On the mark(s): Optimum currency areas in Germany

In the wake of unification, the former GDR became a member of the DM monetary zone. We evaluate whether unified Germany satisfies the criteria defining an optimal monetary area. We conclude that the primary criterion, similarity of shocks, is not satisfied even by the western states, a reflection of the importance of sector-specific relative to geographic shocks coupled with different sectoral structures. Extending this argument, we conclude that the correlation of shocks to the eastern states with western states is also likely to be small. A case for monetary unification must, in consequence, be based on political rather than narrowly economic calculations.     

Zur Analyse der Auswirkungen der Biomethaneinspeisung auf die Entwicklung der deutschen Erdgasversorgung

Natural gas offers several advantages compared to other fossil fuels, especially regarding its specific CO₂ emissions and its flexibility in usage. Thus, it is expected that the consumption of natural gas will further increase in the future. Nevertheless, this increase is accompanied by a growing dependence on imports. Biomethane, i.e. conditioned biogenous gas, is an interesting possibility for the substitution of natural gas. As it is a renewable and indigenous energy source, it contributes to the reduction of both: CO₂ emissions and gas imports. Similar to the renewable electricity generation, the German government sets targets for the biomethane feed-in and has introduced promotion mechanisms to achieve these goals. Within this paper the possible role of biomethane in the German natural gas supply has been evaluated by applying the optimising energy flow model PERSEUS-EEM. Results show that the CO₂ emissions trading system by itself is not sufficient for the competitiveness of biomethane. Model results demonstrate that a significant increase of the German natural gas demand can be expected especially due to the stringent CO₂ reduction targets. Even when the political CO₂-reduction targets are reached, biomethane will not play a major role in the natural gas supply of Germany.     

A reexamination and extension of international strategy–structure theory

Using a sample of 95 German firms, the study finds general support for the traditional fits of international strategy–structure theory. Employing an information‐processing perspective, the study conceptually and empirically extends existing theory (1) to address strategy–structure fit for various types of matrix structure, and (2) by adding two new elements of international strategy to the existing international strategy–structure model: the level of international transfers and level of foreign R&D. Copyright © 2002 John Wiley & Sons, Ltd.     

Globalization and Global Economic Governance

This article focuses on the World Trade Organization (WTO) andthe International Monetary Fund (IMF). It starts by noting thatthe case for creating such institutions is not self-evident,since the liberal order of the nineteenth century lacked comparableones. Nevertheless, these institutions perform valuable functions.The article then considers the criticisms of the WTO and theIMF. It finds most, thought not all, unjustified. It concludesthat the WTO could be improved. But, without it, the big powerswould do what they want to an even greater extent than theyalready do. Similarly, while the IMF has made significant mistakes,notably in its promotions of capital-market liberalization,prior to the Asian financial crisis, the charges against itare exaggerated. Finally, the article considers the possibilityof creating new institutions to cover investment, migration,taxation, and the environment.     

Growth convergence reconsidered

Growth Rate Convergence Reconsidered. —While convergence properties lie at the heart of the endogenous-exogenous growth debate, the empirical literature on convergence to date remains ambiguous. Results appear to be particularly sensitive to the choice of income per capita or labor productivity as dependent variable. The paper shows that the dependence reflects a measurement error arising from the interdependence of human capital accumulation, labor force participation rates and development levels. Estimation of a corrected convergence equation yields results generally supporting convergence except in the manufacturing sector.     

Raising quality consciousness among Chinese manufacturing personnel: Testing the effectiveness of performance management tools

This study draws upon the strategic management control literature, goal-setting, and expectancy theory to address the management of quality in Chinese manufacturing operations. Operating in a transition economy, Chinese managers face specific challenges in adapting management strategies and control systems. Using causal modeling, we examine the implementation of quality strategies through management control and reward systems in 38 manufacturing firms operating in the Pearl River Delta, examining the effects of company size. The results indicate that for larger firms, significant linkages were found between reward systems based on quality outcomes and quality feedback, and in turn, quality feedback was significantly linked to both quality goals and a strategic focus on quality. However, for smaller firms, while significant relationships exist between reward systems based on quality outcomes and the provision of quality goals and feedback, no significant linkages were found between the implementation of management control systems and a strategic focus on quality. This study emphasizes the need to develop more robust theories to address the manufacturing environments of transition economies such as China, as well as the need for additional field research on indigenous firms in Asia.     

Who bears the burden of international taxation? Evidence from cross-border M&As

Cross-border M&As can trigger additional taxation of the target's income in the form of non-resident dividend withholding taxes and acquirer-country corporate income taxation. This paper finds that this additional international taxation is fully capitalized into lower takeover premiums. In contrast, acquirer excess stock market returns around the bid announcement date do not appear to reflect additional taxation of the target's income. These findings suggest that international taxation is considered to be burdensome and that the incidence of this taxation is primarily on target-firm shareholders.     

The Riddle of German Self-Interest北大核心CSSCISSCI

How will the crises inside the euro-zone end?Many people have asked me this question in the US in recent weeks.How,in particular,might the eurozone move from crisis into stability