Political institutions and economic volatility

We examine the effect of political ‘institutions’ on economic growth volatility, using data from more than 100 countries over the period 1960 to 2005, taking into account various control variables as suggested in previous studies. Our indicator of volatility is the relative standard deviation of the growth rate of GDP per capita. The results of a dynamic panel model indicate that democracy reduces economic volatility. We also find that some dimensions of political instability and policy uncertainty increase economic volatility.     

Power laws and comparative advantage

Using a comprehensive international trade data set we document empirical Power Laws (PLs) for the distribution of the interaction between countries as measured by revealed comparative advantage. Using the recently developed estimator by Gabaix and Ibragimov (2011), we find strong evidence in favour of PLs along the time, country and sector dimension for three different levels of data aggregation. This finding is not predicted by any of the existing trade theories. The estimated PL exponents characterizing the distribution of revealed comparative advantage are stable over time but differ between countries and sectors. These differences are related empirically to country and sector characteristics, including population size, Gross Domestic Product (GDP) and factor intensities.     

Corporate images' impact on consumers' product choices: The case of multinational foreign subsidiaries

The aim of this study is to ascertain the extent to which consumers' images of home and foreign business units, and their perceptions of the corporate images held by other stakeholders, influence their buying behavior. The sample consisted of high school students in the United Arab Emirates (UAE) who intended or expected to enter higher education. Using a survey questionnaire, we asked respondents about the extent to which they believed their overall impressions of foreign universities operating in the UAE were influenced by images of the institutions' home and UAE campuses and by their perceptions of the images held by other stakeholders. We found that when deciding on whether or not to buy from a foreign firm, consumers will be most influenced by the corporate images held by other stakeholders rather than the images of home and foreign business units constructed by themselves. These findings suggest that it would be advisable for firms to adopt a stakeholder perspective when developing and implementing their marketing strategy.     

Dynamism and realignment in the HR architecture: Online labor platform ecosystems and the key role of contractors

Given the widespread contribution of independent contractors to organizational innovation and competitive advantage, it is timely to reassess assumptions about the HRM practices appropriate to their management and the rationale for organizations to work with them. In the original and highly influential HR architecture model of Lepak and Snell (1999), contractor status is viewed as an outcome of the low value and/or low uniqueness of human capital resulting in the proposition to externalize and manage them using either none or minimal compliance-based HRM practices. Developments in digital technologies and algorithmic management epitomized by online labor platforms prompt us to reconsider these assumptions and to challenge the proposed links between value/uniqueness of human capital, employment mode and HRM practices that are assumed by the HR architecture model. Using insights from online labor platforms, we argue that the significant benefits to firms of working with contractors, coupled with the possibilities offered by algorithmic management to efficiently monitor and regulate their behavior, provide a compelling reason for organizations to choose external employment modes even when workers are key to value creation. We challenge the alignment and stability of the relationships proposed by the HR architecture model, and offer propositions to extend the model by reconsidering the rationale for, and nature of, HRM practices associated with contractors. This reassessment is both timely and relevant given the growing prominence of business models where externalizing workers is central alongside the development of new forms of algorithmic human resource management to control them.     

The socio-economic impact of certification schemes in conflict-affected regions: The case of arabica coffee in the Eastern DRC

The paper investigates the benefits of certification of cooperatives in conflict-affected areas. We study whether and how certification may contribute to attenuate the impact of conflicts on the members of coffee cooperatives in the Eastern DRC. We use an inverse probability weighted difference-in-difference approach to study data collected between December 2017 and October 2019 from four NGO-supported cooperatives. Two of these cooperatives got organic certification in 2018, of which one got an additional Small Producers Symbol (SPP) certification in 2018. Certified cooperatives allow Arabica coffee producers to access markets and buffer against drops in market prices. Results indicate that certified cooperatives were better able to resist the international price drop than non-certified cooperatives and the alternative informal markets. The results also suggest that certified cooperative members increased their sales to the cooperative instead of turning to informal side-selling. We find a decrease in reported food deficits by the members of certified cooperatives and an increase in the importance of coffee in their household's income. We conclude that certification is an effective way forward for smallholder coffee producers and cooperatives in unstable regions.     

What is considered deception in experimental economics?

Experimental Economics - In experimental economics there is a norm against using deception. But precisely what constitutes deception is unclear. While there is a consensus view that providing false...