Testing for capital mobility: A random coefficients approach

This paper extends the Feldstein-Horioka (1980), Feldstein (1983) and subsequent studies on the degree of capital mobility, by adopting a random coefficients model. This approach is more general in that it permits inter-country variations in the degree of capital mobility to arise due to the differences in size as well as in other institutional or structural characteristics. In addition, it is a refinement of stochastic laws as defined by Pratt and Schlaifer (1984, 1988). Our results point to significant inter-country differences in the degree of capital mobility, thereby lending support to the random coefficients approach. In particular, our results indicate that, on average, the degree of capital mobility is much higher than implied by fixed coefficients approach. Finally, country size itself does not appear to bear a systematic relationship with the degree of capital mobility as suggested by Murphy (1984).We are grateful to two anonymous referees, and Baldev Raj, Editor of the journal for helpful comments and suggestions. The usual caveat applies.     

Ties that bind tourists: embedding destination motivators to destination attachment: a study in the context of Kumbh Fair,India

ABSTRACT

Despite the deep cultural value and strong appeal to global tourists, the Kumbh Fair has not been explored much by researchers. This is even though the Kumbh Fair is crafting the tourism of India, thereby leading to its overall socio-economic development. This study aims to examine the determinants of tourist motivation, such as ads awareness, destination image and online-communities, which provoke tourists to have attachment with the destination more closely. The study found the tourists’ attitude as a complementary mediation and spiritual stimuli as a mediating moderator are positively impacting on the significant relationship of destination motivators and destination attachment.     

Exploring Cognitive Moral Logics Using Grounded Theory: The Case of Software Piracy

The article reports findings of a study conducted to explore the cognitive moral logics used for considering software piracy as ethical or unethical. Since the objective was to elicit the moral logics from the respondents, semi-structured in-depth interviews of 38 software professionals of India were conducted. The content of the interviews was analyzed using the grounded theory framework which does not begin with constructs and their interlinkages and then seek proof instead it begins with an area of study and allows them to emerge from that area of study. Given the objective of exploring moral logics, grounded theory seemed an appropriate choice. Results revealed that 21 respondents considered software piracy unethical whereas 17 did not. Though economic reasons formed the most fundamental logic in both the cases, an overall analysis revealed that the respondents mostly used moral justification (neutralization) for not considering software piracy unethical whereas those considering it unethical used normative (principled) logics. The interconnections among logics are analyzed and results are discussed along with the limitations of the study.     

Effect of Ad-Irrelevant Distance Cues on Persuasiveness of Message Framing

This research suggests that the relative persuasiveness of message framing depends on psychological distance induced by seemingly irrelevant cues in the ad environment. Positively (negatively) framed messages are more persuasive when the ad-irrelevant cues induce psychological remoteness (proximity). Across four studies and two different product categories, participants evaluated positively (negatively) framed messages more favorably when induced with social remoteness (proximity), spatial remoteness (proximity), and an abstract (concrete) construal. The findings contribute theoretically to the extant literature on message framing and offer actionable implications to ad managers for strategically designing ad environments to enhance the effectiveness of message framing.     

On the impact of trade openness on growth: further evidence from OECD countries

This study attempts to examine empirically the implications of the degree of openness for total and individual factor productivity growth in a group of 19 OECD countries over the last three decades. The study combines both time series and cross-sectional data. The model employed is a generalization of the commonly used, growth-accounting model based on the concept of an aggregate production function in which the rate of economic growth is a function of capital and labour accumulation and total factor productivity. It is explicitly assumed that total factor productivity depends, in turn, upon the rate of export expansion. The model is then estimated using the random coefficients approach. While results generally indicate that the relative importance of trade openness on economic growth varies significantly across countries, they also indicate that the role of capital and labour accumulation in fostering economic growth varies with the degree of openness, cross-sectionally as well as across time.     

Emerging philanthropy markets

• Entrepreneurs are not the only ones to salivate at the call of emerging markets. Major nonprofit organizations that raise money in high-income Organisation for Economic Co-operation and Development countries for redistribution in developing countries are also looking for new sources of funds. Some of the countries that benefited from private philanthropy not too long ago are now in a position to help. The contribution of this paper is two-prong. First, it introduces a robust market screening methodology to determine countries' capacities to give on the basis of macroeconomic and infrastructure indicators. Second, it identifies cross-cultural predictors for charitable donations taken from the World Value Survey. A logistic regression calibrated on already successful fundraising operation scores countries on their propensity for private philanthropy. Research findings receive theoretical support from Max Weber's Protestant Ethic and the Spirit of Capitalism. Top countries for private philanthropy are of Protestant tradition and are at the origin of capitalism, as we know it today. Confucian countries that share a similar ethic and have opted for capitalist economies are first class candidates for private philanthropy.

Copyright © 2012 John Wiley & Sons, Ltd.