A Comparative Analysis of the Hedging Effectiveness of Farmgate Milk Prices for New Zealand and United States Dairy Farmers

Journal of Quantitative Economics - This study investigates the effectiveness of hedging and cross-hedging of fluid milk supplied by New Zealand farmers using derivatives offered by the NZX dairy...     

The effects of market structure characteristics on competitive reaction intensity: A longitudinal analysis

This study explores the effects of market structure characteristics and exogenous market interventions on competitive reaction intensity over time. It is found that moderate growth rate and moderate concentration induce greater competitive reactions. The effect of the exogenous intervention in the industry studied appears to have a dampening impact on competitive responses. Our research inquiry addresses some issues raised on competition, in general, by Weitz (1985) and specifically on competitive responses by Robinson (1988) and Gatignon, Anderson, and Helsen (1989). The authors express their appreciation to Lee Cooper, Imran Currim, Hubert Gatignon, Avijit Ghosh, Jagmohan Singh Raju and Bill Robinson for their helpful comments and to Mark Parry for his computer programming assistance. The authors gratefully acknowledge research support from the College of Business Administration, University of Georgia, and Graduate School of Management, Rutgers University.     

Financial development,corporate governance and cost of equity capital

Existing research suggests that external governance is more relevant than internal governance in affecting a firm’s value. We contribute to the literature by explicitly examining the interactive role played by country-level financial development and legal institutions in influencing the impact of firm-level governance on the cost of equity capital. Using a comprehensive sample of 7380 firm years drawn from 22 developed countries, we show that firm-level corporate governance attributes affect the cost of equity capital primarily in the Common Law countries with high levels of financial development. Our study is the first to highlight the complementary effects of legal origin, financial development and firm-level governance attributes in influencing the cost of equity capital.     

Competitiveness and technical efficiency: Determinants in the groundnut oil sector of India

India imports about half of its domestic consumption needs of edible oils. Groundnuts are a major source of edible oils in India. One of the central problems of groundnut production and processing is huge inefficiencies due to an uncertain production environment owing to rainfed cultivation, the low resource base of smallholder farmers and processors, and the low adoption rates of improved technology. This paper addresses critical issues that impair the groundnut sector’s international competitiveness and efficiency. The paper uses primary data collected from Indian farmers and processors of groundnuts to measure efficiency, and it suggests policies for reducing yield gaps and increasing efficiency. Specific policies suggested from the study are (a) the harnessing of improved varieties with attributes like drought tolerance, high oil content, high productivity for large-scale seed multiplication and distribution by public and private agencies; (b) viable village seed banks and seed networks through cycles of post-rainy season seed multiplication to meet the seed requirements in the rainy season and vice versa; (c) adoption of low-cost technologies to increase profitability and reduce risk; (d) oilseed clusters to facilitate scale and scope economies in processing units; and (e) capital subsidies to accelerate technological upgrading to shed inefficiency in the processing sector. The expected gains in efficiency in the production and processing of oilseeds are expected to result in producer and consumer gains which would justify the proposed incentives for seeds and for technological upgrading in the processing sector.     

National appropriation of university innovations: The failure of ink jet technologies in sweden

In industrialized countries,innovations generated through academic research are considered inportant for the advancement of a nation's technological frontiers. However, nations often fail to appropriate such innovations. This paper discusses the failure to appropriate ink jet technologies in Sweden. Ink jet technologies, which are currently widely used in computer printers, consist mainly of two alternative technologies-continuous ink jet technologies and drop-on-demand technologies. Both these alternative technologies originated in the Swedish uniuersig structure. However, both innovations failed to be incorporated into the Swedish industrial structure and have been successfully commercialized by foreign companies. The reasons for such failure include, non-complementarity of university research with the existing industrial base; weaknesses in ihe industrial structure; and an absence of complementaly assets required for the appropriation of innouations. This paper analyzes the requirements for successful national appropriation of university innovations and policy implications for an industrialized country     

Does state ownership facilitate outward FDI of Chinese SOEs? Institutional development,market competition,and the logic of interdependence between governments and SOEs

Outward foreign direct investment (OFDI) of manufacturing state-owned enterprises (SOEs) from emerging economies (EE) has emerged as a significant phenomenon in global markets. Although previous research has emphasized the bright-side of state ownership in facilitating SOEs’ OFDI, the stream of research largely overlooks its dark-side effects. Drawing on resource dependence theory (RDT), we argue that state ownership creates dependence of SOEs on their home governments, which may undermine manufacturing SOEs’ willingness to conduct OFDI, autonomy and market orientation, and legitimacy in overseas markets. Thus, substantial state ownership may counteract with manufacturing SOEs’ OFDI from EE. Our empirical results, based on a sample of 507 Chinese publicly-listed manufacturing SOEs during 2007–2013, show that a high percentage of state-owned shares exerts negative effects on SOEs’ OFDI. Relative to local SOEs, central SOEs are less likely to engage in OFDI. Further, the negative effect of the percentage of state-owned shares on SOEs’ OFDI will be alleviated by institutional development and competition intensity. The study contributes to literature by making a real theoretical case for the dark-side effects of state ownership on manufacturing SOEs’ OFDI from EE.     

Impact of irrigation water quality on human health: A case study in India

Untreated or partially treated wastewater, which is a negative externality of urban water use, is widely used for irrigation in water scarce regions in several countries including India. While the nutrients contained in the wastewater is considered as beneficial to agriculture, the contaminants present in it pose environmental and health risks. This paper examines the morbidity status, its determinants as well as the cost of illness for households living in the areas irrigated with wastewater in comparison with those using normal quality water. Primary data collected from six villages irrigated with wastewater along Musi River which is fed with wastewater and one control village where normal quality water is used for irrigation has been used for the analysis.It is seen that higher rates of morbidity exist in the wastewater irrigated villages when compared to the control village. Specifically, adult and female morbidity rates are significantly higher than child and male morbidity rates. From the logit analysis it is seen that exposure to wastewater and engagement in activities based on it places the households in higher risk groups to report morbidity. Small and marginal farmers incur higher economic cost of illness. However, it has been difficult to ascertain the cause and effect relationship as most of the households have reported more common illnesses like fever, head ache, skin itching, stomach ailments, etc. The study points out the need for a comprehensive risk assessment and adoption of risk management measures including setting standards for treatment and discharge of wastewater and regulations on the type of uses etc. to prevent unplanned use of untreated or partially treated wastewater while taking into account local conditions.