A Comment on: Lower Bound Restrictions on Intensities in Data Envelopment Analysis by Bouhnik et al.

Journal of Productivity Analysis -     

Infrastructure and Industrial Development: The Case of Central Java

Industrial development does not take place in all regions at the same speed. This paper seeks explanations for regional differences in the development of manufacturing industry in Central Java. Special attention is paid to the impact of infrastructure (roads, telecommunications, electricity) on industrial development. The spatial distribution of manufacturing industry is analysed by means of both secondary data at the kabupaten level and primary data on 274 firms in various parts of Central Java. In addition to demand side factors, infrastructure does indeed play an important role, but local government bureaucratic procedures for obtaining land and permits are also important.     

Is certification an effective legitimacy strategy for foreign firms in emerging markets?

This study explores the effect of certification on profitability in a transition economy. Obtaining a certification is a strategic legitimacy action that positively affects a firm’s profitability, specifically for a foreign firm in a transition economy, where institutions are less developed and stable. However, we argue that certification is particularly effective if legitimacy based on adaptation to local circumstances is weak. An analysis of data from 319 MNE subsidiaries in China over the period 1998–2009 largely supports our hypotheses. Certification is an effective strategic action which improves profitability. However, the strength of this effect is influenced by the level of marketization of the host region, the institutional quality in the home country, the density of the foreign firm community in the host country, the number of years the foreign firm has been in the host country, and the size of the foreign firm. These findings throw light on the role certification can play in helping firms overcome the liability of foreignness in a transition economy.     

Separation in Cointegrated Systems and Persistent-Transitory Decompositions

The notion of separation in cointegrated systems helps identifying possible sub-system structures that may reduce the complexity of larger systems by yielding a more parsimonious representation of the times series. In this paper we demonstrate that although the subsystem cointegration analysis in such systems can be conducted in case of both completely and partially separated systems, the dual approach, i.e. calculation of the common stochastic trends, may turn out to yield properties of the trends that differ depending upon the type of separation under consideration. In particular, we demonstrate how persistent-transitory (P-T) decompositions and long- and short-memory factorizations of a multivariate time series will interact across systems when considering the presence (or absence) of different types of separation. Generalizations to non-linear error correction models are briefly discussed.     

Dual channels of distribution: a transaction cost analysis and propositions

The existence of dual or multiple channels of distribution consisting of independent distributors in combination with producer-owned distribution channels has been documented by several researchers, and some of them find indications that dual or multiple channels of distribution are likely to become more widespread in the future. This article briefly reviews the empirical studies on and theorizing about dual channels of distribution. Then mainstream transaction cost theory is explained and used to advance eleven propositions delimiting when dual channels of distribution are efficient. Most of the propositions are explained by differences in transaction-specific investments, uncertainty, transaction frequency and the institutional environment. The rest of the propositions are based on synergistic explanations such as dual systems induce competition, they result in higher powered incentives, and they provide better information.     

The things that belong: a grounded theory study of student categorizations of complex technical artifacts

Technical artifacts play a central role in teaching and learning about technology. The artifact exemplars used in the classroom to illustrate and discuss various technological concepts should therefore be carefully chosen in order to actually support the abstraction and successful transfer of these concepts. Research from the learning and cognitive sciences strongly suggests that this requires an understanding of how students actually perceive and conceptualize various technical artifacts, what similarities, differences and features are most salient and meaningful in their eyes. In this paper, we propose a grounded theory of how students differentiate and relate various complex technical artifacts. The core of our theory is formed by four hierarchically ordered juxtapositions: (1) technology versus non-technology, (2) everyday versus specialized, (3) private versus public, and (4) luxury versus necessity, which divide the realm of technical artifacts into five broad categories: high technology, household technology, public technology, real technology, and no/low technology. Our claim is that these differentiations and categories are generally salient and meaningful for students. Based on the theory of variation, we outline how they might help educators make more informed and systematic selections of exemplar artifacts to use in the classroom.     

Optimum organization of the labor market in a small open economy

In Denmark labor has been organized in independent but cooperating craft unions for more than a century. Within an extremely simple model of a small open economy facing imperfect competition, we analyze four different ways of organizing the labor market and show that the Danish model (partial centralization of the wage setting process) may be accounted for as the outcome of a two-stage Nash bargaining game, being robust in relation to changes in market conditions, and likely close to optimum from the point of view of society as a whole.     

What is Antidumping Policy Really About?

Dumping is whatever you can get the government to act against under the antidumping law. J. Michael Finger (1993, p.viii). Antidumping policy has become one of the most important instruments for protection in the international trade system, but at the same time it is the subject of an intense, though rather chaotic, debate. This paper provides an overview of the antidumping literature and the current issues. First it describes the origins of antidumping policy and provides some basic statistics on its current use drawn from several empirical studies. Next the paper discusses the economic foundations of antidumping law by examining the traditional and modern theories of dumping, as well as the industrial organization literature on price discrimination and predatory pricing. It is demonstrated that those economic foundations are weak. The paper also considers the fairness rationales for antidumping policy. Finally, it addresses the criticisms of antidumping laws, in particular in the context of the current antidumping versus competition policy debate, and discusses a variety of proposals for reform that have been made. The paper shows that the 1997 'cease fire' agreement between Canada and Chile is a promising approach toward reform of antidumping policy.     

Success and Risk Factors in the Pre-Startup Phase

Why does one person actually succeed in starting a business, while a second person gives up? In order to answer this question, a sample of 517 nascent entrepreneurs (people in the process of setting up a business) was followed over a three-year period. After this period, it was established that 195 efforts were successful and that 115 startup efforts were abandoned. Our research focuses on estimating the relative importance of a variety of approaches and variables in explaining pre-startup success. These influences are organized in terms of Gartner’s (Academy of Management Review 10(4), 696–706 [1985]) framework of new venture creation. This framework suggests that start-up efforts differ in terms of the characteristics of the individual(s) who start the venture, the organization that they create, the environment surrounding the new venture, and the process by which the new venture is started. Logistic regression analyses are run for the sample as a whole as well as for subgroups within the sample, namely for those with high ambition vs. low ambition and for those with substantial vs. limited experience. The results point to the importance of perceived risk of the market as a predictor of getting started vs. abandoning the startup effort.