Long-run risk and hidden growth persistence

An extensive literature has analyzed the implications of hidden shifts in the dividend growth rate. However, corresponding research on learning about growth persistence is completely lacking. Hidden persistence is a novel way to introduce long-run risk into standard business-cycle models of asset prices because it tightly intertwines the cyclical and long-run frequencies. Hidden persistence magnifies endogenous changes in the forecast variance of the long-run dividend growth rate despite homoscedastic consumption innovations. Not only does changing forecast variance make discrimination between protracted spells of anemic growth and brief business recessions difficult, it also endogenously induces additional variation in asset price discounts due to the preference for early uncertainty resolution.     

Pre-migration adaptation of highly skilled self-initiated foreign employees: the case of an EU agency

This study analyzes pre-migration adaptation among highly skilled self-initiated foreign employees (SFEs) of the EU Chemicals Agency in Finland (N = 95). Organizational, expatriate and acculturation perspectives were integrated to develop a model of factors predicting SFEs' psychological, socio-psychological and work adaptation in the pre-migration stage. Previous international work experience, perceived organizational prestige, satisfaction with the time, information and assistance to prepare for the relocation and quality of contact with Finns during recruitment positively predicted SFEs' pre-migration adaptation. European identification, self-esteem and relocation stress acted as mediators. The study emphasized the importance of a multidimensional approach to SFE adaptation prior to relocation.     

Pass-on trade: why do firms simultaneously engage in two-way trade in the same varieties?

This paper documents that a large fraction of trade flows at the firm level consists of simultaneous imports and exports in identical products, narrowly defined at the 8-digit product classification, which we call pass-on trade (POT). We use data on imports and exports at the firm and product level for Slovenian manufacturing firms in the period 1994–2008, to show that, on average, 70 % of all exporting firms engage in POT. This corresponds to more than 50 % of all exported products. Thus, imported products that are exported again by the same firm is a statistical regularity of trade of Slovenian manufacturing firms. We document that the use of POT is increasing in firm size, product diversification, multinational status as well as firm productivity and profitability. We offer and explore empirically a number of explanations for POT. Among possible explanations, we find evidence on the importance of firms’ multinational networks and demand complementarities between firms’ own and POT products. The latter confirms the theoretical explanations for carry-along trade (CAT) as developed by the recent work of Bernard et al. (2012).     

Rethinking of Social Space: Generational and Ethnic Differences in Estonia

This article analyses the changes in social space, based on perceptions of individuals in a transition country, Estonia. The Marxist approach to social space is used as a theoretical framework. The article originates from the premise that the changes in individuals' conceptual ‘apparatus’ are needed for keeping up with spatial developments related to capitalism. Analysis of empirical data collected in 2008 focuses on patterns of spatial perceptions of three generations of the two main ethno-linguistic groups in Estonia, the Estonian ethnic majority and the Russian-speaking minority. The results show perception of space is significantly correlated with indices of everyday social and cultural practices and individual wealth and reveal the geographical and ideological division of the world as seen by the inhabitants of a transition country. The article suggests transition has caused spatial disruption particularly amongst the ethnic minority. Increasing ethnic differences from one generation to another infers increasing societal inequality. The quid pro quo relationship between geopolitical changes and economic transition at the individual level is consequently more clearly defined.     

Personal interviews in cultural consumer research – post‐structuralist challenges

This paper takes a post‐structuralist perspective on consumer research and discusses the role of personal interviews in cultural analysis. It problematizes the use of the phenomenological interview in cultural consumer research, arguing that the underlying research paradigm, existential‐phenomenology, is not necessarily adequate for cultural analysis because it focuses attention primarily on the individual and the first‐person experience. Such a paradigmatic perspective is problematic because it tends to sustain a view of human agency that is highly individualistic and thus fails to account for the cultural complexity of social action. Overall, the paper contributes to the further development of the post‐structuralist approaches to postmodern marketing thought. Post‐structuralist ideas and assumptions challenge the central principles of modern marketing and consumer research in many ways and it is the aim of the paper to contribute to a better understanding of the methodological implications that they entail.     

Foreign Direct Investment Policy–Friendly Business Environment in R&D Sectors: Baltic States versus Visegrad Countries

This article examines the impact of foreign direct investment (FDI) policy on inward FDI in the Visegrad and Baltic countries. The analysis of business environment highlights that the countries in both regions attempt to create a friendly business environment by means of similar methods. However, the countries in both regions focus on fiscal incentives such as taxes, which do not play a major role in attracting inward FDI in R&D. The results of attracting FDI are better in the Visegrad countries, which implement financial incentives toward inward FDI along with fiscal incentives. According to empirical analysis, it is noticed that a higher intervention level and a higher support level guarantee the volume of inward FDI. The country's introduced FDI policy enables it to orient industry and to implement economic strategic targets. FDI policy does have an impact on promoting the development of the entire country.