Small Manufacturing Enterprises in Developing Countries

Emphasis is often placed on the promotion of small enterprisesin developing countries, particularly as a means of improvingthe lot of unskilled workers. This focus raises questions aboutthe relationship between establishment size and the patternand efficiency of factor use, and about the nature and effectsof price differentials in factor markets. This article goessome way toward answering these questions with data from surveysof small manufacturing enterprises in India and Colombia sponsoredby the World Bank and relevant material from other countries.The article also examines India's long-standing policy, unusualamong developing countries, of providing special support andprotection for small enterprises. Analyses based on disaggregateddata found that small firms are not reliably more labor-intensivethan their larger counter-parts; nor are they consistently moretechnically efficient in their use of resources. In light ofthese findings and an analysis of factor markets, this articlediscusses the general implications of the research results forindustrial policy in developing countries.     

Gross substitutability of point-to-set correspondences

In this paper the notion of gross substitutability for the multi-valued case is studied. It is proved that, if in a pure exchange equilibrium model gross substitutability and some auxiliary conditions prevail, then (a) the set of equilibria is a Cartesian product of a convex set of equilibrium resource allocations and a convex cone of equilibrium prices; hence all equilibria are equiadvantageous for every trader; (b) the weak axiom of revealed preference holds in any equilibrium; (c) any equilibrium is stable with respect to reallocations of initial resources. Some situations in which Walras' law does not hold are considered as well.     

Unbiased product estimators

Summary The paper presents a comparative study of product estimators proposed byRobson [1957] andMurthy [1964]. It is seen that the Robson's estimator gives a better performance.     

A model of industrial satisfaction/complaining behavior

A model of the purchaser's satisfaction with supplier response to a formal buyer complaint is developed and tested. The authors answer two important questions: (1) what variables affect the purchasing agent's satisfaction with a supplier's response to a complaint? and (2) how can the supplier respond so as to keep that customer in the future?