Public Debt and Economic Growth in Emerging Market Economies

This paper empirically studies the relationship between public debt and economic growth for selected emerging market economies by performing panel data estimations. The results reveal a statistically significant positive correlation between public debt and the subsequent growth rate of per capita gross domestic product (GDP). Population and investment are also positively correlated with per capita growth, whereas the initial level of real GDP per capita exerts a negative influence on growth, implying conditional convergence. Other variables such as the inflation rate, the trade balance or the exchange rate do not yield a statistically significant effect with respect to economic growth.     

The new protectionism and the limits of structural adjustment

However sharp the clash between the industrial countries' notions of a world economic order and those of the developing countries, one point is gaining increasing importance for both camps: the fight against spreading protectionism. Rising import barriers in the North restrict the developing countries opportunities to increase their foreign currency earnings, to come to grips with their debt problems and to push ahead with industrial development. Those concerned with economic policy in the North fear an escalation of trade discrimination that would gradually neutralise the allocative function of the market, hamper recovery from the present recession, encourage inflation and lead to the inefficient organisation of production throughout the world. Why is protectionism so difficult to halt in spite of the unanimous condemnation of it?     

Developing a performance measurement framework to enhance the impact orientation of the Food Research Institute, Ghana

Research institutions in Ghana are facing various challenges. It is the contention that viable research and development institutions are needed for achieving sustainable change in areas of national importance. A key aspect of institutional viability is strong performance management. This implies clear and workable approaches to performance measurement. This paper looks at the initial experiences in a collaborative effort to develop a performance measurement framework for the Food Research Institute (FRI) and the application of the Balanced Score Card (BSC) at institutional level. The process of diagnosing and analysing institutional monitoring and evaluation capacity and systems is described using a mix of diagnostic tools. Stages in applying the BSC approach are documented and the added value of the scorecard perspectives in highlighting focal areas for performance measurement and management within FRI. These are placed in the context of ongoing changes in the external environment posing both threats and opportunities. Changes implied by the introduction of the concept are discussed in the context of current constraints and the way forward is mapped out in terms of enhancing FRIs' impact orientation through the application of improved performance measurement and management.     

Cyclically oscillating product quality: A simple model of the product life cycle

This paper presents a dynamic model of the firm, where the firm can exert influence on demand by setting the price and by controlling the quality index. Assuming profit maximization, it is shown by means of the Hopf Bifurcation theorem that persistent oscillations of the variables may occur if there is positive growth at the steady state together with a high discount rate. Oscillations may also occur if the influence of an additional unit of the quality index on demand and price is sufficiently large, thus yielding a special version of the product life cycle. A numerical example is used in order to illustrate the results derived in the general framework. Valuable comments from an anonymous referee are gratefully acknowledged.     

Macro-economic determinants of consumer price knowledge: A meta-analysis of four decades of research

For the past four decades, dozens of researchers have studied consumer price knowledge, often with disagreements on the extent of consumer' ignorance about prices. While some of these disagreements have been attributed to research design variations among studies, no inquiry has yet been made on the role of the economic environment on consumer price knowledge. Nevertheless, environmental factors such as interest rates, unemployment, and economic growth may significantly influence consumers' knowledge of prices. Certain economic environments may therefore provide marketers with the ability to utilize pricing tactics which rely on limitations in consumers' knowledge of product prices. Using a meta-analytic framework, this paper synthesizes the results of 297 previous price knowledge studies to document the effects of inflation, unemployment, GDP growth, interest rates, country of study, and passage of time on consumer price knowledge. The meta-analysis results demonstrate that economic factors have considerable influence on explaining variations in consumer price knowledge. Managerial and public policy implications of the findings in light of turbulent economic environments are discussed.     

The Telecommunications Act at three years: an economic evaluation of its implementation by the Federal Communications Commission

The competitive free-for-all that Congress envisioned in the 1996 Telecommunications Act has for the most part not appeared. The Act calls for two forms of regulatorily-assisted entry into local markets: lease of network elements and resale. The FCC has decreed that the charges for those elements and the resale discounts must emulate the costs of an ideally-efficient firm. This standard is in fact not efficient, and the FCC’s attempt to jump-start the entry of competitors in this way has short-circuited the competitive process itself and jeopardized achievement of the goals of the Act.