Parent country nationals or local nationals for executive positions in foreign affiliates: An empirical study of Japanese affiliates in Korea

This study examines how the host country experience of Japanese multinational corporations (MNCs) affects their staffing policies for executive manager positions at foreign affiliates. Hypotheses on executive staffing policies for foreign affiliates are tested using survey data collected from 103 Japanese affiliates in Korea. Findings show that the level of global integration and the degree of centralization of decision-making positively affect an assignment of parent country nationals as executive managers of foreign affiliates. We further find that foreign affiliates’ experience in a host country moderates the effects of both global integration and centralization on staffing decisions for the affiliates.

The changing pattern of industrial technology linkage structure of Korea: Did the ICT industry play a role in the 1980s and 1990s?

The notion of the knowledge-based economy highlights the strategic importance of inter-industrial knowledge flows. Among others, the crucial role of information and communications technology (ICT) industry is emphasized. The pattern whereby technological knowledge is created, accumulated and disseminated through the interactive learning among industries can be portrayed as a network. Based on the network theory, this empirical study analyses, from the dynamic perspective, inter-industrial technological knowledge structure of Korean industries during the reference period of early 1980s to mid-1990s. Overall, the density of the network increased over time, implying that the knowledge network has expanded and intensified. The role of the ICT industry in the global network has also increased but needs to be further strengthened, especially informatization of non-ICT industries by the outflow of ICT industrial knowledge in the future. The findings in turn render some important policy implications that should be addressed in developing technology policy.     

Corporate philanthropy, attitude towards corporations, and purchase intentions: A South Korea study

This study proposes a model integrating attributions about perceived motives of corporation philanthropy (CP), attitude towards the corporations conducting CP, and subsequent purchasing intention. The model is tested in South Korea where the culture and business environment are different from that in North America. Data are collected from two different stakeholder groups of South Koreans (127 managers and 229 consumers: total sample of 356). The results based on the total sample indicate that only when corporations are perceived as conducting CP for public-serving (altruistic) motives, the CP significantly influences attitude towards the corporations. When the sample is divided into the two different stakeholder groups, non-identical patterns of relationships between motives and attitudes are observed. Managers show favorable relationships between motives and attitude, while consumers become skeptical for the reactive motive. The functional relationships between motives and attitude proposed in the model are partially supported with the South Korean data.     

Understanding IJV performance in a learning and conflict mediated context

Determinants of international joint venture (IJV) performance are examined within the context of cross-border learning. Using a structural equation model, we test the multifaceted interactions among strategic goal congruency, national culture differences, learning and conflict. Cross-border learning is recognized as a kernel variable which is influenced by matching strategic motives, national culture differences, and conflicting relations, and which affects the performance of IJVs. In particular, we hypothesize that interpartner goal congruency and national culture differences have an indirect effect on IJV performance through cross-border learning and conflict; previous studies established their direct relationship. The test results show that congruent strategic motives and cultural similarity had a positive effect on cross-border learning, which was reinforced by learning capacity, and which in turn led to better performance. Conflicting relations between partners and heterogeneous cultural backgrounds were shown to discourage cross-border learning.     

Simulating the Effects of Railroad Mergers

The purpose of this paper is to add to the empirical literature regarding merger simulation analysis by examining the effect of railroad mergers on railroad market power. This is done by measuring railroad profits and revenue/variable cost ratios corresponding to different degrees of intrarailroad competition for movements of Kansas export wheat to Houston, Texas. Two models are developed to achieve the objectives of the study. A network model of the wheat logistics system is used to identify the least cost transportation routes from the Kansas study area to the market at Houston. A profit improvement algorithm, which identifies Nash equilibrium prices, is developed to measure the amount by which railroads can profitably raise their prices above variable cost. The results of the study have implications for U.S. railroad merger policy. The paper indicates that railroad mergers do not necessarily increase railroad market power or make railroad shippers worse off. Instead, the study demonstrates that the impact of railroad mergers on shippers and railroads depends on factors that vary geographically, such as the degree of intrarailroad and intermodal competition in the area.     

The Theory and Econometrics of Health Information in Cross-Sectional Nutrient Demand Analysis

Understanding the role of health information in food and nutrient demand has become an important issue over the last decade. Endogeneity and measurement error are two empirical problems that are inherent in this type of analysis. While some type of instrumental variables estimation would appear the obvious solution, this article provides several theoretical and empirical reasons why this is not the case in cross-sectional analysis. An alternative estimation strategy is pursued, an empirical example is given, and the implications are discussed.     

Unionized Bertrand Duopoly and Strategic Export Policy

The paper reports that an export subsidy is optimal for a unionized Bertrand duopoly. Following results published by Brander and Spencer ( Journal of International Economics , 1988, pp. 217–34), this establishes the robustness of export subsidization to the mode of competition (Cournot or Bertrand), and contrasts with nonunion results in the literature. If both firms are unionized and both governments pursue active trade policies, a subsidy remains optimal except for a narrow range of extreme substitutability between products. Nations with a lower opportunity cost of labor employ more aggressive policies in equilibrium.     

How foreign direct investment affects CO2 emission levels in the Chinese manufacturing industry: Evidence from panel data

This study explores how inflows of foreign direct investment (FDI) affect a country’s carbon dioxide (CO₂) emission levels. To investigate this relationship, we use panel data (2002–2015) from the 28 subsectors of the Chinese manufacturing sector. We also perform panel framework analysis to verify the characteristics of the panel data before establishing the panel estimator meant to test the relationships between carbon dioxide emissions, FDI inflows, industrial GDP, industry openness, net domestic fixed capital stock and cleaner production. The results of the panel framework analysis suggest the need to eliminate dynamic panel bias and produce more efficient and consistent parameter estimates. To do so, we use System Generalized Method of Moments (GMM) estimators with time dummies. Ultimately, the results of the analysis show that FDI is a positive predictor of environmental quality in the host country, which serves as evidence of the halo effect that FDI reduces CO₂ emission levels. The study also finds evidence that industrial GDP and cleaner production improve environmental quality. However, the domestic capital stock has a negative effect on environmental quality. By showing that past carbon dioxide emissions significantly influence current emissions, our findings demonstrate the importance of consistency and persistence in efforts to reduce those emissions. Accordingly, we discuss some policy implications based on these results.     

Ethnic group returns to education during the early post‐colonial period in Malaysia

The paper examines the returns to education for ethnic groups in the Malaysian labour market during the early 1960s' post‐colonial period. The analysis is based on data from the West Malaysia Family Survey of 1966–67. It is found that individual returns to education were positive during the period examined. However, the returns to education of particular ethnic groups differed. The findings suggest that ‘equal education for all’ does not guarantee that each ethnic group will receive equal wages unless there are other interventions in the labour market.