Export Performance,Invoice Currency and Heterogeneous Exchange Rate Pass‐through

Using comprehensive, shipment‐level merchandise trade data for a small, open economy, we examine heterogeneity in exporters' exchange rate pass‐through (ERPT) behaviour. We draw together two recent studies of ERPT, linking invoice currency decisions and firm performance to heterogeneity in ERPT. Like these studies, we find that the short‐run reaction of export unit values to exchange rate fluctuations is significantly related to both invoice currency choice and exporter characteristics when these are analysed separately. However, we then show that when the two factors are jointly accounted for, the role of exporter characteristics largely disappears. That is, some firm types are more inclined to invoice in the producer currency, while others use either the local or a vehicle currency. In the short run, this translates into differences in exchange rate pass‐through because of price rigidity in the invoice currency. Firm characteristics do not have an independent impact on pass‐through beyond their effect on currency composition. Differences across invoice currencies diminish over time, but do not disappear, as prices adjust to reflect bilateral exchange rate movements.     

Ownership and production efficiency: Evidence from Taiwanese banks

In the early 1990s, Taiwan began her deregulation trend in order to enhance competition and economic efficiency across all industries. We derive a theoretical framework to predict possible rankings in technical efficiencies of public, mixed, and private banks. A panel data set with 43 Taiwanese banks during 1997–1999 is used for empirical analysis. We then apply a translog distance function to estimate technical efficiencies. The relationship between technical efficiency and government shareholding is also examined. Empirical results show that a public bank in Taiwan can improve its technical efficiency by mixed ownership at a diminishing rate. Moreover, banks in Taiwan on average performed worse after the 1997 Asian financial crisis.     

Development banking and technological development: a case study of industrial development banks in the GCC countries

This article explores the important role of Industrial Development Banks in promoting the quality of technological development. It is argued that the historical experiences of the developed economies and several developing economies during recent times support the need and potentials of a more pro-active role by Industrial Development Banks. Against this background, the specific experiences of Industrial Development Banks in the Gulf Co-operation Council Countries are examined and the results of a select field survey are reported. This exploratory study suggests that some fundamental steps are needed in order to develop Industrial Development Banks from being comparatively passive conduits of technological aid to more active promoters of technological development.     

Shutting up shop: understanding the international exit process in retailing

Internationalisation is a much-studied phenomenon. Exit from international markets has been less analysed. Where it has been studied, most work has been on motives and causes, with relatively little on processes. This article explores the process of international exit in a retail context. It examines the run-up to, announcement of and fall-out from the decision by Marks and Spencer (one of Britain's leading retailers) to close its French stores. The article concludes that understanding the process of market exit is at least as important both for theoretical and practical reasons as understanding the decision to exit or divest. Further research needs to be undertaken on market exit and the processes involved, in order to contribute further to the theory and practice of internationalisation.     

Advertising and the Department of Energy's Campaign for Energy Conservation

Abstract

Motivating consumers to conserve energy has proven to be a difficult task in the United States. One tactic that has been used on a limited basis by the Department of Energy is paid advertising. This paper examines the role of conservation within the country's broader energy problems, delineates several consumer issues that affect the success of government conservation programs, discusses the controversy surrounding the use of paid advertising to promote consumer conservation efforts, and describes those DOE programs that have used paid advertising as an integral component of conservation program strategy.