Internet Technology and the Extensive Margin of Trade: Evidence from eBay in Emerging Economies

Online platforms such as eBay offer technologies that make it easier for firms to export. This paper dissects a new firm‐level dataset that covers sales made through eBay by sellers based in 21 emerging economies to provide a new lens through which to look at the effect of trade costs on the extensive margin of trade. Comparing eBay sellers with “offline” firm‐level data from the World Bank's Exporter Dynamics Database allows us to test whether the observed trade patterns on eBay fit with the trade‐liberalization predictions of heterogeneous‐firm models. We find that eBay firms export to more destinations, suggesting low destination‐specific fixed costs on eBay. We then show that the distribution of export destinations across eBay sellers is well approximated by a balls‐and‐bins model of frictionless trade, suggesting eBay indeed lowers fixed export costs. Finally, we compare the gravity of eBay with that of offline trade and find geographic distance, languages, and trade agreements to matter less for online trade.     

The Effects of Firm Size and Industry on Corporate Giving

Recent downward trends in corporate giving have renewed interest in the factors that shape corporate philanthropy. This paper examines the relationships between charitable contributions, firm size and industry. Improvements over previous studies include an IRS data base that covers a much broader range of firm sizes and industries as compared to previous studies and estimation using an instrumental variable technique that explicitly addresses potential simultaneity between charitable contributions and profitability. Important findings provide evidence of a cubic relationship between charitable giving and firm size and evidence of strong industry effects. The plus-minus-plus regression coefficient sign pattern for the cubic firm size model suggests that small and large firms give more relative to total receipts with lower giving ratios among medium size firms. One interpretation for this finding is that small firms are close to the communities they serve while high visibility creates a need for large firm philanthropy. Strong industry effects provide evidence of inter-industry differences in giving culture and/or different public relations requirements across industries. Christie H. Amato (Ph.D., University of Alabama) is professor of marketing at the Belk College of Business Administration, University of North Carolina, Charlotte. Dr. Amato's research interests lie in the area of strategic marketing, productivity, quality of life and ethics. She has published articles in top marketing journals including: Journal of Marketing Research, Journal of the Academy of Marketing Science, Journal of Retailing, Journal of Advertising and Journal of Business Research. Louis H. Amato (Ph.D., University of South Carolina) is professor of economics at the Belk College of Business Administration, University of North Carolina-Charlotte. Dr.␣Amato's research interests lie in the areas of market structure and profitability, productivity, quality of life and ethics. He has published articles in top journals including Southern Economic Journal, Review of Industrial Organization, and Quarterly Journal of Business and Economics.     

Organizational Politics:Tactics, Channels, andHierarchical Roles

This research examines the relationships among the types of self-serving political messages sent in organizations, the channels through which they are sent, and the targets to whom they are sent. Two theoretical streams converge in this study: Communication as Political Behavior and Media Usage Theory. A review and synthesis of these two bodies of literature yielded three hypotheses, each of which received strong statistical support. The data suggest that the process of encoding and transmitting self-serving messages is strongly related to the specific target to whom they are sent (boss, subordinate, or peer) and the channel through which they are sent (face-to-face, telephone, memo, or e-mail).     

Correlated risks and the value of information

A decision maker faces two correlated risks and can obtain information on only one of them. Intuition suggests that the existence of a high correlation (in absolute value) between the risks should increase total information value. Indeed in such a case information about one risk induces a relevant information on the other one. Using a simple example, we show that this intuition is often correct, but that it can also be mitigated by other factors.     

An Analysis of Chinese Acquisitions of Made in Italy Firms in the Luxury Sector

Outward Foreign Direct Investment （OFDI） from emerging economies has begun to increase significantly and has been growing at a faster pace than Foreign Direct Investment （FDI） from the developed world. This research seeks to assess the impact of Chinese acquisitions and their implications for the ＂Made in Italy＂ luxury sector and its firms. This paper presents a cross-case analysis of two Chinese acquisitions in order to provide some in-depth insights into the influences and the motives driving Chinese firms to invest in the luxury Made in Italy sector, the patterns and modes of the Chinese acquisitions as well as the competitive strategies and the distinctive challenges that both investors and acquired firms have to face. From the findings, it emerges that both the investor and the acquired firm need to overcome several key challenges to be mutual benefits from the acquisition.     

Factors Influencing FDI Location Choice in China＇s Inland Areas

Since 1978, the bulk of foreign direct investment （FDI） has gone to the south-eastern coastal areas in China, with only a small portion received inland. With the launch of the Western Development Strategy in 2000 and the Central China Rising Strategy in 2004, the choice of investment locations has expanded to inland areas. Based on panel data covering 98 inland cities from 1999 to 2005, this study identifies location preference variables for FDI invested in China＇s inland areas, and finds that well-established factors such as natural resources and low labor costs are not important factors in determining FDI locations within China＇s inland. Instead, policy incentives and industrial agglomeration are the most important factors. The findings of the present study have policy implications for both host country authorities and multinational corporations.     

On the feasibility of monetary union among Gulf Cooperation Council (GCC) countries: does the symmetry of shocks extend to the non-oil sector?

GCC countries’ output is heavily dichotomized into oil and non-oil. Oil shocks have similar effects on all member countries but little is known about their responses to non-oil shocks. This paper sets out to determine (1) whether aggregate demand (AD) and non-oil supply shocks (AS) are symmetrical across these countries to justify their suitability for monetary union; and (2) whether there is any commonality of shocks with the United States and the three major European countries, namely France, Germany, and Italy, which can warrant the choice of either the US dollar or the Euro as the anchor for the expected common currency of the bloc. We use bivariate structural vector autoregression models identified with long-run restrictions to extract the shocks. Our results show that (a) AD shocks are unequivocally symmetrical but non-oil AS shocks are weakly symmetrical across GCC countries thereby suggesting a monetary union is feasible, but not overwhelmingly; (b) neither AD nor AS shocks are symmetrical between GCC countries and the selected European countries; (c) GCC’s AD shocks are symmetrical with the US but non-oil AS shock are not. Furthermore, there are no significant changes in the results when we aggregate the GCC countries as a bloc. We therefore surmise that the US dollar is a more appropriate anchor for the new currency than the Euro since US monetary policy can at least help smooth demand shocks in GCC countries.