A Barrier to the Diffusion of Tacit Knowledge

The paper examines the impact of skill transfer on economic growth. Even if there are the benefits of backwardness and the ability to absorb them, the South may not exploit them, because the skilled workers in the North are not willing to come to the South owing to their high opportunity cost. It is shown that if the South's relative income is low, the South cannot offer high wages to attract skilled workers from the North, and stays in the low rank. But if its relative income is high enough, exploiting the benefits of backwardness, it attains high growth and converges to a relatively higher position. This prediction is consistent with the evidence that the world distribution of relative income has two peaks. The study also shows that an increase in human capital in the North increases the minimum requirement for human capital in the South to soar.     

Japanese spinoffs: Unexplored survival strategies

This paper analyzes spinoffs of Japanese firms and the use of the spinoff as an instrument to achieve corporate growth objectives. The initial separation of the organizations and its governance mode are analyzed in the context of transaction costs theory. Spinoffs may be created in order to (1) balance costs associated with managing diversified businesses, (2) generate growth based on core competencies of a firm, and (3) pursue an efficient internal labor market. In a changing environment, the spinoff has been a widely used flexible organizational arrangement that is suitable to survival and offers an alternative way of diversification.     

Cultural Commonality and Specificity in Japanese and Euro-Canadian Undergraduate Students' Leisure Experiences: An Exploratory Study on Control and Positive Affect

Accumulated cross-cultural research indicates that North Americans typically emphasize primary control (e.g., changing the environment) and high-arousal positive affect (e.g., enthusiasm), whereas East Asians typically emphasize secondary control (e.g., adjusting oneself, accepting the environment) and low-arousal positive affect (e.g., calmness). Therefore, the purpose of this exploratory experience sampling method study was to examine cultural similarities and differences in Japanese (n = 41) and Euro-Canadian (n = 15) undergraduate students' control and positive affect as leisure experience. Results indicated that during leisure versus non-leisure participation, (a) both Japanese and Euro-Canadians experienced primary control and high-arousal positive affect more and secondary control (acceptance) less, and (b) Japanese alone experienced secondary control (adjustment) and low-arousal positive affect more. This cross-cultural study contributes to the leisure studies field, both theoretically and practically, by identifying cultural commonality and specificity in leisure experiences as well as leisure's potential role in enhancing psychological well-being.     

Demographic structure and growth: The effect of unfunded social security

This paper examines how demographics affect economic growth in an OLG model with unfunded social security. We derive two interesting results. First, the relationship between population growth and per capita output growth is hump shaped. Second, the relationship between life expectancy and per capita output growth is also hump shaped.     

Investor Familiarity and Home Bias: Japanese Evidence

We examine how foreign and domestic portfolio investors, both classified into money managers, invest in Japanese firms over the sample period of 1985–1998. We propose the agency-familiarity hypothesis to explain investment behavior of these institutional investors focusing on the two firm-level variables: market capitalization and export ratios. Both types of institutional investors over-invest in familiar firms measured in firm size while each shows opposite preference patterns with respect to the export ratios. The foreign investors become more export-firm oriented in the second-half sample and the domestic orientation of the domestic institutional investors becomes statistically significant during the same second-half. Because of the location difference of their client investors, the compositions of familiar firms are different between these two types with respect to the firm’s export activities. Home bias at the firm level in terms of the sensitivity to the export ratio is evident for both types of investors, especially, in more recent years, although equity home bias at the country level has been gradually mitigated. Based on these macro- and micro-level results, we conclude that the investment behavior of money managers is more consistent with the agency-familiarity explanation than the information-based explanation regardless of their nationalities.