What Makes Currencies Volatile? An Empirical Investigation

Real effective exchange rate volatility is examined for 90 countries using monthly data from January 1990 to June 2006. Volatility decreases with openness to international trade and per capita GDP, and increases with inflation, particularly under a horizontal peg or band, and with terms-of-trade volatility. The choice of exchange rate regime matters. After controlling for these effects, an independent float adds at least 45% to the standard deviation of the real effective exchange rate, relative to a conventional peg, but most other regimes make little difference. The results are robust to alternative volatility measures and to sample selection bias.     

The importance of EU-15 borders for CEECs agri-food exports: The role of tariffs and non-tariff measures in the pre-accession period

This paper assesses the evolution of the EU-15 market access for the agri-food products, originating from CEECs. A gravity model technique has been used to assess the overall trade resistance (border effect), and to weight its various components such as tariff and non-tariff measures (sanitary and phytosanitary standards, other quality measures) in the pre-accession period (1999–2004). The findings reveal, despite the undertaken integration and trade liberalisation processes, a persisting and significant trade resistance for the CEECs’ agri-food exports to the EU market, even just prior their accession in 2004. Still present difficulties in market access at the time are partially explained by tariff and non-tariff measures, while a large part of border effect remains in the domain of other, presumably non-trade policy related factors (home bias, consumer preferences, etc.). These results indicate that despite the accession process (customs union and adoption of the EU standards), the trade integration of the enlarged EU market was not yet completed in 2004.     

Organic as a Heuristic Cue: What Spanish Consumers Mean by Organic Foods

One of the strategies employed by companies to differentiate themselves from others, in the food market, has been to market organic products according to the assumption that environmental values are an important influence on people's behavior. However, studies of the behavior of organic food consumers show that there is some debate on this subject. Although some studies associate organic food consumption with motives and attitudes in which the environment plays a predominant role, a greater number conclude that the motives for consuming this type of food are basically egoistic (related to health, food safety, or the quality or flavor of the food). This can lead to problems in deciding the central thrust of the marketing strategy. The purpose of this paper is to analyze the meaning and interpretations placed on the term “organic,” and how they are integrated, as a way to explain consumption behavior. Qualitative research methods were adopted for this purpose. Four focus group sessions with different sociodemographic profiles, held in the cities of Madrid and Seville, in Spain, displayed two evident paradoxes, which could indicate that environmental motives are not important for consumers in this market. It is concluded that the term “organic” plays an important role as a heuristic cue to superiority, irrespective of the consumer's knowledge about the real features of organic food. Three alternative models are presented to explain consumer behavior. These results could be useful to food companies, largely in connection with positioning this type of product and with their communications policy.     

A Comparison of Residents' Perceptions in Two Cruise Ports in the Mediterranean Sea

This paper examines residents' perceptions of a wide set of externalities exerted by the development of cruise tourism. The research involved data collection in two ports located in the two largest Mediterranean islands, Sicily and Sardinia, during the summer peak of the cruise season 2011. These two cruise destinations are especially interesting as they are characterized by a distinct life cycle. The empirical findings show that the two groups of residents have statistically equal perceptions on cruise activity in their destination. A correspondence analysis shows that residents have an overall positive attitude on the development of cruise tourism with respect to social, cultural and economic impacts. Nevertheless, they also feel that cruise activity has a negative impact, especially on the environment. Heterogeneity in occupation is explicitly taken into account. These findings provide directions for local policy‐makers. Copyright © 2012 John Wiley & Sons, Ltd.     

Consumer behaviour in the credit card market: a banking case study

This paper analysed the demographic, socio‐economic and banking‐specific determinants that influence the choice of credit cards. A multinomial logit model was run on a recent portfolio of banking customers based in Italy. The model incorporates the type of credit cards as the dependent variable and a set of explanatory variables. The empirical results provided useful insight into the structural characteristics of the card payment system and offered a microeconomics perspective to analyse consumers' behaviour and preferences. Overall, women, older people, residents in the centre of Italy and secondary card owners are more likely to acquire a classic card. Gold cards are preferred by older customers, whereas younger clients have a higher probability to choose a revolving card, which is also preferred by the residents in the North‐east. The analysis on the continuous variables highlighted that Italy can be regarded as a ‘conservative’ market with room for credit card upgrading and expansion into more sophisticated products.     

Initial Impressions Determine Behaviours: Morality Predicts the Willingness to Help Newcomers

Prior research has demonstrated the impact of morality (vs. competence) information for impression formation. This study examines behavioral implications of people’s initial impressions based on information about their morality vs. competence in a workplace. School teachers and employees (N = 79) were asked to form an impression of a new school manager (i.e. a prospective boss), who was presented as High vs. Low in Morality and High vs. Low in Competence. Results showed that morality information rather than competence information determined initial emotional responses to the new manager, which mediated willingness to help the newcomer adjust in task and social contexts. Results are discussed in terms of their theoretical and practical implications and future research directions are outlined.     

The determinants of firm–bank relationships in Italy: bank ownership type,diversification and multiple banking relationships

This paper investigates the main features of the relationships between banks and non-financial firms in Italy. Based on detailed firm-level data, we analyse the role of firm-level characteristics, decision-making factors and local credit market indicators in shaping various aspects of corporate banking choices. Empirical results show that young and small firms have a higher probability of relationships with local banks, confirming the advantage of local credit institutions in dealing with informationally opaque firms. Large and internationally active firms tend to establish relationships with national and foreign banks, as they are able to provide more complex banking services that are crucial to access foreign markets. Moreover, firms that are more dependent on external financing are more likely to use multiple and differentiated banking relationships, as a way to diversify external financing sources and alleviate credit constraints.     

Analysing Social Capital and Product Innovativeness in the Relationship Evolution of Born-Global Companies the Mediating Role of Knowledge Acquisition

International Entrepreneurship and Management Journal - Relatively little is known about how born-global companies (BGs) innovate abroad during their lifecycle or about how the international...     

Inbound tourism and long-run economic growth

There is an upsurge of literature investigating the relationship between inbound tourism expansion and economic growth with special emphasis on developing countries. Some countries – such as Spain and Italy – can be taken as examples of demonstrating such a successful trajectory. This paper provides an empirical investigation of the evolution of the Spanish and Italian economies and their respective tourism sectors from the 1950s and 1960s, respectively. This research is theoretically based on the literature on demand-based growth and the methodology adopted is that of the integration, cointegration and multivariate Granger causality tests. The results show the influencing role of inbound tourism for both economies.