Exchange rate regimes in the transition economies

D. Mario Nuti illustrates the extraordinary progress made by central and eastern European economies in their trade and exchange regimes. Surprisingly, instant convertibility of exchange rates was established. In spite of diverse exchange rate regimes they have all experienced initial severe undervaluation - the cost of speed and of unrestricted trade - followed by rapid real revaluation and incipient protectionism. Since 1994 an embarras de richesse has appeared: high capital inflows which are either inflationary or costly to sterilise. Lower interest rates are recommended.     

Property Investment and Property Development Firm Performance Around Initial Public Offerings and Rights Offerings: U.K. Evidence

In contrast to the well-documented underperformance of equity issuers, property investment firms undertaking initial public offerings and rights issues have performed indistinguishably from similar nonissuing firms. Property development companies that issued equity over the same period performed significantly worse than nonissuing firms. The major difference between property development and property investment firms is that property investment firms hold portfolios of real estate assets and thus have more certain prices. The lower pricing uncertainty of property investment firms results in normal long-run performance. Tests of the cognitive bias hypothesis provide only weak support of this explanation, while size and book-market effects are unable to account for the performance of property investment and development companies. The findings of underperformance for rights issues suggest that timing equity issues to take advantage of new shareholders may not be linked to the existence of cognitive bias. An important finding for the international growth in securitized real estate markets is that no evidence is found suggesting equity issues of securitized real estate firms should be avoided.     

Looking For a Network Organization: The Case of GESTO

We present ten propositions to explore an ideal type of network organizations with emphasis on internal structure relating properties to organizational structure and processes. Network organizations are flat, flexible structures, with high reachability and high information access enabling learning. Based on an exploratory case study we use network analysis and find that this organization has the properties of a network organization. The employees participate in several networks, work is done in project groups that are initiated and organized by the employees. Oligarchy or hierarchy are not distinct features of the organization; the flexibility of the structures is demonstrated by showing that the members change network position in project networks over time. Tenure, the most important integrating mechanism, influences centrality measures, skill levels, and the ability to propose and organize projects.     

Trade regimes and spillover effects of FDI: Evidence from Uruguay

Trade Regimes and Spillover Effects of FDI: Evidence from Uruguay. — This paper examines differences in the character and impact of FDI entering Uruguay during import substitution, pursued until 1973, and the subsequent more outwardoriented trade regime. Regression analysis shows that the labor productivity of local firms is positively related to the presence of older import-substituting MNCs in their industry. The presence of foreign affiliates established after 1973 has no apparent impact on local productivity, but seems to raise the likelihood that local firms engage in exporting. This may be a sign of export spillovers, indicating that local firms may pick up some exportrelated skills from the operations of outward-oriented foreign MNCs.     

The perspectives of the North-South Dialogue

During the 1970s the North-South Dialogue, which will shortly be continued at the summit in Mexico, was characterized by a gross disproportion between monstrous expenditure—with many losses due to friction —and negligible results. Symptoms of fatigue with regard to the Dialogue are spreading not only among governments, but also among the public in the North. The disillusionment and disappointment are proportionally greater in the South. As no one would presumably like to risk a failure of the Dialogue, which would probably result in a severe aggravation of the North-South conflict, a reorientation of the Dialogue now suggests itself.     

Innovation and the Economy

Unemployment has remained at relatively high levels across most European countries for a generation now. There have been a number of suggested explanations for this, with correspondingly different policy implications. Two of the major hypotheses relate, first, to the impact on the European economies from increased international competition, and 'globalisation' more generally, and, secondly, to the effects of new technology and innovation. The effects of both globalisation and technology on growth and employment in Europe have been researched over the past two years through an EU-funded project, the results of which, relating in particular to innovation, are reported in this Special Issue of the International Review of Applied Economics. (The results relating to globalisation were reported in a Special Issue of the Journal of Interdisciplinary Economics , Volume 13.) It is clear from the empirical work reported that the effects of technological innovation have been mixed. There is no doubt that some innovation has had a negative effect on employment, without the compensatingly positive effects that new technology usually brings in its wake. However, in high technology manufacturing sectors there is scope for boosting both productivity and employment. But this requires an appropriate policy environment, conducive to increased investment in capital, R&D and the workforce itself.     

A methodology for science and technology planning based upon economic scenarios and Delphi techniques : The case of Mexican agroindustry

A methodology for S & T planning using Delphi panels, matrix analysis, and linear programming techniques is described. It is applied to Mexican agroindustry, thus defining priority areas, overall strategies, and policy instruments. The implications of this methodology for planning processes in underdeveloped countries are discussed.     

Technological specialization and economic performance in oecd countries

The paper investigates the growing sectoral specialization in technological activities of OECD countries (measured using patent data) and its impact on countries innovative-and economic performance in the 1975-1990 period. Aggregate indicators of sectoral specialization are introduced, showing the extent to which countries concentrate their innovations in few fields, or spread them across several sectors. A general positive relationship us found between the degree of specializatin in technology and higher rates of growth, while specialization in electronics-related fields in not associated to better economic or technological performances.The position of individual countries in these patterns is also examined, showing that specialization has been an element of the catching-up process of the past decades, which has led to a growing economic convergence among OECD countries.     

The Philippines: Economic Developments and Prospects

The recent acceleration of economic growth in the Philippines is remarkable, especially in the context of the dramatic slide in its economic position relative to neighbouring East Asian economies since the early 1960s. It has stimulated discussion–both locally and overseas–of the contributing influences and of the economy's ability to sustain the growth momentum. This paper reviews the relevant literature, focusing on the following factors: political stability, macroeconomic balance, microeconomic efficiency, and equity. Past experience with boom-bust cycles warrants a cautious view of the longer-term prospects of the Philippine economy. Among other major obstacles, the poor state of public finance and low domestic saving rate stand in the way of a stable and self-sustained growth. In some respects, however, the recent performance holds promise as only the first step in the path being taken towards more rapid economic growth that is sustainable and equitable.