An Analysis of the Convergence of the Composition of Public Expenditures in European Union Countries

The literature on fiscal policies is paying increasing attention to the impact of the composition of public expenditures on long‐term economic growth. Public policy endogenous growth models recommend to change the composition of public expenditures to items considered productive expenditures. In this sense, European institutions are encouraging the rise in the share of productive outlays like public investments, R&D, and active labor market policies, among others. The article analyzes whether these recommendations are followed by European Union countries and whether a convergence to a new pattern of public finances with a higher share of those items considered productive expenditures by European institutions is arising.     

Industrial districts: something more than a neighbourhood

The expansion of globalization has led to the relocation of many industrial activities. In particular, this process has affected industrial districts in the traditional industries. However, different districts vary in their capacity to retain activities. The robustness of industrial districts and, in consequence, their capacity to retain core activities at home and thus avoid painful relocations can be analysed by means of the relational capital developed at the district level. The relational structure within the district affects and determines the capacity of innovation of the district firms. This paper analyses the extent to which innovation depends on the amount of relational capital developed at the district level. We have addressed this proposition using internal human mobility, shared vision and trusting co-operation as indicators of the amount and quality of relational capital. In order to support theoretical propositions we have conducted empirical research comparing different industrial districts in the Valencian region of Spain. Research findings suggest a significant association between social capital variables and innovation outcomes. In consequence, these factors can facilitate retaining activities in districts.     

Immigrants' Identity, Economic Outcomes and the Transmission of Identity across Generations

In this article we address three issues relating to immigrants' identity, measured as the feeling of belonging to particular ethnic groups. We study the formation of identity with home and host countries. We investigate how identity with either country relates to immigrants' and their children's labour market outcomes. Finally, we analyse the intergenerational transmission of identity. Our analysis is based on a unique longitudinal dataset on immigrants and their children. We find that identity with either country is only weakly related to labour market outcomes. However, there is strong intergenerational transmission of identity from one generation to the next.     

Measuring Ethnic Community Involvement: Development and Initial Testing of an Index*

This paper builds on the work of Chaganti and Greene, who distinguish between ethnic minority entrepreneurs/small business owners who are very involved with their ethnic community and those who are not. We extend their work by developing an Index of Ethnic Community Involvement based not only on personal but also business characteristics. We utilize a large sample size (698 interviews with entrepreneurs), drawn from five ethnic groups, and develop a valid and reliable (0.69) Index of Ethnic Involvement (IEI) with a strong emphasis on social capital theory. Our initial analysis shows the IEI predicts some personal and business characteristics. Future development will include building regression models to predict business outcomes. The IEI, when fully developed, promises to be useful for targeting assistance, education and training programs, and policy initiatives for entrepreneurs and small business owners according to the level of ethnic community involvement.     

The persistence of founder influence: management,ownership, and performance effects at initial public offering

The purpose of this research is to apply a conceptual framework to questions of how, why, and when founders participate in the firms that they establish and to empirically test for the persistent influence of the founder on the firm after start‐up. A definition of the term ‘founder’ is proposed. Empirical tests compare firms with founder CEOs to those with nonfounder CEOs to determine whether governance and ownership relationships are distinguishable at initial public offering (IPO). In addition, investor reaction to founder‐led firms at IPO is tested. Results suggest that founder influence does persist in governance and ownership arrangements and that the stock market reaction to founder‐led firms is higher than for the comparison group, relative to accounting value. Copyright © 2003 John Wiley & Sons, Ltd.     

The Origins of the Pioneer Cotton Mills in Minas Gerais, Brazil, 1868-1879: A Reassessment

The Brazilian economy before the First World War has been generallycharacterized as an economy specializing in the production ofprimary goods for the international market—chiefly coffeefor export. The emergence of the first industrial factorieshas been seen as closely connected to the performance of theexport sector. The first cotton mills established in one provinceof Brazil, Minas Gerais, were not connected to the export sector,however. Minas Gerais was different in key respects from otherregions. This article describes the peculiarities of the Mineiroeconomy during the 1870s and investigates the establishmentof the first cotton mills there. It considers the location,size, and financing of the mills, as well as the structure ofownership and relations between partners. The results show thatthe emergence of the textile industry in Minas Gerais was independentfrom the performance of the foreign sector of the Brazilianeconomy.     

The Location of New Firms and the Life Cycle of Industries

Small Business Economics - Why does the location of new firms differ according to the characteristics of the industry? Is there a relation between a technologically dense base of firms and the...