Bridging the distance: Managing cross-border knowledge holders

This article examines the micro-level operational difficulties for multinational corporations (MNCs) to generate value from its highly geographically dispersed cross-border knowledge and studies the strategies for overcoming them. Using China as the research context, we identify key geographical, institutional and cultural features of cross-border knowledge holders and examine the dimensions of distance that separates them. We then link these dimensions to the conditions that facilitate cross-border knowledge building processes. In doing so, we propose a conceptual model for overcoming these context-specific knowledge management barriers.     

Developing-island economies — tourism v agriculture

During the peak years of international tourism in developing countries, 1960–1974, the anti-tourism literature claimed that tourism was destroying other sectors, particularly agriculture, by competing for labour and land resources, and by increasing their reserve prices. Evidence is derived mainly from islands where movement of food, and labour supplies, were restricted, and many were suffering from the long-term decline in the sugar and copra trades. The article casts doubt on Bryden's proof by cost-benefit analysis that tourism had a poor social return, and even questions whether agriculture did decline in the critical period. Labour and land competition are shown to be inherently implausible, although the reserve price of labour may have been raised by the construction industry.     

FUNCTIONAL ESTIMATES OF JAPANESE GOVERNMENT DOMESTIC EXPENDITURES, FISCAL 1952–1963

The purpose of the paper is to describe current and constant price estimates of Japanese central and local government postwar domestic expenditures by economic type and function recently completed by Miss Yoshiko Kido, International Christian University, Tokyo, and myself. The rationale of the functional classification is to estimate those government expenditures which enhance the economy's productive capacity. Expenditures are divided into four broad functional categories: developmental, disaster repair and prevention, social welfare, and general government. These four categories are subdivided to two levels of disaggregation. We were able to break down government fixed investment, government enterprise inventory investment, current domestic transfers and subsidies into 42 functional components. For constant price series, each functional component by economic type was deflated by separate price indexes. We followed the Economic Planning Agency's procedure for the official national accounts of assuming no productivity change in the provision of government services. Our results are generally comparable to the official national accounts estimates. The major difference is that we attribute considerably more fixed investment to local governments, and correspondingly less to the central level. Government expenditures had the following characteristics. Growth was rapid; in real terms the public sector use of the economy's resources in 1963 was 2.2 times more than in 1952. The elasticity of government expenditures to GNP was unity in current prices, slightly less in real terms. The government postwar share in GNP has been smaller than in European nations and, unlike them, was not rising. This reflects the underlying growth strategy of emphasis upon private business fixed investment. Government consumption expenditures declined relative to GNP, and investment rose. Developmental expenditures comprised the largest share (40–45 per cent) of the government total. The elasticities to GNP of government expenditures by economic and functional categories are provided and discussed. A simple test was made of the cyclical relationship of government expenditures (both total and by category) to GNP. The results suggest that government expenditures, rather than contra-cyclical, were pro-cyclical in effect.     

Second Generation Electricity Reforms in Latin America and the California Paradigm

In this paper we discuss second-generation electricity reforms being formulated in Latin America and how they are being reshaped by the California crisis, which had stood as a paradigm, at least in theory, for fully competitive markets. We argue that the main lesson policy makers in Latin America should draw from the experience in California and other electricity markets around the world is that the liberalization of wholesale markets will not result in more competitive outcomes where market concentration is significant, final consumers are isolated from actual marginal production costs and capacity is tight. At least in the case of Argentina and Chile, the California crisis has had a “positive externality” by persuading policy makers, at least momentarily, to postpone liberalization reforms and make them realize the complexities in implementing competitive markets.