Do economic integration agreements affect trade predictability? A group effect analysis

Recent theoretical findings in the trade literature suggest that economic integration agreements (EIAs) not only increase the level of trade but also make it more stable and predictable. This paper proposes a Hausman–Taylor quantile regression approach to identify the causal effect of EIA membership on trade predictability. The proposed methodology accounts for group effects in the gravity equation and is computationally efficient. Our results corroborate the theoretical findings that EIAs make trade more stable and predictable and this conclusion is even stronger for deeper EIAs.     

CHILD LABOUR IN VIETNAM

Abstract.  The paper tests the explanatory power of a theoretical model of household decisions about child labour and school enrolment and analyses the determinants of child labour in Vietnam, a country that is experiencing a rapid transition toward a market economy. The theoretical framework, used as a benchmark, is in the spirit of the 'new household' economics and links household decisions about schooling and child labour to intergenerational altruism and to human capital investment. On this basis, we analyse the evolution and determinants of child labour using two household surveys (1993 and 1998) for Vietnam.     

Conditional Cash Transfer and School Outcomes: An Evaluation of the Pantawid Pamilyang Pilipino Program in Davao Oriental,Philippines

The present study adds to the empirical literature examining the effects of conditional cash transfers on school outcomes. Using school‐level and student‐level enrolment data from Davao Oriental Philippines, we evaluate the influence of the Pantawid Pamilyang Pilipino Program (also known as 4Ps), a social development policy program, on the growth rates in school enrolment outcomes. The findings show that 4Ps, on average, increased school enrolment of children by 1.12 percent. It was also apparent that using student‐level data as opposed to school‐level data revealed a more robust effect of 4Ps on school outcomes. We also found some school and socioeconomic characteristics influencing the change in school enrolments. Finally, this study highlights the role of government intervention programs in improving access to education in the poorest sector of the economy.     

Technical Inefficiency and Production Risk in Rice Farming: Evidence from Central Luzon Philippines*

There have been many previous studies of technical inefficiency in rice production in the Philippines, but none has focused simultaneously on production risk and technical inefficiency at the farm level. Rice production is inherently risky because of the heterogeneous production environment. In this study, we analyze technical inefficiency in a rainfed lowland rice environment in Central Luzon using a stochastic frontier production function with a heteroskedastic error structure. An 8‐year panel dataset collected from 46 rainfed rice farmers was used to estimate flexible functional specifications. Over the whole period, the average technical efficiency was found to be 79 percent. Results indicate that there is a high degree of variability in technical efficiency estimates, which can be attributed to the instability of farming conditions in the rainfed lowland environment. Mean output was signifificantly influenced by area planted to rice, labor and the amount of fertilizer used. Consequently, these inputs were found to be risk‐increasing, whereas herbicide was found to be a risk‐reducing input.     

Sex role socialization and perceptions of student academic dishonesty by male and female accounting faculty

We examine differences between male and female accounting faculty members’ perceptions of academic dishonesty and their uses of controls to prevent academically dishonest behaviour. We use socialization concepts to motivate our examination of these differences. Specifically, we find that females generally perceive academic dishonesty to be a more significant problem than do males, females see individual incidences of academic dishonesty as more frequent and more significant than do males, and female academics report they exercise controls to prevent academic dishonesty more frequently than do male academics. These findings are consistent with differential sex role socialization for women and men. We also find that male and female accounting academics’ perceptions converge with professional training and teaching experience, suggesting moderating impacts of professional and/or organizational socialization on perceptions of academic dishonesty. Lastly, we document some differences in how male and female accounting academics respond to known incidences of academically dishonest behaviour.     

Global Social Preferences and the Demand for Socially Responsible Products: Empirical Evidence from a Pilot Study on Fair Trade Consumers

We analyse behaviour and motivations of a sample of about 1,000 consumers purchasing ‘fair trade (FT) goods’, i.e. food and artisan goods which include socially responsible (SR) characteristics and a price premium for primary product producers with respect to equivalent non‐FT products. By estimating a simultaneous two‐equation treatment effect model we find that FT products have less than unit of income elasticity and their demand is negatively (positively) correlated with geographical distance from the nearest shop (age and awareness of SR criteria). Awareness of SR criteria depends, in turn, on a series of factors (consumption habits, membership of volunteer associations) which, indirectly (via increased awareness), significantly affect consumption. We also measure consumers’ willingness to pay in excess for the SR features of FT products with a contingent evaluation approach and find that it is positively correlated with awareness of SR criteria.     

Are Liberated Companies a Concrete Application of Sen’s Capability Approach?

Journal of Business Ethics - The capability approach (CA) developed by Amartya Sen focuses on the enhancement of people’s capabilities, i.e. their real freedom to choose a life course they...     

Reverse Knowledge Transfer on Emerging Market Multinationals: A Case Study of the Largest Private Bank in Latin America

Knowledge transfer between headquarters and subsidiaries and the study of emerging market multinationals (EMMNE) are two important and rapidly growing research topics in International Business (IB) studies. This research analyzes, through an in-depth single case study, the Reverse Knowledge Transfer (RKT) processes of an emerging market multinational, more specifically the largest private bank in LATAM—Banco Itaú Unibanco S.A.—to understand how emerging market parent companies benefit from their subsidiaries’ knowledge. Our findings validate important concepts in the IB and RKT literature, contribute with valuable insights to theory generation, and indicate possible avenues for future research.     

From global start-ups to the borderless firm: Why and how to build a worldwide value system

Although the original concept of international new ventures included the geographic configuration of value activities, the subsequent development of the literature has gradually abandoned the concern about the geographic configuration of both input sourcing and output marketing to concentrate almost exclusively on the latter. Therefore, this paper argues that there is a need to re-focus the research so as to figure out how and why some companies are borderless. Borderless firms are defined as the result of the combination, early on, of geographically dispersed resources and capabilities, defying the home-base logic. A borderless firm presents the following characteristics (or a combination of them) from inception (or shortly thereafter): (i) value-added activities dispersed across different countries and regions; (ii) entrepreneurs not bounded by a home base; (iii) multinational founders and/or management teams; and (iv) a multinational workforce. To enquiry into this issue, the study uses five case studies of borderless firms. The results advance the understanding of the motives and processes behind the development, early on, of a borderless configuration of value activities.     

Was Vilfredo Pareto Really a ‘Precursor’ of Fascism.?

A bstract . Vilfredo Pareto has been labelled a fascist and 'a precursor of fascism' largely because he welcomed the advent of fascism in Italy and was honored by the new regime. Some have seen in his sociological works the foundations of fascism. This is not correct. Even fascist writers did not find much merit in these works, and definitely condemned his economic theories. A s a political thinker he remained a radical libertarian till the end, and continued to express serious reservations about fascism, and to voice opposition to its basic policies. This is evident from his correspondence with his close friends. There are strong reasons to believe that, had he lived long enough, Pareto would have revolted against fascism.