partial tax harmonization excluding the median country is to prevail. We also show that partial tax harmonization makes the member countries of the tax union better off and non‐member countries worse off, which stands in sharpe contrast with previous studies, such as Konrad and Schjelderup (1999) and Bucovetsky (2009).     

Tariffs,Offshoring and Unemployment in A Two‐Country Model

This paper develops a two‐country model that incorporates offshoring opportunities, and analyses the effects of tariffs under economic stagnation in a liquidity trap that causes unemployment. We find that a rise in tariffs on imports of outsourced goods contributes to an increase in employment by inducing a shift in production, but also leads to an appreciation of the real exchange rate that tends to reduce employment. The effect of real exchange rate appreciation dominates the effect of the production shift, and accordingly employment and consumption fall. The effects of tariff adjustments are reversed, however, when there is no liquidity trap and hence no unemployment.     

POLITICAL LIBERALIZATION OR ARMED CONFLICTS? POLITICAL CHANGES IN POST–COLD WAR AFRICA

The African political scene after the end of the Cold War has been characterized by two major issues: the development of political liberalization and frequent outbreaks of armed conflict. The purpose of this paper is to reflect on the relationship between these two issues. Although political liberalization cannot directly explain the outbreak of armed conflicts, the relationship can be understood by taking patrimonial characteristics of the post‐colonial African states into account. The economic crisis and the change of the international environment after the 1980s compelled African states to launch the transformation, during which three results emerged: countries advancing successfully toward transformation into “polyarchy”; countries having fallen into severe armed conflicts; and countries in which authoritarian rulers managed to survive through introducing superficial measures of political liberalization. The characteristics of political change after the end of the Cold War can be therefore understood as transition processes of the post‐colonial African states.     

‘Inpatriation’ for knowledge-transfer within Japanese multinational corporations

This article uses knowledge management theory and the gravity model to analyse the determinants of ‘inpatriation’ for knowledge-transfer within multinational corporations (MNCs) and the differences in their effects based on the region of the subsidiary’s host country. The empirical analysis uses data collected through a survey of the overseas subsidiaries of Japanese MNCs and finds that factors related to both the countries and the individual MNCs affect inpatriation, with the former factors having a stronger influence than the latter. With regard to the country factors, a smaller geographic distance and a larger cultural distance between the home and host countries and a lower GDP per capita in the subsidiary’s host country increase inpatriation. Regarding the individual MNC factors, a larger subsidiary R&D budget, a larger parent firm and the execution of collaborative R&D projects between a subsidiary and its parent firm increase inpatriation. Additionally, this study finds that in Asia, geographic closeness and low GDP per capita facilitate inpatriation, whereas a relatively small R&D budget and rare collaborative R&D projects with Japan decrease inpatriation. More subsidiaries in Asia send inpatriates to Japan than do subsidiaries in other regions because these positive factors are much stronger than these negative factors.     

A note on the “unique” business cycle in the Keynesian theory

In this paper, we explore the existence and “uniqueness” of a limit cycle in the Keynesian theory. In a model with the simplest (linear) Keynesian consumption function and the logistic investment function based upon the profit principle, we establish the existence of a periodic orbit (irrespective of the speed of quantity adjustment) and, with the help of the theory on generalized Liénard systems, verify the uniqueness of it for the case in which the speed of quantity adjustment is large enough.     

The formation of teams: a British and German comparison

The aim of this paper is to examine the introduction of teamwork in a British and in a German car plant owned by the same American corporation. It contributes to the current discussions about teamwork (Kochan et al., 1997; Delbridge and Lowe, 1996). Using the German concept of a 'constitutional factory' vs 'adversarial' framework, a cross-country comparison is made. The research includes interviews and surveys. Conclusions have been drawn on the actual Gestalt (form, shape) of teamwork with special attention given to the relationship between team members and team leaders. Teams in a more 'adversarial management appoints team leaders' model seem to see team leaders as a new form of supervison and split team members and team leaders into 'us and them'.     

Market Reform, Division of Labor, and Increasing Advantage of Small-Scale Enterprises: The Case of the Machine Tool Industry in China

Using survey data of machine tool manufacturing enterprises in China, this paper explores the effect of market reform on production efficiency by estimating a production function that includes dependence on purchased parts as an explanatory variable. According to the estimation results, the effect of purchased parts on production efficiency was insignificant in the early reform period but became significantly positive later. Further, we found that the dependence on purchased parts decreased with the size of enterprises, implying that the production efficiency became higher in smaller enterprises, including newly established township-village enterprises.     

Asset bubbles,labour market frictions and R&D‐based growth

Employing an overlapping generations model of R&D‐based growth with labour market frictions, this paper examines how employment changes induced by labour market frictions influence asset bubbles and long‐run economic growth. Asset bubbles can (cannot) exist when the employment rate is high (low), which leads to higher (lower) economic growth through labour market efficiency. We also explore the steady state and transitional dynamics of bubbles, economic growth and employment. Furthermore, we show that policy or parameter changes with a negative influence on the labour market can lead to a bubble burst.     

THE POTATO MARKETING SYSTEM AND ITS CHANGES IN BANGLADESH: FROM THE PERSPECTIVE OF A VILLAGE STUDY IN COMILLA DISTRICT

This paper analyzes the marketing system of potato in Bangladesh, especially the economic relations among farmers, traders, and cold storage owners and elucidates the structural changes in the rural economy through a village study. Investment in the potato market is capital‐intensive and risky, and is often considered to be vertically linked. The present study shows that farmers and cold storage owners do not invest in trading because of lack of time and “skill” to deal with urban traders. Besides, farmers face capital constraints and the amount of potatoes produced is too small to meet the demand of urban areas. Cold storage owners are confronted with increasing competition, which forces them to attempt to reach the storage capacity. Traders invest in the risky potato‐storage business. The return from it is declining but still high due to the “cheap” credit supply from the cold storage owners. There is no tied relation among the market agents any more.