Corruption and industrial dualism in less developed countries

This paper provides an explanation for the observation that developing countries tend to have a higher degree of dualism in the size distribution of firms and a relatively smaller proportion of large firms than do developed countries. This paper builds a model where large 'formal' firms attract rent seeking activities from the government while small firms do not. In the model, there exists a 'competitive fringe' of small firms and a formal market consisting of Cournot competitors. The number of formal firms is made endogenous and is a function of the degree to which the government can extract rents. This ability to extract rents is itself posited as a function of the degree of corruption in a country's government. Thus, it is the high degree of corruption in developing country governments that contributes to the dual nature of their industrial structure. The model predicts that the higher the degree of corruption, the fewer (and larger) are the formal firms, the lower is social welfare and the greater is dead-weight loss, and the higher are government rents. An examination of the size distribution of 16 countries and their degree of corruption shows that the degree of corruption is a good predictor of the percentage of large firms in an economy.     

Tokyo round tariff reductions and the less developed countries

This paper presents new evaluations of the multilateral trade negotiations from the perspectives of (1) the objectives established by GATT signatories in the Tokyo Declaration, and (2) the LDCs’ goals for the negotiations. It also attempts to resolve some of the controversy over the gains and losses which MFN tariff reductions would generate for LDC exports, some but not all of which receive preferential access to advanced-country markets. The analysis indicates that even minor improvements in tariff preferences would have been superior to or have compensated for MFN tariff cuts.     

Market reaction to international joint venture announcement: The case of developed versus less developed countries

Joint ventures across national borders are more advantageous than other forms of international diversification because they afford a better control of technology usage, require a minimal level of cash investment, and present a more effective means of avoiding intervention from the host government. All of these characteristics make international joint ventures uniquely suitable for investments in less developed countries. This paper ascertains whether investors agree with the above sentiment by examining the stock market response to 41 announcements of international joint ventures during 1985-1987, using the event study method. It was found that the stock of the multinational corporations announcing international joint ventures generally outperforms the market In addition, the market reaction to the announcement of international joint ventures in less developed countries is, on average, more favorable than its reaction to the announcement of international joint ventures in developed countries.     

A note on evaluating the representivity of samples taken in less developed countries

The representivity of many samples taken in less developed countries is left open to question because researchers have no dependable tools for evaluating samples taken from imperfectly known parent populations. In this paper a method designed to perform that function is explained. It is based on comparisons of proportions estimated from two independent samples, focusing on situations where the larger sample size is unknown. This method is also demonstrated via illustrative examples.     

Export-share requirements and welfare in less developed countries: a three-sector general equilibrium analysis

This paper analyzes the welfare impacts of export-share requirements in a three-sector, general equilibrium, sector-specific unemployment model. We demonstrate that the favorable welfare impact of export-share requirements is mitigated by a rise in the unemployment ratio. In addition, we deduce the welfare impact of a change in tariff rate for a given level of export share. Our analysis suggests that the export-share requirement policy is always welfare improving in the long run. The policy may not improve welfare in the short or intermediate run, however; the condition under which export-share requirements are welfare enhancing is derived and interpreted.     

Corporate political activity in less developed countries: The Volta River Project in Ghana, 1958–66

The article expands existing categorisations of political and economic governance by including literature on less developed countries (LDCs). In four consecutive negotiations between the US multinational Kaisers and the US and Ghana governments in the early 1960s, it is argued that the company reached levels of influence that are at odds with existing explanations. In order to understand corporate political activities in LDCs, analysis needs to go beyond static factors (political risk) and include dynamic factors such as diplomatic relations and ‘arenas of power’, and consider the role of the investor's home country relative to the host economy.     

Strengthening care for injured persons in less developed countries: A case study of Ghana and Mexico

In all countries, the priority for reducing road traffic injuries should be prevention. Nonetheless, there are low-cost ways to strengthen the care of injured persons, that will help to lower the toll from road traffic. The purpose of this review was to elucidate ways to accomplish this goal in the context of less developed countries. Studies selected for this review were obtained by Medline review, selecting on key words such as trauma, injury, trauma care, essential health services, and developing country. Articles pertaining to any country and all available years were considered. In addition, the authors utilized articles from the gray literature and journals from Mexico and Ghana that are not Medline referenced. Studies surveyed point to road safety and other forms of injury prevention, as well as prehospital care, as likely priorities for developing countries. Nonetheless, hospital-based improvements can contribute to decreases in mortality and, especially, decreases in disability. For both prehospital and hospital based care, studies revealed several critical weak points to address in: (1) human resources (staffing and training); (2) physical resources (equipment, supplies, and infrastructure); and (3) administration and organization. The ‘essential services’ approach, which has contributed to progress in a variety of fields of international health, needs to be developed for the care of the injured. This would define the trauma treatment services that could realistically be made available to virtually every injured person. It would then address the inputs of human resources, physical resources, and administration necessary to assure these services optimally in the different geographic and socioeconomic environments worldwide. Finally, it would identify and target deficiencies in these inputs that need to be strengthened.     

发达国家宏观经济管理比较及启示

建立和完善社会主义市场经济的新体制,迫切要求转变政府职能,为转换国有企业,特别是国有大中型企业的经营机制,把企业推向市场创造条件.今天,研究发达资本主义国家政府的经济管理职能,大胆吸收和借鉴其政府有效干预经济的积极成果,对深化经济体制改革,促进中国经济的腾飞具有重要意义.本文拟以国际发达国家为例,分析其宏观经济管理,通过这方面的比较,得出一些有益的启示.     

The investment development path of newly developed countries

According to foreign direct investment (FDI) path theory, developed countries are grouped into two phases, known as the fourth and fifth phases. Fourth‐phase countries (newly developed economies) show a technological and institutional “gap” in comparison with fifth‐phase economies, which explains their lesser capacity to generate direct investment. We found that these countries, which were less developed economies in the 1980s, had undergone a deep structural transformation. This transformation encouraged the multinationalization of firms, which is a differentiating element and one outcome of their development process. These results have clear policy implications: the governments of newly developed countries should take steps to increase the endowment of knowledge‐intensive assets. The main contribution of this paper is the theoretical reformulation of the fourth phase of the investment development path theory.     

The external debt situation of the least developed countries

While the external debt of the least developed countries (LLDCs) is no threat to the international financial system, its adverse impact on the development efforts of many of these countries is severe. The following article examines their debt and economic situation and reviews major elements of the current international debt strategy with regard to their adequacy in bringing the LLDCs back to sustainable debt burdens and growth. The article was written while the author was working at the OECD. The views in the article are those of the author and do not reflect those of the World Bank or its affiliates or of the OECD.     

发达国家技术性壁垒应对策略分析

技术性壁垒措施已日益成为国际贸易中最隐蔽、最棘手、最难对付的贸易障碍之一,长期的顺差又让我国成为发达国家技术性壁垒主要受害国.为此,本文先从内外两个方面分析我国遭受发达国家技术性壁垒的原因,再从政府、行业协会、企业的角度提出相应的应对策略.     

Escapism FDI from developed economies: The role of regulatory context and corporate taxation

In this paper, we extend the conceptualisation of escapism Foreign Direct Investment (FDI) holding for emerging economies to developed economies that face specific institutional failures, such as weak or incomplete regulations, along with high taxation. We combine this literature with the recent development of Dunning’s eclectic paradigm, which includes institutional aspects regarding location factors. We argue that in developed economies with problematic regulations and high taxation, sound institutions and lower tax rates abroad are extremely significant for domestic firms’ internationalisation. A central result regards the moderating effect of host regulatory quality on taxation, which highlights the crucial role of institutions for firms originating in developed economies that lack sound institutions. Additionally, the results challenge the available theorising and evidence on the moderating role of institutions in the prior experience of a firm at a location. We instead provide evidence that once firms establish a subsidiary abroad, they acquire substantial knowledge about the host institutional environment, which translates into an Ot advantage, providing an additional motive for further expansion. This work uses a unique database of the total population of Greek MNEs – released for the first time – for an extended time period, 2001–2010. The results could be generalised to similar developed economies facing analogous regulatory failures and high taxation, such as the southern European Union countries, as well as even for northern European Union countries, such as Germany, according to Bundesbank’s report.     

探究中小企业融资出路——来自于发达国家的思考

中小企业融资问题是世界性难题,只是这一矛盾在我国表现尤为突出。我国中小企业数量众多,与人民日常生活联系密切。是职工就业的主要场所和地方财政收入的主要来源,在国民经济中占有重要地位。但我国中小企业目前发展的突出问题是融资难,主要原因是金融机构仍对中小企业的“所有制歧视”和“规模歧视”以及我国中小企业融资方式单一。过分依赖于银行机构的融资渠道,缺少直接融资渠道。因此,借鉴发达国家的经验和做法,对我国中小企业融资的方式与渠道予以扩展,为中小企业融资难题探究出路。     

Japanese FDI5 and the Transfer of Japanese Consumer Electronics Production to Malaysia

The purpose of this paper is to assess the impact of Japanese consumer electronics companies within Malaysia. Research between January and April 1994 revealed the interdependence of a production network not only in Malaysia but within the Asia-Pacific region as a whole, and serves to illustrate the integration of trade and investment in Malaysia's industrial development. While, undoubtedly, the surge of Japanese foreign direct investment (FDI) into Malaysia's electronics industry between 1986 and 1990 has had enormous positive effects upon infrastructure development and employment creation, the results of this study question whether Japanese FDI is now contributing to the much needed structural up-grading of this industry. Central to this discussion are the underlying strategies of Japanese multinational corporations (MNCs) which have relocated in Malaysia.     

Introducing management models in service organisations in developed and developing countries

The aim of this paper is to examine the application of the European Foundation for Quality Management model for self-assessment as a means to introduce changes in management in services in higher education institutions (HEIs) in Spain and in Jordan. This paper uses the case study methodology on eight administrative services in a public university in Spain and seven university services in two Jordanian universities, a public and a private institution. The findings show the steps that an administrative service may follow in order to apply the questionnaire approach successfully in a reform process, the difficulties, the benefits and the success factors in both countries and the consequences of the changes introduced. The study provides lessons for decision makers and managers from other universities in developed and developing countries, who wish to introduce the practice of quality management by creative means. This paper extends knowledge on self-assessment (steps, difficulties, benefits, success factors and changes in management) to services in HEIs.