Devaluation of fixed exchange rates: optimal strategy in the presence of speculation

Summary. This paper analyzes devaluations in a fixed exchange rate system by endogenizing both the speculation and devaluation decisions. It is shown that deterministic devaluation rules are generally sub-optimal for the central bank. In order to deter speculation the central bank introduces uncertainty into the timing of devaluation. The nature this mixed strategy is derived, as is the optimal strategy for speculators. The analysis allows an explanation of successful devaluations that are not precipitated by a speculative attacks, even under perfect capital mobility. Received: May 17, 1999; revised version: June 2, 1999     

The changing spatial economy of cities: An exploratory analysis of Cape Town

The spatial economy of South African cities is generally believed to be experiencing selective deconcentration, which may exacerbate social inequality because of the physical disconnection between jobs and population. This paper assesses whether the locational pattern of economic activity across Cape Town is following this trajectory, using data from the Regional Service Council levies between 2001 and 2005. One of the main findings is that the city centre and areas close to the centre have maintained their economic dominance, therefore Cape Town remains a monocentric city. Yet the pattern of recent growth is more dispersed than the prior distribution because suburban nodes have gained a disproportionate share of new activity. In addition, the pattern of recent growth is skewed towards the high-income suburbs and away from the Cape Flats where most of the city's poor live. This uneven growth trajectory may be a source of concern for economic, social and environmental reasons.     

An Investigation of the Relationship Between Destination Branding and Destination Competitiveness

Empirical research focusing on the relationship between destination branding and destination competitiveness has so far been lacking. Even though destination brand is partially incorporated into the two most prominent theoretical models of destination competitiveness, there is still a need for understanding the role that destination branding plays in achieving destination competitiveness. For this reason, this study proposes a theory-based research instrument that joins the branding process implementation index and competitiveness measured by customer satisfaction. The proposed instrument is tested in the context of Croatian coastal destinations. The results confirm that a well-implemented destination branding process increases destination competitiveness.     

Organizational creativity as a crucial resource for building international business competence

We aim to elucidate the roles that organizational creativity plays in the development of firms’ international business competence (IBC). We conducted an investigation grounded in the resource-based view of how this intangible resource supports the development of capabilities and competences. We surveyed 77 Brazilian audiovisual SMEs and analyzed our data using OLS regression analysis. The results partially support the hypothesis that organizational creativity is a building block for IBC but show that its effect is mostly exerted through the mediation of some of the dimensions of innovative and entrepreneurial capabilities. This study has implications both for organizations and public policies, contributing to the debate on how firms stimulate innovation and entrepreneurship and how public agents can leverage SMEs’ internationalization process.     

The War in Ukraine,Agricultural Trade and Risks to Global Food Security

Intereconomics - Any calls to move towards a centrally planned economy or autarky are strongly advised against, as this would only be to the detriment of food security in the Global South.     

Are long-run output growth rates falling?

This paper studies the evolution of long-run output and technical progress growth rates in the G-7 countries during the post-war period by considering the concept of the natural rate of growth. We use time-varying parameter models that incorporate both stochastic volatility and a Heckman-type two-step estimation procedure that deals with the possible endogeneity problem in the econometric models. Our results show a significant decline in long-run growth rates that is not associated with the detrimental effects of the Great Recession, and that the rate of growth of technical progress appears to be behind the slowdown in long-run GDP growth.     

Tourism and degrowth: an emerging agenda for research and praxis

Abstract

This article outlines a conceptual framework and research agenda for exploring the relationship between tourism and degrowth. Rapid and uneven expansion of tourism as a response to the 2008 economic crisis has proceeded in parallel with the rise of social discontent concerning so-called “overtourism.” Despite decades of concerted global effort to achieve sustainable development, meanwhile, socioecological conflicts and inequality have rarely reversed, but in fact increased in many places. Degrowth, understood as both social theory and social movement, has emerged within the context of this global crisis. Yet thus far the vibrant degrowth discussion has yet to engage systematically with the tourism industry in particular, while by the same token tourism research has largely neglected explicit discussion of degrowth. We bring the two discussions together here to interrogate their complementarity. Identifying a growth imperative in the basic structure of the capitalist economy, we contend that mounting critique of overtourism can be understood as a structural response to the ravages of capitalist development more broadly. Debate concerning overtourism thus offers a valuable opportunity to re-politicize discussion of tourism development generally. We contribute to this discussion by exploring of the potential for degrowth to facilitate a truly sustainable tourism.     

Assembling resources when forming a new business

Every business builds on a specific set of resources. New businesses in particular have to assemble external resources that are mostly new to them. This resource assembly requires developing business relationships with other actors that control and can provide the needed resources. Adopting a resource interaction perspective, this paper examines a case of a new business venture in the automobile industry. The case study shows that when forming a new business the actors possess only partial knowledge of how to assemble the resources. Consequently, the actors must engage in extensive adaptation and interaction with others to enact workable resource interfaces and combinations. This necessity makes the new business formation process nonlinear and onerous. Further, the case demonstrates that new business formation is a collective process involving not only the emergence of a formal business organization but also reorganizing the applicable resource market. Since third parties involved in developing the necessary resource combinations can be considered part of the new business venture, setting the boundaries of the new venture becomes arbitrary. The arbitrary nature of such boundary setting has implications in entrepreneurship studies with regard to the unit of analysis and the concept of opportunity.     

Creating value in business relationships: The role of sales

Understanding the creation of value in business relationships has been a long-standing goal of researchers and managers alike. By adopting a relational perspective, recent research on business relationships has made much progress in understanding value-creating processes. As the sales function is thought to be a pivotal part of the value-creating processes in business relationships, the evolving view on creating relationship value clearly has implications for our understanding of the role of sales in these processes. In contrast to its importance, the question of how the sales function contributes to creating value in business relationships has been largely neglected in extant literature. The objective of our paper is to answer this question by systematically linking the relational value creating process to the sales function's content. Interpreting value creation as interaction process, we identify four features of value-creating processes in business relationships suggested in recent research (i.e., jointness, balanced initiative, interacted value, and socio-cognitive construction) and, based on these, outline a framework that is used to define a set of tasks that are key to creating value in business relationships and hence become critical for sales in its hitherto neglected role as co-creator of relationship value. We illustrate the various tasks of this new role of sales with data from 43 interviews with sales managers and salespeople. Along with related normative recommendations in extant literature, the interviews provide support for the validity and relevance of our framework for understanding the role of sales in creating relationship value. This framework puts forward a much-needed first effort towards a theory of sales' role in creating relationship value and offers several opportunities for future research.