Trade and Technology from a Schumpeterian Perspective

This paper attempts to implement empirically a Schumpeterian model of international trade. After briefly discussing the literature on trade and technology, we formulate a model in which ‘real’ factors such as R&D expenditures, investment and wage costs have an impact on bilateral trade flows between advanced economies. We also take into account the effect of exchange rate differences. The model is empirically estimated on sectoral data for nine OECD countries. We find that what determines competitiveness differs by sector. In many sectors, either R&D expenditures or wage costs are important. The results for investment indicate a weaker role. Consistent with the Marshall-Lerner logic, we find that the sign of exchange rate changes varies by sector. We conclude the paper by a discussion of the relevance of the results for ‘technology-based’ theories of international trade.     

WHO GETS FORMAL HOUSING FINANCE IN JORDAN?

The role of housing finance in actualizing housing demand is widely appreciated. Many developing nations have established special institutions in an attempt to assure that adequate volumes of financing are made available. Jordan offers an especially interesting case because the Jordan Housing Bank has the resources to serve almost any number of applicants at highly competitive rates. In addition, several other formal lenders make mortgage loans as do some government programs. This paper analyzes the determinants of the likelihood of recent home purchasers actually obtaining a loan from a formal finance institution. We find that purchasers in rural areas are much less likely to obtain such loans. In urban areas, the probability of using formal finance rises steadily with income. Also in urban areas, a household that purchases a unit that is an addition to an existing structure is much more likely to obtain formal financing than an otherwise similar household.     

The Impact of Market Orientation on the Internationalization of Retailing Firms: Tesco in Eastern Europe

This paper investigates a Western retailer's market orientation levels in two emerging markets. We examine whether the market orientation-company performance link holds true for retailers in emerging economies, despite environmental differences. By using concepts from key studies we have assimilated a fully representative model - applied through interviews with top management from Tesco and its subsidiaries and affiliates in Hungary and Slovenia. Using this example, we find that the market orientation-business performance link is valid for Western retailers in emerging economies. Here, the retailer applied market orientation predominately through; the use of matching with suppliers of own brand goods; top management emphasis on market orientation and risk taking. Intelligence generation and dissemination was exercised via global processes such as brand review.     

HOMO DEMOCRATICUS: OR WHY DEMOCRACY SHOULD NOT BE THE OBJECTIVE OF US FOREIGN POLICY

This article argues that government efforts to support democratisation in other countries are often counterproductive because they further strengthen government institutions over and above a responsible, active, citizenry and often target the wrong recipients because of government aversion to risk. Foreign assistance programmes would do better to support individual liberties rather than democracy.     

Spirituality,Moral Identity,and Consumer Ethics: A Multi-cultural Study

Competitor pressure is one of the major reasons that a SME engages in environmentally friendly or damaging activities. Extant research has argued that environmental strengths and concerns have mirror opposite relationships with stakeholder antecedents as well as with performance outcomes. We suggest this argument does not reflect the reality. Building on stakeholder management and Red Queen theories, we hypothesize that environmental strengths and concerns have differential relationships with competitors–firm power exchange and financial performance for Chinese SMEs. Results of ten interviews, a pretest, and a large-scale field study indicate that competitors–firm power divergence has a positive relationship with environmental strengths, yet the link between this divergence and environmental concerns does not exist. Further, environmental strengths mediate the relationship between competitors–firm power divergence and financial performance of Chinese SMEs.     

PACIFIC SALMON RESTORATION: TRADE-OFFS BETWEEN ECONOMIC EFFICIENCY AND POLITICAL ACCEPTANCE

There is no simple solution to the problems of salmon restoration given substantial political and scientific uncertainties. There are, however, some local findings in Oregon that can provide guidance to resource managers charged with allocating funds for conservation purposes. This article shows that in most salmon habitat investments, there are likely to be strong nonlinearities (cumulative and threshold effects) that mitigate against politically palatable allocation criteria. In fact, this research indicates that decisions based on political equity concerns may actually lead to the lowest possible benefits to society. These scientific nonlinearities may make the political resolution of salmon recovery more difficult.     

The Determinants of Employment in Foreign Firms in the UK Food Manufacturing Sector: A Note

This paper seeks to evaluate the factors that have given rise to the large presence of foreign firms in the UK food and drink manufacturing sector. Foreign Direct Investment (FDI) in food and drink manufacturing is very high – the second highest for any manufacturing sector in the UK economy. An empirical model is tested on 48 5‐digit sectors in the food industry and we find that brands, skills and a low propensity to export positively affect employment in EU‐owned firms. Alternatively, employment in non‐EU owned firms is affected by propensity to export factors and by the effective tariff rate.     

The effect of cause-related marketing on firm value: a look at Fortune’s most admired all-stars

Companies are increasing their use of cause-related marketing as a means of communicating their commitment to corporate social responsibility while accomplishing their strategic goals. Although prior studies suggest that consumers react positively to cause-related marketing programs, understanding of their impact on financial performance remains limited. To address this gap, the authors employ an event study to examine the effects of cause-related marketing announcements on shareholder value using a sample of firms that appeared on Fortune’s Most Admired All-Star list between 2005 and 2017. Study results show that announcement of these initiatives results in a significant loss of shareholder value. These losses are most pronounced for firms making monetary-only contributions, in comparison to those that make in-kind donations. In addition, the negative effects are mitigated for firms that have stronger reputations, have greater resource slack, and operate in more dynamic industries. Moreover, low-reputation and low-slack firms benefit most from in-kind contributions.