Some comparative-statics results for nonlinear input-output models of a multisectored economy,and related results for nonlinear price-demand relations

For a nonlinear version of the linear input-output model of Leontief, we consider the effect, on the vector x of total gross outputs, of changes in the components of the final-demand vector c. For example, it is shown that, for a certain important class of models, the “large-change elasticity” of any component of x, with respect to any component of c, is less than or equal to unity. Some similar results are proved concerning properties of nonlinear price-demand relations for the case in which all goods are weak gross substitutes. Unlike earlier work in this general area, we do not introduce hypotheses concerning the indecomposability or homogeneity of certain mappings. For that reason, the results are valid for the price-demand relation for a single firm, or for any collection of firms.     

Importers,Exporters and Multinationals: Exploring the Hierarchy of International Linkages

The purpose of this paper is to empirically explore two dimensions of the firm hierarchy of international market-specific linkages, using data on Swedish manufacturing firms from 1997 to 2007. First, we investigate the productivity ordering with respect to three international linkages; importing, exporting and investing abroad. Second, we explore whether differences in the productivity ordering across industries correlates with industry and country characteristics. Our findings support a general productivity hierarchy from importing to exporting and from exporting to investing abroad, as well as from a low to a high number of linkages (measuring the complexity of firms’ international linkages). However, an industry-by-industry examination shows that the hierarchical structure is only generally upheld when it comes to the number of international linkages, while the ordering of import, export and investment linkages does not exhibit the same regularity across industries. Extending the analysis, we find that the lack of a hierarchical structure is more likely in industries focusing on larger and less distant markets.     

Least Squares Asymptotics in Spurious and Cointegrated Panel Regressions with Common and Idiosyncratic Stochastic Trends*

This article makes an analytical study of the effects of the presence of both common and idiosyncratic stochastic trends on the pooled least squares estimator. The results suggest that the usual result of asymptotic normality depends critically on the absence of the common stochastic trend.     

The Surprising Duality of Jugaad: Low Firm Growth and High Inclusive Growth

Western theories on creativity emphasize the importance of access to resources and the generation of innovations as a source of sustainable competitive advantage for firms. However, perhaps the emphasis on slack resources and the firm as the level of analysis may be less appropriate for understanding the benefits of individual creative problem solving in resource-poor environments of the east; focusing solely on the firm is not sufficiently inclusive and may underestimate the benefits of creative problem solving under resource scarcity. Through an inductive interpretive case study of 12 problem solvers in the highly resource-poor environment of rural India, we identified the antecedents, dimensions and duality of outcomes for an Indian cultural source of creative problem solving called jugaad. Jugaad relies on assertive defiance, trial-and-error experiential learning and the recombination of available resources to improvise a frugal quick-fix solution. Our inductive framework provides new insights into the dual outcomes of creative problem solving from an eastern perspective; jugaad is unlikely to be a source of competitive advantage for firm growth but represents a source of enhanced wellbeing for inclusive growth.     

An IV Test for a Unit Root in Generally Trending and Correlated Panels

This paper proposes an IV‐based panel unit root test that is general enough to accommodate general error serial and cross‐section dependence, and a potentially nonlinear deterministic trend function. These allowances make the new test one of the most general around. It is also very simple to implement. Indeed, the IV statistic is asymptotically invariant to not only to all nuisance parameters characterizing the dependence of the errors and the true trend function, but also the deterministic specification of the fitted test regression.     

Operationalizing opportunities in entrepreneurship research: use of data envelopment analysis

Despite the impressive development of substantive theories in entrepreneurship, without the development of measurement theories, further advancement of the field is problematic. In particular, the notion of opportunities, central to entrepreneurship research, requires adequate macro-level operationalization. We demonstrate how to employ data envelopment analysis (DEA) to operationalize not only innovative opportunities, but also technological arbitrage opportunities. We provide an illustrative example based on a sample of 66 countries during the period of 1993–2002. We include estimates of innovative and arbitrage opportunities for possible use by other scholars, discuss the promise and limitations of such estimates, demonstrate how both innovative and arbitrage opportunities correlate with the rates of entrepreneurial activity, and suggest several possible directions for future research.     

The utilization of individual capabilities in group approaches to strategic decision-making

Previous research has found that groups using dialectical inquiry (DI) or devil's advocacy (DA) make better strategic decisions than groups using a consensus (C) approach. This paper explains those findings by using new data to show that the DI and DA approaches make better use of the capabilities of individual group members. Specifically, the DI and DA groups yielded significantly higher quality recommendations and assumptions than the average of the individuals in the respective groups, whereas the C groups did not. Moreover, the recommendations and assumptions of the DI groups and the recommendations of the DA groups significantly exceeded those of the best individual in the respective groups. There were no significant differences for the C groups.