Optimal liberalization of financial markets

As financial markets become completely liberalized, countries gain from improved risk sharing, but less wealthy countries can no longer profit from borrowing abroad at the lower rate and reinvesting at home at the higher rate. With decreasing rather than constant returns to capital, the gain from risk sharing is more likely to dominate the loss of the difference between the borrowing rate abroad and the decreasing reinvestment rate at home. Complete liberalization is likely to be optimal for less wealthy countries unless their labor endowment is large, their productivity is large, or holdings by foreigners are small, as in China.     

Press Advertising and the Political Differentiation of Newspapers

The press industry depends in a crucial way on the possibility of financing an important fraction of its activities by advertising receipts. We show that this may induce the editors of the newspapers to moderate the political message they display to their readers, compared with the political opinions they would have expressed otherwise.     

Internationalization of the use of Chinese currency: perspectives from the New and the Ancient Silk Roads

In this paper, we provide an up-to-date analysis of issues and perspectives related to the potential international and regional use of the Chinese currency, with a special focus on the New Silk Road (or One Belt, One Road OBOR) initiative as well as an examination of the use of various forms of Chinese money along the Ancient Silk Road. From the perspectives of China, the OBOR project fulfills several national objectives, with the internationalization of the RMB being one potential aim. We adopt and extend an agglomeration-geography model and apply the model to the OBOR initiative and the resulting increased use of the Chinese currency. Our paper also provides a discussion of the experiences of using various forms of Chinese money along the Ancient Silk Road.     

CORPORATE CASH HOLDINGS AND CREDIT LINE USAGE

We investigate the factors driving the unprecedented rise in corporate liquidities since the 1970s. We find that an economy‐wide reduction in the cost of holding liquidities and an increase in risk best explain the rise in cash holdings and the widespread use of credit lines. The structural estimation results shed light on two widely acknowledged motives for holding cash. The precautionary motive and the liquidity motive translate risk exposure into cash holdings. Our results, however, do not suggest that firms have become more prudent over time. It is higher liquidity needs that has forced firms to hold more cash and use more credit lines.     

Commodification of Volunteer Tourism: a Comparative Study of Volunteer Tourists in Vietnam and in Thailand

Volunteer tourism (VT) has often been depicted as a means of avoiding the commodification of tourism (and even ecotourism) by ensuring that local communities benefit from VT, both environmentally and economically, and that there is authentic engagement by the tourists with indigent people and their cultures. However, critics have questioned this claim, arguing that VT has become little different from tourism and ecotourism, entailing commodification by providing profit for VT organizations rather than for local communities and consuming rather than respecting local environments and cultures. This study tests these claims and counterclaims by a comparative analysis of two VT experiences, one in Vietnam and the other in Thailand. The findings of the study are that although each cohort of volunteer tourists (VTs) exhibited elements of both decommodification and commodification, on a continuum of decommodification and commodification, the Vietnam VTs were closer to the decommodification node, whereas the Thailand VTs were closer to the commodification node. In part, this was because the Vietnam VT project was pitched more towards conservation research, whereas the Thailand VT project was pitched more towards vacation conservation. Copyright © 2011 John Wiley & Sons, Ltd.     

How international nonprofits build brand equity

This paper describes an empirical model of brand equity for international nonprofit organizations and offers nonprofit managers suggestions for the management of their brands. The main areas of interest include:

• A review of the importance of branding for nonprofits, the lack of a brand equity models specifically for nonprofits, and the key differences between for‐profits and nonprofits.
• A proposed nonprofit brand equity model, based on a grounded theory and system dynamics approach.
• A series of specific managerial recommendations, for building nonprofit brand equity.

Copyright © 2008 John Wiley & Sons, Ltd.     

Information technology and efficiency in trucking

Abstract .  We develop an econometric model to estimate the impact of Electronic Vehicle Management Systems ( EVMS ) on the load factor ( LF ) of heavy trucks. This technology is supposed to improve capacity utilization. The model is estimated on the Quebec subsample of the 1999  National Roadside Survey . The  LF  is explained as a function of truck, trip, and carrier characteristics. We show that the use of  EVMS  results in an increase of 16 percentage points of  LF  on backhaul trips. However, we also find that there is a rebound effect on fronthaul movements, with a reduction of  LF  by about 7.6 percentage points.     

Progreso social y producción mundializada. El caso del sector de los textiles y el vestido

La especialización vertical generada por la fragmentación de la producción en redes mundiales no solo está motivada por la ventaja comparativa, sino también por las estrategias de deslocalización de las empresas líderes, que determinan el papel y el poder negociador de los productores locales. Este estudio examina las consecuencias de tal especialización en los textiles y el vestido en 26 países con abundante mano de obra de 1990 a 2007. Las regresiones de efectos fijos con datos de panel revelan que el sector no siempre gana con la integración comercial internacional: se observa una correlación negativa entre la especialización vertical y los salarios reales relativos.     

Habit,Decision-Making,and Rationality: Comparing Thorstein Veblen and Early Herbert Simon

The article aims to contribute to the convergence between institutional and neo-Schumpeterian evolutionary economics. It intends to help unify the behavioral foundations of these two strands of thought by returning to the original views of their main historical inspirations. It thus proposes a comparative analysis of the theory of human behavior developed by Thorstein Veblen and Herbert Simon, respectively. The article notably discusses how Simon’s early work links together the notions of habit, rationality, and the decision-making process, and explores the extent to which his views are consistent with, complementary to, or divergent from Veblen’s. The article highlights several commonalities between Simon and Veblen’s views on habits. However, Simon departs from Veblen in developing a dual model of human behavior which clearly differentiates habit-based from decision-based behaviors. The article argues that neo-Schumpeterian evolutionary economists should go beyond this binary model and build on the pragmatist-Veblenian approach, in which these two dimensions are intimately entangled. This process could allow the economists in question to take advantage of the most valuable insights of institutional economics regarding the interactions between individual choices and habits and institutions.     

Innovation Portfolio Management as a Subset of Dynamic Capabilities: Measurement and Impact on Innovative Performance

Innovation portfolio management has been touted as a new dynamic capability following the evolution of team‐ and project‐based organizational forms. In this article, we conceptualize innovative dynamic capabilities as a multidimensional construct that comprises distinct but related aspects in managing innovation. We test our model, which links this capability to innovative performance by using survey data from a sample of 923 firms. We find empirical support for our conceptualization and its impact on firm innovative performance.