A note on distribution-free tests whether two distributions differ only by a parameter

Summary A conservative distribution-free general procedure is proposed for testing the null hypothesis that two distributions differ at most by the value of a parameter.     

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.     

Do Funds Make More When They Trade More?

We model fund turnover in the presence of time‐varying profit opportunities. Our model predicts a positive relation between an active fund's turnover and its subsequent benchmark‐adjusted return. We find such a relation for equity mutual funds. This time‐series relation between turnover and performance is stronger than the cross‐sectional relation, as the model predicts. Also as predicted, the turnover‐performance relation is stronger for funds trading less‐liquid stocks and funds likely to possess greater skill. Turnover is correlated across funds. The common component of turnover is positively correlated with proxies for stock mispricing. Turnover of similar funds helps predict a fund's performance.     

Preference to Local Food vs. Preference to “National” and Regional Food

In the environment of globalisation and progressive liberalisation of the market, many small local producers were excluded from the market as uncompetitive to the producers realising scale economy due to their presence in large global market and being able to meet requirements of large retailers’ chains. As there is growing consumers’ interest to recover their identity, those of the local cultures and traditional values, there is a new chance for those small local producers. The problems of locally produced food recently awakened interest and aroused many discussions of practitioners and scholars as well. The aim of the presented study has been to test the parameters that influenced preferences among food product branded as national, regional, or local product. Presented models identified several consumers’ attitudes and feelings that are the main predictors of the relation between consumers’ preferences for local food and the preferences for national or regional food. Food made by local producers is perceived by consumers as being of higher quality and better complying with their habits and requirements than “regional” or “national” food products.     

A socio-political approach to exploring the innovation culture in post-socialist countries: the case of Croatia

Innovation culture and the social determinants of national innovation capacities have rarely been empirically researched in innovation-weak post-socialist countries despite the fact that innovation is considered one of the main drivers of their economic growth and convergence. Applying an alternative approach to identifying the factors that shape a national innovation culture is challenging as there has been little empirical research in the area. Moreover, the global cross-cultural concepts of national innovation culture hold little relevance for post-socialist countries. The trans-disciplinary socio-political approach employed in this article relies on the qualitative analysis of the dominant concepts used in political economy and sociology to identify the socio-cultural and political aspects of Croatia’s post-socialist transformation into a capitalist country. This is presented as one of the critical formative determinants of innovation culture. Croatia is chosen as a typical innovation-weak post-socialist country, where innovation remains weak. The analysis presented here suggests that transition-induced factors dominated by ‘crony variance of capitalism’ have an equal, if not a greater, suppressive impact on the current innovation culture than standard explanations based on the socio-cultural heritage of socialism and cultural inertia.     

Quality Upgrades of EU Agri‐Food Exports

We investigate determinants of quality upgrades in EU agri‐food exports using panel data models for the period 2000–2011. By employing highly disaggregated data we show that the unit value of exports is positively correlated to level of economic development and size of population. Our results highlight the negative impacts of comparative advantage and trade costs on upgrades in export quality. Our analysis partly confirms the role of income distribution in quality specialisation, that greater income inequality increases specialisation in quality upgrades. Findings are robust when applied to alternative subsamples, including vertically specialised and final agri‐food products.     

DISENTANGLING DEMAND AND SUPPLY SHOCKS IN THE CRUDE OIL MARKET: HOW TO CHECK SIGN RESTRICTIONS IN STRUCTURAL VARS

Sign restrictions have become increasingly popular for identifying shocks in structural vector autoregressive (SVAR) models. So far there are no techniques for validating the shocks identified via such restrictions. Although in an ideal setting the sign restrictions specify shocks of interest, sign restrictions may be invalidated by measurement errors, data adjustments or omitted variables. We model changes in the volatility of the shocks via a Markov switching (MS) mechanism and use this device to give the data a chance to object to sign restrictions. The approach is illustrated by considering a small model for the market of crude oil. Earlier findings that oil supply shocks explain only a very small fraction of movements in the price of oil are confirmed and it is found that the importance of aggregate demand shocks for oil price movements has declined since the mid 1980s. Copyright © 2013 John Wiley & Sons, Ltd.     

On the Discursive Construction of Corporate Social Responsibility in Advertising Agencies

As the interest in corporate social responsibility (CSR) within advertising industry is growing, this paper explores the discourse on CSR among employees in advertising agencies. Different sensemaking dimensions are taken into account to examine how employees, as one of the key stakeholders involved in the joint meaning construction, make sense of CSR. In addition, this paper studies the legitimation approaches that employees use to address CSR of advertising agencies. The empirical evidence of discursive examples also indicates that there is a linkage between sensemaking and legitimation perspective in CSR discourse analysis and supports the idea that both may be a potential route toward institutionalization of CSR inside organizations or sectors.