Effects of presidents’ characteristics on internationalization of small and medium firms in Japan

Recent heterogeneous-firm models of international trade suggest that productivity determines whether firms engage in export activity and foreign direct investment. In practice, however, many productive firms are not internationalized, whereas many unproductive firms are, which suggests that there are factors other than productivity that influence firms’ internationalization. This study uses a unique panel data set for Japanese small and medium enterprises (SMEs) to examine whether the personal characteristics of a firm’s president are factors in firm internationalization. We find that SMEs with a risk-tolerant, forward-looking president are more likely to be internationalized. These effects are large in magnitude, as is the productivity effect, which provides a partial explanation as to why many productive firms are not internationalized. In addition, we find that productivity has an insignificant effect on firms exiting export markets, whereas presidential myopia increases the probability of exit. The evidence further suggests that a firm’s initial export costs become sunk following its entry into export markets, which explains why many unproductive firms are internationalized.     

Do firms benefit from multiple banking relationships? Evidence from small and medium- sized firms in Japan

This paper examines empirically the effects of multiple banking relationships on the cost and availability of credit. The analysis is based on an unbalanced panel data set for Japanese small and medium-sized firms over the period 2000–2002. The Hausman-Taylor estimator is used to allow for possible correlation between unobservable heterogeneity among firms and multiple banking relationships. The results suggest that the cost of credit is positively correlated with the number of banking relationships when the endogeneity of banking relationships is taken into account. Multiple banking relationships have a positive effect on the availability of credit for financially constrained firms.     

The relative importance of liquidity and other constraints inhibiting the growth of small‐scale farming in KwaZulu‐Natal

A logit model is used to examine the extent of liquidity constraints relative to other constraints inhibiting small‐scale farming in KwaZulu‐Natal. These other constraints include poor access to land, labour and information, and high transaction costs. Data for the analysis were sourced from two rural districts in the former KwaZulu. The results suggest that liquidity is important, while imperfect land markets, information costs and high transaction costs are also significant inhibiting factors. Investments in literacy and language skills, vocational training, and business and financial management skills may improve income opportunities for rural people and hence enhance their ability to invest, save and borrow. Better roads, telecommunications and legal institutions are also required to realise the full benefit of investment in extension and credit services.     

Is small beautiful? Understanding the contribution of small businesses in township tourism to economic development

The increased importance attached by policy-makers to the anticipated developmental effects of tourism in developing countries has been insufficiently examined by academic researchers, particularly in the context of the contribution of small firms in urban areas. This deficiency is addressed by providing a review of existing research followed by an analysis of interviews with 90 tourism business located within and outside the townships of Langa and Imizamo Yethu, Cape Town, South Africa. The findings reveal tensions between the different actors involved in township tourism. While the involvement of small, locally owned, businesses is beneficial, it is limited by conflicts of interest, lack of trust, limited social networks and little attachment to the township locality. The discussion highlights the complexity of tourism's role in economic development, which has significant implications for local policy-makers.     

Understanding local entrepreneurship and small enterprises in the tourism–development nexus: The case of western Uganda

Most studies of the tourism–development nexus in developing countries tend to focus on short-term and monetary tourism effects, while understating non-monetary and longer-term effects of tourism on local and regional development. Although less tangible and weakly understood, non-monetary and/or long-term tourism effects can both reinforce and undermine short-term and monetary tourism effects. This article analyses how tourism stimulates local entrepreneurship and small enterprise development, and to what extent these small enterprises fuel non-monetary aspects of regional development. Evidence from career pathways of different types of local entrepreneurs in western Uganda suggests that tourism can enlarge peoples’ capabilities, awareness and assets to control their own well-being. This study indicates that tourism can act as a catalyst for small enterprise development in the local economy without inducing major skills’ leakages.     

Development of the township‐village enterprises and the re‐instttutionalization of the family in China*

Small farms, which have maintained flexibility throughout history, have long existed in China and the so‐called “family household system as a cooperative organization” comprehensively playing a diverse socio‐economic function has developed. In addition, trust derived from a unique environment based on a village structure where a few families dwell not to mention “everyone knows each other well” has also become institutionalized. In this setting, a complex and multi‐dimensional property rights could have developed. Moreover, the Confucian order, historically institutionalized in China, has differentiated the respective roles of the public from the private and the center from the local through a network intertwined by relationships (guanxi‐based network), allowing them to be relatively autonomous from each other (embedded autonomy). This institutional tradition of the Chinese society has re‐emerged with the coming of the reform age. The reform reintroduced the revival of the traditional family household, as a cooperative unit for the insiders and, at the same time, as a competitive unit against the outsiders; and its renewed close relationship with the local governments have given birth to the township‐village enterprises. Based on reforms of this nature, which have occurred from the bottom and approved by the center state ex post, China was able to experience the implementation a new form of transition to capitalism, i.e., rural industrialization. In this process, China's guana‐based township‐village enterprises were able to secure the fitness to react to market competition despite their collective ownership nature.     

Sustainable rural livelihoods? Evaluating the potential of small‐scale aquaculture in the Western Cape

Rural unemployment is exacerbated by the decrease in demand for farm labour on commercial farms; therefore, alternative livelihood opportunities for rural dwellers require investigation. The production of fish inform dams offers such an opportunity. A research project was undertaken to evaluate the potential of small‐scale aquaculture to create sustainable rural livelihoods. An existing aquaculture project in De Dooms in the Western Cape was evaluated in terms of its ability to provide an alternative source of income and a cheap animal protein source. A needs assessment of the local community and an evaluation of the pilot project in terms of its potential to meet the identified needs were carried out. The results indicated that, subject to the implementation of the recommendations, the project has the potential to create sustainable livelihoods, but that sociopolitical issues should be accorded equal consideration to biotechnical and economic feasibility.     

The influence of Newtonian‐Cartesian scientific thinking on the interpretation of welfare and development

Development planning is essentially an exercise in strategy formulation and implementation. The first step in strategy formulation is the design of effective practice: doing the right things. Therefore strategic thinking requires that the context be considered before the particular. This requires a metaperspective.

In scientific practice such a metaperspective requires first of all an inquiry into the appropriateness of the paradigms, theories and models that are used in research and practice. The purpose of this article is to contribute to the vibrant discourse on development and welfare theory by proposing that this discourse is caught in the thought trap of the Newtonian‐Cartesian scientific culture of reductionism, disciplinarity and multidisciplinarity.

The evolution of scientific tradition from classical to Newtonian‐Cartesian is reviewed and also the contrasting societal and developmental implications of changes in this tradition. Tönnies's social transition theory and technological innovation are used to illustrate the need for a synthesis between the classical and modern traditions of science, in particular between the search for wisdom and understanding which dominated classical science and insight and specialised knowledge which regulate progress in modem science.

It is proposed that the social systems approach (the ‘soft’ systems approach) can provide some guidelines for a metaperspective (a grand synthesis) for studies in social welfare and human development The social systems approach is transdisciplinary and its process of synthesis differs fundamentally from the multidisciplinary and interdisciplinary procedures that are often used to provide a synthesis between projects and disciplines in development planning. Its proposed synthesis also differs in important respects from the structure‐functionalist approach ofTalcott Parsons.     

Analysis of the Changes in the Growth of Japan’s Direct Investment in and Trade with China

I. Relative Drop in the Proportion of Japan’s Direct Investment in ChinaCompared with the United States and the EU, Japan’s direct investment in China hasslowed down since 1999, with the relative real size of investment dropping. Table 1 shows that Japan’s direct investment in China was slightly more than that of the USA and much more than that of the EU before 1998. But in the ensuing five years from 1999 onward, the situation was reversed. The US direct investment in China rose …     

Lifting physical and institutional barriers to development on a small‐scale irrigation scheme

If it is accepted that both the system and the individual can act as barriers to development at the micro‐level, development policy could be aimed at identifying the major causes and sources of inefficiency and removing the existing barriers to the achievement of efficiency.

In this article the major barriers to system efficiency are identified as being physical and institutional, and they include the physical structure of irrigation schemes, the land tenure system and the marketing structure. A theoretical discussion of each of these factors is used to propose more specific strategies for micro‐level rural development.     

Effects of outside directors on firms’ investments and performance: Evidence from a quasi-natural experiment in Japan

This study presents evidence on the impact of outside directors on firms’ investment behavior and performance with a focus on the recent quasi-natural experiment that rapidly increased the number of outside directors in listed firms. Using a panel of Japanese firms, we compare listed and unlisted firms and conduct instrumental variable estimations to examine causal relationships. The results indicate that the rapid increase in the number of outside directors among listed firms did not promote active investments or risk-taking behavior. In addition, it had no significant impacts on the profitability and productivity of the firms.     

Industrial development in the daimyô domain and economic modernization of Japan – With special references to the Awa indigo industry in the province of Awa-Tokushima from the Tokugawa period to the Meiji period

This paper aims to clarify how pre-conditions to economic development in modern Japan had been prepared. Specifically speaking, it takes as an example the case of the Awa indigo industry and explores how the development of this industry contributed to the economic modernization in Tokushima prefecture. The Awa indigo industry enjoyed rapid progress and development in the Tokugawa period. It is undeniable the accumulated capital in the late Tokugawa period contributed as a cornerstone to the economic modernization in Meiji Tokushima prefecture. This paper also mentions the influence of imported indigo on the Awa indigo industry after the opening of Japan to foreign trade. The Awa indigo industry seems to have suffered from the expanding inflow of foreign indigo. The stagnancy of the Awa indigo industry in the middle of Meiji period must have restrained modern industrial development in Tokushima prefecture.     

Assessment of the tertiary industrial development in Henan

The 21^st century is a century of service economy. The proportion of the tertiary industry becomes an important criterion to evaluate the economic level of a country or a district. As a big province with the largest population, whether the tertiary industry in Henan can develop rapidly and profitably in the long run or not has direct influence on the problem of employment pressure. Besides, this industry plays a very important role in supporting the further development of the first and the second industry. In order to provide a reference for instructing the further development of economy in Henan, based on the information got from the first general inspection of Henan＇s economy, gives a brief analysis according to the condition of different occupations, different districts and different interest effects.     

Women and empowerment through the ‘economy of affection’ in KwaZulu‐Natal: Its significance for sustainable development

This article is an attempt to demonstrate how, in the absence of infrastructural requirements for development in the rural areas, the interpersonal relationships of women articulated through their households, kinship networks and community structures serve as indispensable mechanisms for their survival. These mechanisms are seen as part of an indigenous socio‐economic framework that is referred to here as the ‘economy of affection’. This framework is presented, through ethnographic data, as a means of facilitating moral, social and economic support among the indigent rural people in KwaZulu‐Natal. Taking cognisance of local organisational forms and resources is the best possible way to reconstruct South Africa's vast hinterland against the background of a history of development patterns, where rhetoric has played a more important role than actual substantive contributions to development of the rural poor, and where capital investments, technology and expertise of a post‐industrial nature are unlikely to spread.     

What hinders digital communication? Evidence from foreign firms in Japan

Digital technology such as virtual meetings is key to communication and collaboration. However, a firm-level survey in Japan during the COVID-19 pandemic shows that foreign firms regarded digital communication as a key business obstacle. This paper estimates the determinants of the likelihood that foreign firms regard digital communication as an obstacle. The results show that digital communication is hindered by language differences, employees’ nationality differences, employment size, and time differences from foreign headquarters. Contrary to common assertions, digital communication is regarded as an obstacle in remote-work feasible sectors, but not so in in-person service sectors. Thus, digital communication does not completely eliminate barriers to face-to-face communication.     

Agricultural development in industrialising Japan, 1880–1940

This study reviews research examining agricultural development in industrialising Japan. We focus on the (dys)functioning of markets for land, finance, labour and agricultural commodities. We cover topics including land (mis)allocation, size-productivity relationships, tenancy contract choice and Marshallian inefficiency, property rights, microfinance, shock-coping strategies, rural–urban migration and agricultural market integration. The literature reveals that market failures often observed in developing economies were not prominent, except for possibly labour markets. The literature also highlights the roles and administrative capacities of central and local governments. Tight local communities served to reduce transaction costs.     

The emerging non‐profit sector in Japan: Recent changes and prospects

This paper hopes to map out the historical, legal and political contexts of the non profit sector and explore some of the recent developments which have helped expand voluntary activities and promote the changes the NPO sector has been experiencing over the last five years or so. Then, the paper goes on to raise some of the issues which need to be addressed for the further development of the NPO sector.     

Education and development: The role of non‐formal education,especially in developing countries

Education plays an important role in development, especially in a developing country. To develop the skills and knowledge of the large percentage of the people outside the reach of formal education, and to offer education programmes which can easily adapt and respond to the specific and immediate needs of a developing community, out‐of‐school programmes should be considered.

This article explains how non‐formal education, that is organized and systematic education offered outside the framework of the formal education system, could complement formal education, and should be organized to support integrated, community‐based development Briefly discussed guidelines for the planning of non‐formal education are the horizontal and vertical integration of all activities, extensive community involvement, a self‐help approach, the use of front line workers and the maximum utilization of existing facilities.