The Impacts of Economic Freedom and Institutional Quality on Migration from African Countries

The previous empirical literature suggests that socio-economic conditions and demographic pressures are triggering factors of migration from Africa. We propose that economic freedom and institutional quality indicators of African countries are also important determinants of out-migration from Africa. Hence, we investigate the effect of economic freedom and institutional quality on migration flow from 44 African countries to major migration destination countries. Aggregate indicators are derived for the quality of institutions and economic freedom using principal component analysis. Controlling for source and destination countries' income levels, population size, cultural, historical and physical distance, our findings provide evidence that migration flow from Africa is significantly determined by the institutional quality and economic freedom indicators in African countries. Our results are strongly robust to different econometric techniques used to control for sample selection bias, zero-valued observations and endogeneity concern. Hence, improving institutional quality and maintaining economic freedom in African countries matters significantly to control out-migration from Africa.     

Free From What? Classical Competition and the Early Decades of American Antitrust

ABSTRACT

Classical economists characterised free competition as, alternatively, freedom of contract and freedom to trade. These notions were still at centre stage of the economic discourse during the Gilded Age and early Progressive Era, notwithstanding the dramatic rise in industrial size and concentration. In particular, they played a key role during the so-called formative era of American antitrust (1890–1914). The essay argues that the history of economic thought may offer an essential, though seldom recognised, perspective for understanding the rationale behind some of the Sherman Act’s early case law. As it turns out, US courts were still framing their discourse in terms of the two classical images of free competition. Proposals for antitrust reform would in turn stem from the difficult reconciliation between these images and the new reality of Corporate America.     

Does bonding really bond? Liability of foreignness and cross-listing of Chinese firms on international stock exchanges

This study examines the relationship between cross-listing and firm valuation in the context of Chinese firms cross-listed on major international exchanges, such as the NASDAQ, New York Stock Exchange (NYSE), Hong Kong Main Board, Hong Kong Growth Enterprise Market (GEM), Singapore Stock Exchange, and London Alternative Investment Market (LAIM). Through the lenses of bonding theory and liability of foreignness-based multinational enterprise theories, two sets of alternative hypotheses are developed and tested using panel data over a period of twelve years during 2001–2012. Contrary to the bonding theory, the results reveal that the firms listed in Mainland China recorded better valuation than the firms cross-listed on the international stock exchanges. The more sophisticated corporate governance mechanisms applied in international stock exchanges do not always entail better firm valuation. Institutional distance, cultural distance and the distance in economic freedom between China and the cross-listing location countries interact with governance variables negatively affecting performance of cross-listed firms. The direct negative impact of the three distance variables on the firm valuation is also statistically significant. The outcome of Chinese firms’ cross-listing behaviours appears to contradict the general bonding theory.     

Does greater labour market freedom lead to lower new home prices in the US? An exploratory inquiry

In this study for the year 2014 for the United States, we find that the median price of new single-family homes was an increasing function of the state’s median family income, the number of miles of coastline in the state and the state’s population density. In addition, the evidence suggests that the median new home price may been a decreasing function of the crime rate. Finally, of particular interest to this study, is the finding that a higher degree of labour market freedom led to lower prices on newly constructed single-family homes.     

工业劳动力流动、技术溢出与经济地理新均衡——新经济地理学基础模型新发展

在原始核心边缘模型基础上发展的新的核心边缘模型假设工业工人的劳动生产率不再是外生变量，而是跟产业集聚的外部性有关。发展的核心边缘模型不仅验证了原始核心边缘模型的基本性质，还得到了一些新的结论：第一，工业企业生产规模报酬递增程度高有利于产业的集聚，但工业企业生产的规模报酬递增程度低也会诱发产业的重新集聚。第二，产业的空间分布受两股相反力量（集聚力和分散力）的支配。一般情况下，本地市场效应和生活成本效应是促进工业企业集聚的力量，市场拥挤效应则是促使工业企业走向分散布局的力量。第三，在加入本地与跨界技术溢出效应后，对称结构稳定的贸易自由度范围缩小了，而核心边缘结构稳定的贸易自由度范围扩大了。     

Authority versus freedom in Quesnay's thought

Although Quesnay is usually regarded alongside Adam Smith as one of the founders of economic liberalism, there are conflicting interpretations of the extent to which Quesnay was committed to the principle of economic freedom. This paper maintains that the source of ‘ambiguity’ in Quensay's thought can be traced to his instrumentalist logic, which accommodates government action and government restraint - not as ideological axioms, but as utilitarian means to a specified end. It therefore helps to bring into sharper relief the essential differences between Quesnay and Smith regarding the relative position of freedom versus authority in an ideal economy.     

论国际投资协定中的环境规则及其演进——兼评析中国国际投资协定的变化及立法

为了平衡投资自由化和环境保护间冲突,早期的环境条约意图规范加入投资规则。晚近以来,在国际投资协定中纳入环境规则已经成为新式投资协定发展的重要特色。从国际投资协定纳入环境规则的立法模式看,经历了从投资协定到自由贸易协定的多元化发展;从立法内容看,已经形成从实体规范和程序规范的日趋完善的发展;从规范对象看,意图直接规范跨国公司的倾向已经显露。我国的投资协定在国际背景下也产生了重要的变化,但是无论是国际和国内两个层次上都存在不足,需进一步完善。     

The Correct Conception of Capital: A Reply to Baldwin Ranson

This paper assesses the economic importance and the limits of using the Economic Freedom Index (EFI) to help explain and realize higher levels of per-capita income. Specifically, I elaborate on the need to disaggregate and place the EFI into a coherent and meaningful theoretical context in order to generate economically cogent analytical predictions as well as more reasonable public policy recommendations. As it stands, the EFI can produce highly misleading causal results with potentially disastrous consequences for public policy. Hereby, I make a preliminary attempt at constructing an alternative aggregate index to measure the importance of market-related institutions for achieving higher levels of per-capita income. This alternative index, termed here the Good Capitalist Governance Index (GCGI), better correlates with per-capita income and has a higher threshold value than the Economic Freedom Index. The GCGI highlights the importance of secure private rights, limited corruption, and sound money for the realization of higher levels of per-capita income. The evidence supports the hypothesis that good capitalist governance requires a well-working, but not minimalist government.     

Does economic freedom increase income inequality? Evidence from the EU countries

This paper examines the relationship between economic liberalization and income inequality in the EU using panel data for the 2000s. The empirical evidence suggests that economic freedom is strongly related to income inequality. However, not all areas of economic freedom affect income distribution similarly. Government size is robustly associated with inequality, and also when controlling for potential endogeneity in a dynamic panel data analysis. Regulation is linked to income inequality as well, whereas legal system and sound money have no significant effects on income distribution. In the case of freedom to trade internationally, the relationship differs between old (EU-15) and new (former socialist) EU countries.