Selection versus evolutionary adaptation: Learning and post-entry performance

This paper examines the maturation process of firms that enter an industry by constructing new plant and investigates the extent to which improvements in the performance of any entry cohort are the result of a selection process that culls out the most inefficient entrants or of a learning process that allows survivors to improve their performance relative to incumbent firms. Both selection and evolutionary learning are found to affect post-entry performance, but selection per se is a more important contributor to the overall growth of a cohort.     

"Population policy in developed countries."

Bernard Berelson's book, "Population Policy in Developed Countries," provides a report on population policy in the developed world as of the early 1970s, covering countries with 20 million population or over, and 11 countries of special interest. There are chapters by national experts from 25 countries. A developed country is defined as industrialized, healthier, better educated, better off, more modernized, and distinguished by low fertility. This does not mean that population growth in these countries has yet fallen to zero or lower, but in 7 or 8 countries, population is expected to stabilize in a decade or so unless recent fertility trends reverse themselves or are offset by immigration. The conclusions drawn from the 25 country reports are summarized, and highlights of the demographic situation and policies in 12 of the countries are presented, Berelson is cautious in predicting the future shape of population policy in the developed world. There have been too many policy changes in the past to be confident of the future. He feels, however, that more and more people are likely to accept the goal of replacement, up to replacement in some countries and down to replacement in others.     

Market Expansion and Productivity Growth: Do New Domestic Markets Matter as Much as New International Markets?

This paper asks how market expansion contributes to productivity growth. It investigates whether entry to both new international markets and new domestic markets is associated with greater productivity growth. It also examines whether exit from export markets is necessarily associated with deteriorating performance or whether it too can lead to success if associated with movements to new markets. Finally, the paper drills down into the strategic stance of firms that move to new markets to examine the strategic differences that set them apart from their compatriots that do not find themselves able to adapt.     

Hysteresis in trade

The paper presents a model of hysteresis in trade which is based on the existence of sunk market-entry costs. The study concentrates on the aspect of two models. In both models an exchange rate overvaluation leads to additional entry by foreign firms. The models differ in their accounts of why the foreign firms do not exit after the exchange rate shock passes.     

Trade liberalisation and endogenous growth: A q-theory approach

This paper introduces a new approach to the analysis of endogenous growth effects and uses it to illustrate two novel trade-and-growth links. The approach’s simplicity allows us to introduce scale economies and imperfect competition into the R&D and financial intermediation sectors of a Romer–Grossman–Helpman endogenous growth model. We show that trade liberalisation can stimulate growth via a procompetitive effect in the R&D sector and/or financial sector.