Growth constraints on small-scale manufacturing in developing countries: a critical review

The question raised in this review is whether small-scale producers in developing countries can expand or whether they are up against constraints which stunt their growth. Most of the literature has been optimistic on this score; while internal constraints (e.g. lack of managerial ability) or external constraints (e.g. discrimination from government) are identified, expansion is seen as an open-ended process. In other contributions this view has been severely criticized; some allege that the small producers are exploited through various mechanisms, others suggest that their road to expansion is blocked as a result of factors such as the pre-existence of very advanced technology, the control of large firms over product markets, or difficulties in access to raw materials. In discussing the arguments put forward in the debate, an attempt is made to assess their theoretical bases and examine the extent to which they are supported empirically. While most studies express explicitly or implicitly a definite view on the growth potential of small producers, such judgement is rarely based on a comprehensive examination of the context which determines this potential.     

An interactive computer-based approach to aid group problem formulation

The size, cost, and complexity of quantitative modeling in the social and physical sciences demand that the modeler focus attention on premodeling phases of analysis, specifically on formulation and definition of “problems.” This is especially true in the “softer” or less “well-structured” problem areas of futures research and technology assessment. At this stage of modeling, a key factor is communication among modelers. This paper briefly discusses approaches to classifying and formulating problems that illustrate the role of communication in modeling. It then describes a computer-based communication system as one possible aid in the problem-formulation process.     

The development of accounting machines in French banks from the 1920s to the 1960s

French banks faced severe organisational problems in the 1910s and 1920s when the scale of their operations grew dramatically as a result of the broadening of the customer base among personal investors and of the boom in discount activities, both of which required increased levels of bookkeeping. In the meanwhile, due to inflation and trade-union pressure, wages had increased. This led to French banks adopting a strategy of sharing information with German banks, which already seem to have developed the process of mechanising bookkeeping operations. Knowledge exchanges were set up with German (and Belgian) bankers so as to accelerate the transfer of organisation (re-engineering) skills and data-processing. Banks in the Alsace region were pioneers in this movement; but several big banks did not wait long before introducing a policy of investing in machines and new platforms for tackling dataprocessing. The 1920s and the 1930s thus represent a key stage in the transformation of French banks into actual service 'organisations'.     

Franz Redl † (1921–1965)

Ohne Zusammenfassung

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Franz Redl (1921–1965)

     

The power of remittances on the international prevalence of child labor

This paper examines the relationship between remittance inflows and the prevalence of child labor. It investigates whether remittance inflows offset the effects of financial constraints and income shocks on the prevalence of child labor in receiving economies. Based on a sample of 82 developing countries and after factoring in the endogeneity of remittances, migration, and financial development, econometric results highlight that remittance inflows significantly reduce the prevalence of child labor in developing countries characterized by weak financial systems and high income growth volatility.     

Ownership structure and debt leverage: Empirical test of a trade-off hypothesis on French firms

Debt may help to manage type II corporate agency conflicts because it is easier for controlling shareholders to modify the leverage ratio than to modify their share of capital. A sample of 112 firms listed on the French stock market over the period 1998–2009 is empirically tested. It supports an inverted U-shape relationship between shareholders’ ownership and leverage. At low levels of ownership, controlling shareholders use more debt in order to inflate their stake in capital and to resist unfriendly takeovers attempts. When ownership reaches a certain point, controlling shareholders’ objectives further converge with those of outside shareholders. Moreover, financial distress will prompt controlling shareholders to reduce the firm's leverage ratio. Empirically, it is shown that the inflection point where the sign of the relationship between ownership and debt changes is around 40%. Debts may help in curbing private appropriation and appears also as a governance variable.