Stock markets,banks and the sources of economic growth in low and high income countries

This paper studies the effects of stock markets and banks on the sources of economic growth, productivity and capital accumulation, using a large cross country panel that includes high- and low-income countries. Results show that, in low-income countries, banks have a sizable positive effect on capital accumulation. We find that stock markets, however, have not contributed to capital accumulation or productivity growth in these countries. Given the emphasis that has been placed in developing equity markets in developing countries, these findings are somewhat surprising. Conversely, in high-income countries, stock markets are found to have sizable positive effects on both productivity and capital growth, while banks only affect capital accumulation.     

The macroeconomic effects of uncertainty shocks: The role of the financial channel

This paper studies the macroeconomic effects of uncertainty shocks with an emphasis on the interaction between elevated uncertainty and credit market conditions when the economy is in different regimes (recessions vs. non-recessions). We use a smooth-transition factor-augmented vector autoregression (ST-FAVAR) and a large monthly panel of U.S. macroeconomic and financial indicators in our estimation. Our findings are twofold. First, while an unanticipated increase in uncertainty has adverse effects on the real economy and financial markets, the effects are quantitatively larger during recessions. Second, the financial channel is important in the transmission of uncertainty shocks, with a greater role during recessions and in the short run.     

The macroeconomic response to real and financial factors,commodity prices,and monetary policy: International evidence

This study estimates a variety of small dynamic factor macro models where the factors are time-varying. The sample consists of 20 economies from around the world. Using quarterly data since the late 1990s, I find that the focus of some policymakers on the negative spillovers from monetary shocks is exaggerated. Four separate types of shocks are identified, and these can easily offset each other with a neutral to positive overall economic impact in some economies investigated here. However, a few economies, namely Brazil, Chile and China, experience a net economic loss from spillovers.     

The impact of patents and standards on macroeconomic growth: a panel approach covering four countries and 12 sectors

Based on the assumption that codified technological know-how contributes to economic growth, this paper presents the estimation of a Cobb–Douglas production function, pooling data from four European countries and 12 sectors. The empirical results confirm that both the stock of patents and the stock of technical standards contribute significantly to economic growth in the 1990s. Whereas the results of the country models are rather similar, we observe significant differences between the sector models, which indicate that standards are more important for growth in less R&D-intensive industries and patents in R&D-intensive industries.

The permanent income hypothesis in five major industrial countries: a multivariate trend-cycle decomposition test

This paper presents a new test of the permanent income hypothesis in five major industrial countries. The test first decomposes consumption and income into their long run trend (permanent) and short run cyclical (transitory) components, using the recently developed multivariate stochastic detrending approach developed by Vahid and Engle (1997), among others. This approach exploits the presence of possible common stochastic trends and cycles among the variables in the system to arrive at a more efficient decomposition of these variables. Using the decomposition results, and in contrast to many articles in the literature, the paper finds support for the permanent income hypothesis. Specifically, the paper finds that, while permanent consumption is related to permanent income, transitory consumption is related to neither permanent nor transitory income.

The role of income tax in student loan repayments

West keeps score of the continuing and growing inadequacies of the British student loan scheme to 1998 and shows how an income-contingent loan could better satisfy its aims. He explores a common objection to any form of student loan scheme, that students pay for their university education through progressive income taxes. West shows how this argument falls short, and hence that some form of income contingent loan is required if equity and efficiency are to be satisfied.     

Self-regulation and expatriate adjustment: The role of regulatory fit

In this paper, we draw on the construct of regulatory fit in explaining how expatriates manage interactional and work-related discrepancies in diverse cultural contexts. When expatriates go overseas, they are often faced with a set of expectations that are at variance with their home country norms and these differences in expectations generate discrepancies. The emergence of discrepancies in an alien cultural context exacerbates the uncertainties facing the expatriate, though the response to uncertainty varies between expatriates. We posit that expatriates with a promotion-focused self-regulatory system are focused on maximizing gains leading them to manage uncertainty through experimentation whereas expatriates with a prevention-focused self-regulatory system are oriented to minimizing losses leading them to manage uncertainty by persisting with the status-quo. Utilizing insights from motivational science and by linking the self-regulatory processes to the cultural context, we develop a framework and propositions for expatriate adaptation in loose and tight cultures. We present managerial implications of our model and offer guidance for testing the framework.     

Implementing supply chain information integration in China: The role of institutional forces and trust

This study investigates the effects of Chinese companies’ institutional environment on the development of trust and information integration between buyers and suppliers. Three aspects of China's institutional environment are salient: legal protection, government support, and the importance of guanxi (interpersonal relationships). This study uses structural equation modeling to analyze data collected from 398 Chinese manufacturing companies. Government support and importance of guanxi significantly affect trust, which subsequently influences two elements of information integration, namely, information sharing and collaborative planning. Furthermore, the importance of guanxi has a direct, positive impact on information sharing, and government support has a direct, positive effect on both information sharing and collaborative planning.     

Risk-neutral skewness and market returns: The role of institutional investor sentiment in the futures market

This paper investigates the effect of index risk-neutral skewness on subsequent market returns and explores whether this effect will vary with various types of institutional investor sentiment in the futures market. Using index futures returns as the proxy of market returns, the empirical results show that the index risk-neutral skewness has a significantly negative effect on subsequent index futures returns. Moreover, the effect of institutional investor sentiment on subsequent index futures returns varies with various types of institutional investor sentiment. Finally, the effect of index risk-neutral skewness on subsequent index futures returns relies on various types of institutional investor sentiment.     

Incentives to innovate in response to competition: The role of agency costs

This paper investigates the role of managerial ownership and incentive payment as potential drivers of innovation decisions by firms and as shifters of the competition-innovation link in the Russian manufacturing industry, where poorly protected property rights and a path-dependent market structure (typical for many transition economies) lead to a variety of outcomes. We use recent survey-based microdata for nearly 2000 non-listed companies in Russia. Our results suggest that managerial ownership, which initially evolved as a means of protecting against and resisting dysfunctional institutions, may stimulate decisions to undertake R&D and risky product innovations. Further, managerial ownership and competition are complementary motivations for R&D and innovation. Incentive payment to hired managers is a positive commitment instrument but has no impact on the competition-innovation link.     

New technology,human resources and competitiveness in developing countries: the role of technology transfer

Technology transfer is widely seen as an important means by which developing countries can both acquire the technologies and develop the human resources needed to compete internationally. However, there are different types of technology transfer which may stimulate or inhibit local human resource development. Foreign direct investment may inhibit local human resource development unless the foreign partner is committed to the indigenous enterprise becoming internationally competitive. Technology transfer through licensing and off-the shelf purchase allows greater indigenous management autonomy which, together with the more direct exposure to international competitive forces, may be more conducive to indigenous human resource development.     

Current account and real effective exchange rate misalignments in Central Eastern EU countries: An update using the macroeconomic balance approach

We make an assessment of the current account and price competitiveness of the Central Eastern European countries that joined the EU, using data up to 2016. Foreign capital flows, fiscal balance and relative output growth seem to play a crucial role in explaining the current account balance. The real effective exchange rate gaps behave in accord with the current account misalignments, which clearly display cyclical behaviour. When foreign direct investments are introduced as a determinant, the misalignments are larger in boom periods (positive misalignments), whereas the negative misalignments are smaller in magnitude. Overall, the countries have moved closer to their equilibria since 2010.     

The effects of labour costs and workplace constraints on foreign direct investment among highly industrialized countries

Drawing on economic propositions underlying theories of foreign direct investment and organizational propositions underlying international human resource management strategic decision making, the theoretical model developed herein integrates two distinct but interrelated strategic HRM assessments. In deciding where to invest, multinational companies (MNCs) assess both (1) the net comparative labour cost advantages associated with alternative host-country IR systems and (2) the comparative flexibility afforded them by alternative IR systems to either transfer or create preferred HRM strategies abroad. The results of the present study indicate that, on average, MNCs from the major investor countries of the world give substantial weight to differences in national IR systems in deciding how much to invest across alternative high-skill, highwage countries. In particular, the evidence indicates that MNCs have invested more in countries with higher skills, lower compensation costs and lesser government and collective bargaining constraints on MNCs' flexibility to set the terms and conditions of employment or otherwise deploy preferred HRM practices abroad.     

Financial development and productive efficiency: A panel study of developed and developing countries

This paper uses a stochastic production frontier for panel data to investigate the effect of financial development on productive efficiency. Three panels of a number of countries in different stages of development are used along with eight alternative measures of financial development pertaining to the monetary sector, financial intermediaries, and equity markets. The results indicate that in general the more developed the financial intermediaries sector and equity markets, the higher the productive efficiency. In particular, financial deepening reduces productive inefficiency in both developed and developing countries, although the effect is larger in the former. The author wishes to thank three anonymous referees for their many helpful comments on an earlier version of this paper. All remaining errors are the author's responsibility. A slightly different version of this paper was presented at the 50th annual conference of the International Atlantic Economic Society, Charleston, South Carolina, October 2000. This research is partially funded by a Marquette University College of Business Administration Faculty Research Grant from the Miles Fund and a grant from Marquette University Institute for International Economic Affairs.     

发达国家生产性服务业发展的影响因素——基于OECD国家生产性服务业的分析

通过使用部分OECD国家的投入产出数据对发达国家生产性服务业发展的影响因素进行分析,结果表明制造业和服务业的中间需求、信息技术水平、市场环境变迁对生产性服务业的发展具有较强的促进作用。发达国家服务业的开放有利于生产性服务业的跨国转移,为服务离岸外包创造了条件。     

Commercialization of university inventions: Individual and institutional factors affecting licensing of university patents

This paper conducts a unique study using the university patent as the unit of analysis to determine how individual and institutional factors affect the likelihood that a patent will be licensed. Using a 2010 national survey of academic scientists in the United States in which respondents were asked specific questions about 2006 patents for which they were listed as inventors, we find that the likelihood of licensing is significantly determined by individual factors including inventors׳ attitude towards commercialization of research, additional research conducted during patent review, and collaboration with industry scientists on the underlying research. Among institutional factors, university Technology Transfer Office׳s cost-saving measures positively influence licensing, but industry funding and TTO service effectiveness do not. We also identify two types of inventions: opportunity-based inventions are discoveries that are not foreseen patentable at the outset of projects; intention-based inventions occur on research projects that anticipate commercial outcomes before the start of research. Findings demonstrate that different individual and institutional factors contribute to licensing of these two different inventions. This study provides new insights into the process of commercialization of university inventions.