The Canada U.S. free trade agreement: Competitive tradeoffs between foreign direct investment and trade

This paper assesses the impact of the Canada U.S. Free Trade Agreement on exports and foreign direct investment of processed foods. Results indicate that U.S. exports to Canada more than doubled, while Canadian exports to the U.S. nearly doubled after the implementation of the Canada U.S. Free Trade Agreement in 1989. Regression results of the covariance model on panel data show that U.S. and Canadian food processing firms appear to use both exports and foreign direct investments as complementary market access strategies. This research was supported by a grant from the Canadian Embassy. In addition, the authors thank Carolyn Dimitri of the University of Maryland for helpful comments.     

IS THERE A “CULTURE OF SPENDING” IN CONGRESS?

This study empirically tests the "Culture of Spending" hypothesis (Payne, 199la). According to this hypothesis, the longer congressmen stay in office, the more likely they are to support federal spending. Spending behavior in this study is measured by the National Taxpayers Union (NTU) Congressional Spending Score. Samples are drawn from annual spending scores for all U.S. representatives and senators who served in office between 1975 and 1993. This study finds no statistical support for the hypothesis that congressmen have an increasing propensity to support federal spending the longer they stay in office. Furthermore, we are able to explain why other studies obtain results different from ours.     

HOW LONG DO CONGRESSMEN STAY IN OFFICE?*

This paper develops a methodology for calculating the expected completed lengths of U.S. congressmen's stays in office. In addition, it demonstrates how this methodology can be used to forecast the seniority structure of future Congresses. One of the major empirical findings of this paper is that it demonstrates the deficiencies of using “mean term” to make inferences about the expected length of congressmen's stays.     

An Examination of Substitution among Monitoring Devices: The Case of Internal and External Audit Expenditures

Much of the agency literature assumes that various monitoring devices are partial substitutes in reducing total agency costs. In particular, internal and external auditing often are characterized as monitoring devices that should be partial substitutes. We argue that reliable evidence of this relation is lacking because prior studies using cross-sectional archival data have not carefully considered the implications of microeconomic theory of substitution for the models estimated. Our analysis leads to a reexamination of the relation using time-series data. We find no evidence that systematic substitution of internal for external auditing (or vice versa) occurred during the period 1989–1993. Further analysis indicates that the relative prices of internal and external auditing inputs did not change during the period. Therefore a necessary condition for substitution to occur did not exist. Although we do not detect substitution with our sample, the analysis and methodology we develop contribute to the literature by enhancing researchers understanding of substitution among monitoring methods.     

A Subcultural Analysis of the Brazilian Knowledge Industry: When Nation,Industry, and Organizational Cultures Collide

ABSTRACT

This exploratory research seeks to better understand the relationship between national and industry culture, concentrating particularly on the case of the Brazilian knowledge industry. Perceptions of real and ideal corporate values were obtained from 98 professional and managerial staff from Brazil and 40 from the United States. The results were also compared to those of a multi-industry Brazilian sample reported in Nelson and Gopalan (2003 Nelson , R. E. , and Gopalan , S. ( 2003 ). “Do Organizational Cultures Replicate National Cultures?” Organization Studies , Vol. 4 , pp. 115 – 152 . [Google Scholar]). The Brazilian knowledge industry respondents' view of their organizational culture was much more favorable than the US knowledge industry respondents' perceptions. The Brazilian knowledge industry sample also contained unique subcultures that varied by employment regime and favorably reflected on the industry's ability to adapt to modern trends. This configuration of results does not clearly favor any of the major theories of organizational culture but suggests a complex pattern of interaction between country, industry, industry position, and employment regime. The results do, however, suggest that interaction effects of country by industry may be much stronger than the main effects of either industry or nation.     

Institutional Adjustment,Instrumental Efficiency,and Reasonable Value

Abstract:

In this paper, we apply Celso Furtado’s vision of the process of economic development to the United States’ economy. Furtado was a creator of Latin American structuralism and continues to be one of the region’s most influential economists. Yet, he is little known in the English literature. As we argue, there are few academics who offer a theoretical framework capable of robustly evaluating the current trajectory of U.S. economic development with the depth of Furtado. Through his analytical lens, and with some help from John Maynard Keynes, we examine the present reality, as well as the more remote economic history of the US. We argue that, seen through Furtado’s lens, the US can now be accurately described as an under-developing economy.