Optimal Tariff Policy on Imports from Multinationals*

Using partial equilibrium analysis, it is shown that for small countries there is an optimal tariff on imports from a monopolistic multinational. There is also (under specified circumstances) a tariff at which the multinational finds subsidiary production more profitable than exports: the switchover tariff. The interaction between the optimal and switchover tariffs is analyzed from the small country's welfare standpoint. The conclusion is that there is not one, but a variety of possible optimal policies for the country: trade at the optimal tariff, with or without prohibition of subsidiary production, or tariff-protected subsidiary production.     

MAPs: Labor-Based Peer Assistance in the Workplace

An offshoot of management-based Employee Assistance Programs, Member Assistance Programs (MAPs) are peer-based programs designed to help union members suffering from substance abuse and other personal problems. Although a relatively recent phenomenon, MAPs are rooted in traditional union principles of voluntarism and mutual aid. This article examines the emergence and growing popularity of MAPs, differences in MAP structure and orientation across unions, and the potential significance of MAPs to unions and industrial relations.     

Spanning the Union/Nonunion Boundary

Conflicts between the work boundaries established by union contracts and management's interest in efficient work flows have increased sharply as new technology and new management practices make traditional divisions in the organization of work obsolete. We use concepts from organizational theory to examine these conflicts and an innovative attempt to resolve them by defining union boundaries not on the basis of tasks performed, but rather on the basis of employment; the union contract applies to specific workers instead of job titles. This system provides greater flexibility and autonomy for employees, and the results of an attitude survey suggest that it is strongly preferred by workers who feel constrained by traditional union contracts.     

Diminished Returns? Growth and Investment in East Asia

This paper investigates the investment-led growth hypothesis for the newly industrialized economies of East Asia. Using numerical simulations and a neoclassical model, it is shown that the revolution in investment rates only explains about 30 per cent of the growth of GDP per worker. In contrast, productivity growth and improvements in labour quality, explain around half the growth of GDP per -worker. This reflects the effects of productivity growth on capital accumulation. Contrary to recent growth-accounting studies, the results suggest that understanding the sources of productivity growth in East Asia will provide the most useful lessons for other developing economies.     

Australian Proprietary Companies' Demand for External Auditing

The recently introduced size test for proprieta ry companies could mean that some companies that were exempt would now be required to have annual audits, while some non-exempt companies would no longer be required to have annual audits. This paper considers the reasonableness of the size test and evaluates the proposition that proprietary company audits are not all legislation-driven.