Hymer and Uneven Development Revisited: Foreign Direct Investment and Regional Inequalities

Picking up on one of Hymer's key contributions, this paper examinesthe impact that inward foreign direct investment (FDI) intothe UK has on the patterns of development, both within and acrossregions. Using a panel of data for the manufacturing sector,the paper illustrates that even where one isolates the effecton the domestic sector alone, inward investment acts to increasethe demand for skilled, relative to unskilled labour, and alsogenerates the expected agglomeration effects in terms of thedemand for capital investment. The paper then goes on to drawcertain policy comparisons between these findings and the desiredaim of attracting FDI, notably to increase demand for labourin those regions suffering structural unemployment, and secondlyto reduce the disparities between regions.     

Who's in charge of the central city? The conflict between efficiency and equity in the design of a metropolitan area

A circular metropolitan area consists of a central city surrounded by a suburb. Households sort over the two jurisdictions based on public service levels and their costs of commuting to the metropolitan center. Using numerical simulations, we show that (1) there typically exist two equilibria: one in which the poor form the voting majority in the central city and the other in which the rich form the majority in the central city; (2) there is an efficiency vs. equity trade-off as to which equilibrium is preferred; and (3) if the central city contains only poor households, equity favors expanding the central city to include rich households. The third result arises not because of a fiscal subsidy from rich to poor households induced by a property tax but rather because of a change in house price capitalization.     

Ethics,gratuities, and professionalization of the purchasing function

This study investigated (1) whether potential future purchasing agents were predisposed to accept gratuities or whether the practice of gratuity acceptance is a manifestation of the job itself, (2) whether the existence of a code of ethics forbidding gratuity acceptance curtails the occurrence, and (3) whether disparities in ethics policies between the sales and purchasing functions affect gratuity acceptance. Hypotheses based upon the concepts of organizational concern and institutionalized ethics are developed and empirically tested. Results suggest that future purchasing agents are predisposed to accept gratuities and that formal written ethics policies decrease the acceptance of gratuities. Disparities in ethics policies between the sales and purchasing functions concerning gratuities failed to affect gratuity acceptance significantly.Gregory B. Turner is assistant professor of marketing at Livingston University. He has published inThe International Journal of Logistics Management and theTransportation Journal.G. Stephen Taylor is Associate Professor of management at Mississippi State University. His research interests include ethics in computer usage, performance appraisal, and turnover control.Mark F. Hartley is Assistant Professor and National Association of Purchasing Management/Carolinas-Virginia chair of Purchasing at the College of Charleston. His research interests include ethics and professionalization of the purchasing function.     

Application of replacement theory in dairy cows and its use in disease treatment

A model to simulate the costs and returns of an individual dairy cow over 14 years under various assumptions of genetic potential, health status and management was developed especially to evaluate the effects of diseases that reduce production and reproduction efficiency and to evaluate alternative management interventions. Data were collected from the Food Animal Health Resource Management System (FAHRMX), Today's Electronic Planning (TELPLAN), Today's Electric Farm Accounting (TELFARM) databases and secondary sources at Michigan State University. A case study of cystic ovaries was analysed using the model. The results showed that it is more economical to treat cystic ovaries than not to treat, and treatment with Gonadotropin Releasing Hormone (GNRH) was superior to Human Chrionic Gonadotropin (HCG). Four to five lactations were the optimum for keeping a dairy cow to replacement and it was estimated that there is a loss of US$0.45 per day of extended calving interval (days open beyond the optimal 70 days).     

The complex integration strategies of multinationals and cross country dependencies in the structure of foreign direct investment

The behavior of many multinational enterprises is not well described by existing models of foreign direct investment (FDI). Firms often follow strategies that involve vertical integration in some countries and horizontal integration in others, a strategy known as complex integration. This paper presents a three-country model that is used to analyze why firms might follow a strategy of complex integration. My analysis reveals that complex integration strategies create complementarities between potential host countries that have important implications for the structure of FDI. The analysis also shows that falling transport cost between countries may increase the importance of complex integration strategies.     

Advertising with Subjective Horizontal and Vertical Product Differentiation

In this paper, we analyze the impact of advertising on markets wheresubjective horizontal and vertical product differentiation are important. A simple model showshow advertising can be used to create subjective horizontal and vertical differentiation.The model predicts that firms are likely to be symmetric when advertising creates subjective horizontaldifferentiation and that name and generic brands are most likely to coexist in markets whereadvertising creates subjective vertical differentiation. In all cases, the ability toadvertise creates distance between products which increases the market power of firms. Finally, severalreal world examples are used to illustrate the conditions under which the model is most relevant.     

The Robustness of the APT to Alternative Estimators

We test the robustness of the APT to two alternative estimation procedures: the Fama and MacBeth (1973) two-step methodology; and the one-step procedure due to Burmeister and McElroy (1988). We find that the APT is indeed sensitive to the chosen estimator and assumptions about the factor structure of stock returns. We believe that our findings have implications for the estimation of asset pricing models in general.