Market distortions and export performance: India’s exports of manufactures in the 1970s

Zusammenfassung Marktst?rungen und die Exporte eines Landes: Indiens Industriegüterexporte in den siebziger Jahren. — Aus einem Heckscher-Ohlin-Modell mit mehreren L?ndern und mehreren Gütern werden Vorstellungen darüber abgeleitet, wie sich Verzerrungen der Güter- und Faktorm?rkte auf die Kapitalintensit?t von Industrien, auf die Zusammensetzung der Warenexporte und auf die Exportt?tigkeit auswirken. Diese Modellvorstellungen werden mit Erfolg benutzt, um die indische Situation zu erkl?ren. Die Verzerrungen der Faktorm?rkte in Indien haben eine gr?Βere Kapitalintensit?t seiner Industrien bewirkt; Verzerrungen der Güterm?rkte haben zu einer Umkehr in der Exportt?tigkeit geführt: Einige subventionierte kapitalintensive Industrien sind auf den Weltm?rkten leistungsf?higer als seine arbeitsintensiven Industrien.

---

Résumé Distorsions de marché et la performance exportatrice: les exportations manufacturières de l’Inde dans les années soixante-dix. — Avec succès l’auteur explique la situation indienne gráce aux propositions qui sont dérivées d’un multi-pays et multi-biens cadre du type Heckscher-Ohlin pour analyser les effets des distorsions sur le marché des biens et des facteurs á l’intensité capitalistique des industries, á la composition des biens exportés et á la performance exportatrice. Les distorsions sur les marchés des facteurs aux Indes ont augmenté l’intensité capitalistique de ses industries; les distorsions sur les marchés des biens ont conduit aux inversions de la performance exportatrice de ses industries — quelques industries intensives á capital et subventionées révèlent une meilleure performance exportatrice sur les marchés mondiaux que des industries intensives á main-d’∁uvre.

---

Resumen Distorsiones de mercado y comportamiento de exportación: las exportaciones de manufacturas de la India en los afios 1970. — Se utilizan exitosamente proposiciones derivadas de un marco multi-paises y multi-productos de Heckscher-Ohlin acerca del impacto de distorsiones en los mercados de bienes y factures sobre la intensidad de capital de las industrias, la composición de productos de las exportaciones y el comportamiento de las exportaciones para explicar la situaci?n de la India. Distorsiones en el mercado de factures en la India han resultado en una mayor intensidad de capital de sus industrias; distorsiones en el mercado de bienes en la India han llevado a reversiones en el comportamiento de exportation de sus industrias — algunas industrias intensivas en capital subsidiadas tienen un comportamiento mejor en los mercados mundiales que sus industrias intensivas en mano de obra.

     

The distinct influence of power distance perception and power distance values on customer satisfaction in response to loyalty programs

In today's fiercely competitive environment, firms are increasingly relying on loyalty programs to influence customers' repeat purchase behavior. However, little is known about how customers' cultural values shape their satisfaction in response to loyalty programs. Such knowledge is important because it allows marketers to identify cultural segments that may be more or less likely to respond favorably to loyalty programs, and hence increase the effectiveness of such programs. In the current research, we propose that power distance perception — defined as the extent to which people observe power disparities in society — positively influences satisfaction of customers who hold loyalty status, but negatively influences satisfaction of customers who do not hold loyalty status with a firm. In contrast, power distance values — defined as the extent to which people endorse power disparities in society — negatively influences satisfaction of customers who hold loyalty status, but positively influences satisfaction of customers who do not hold loyalty status with a firm. A quasi-field study and several lab experiments support these propositions, shed light on the underlying mechanisms, and rule out alternative explanations. Our findings also uncover several distinct tools that marketers could use to influence non-loyalty status and loyalty status customers' satisfaction with businesses.     

Does trade size restriction affect trading behavior? Evidence from Indian single stock futures market

Algorithmic traders use their advantage of speed to execute a large number of small-sized trades in a very short time. In the presence of a minimum trading unit (MTU) restriction, they are forced to trade at the smallest possible sizes, often restricted by the MTU. Using a novel data set of single stock futures market obtained from the National Stock Exchange of India, we show that the MTU restriction acts as a binding constraint for traders while optimizing trade sizes. Contrary to expectation, we find weak evidence that liquidity is positively impacted by the contract size revision.     

Imperfect Information and Opportunism

Information is a scarce resource. It is inherently available only in a limited form to decision-makers. Limited or imperfect information is caused by uncertainty — both ontologic and epistemic, limitations in cognitive capabilities or bounded rationality, hidden information, and information asymmetries. This has fundamental implications for the manner in which the self-interested behavior of agents will manifest itself. The article argues that in the context of imperfect information, self-interest can function in a manner quite different from what standard approaches assume. This has been demonstrated by the recent financial crisis. However, there has been limited consideration in mainstream models, both of the neoclassical and institutional type, as to what the exact nature of self-interestedness is, and how this affects the market behavior of agents. The nature of self-interest, therefore, needs to be modeled explicitly to improve the explanatory power of economic theories.     

Valuing farmland with multiple quasi-fixed inputs

This study examines the impact of multiple quasi-fixed assets on the imputed returns to farmland. The results indicate that the presence of additional quasi-fixed assets causes the true shadow value of farmland to deviate from its imputed value. The results also indicate that when the potential existence of multiple quasi-fixed assets is explicitly modelled, the shadow value of farmland approaches reported cash rental values.     

Economic reforms of agriculture and rural growth

Successful rural growth episodes in India indicate a process of growth and diversification that is based on the development of producer services. A simple theoretical model of this process is sketched to suggest impediments to such a process of growth and thus to offer a possible explanation of rural stagnation in many areas in India. Agricultural policies in India of the present and the recent past are analysed in the light of such a framework.     

Innovative human resource management and corporate performance in the context of economic liberalization in India

The Indian economy was forced to adopt a structural adjustment programme at the beginning of 1991. The structural adjustment programme or liberalization initiated the process of the opening up of an otherwise closed economy of India. Liberalization created a hyper-competitive environment and to respond to this turbulence, Indian organizations adopted innovative changes in their HRM practices. Current research shows that HRM practices are important for enhanced corporate performance but little has been reported on the effect of HRM practices and corporate performance in the context of economic liberalization of India. This study tries to understand the role of innovative HRM practices and specifically questions how HRM practices, such as the role of HR department, recruitment, retraining and redeployment, performance appraisal and compensation, enhance corporate performance during the change process. A multiple-respondent survey of 69 Indian organizations was undertaken to study the impact of innovative HRM practices on firm performance. The survey found that the innovative recruitment and compensation practices have a positive significant relationship with firm performance. It was observed that recruitment, the role of the HR department and compensation practices seem to be significantly changing within the Indian firms in the context of India's economic liberalization. The synergy between innovative HRM practices was not significant in enhancing corporate performance during the liberalization process.