Live or Let Die? Alternative Routes to Industry Exit

Each year around 8% of Swedish manufacturing firms leave an industry. Of the exit routes available, the least likely is firm closure. Firms are more likely to merge, become acquired or switch to a new industry. We investigate the importance of a range of firm and industry characteristics for the exit decision of Swedish firms from 1980–1996. From our analysis two patterns are evident. First, firms that close down appear to be the most distinct compared to those that remain within the sector. Second the same characteristics can have quite different associations with different exit strategies.

Beyond community participation? Alternative routes to civil engagement and development in South Africa

Although community participation still enjoys a high level of support across various sectors in South Africa, its practice is fraught with conceptual and practical difficulties. This paper starts out by examining some of the problems and limitations associated with community participation, including the heterogeneity and fragmentation of many poor communities, the lack of social and material resources and community members' expectations of receiving a return from their involvement in development projects. Participatory rural appraisal (PRA) or participatory learning and action (PLA) is used as an example to illustrate some of the conceptual and theoretical limitations that characterise most approaches to participatory development. In particular it is argued that approaches such as PRA/PLA lack the theoretical basis for effectively getting to grips with the problems of participatory development. What is needed is a conceptual framework not only to understand the responses of communities, but also to locate such communities within their socio-economic contexts. The second part of the paper therefore examines three developments in social science theory that may be able to contribute to the development of a richer conceptual framework for popular participation. These are the concept of social capital, the asset-based approach to development, and the debate around the role of the state in development.     

Inflation Under Alternative Exchange Rate Regimes: What Happens When Countries Differ in Size?

A three-country model is used to analyze how country size affects inflation under different exchange rate regimes. Two countries, an anchor country (leader) and a pegging country (follower), are examined where the latter differs in size. We find that the leader's preference for floating over pegging is unaffected by the follower's size except in the case where the follower is very small. However, as the follower gets smaller, the leader's inflation worsens under floating but improves under the single-currency peg. For the follower, as it gets smaller, its inflation performance improves when it floats its currency. But which regime is preferred is unclear.     

Local Officials＇ Incentives and China＇s Economic Growth： Tournament Thesis Reexamined and Alternative Explanatory Framework

To explain China's dramatic economic growth, researchers have proposed a “tournament thesis.” According to this thesis, the central government's ability to set growth targets has played a crucial role in growth since political promotion is largely based on local economic growth. We use provincial officials' career mobility data to test this thesis. For both time periods (1979–1995 and 1979–2002), economic performance, measured in annual, average and relative terms, did not affect these officials' career advancement. We then sketch an alternative analytical framework to explain Chinese local officials' strong urge for developmentalism and, finally, draw policy implications from this explanatory framework.