Foreign direct investment and institutional reform: evidence and an application to Portugal

We examine the role of geographic, economic, and institutional factors in attracting Foreign Direct Investment (FDI) in Europe, using a cross-section of inward bilateral investments. We estimate and assess the expected benefits, the required reform efforts, and the efficiency of reform options corresponding to a convergence of Portuguese institutions to EU standards. We conclude that improving home institutions is likely to have a quantitatively very significant role in attracting FDI. Geographical and market size factors also play a role. Reforms promoting the independence of financial institutions and a leaner bureaucracy, lowering political risk and corruption, and improving the investment code may significantly affect the amount of bilateral inward FDI that is targeted to Portugal.     

Implementing efficient graphs in connection networks

We consider the problem of sharing the cost of a network that meets the connection demands of a set of agents. The agents simultaneously choose paths in the network connecting their demand nodes. A mechanism splits the total cost of the network formed among the participants. We introduce two new properties of implementation. The first property, Pareto Nash implementation (PNI), requires that the efficient outcome always be implemented in a Nash equilibrium and that the efficient outcome Pareto dominates any other Nash equilibrium. The average cost mechanism and other asymmetric variations are the only mechanisms that meet PNI. These mechanisms are also characterized under strong Nash implementation. The second property, weakly Pareto Nash implementation (WPNI), requires that the least inefficient equilibrium Pareto dominates any other equilibrium. The egalitarian mechanism (EG) and other asymmetric variations are the only mechanisms that meet WPNI and individual rationality. EG minimizes the price of stability across all individually rational mechanisms.     

Met expectations and supplies–values fit of Dutch young adults as determinants of work outcomes

Many studies have shown that work outcomes, such as job satisfaction and turnover intentions, are affected by met expectations and the fit between the work values of an employee and the supplies offered by the organization. However, research that investigates their simultaneous effects on work outcomes is absent in the literature. This study examined the concurrent effects of met expectations and supplies–values (S–V) fit of Dutch young adults on job satisfaction and intention to leave. It was hypothesized that met expectations as an outcome of a cognitive evaluation process would explain variance in affective work outcomes beyond and above that predicted by measures of S–V fit and main effects of job supplies and work values. Results supported this hypothesis. Theoretical and practical implications of these results directions for future research are discussed.     

Exploring modern bank penetration: Evidence from early twentieth-century Netherlands

We analyse the estate composition of the richest 30 per cent of people who died in the Netherlands in 1921 to find that households used a broad range of institutions to meet their financial demands. Goods and services were either paid in cash or settled periodically with suppliers. Despite the strong growth of commercial banking in the previous decades, households still made extensive use of peer-to-peer loans, with or without the added security of notarial contracts. Banks only possessed a competitive edge in savings accounts for small surpluses and current accounts, the latter used most frequently by business owners born after 1870. Distance to the nearest bank office did not matter for these people, but wealthy urbanites were more inclined to use banks than their counterparts in the countryside.     

Flexible labour market and trade unions: Surprising career paths of Dutch sub-Saharan Africans

Starting from the empirical evidence that minorities are more likely to work on flexible contracts, we investigated the existence of an ethnic gap in flexible contracts between the native Dutch population and sub-Saharan African immigrants between 2006 and 2012. The migrant group is taken as a test case of ‘outsiders’. This study found, quite surprisingly and contrary to what several theories predict, that the expected ethnic gap in job status between the two groups disappeared in the 6 years between 2006 and 2012. Many sub-Saharan Africans successfully transformed their flexible contracts into permanent ones, catching up with the native Dutch by 2012. The analysis of the statutory provisions showed that the workforce numerical composition in the cleaning industry was important for the inclusiveness of sub-Saharan immigrants. This numerical compositional effect was facilitated by the collective agreements negotiated by trade unions, agreements that were extended to temp workers. Sub-Saharan Africans, overrepresented in the cleaning industry, have benefited disproportionally from the settled agreements. We thus conclude that trade unions can improve the inclusion of migrants not only by explicitly focusing on migrant representation but also by targeting sectors with an overrepresentation of migrants.     

The Country of Origin Effect on Brazilian Beef Trade in Europe: The Moderating Role of Gender,Age, and Product Involvement

Stereotypes of individuals in relation to countries may affect their attitudes toward products from these nations (the country of origin effect). The objective is to analyze the country of origin effect for Brazilian beef in Europe, considering the role of moderators such as gender, age, and product involvement. It was concluded that beliefs in relation to countries and their impact on attitudes toward products from these countries may differ according to demographic issues. We also conclude that aspects related to communication, distribution, and differentiation of Brazilian products have received the worst evaluation by consumers who participated in the survey.     

Access to Financing in a Small Island Economy: Evidence From Mauritius

This relationship between access to financing and firm characteristics was studied. The authors used data from a survey of small and medium-sized enterprises from Mauritius, an island economy that is part of the sub-Saharan African continent. They examined the factors that affect the ability of firms to gain access to financing. Using the principal component analysis, the authors group variables affecting access to financing in four main components including working capital constraint, the external constraint, the size constraint, and the age constraint. The authors show that these components are important factors that influence the ability of firms to gain access to financing.     

Business Ethics in Russia

Most of the features of modern Russian business are transient, determined by the transitional character of the Russian economy and drastic changes in the social structure, ideology, and consciousness of Russian society in general. There are three main normative experiences in the traditions of Russian business: a) the experience of pre-Revolutionary business, specifically developed and practiced by the merchants of the old-believers extraction; b) the experience of socialist economy, which was more or less oriented to the public good and presupposed selfless aspirations by the economic agents; c) the experience of legally and administratively constrained private business and illegal shadow business, which expected businessmen to be vigorous, industrious and enterprising. The process of privatization was developed under the aegis of state, specifically the state bureaucracy. The influence of changes in the social-economic system has been ambivalent for social morals. However, the reforms could stimulate their improvement. The recent development in the cultural environment of business testify to the emerging space of civilized business, which manifests that it is practically useful for businessmen to be ethical.     

Shorter Reviews

US Congress, Office of Technology Assessment The technological reshaping of metropolitan America Vieillard-Baron, HervéLes banlieues françaises: ou le ghetto impossible and Stewart, Murray and Marilyn Taylor Empowerment and estate regeneration: a critical review Schneider, Robert A. The ceremonial city: Toulouse observed, 1738-1780 Gardezi, Hassan N. The political economy of international labour migration