University spillovers and new business location in high-technology sectors: Spanish evidence

This paper examines the relationship between knowledge spillovers from universities and new business location in high-technology sectors. We focus on the contribution to new business formation through spillovers stemming from three main university outputs: knowledge-based graduates, research activities, and technological knowledge. We construct a new dataset with information on 604 companies and 63 universities in Spain and group the data across 36 geographical areas from 2001 to 2004 (144 observations). After controlling for several traditional cost factors and agglomeration characteristics, we find that university spillovers are relevant in explaining the location of new businesses in high-technology sectors in Spain. Further, our analysis draws attention to the relevance of graduates as the main source of spillovers, while research activities and university technology do not have significant effects.     

Current accounts in the euro area: An intertemporal approach

Current accounts have diverged substantially among euro area countries since the creation of the euro. This divergence has raised concerns about the sustainability of some member countries’ external indebtedness. This paper uses an intertemporal model of the current account to analyze the fluctuations in current account balances experienced by euro area countries over the last three decades and to disentangle its determinants. We find that the model is not rejected for six of the ten euro area countries examined (Belgium, France, Italy, Netherlands, Portugal and Spain), although it tends to underestimate their current account volatility. For these countries, we derive the expectations about future income and relative prices, which, according to the model, underlie their current account balances. Expectations about future growth increased in all Southern European countries at the creation of the euro, but they diverged considerably by 2005. While in Portugal these expectations were below its historical mean by then, in Spain they were at an historical high.     

Forecasting Heavy‐Tailed Densities with Positive Edgeworth and Gram‐Charlier Expansions*

This article presents a new semi‐nonparametric (SNP) density function, named Positive Edgeworth‐Sargan (PES). We show that this distribution belongs to the family of (positive) Gram‐Charlier (GC) densities and thus it preserves all the good properties of this type of SNP distributions but with a much simpler structure. The in‐ and out‐of‐sample performance of the PES is compared with symmetric and skewed GC distributions and other widely used densities in economics and finance. The results confirm the PES as a good alternative to approximate financial returns distribution, specially when skewness is not severe.     

The long-horizon returns behaviour of the Portuguese stock market1

In the last few years several research studies have challenged the traditional weak-form efficiency tests of the stock market. These studies suggested an alternative to the random walk model, containing temporary and permanent components. If stocks follow such a model then the traditional tests, using returns computed for short intervals would be unable to detect them. To investigate the evidence for such models in the Portuguese stock market ten stock indexes were created. This is a pioneer study of the Portuguese stock market, and uses nominal, real and excess returns, computed for longer horizons. Three methodologies were used: variance ratios, ordinary least squares regressions and weighted least squares regressions. The statistical significance of the results was studied using traditional parametric tests as well as non-parametric tests. The evidence is mixed, as the presence of tendencies towards mean aversion and mean reversion were detected. Results also show that the evidence is very sensitive to the methodology used and the signifcance tests performed. These results, however, do not necessarily reject the weak-form market efficiency hypothesis.     

Cross-cultural differences in upward ratings in a multinational company

Differences between countries in the favourability of upward ratings were examined in a multinational corporation. Data were collected from 6,400 subordinates in ten countries. The results showed that the US and European countries were higher than Brazil and Asian countries on a number of items. A discriminant analysis revealed sets of items that maximally discriminated between groups of countries. The results were interpreted post hoc based on Hofstede's (1984) study of country differences in cultural values. Some results indicated changes in values since Hofstede's data were collected twenty years ago, while others indicated that values in some countries have not changed. The results have implications for calibrating upward feedback and evaluating the need for, and likely effectiveness of, interventions to guide how an organization is managed.     

Consequences of Economic Partnership Agreements between East and Southern African Countries and the EU for Inter- and Intra-regional Integration

Abstract

The European Union is currently negotiating Economic Partnership Agreements (EPAs) with six African, Caribbean and Pacific country groupings, aiming at establishing mutual free trade. This paper empirically assesses the impact of the EPAs on trade flows and government revenues for 22 East and Southern African countries and discusses implications for intra-regional integration. The results indicate that while moderate trade effects can be expected, relatively large budget effects are likely to occur in a number of these countries, exposing them to considerable structural and financial adjustment requirements. In addition, EPAs would strengthen the need to consolidate overlapping intra-regional integration schemes.     

Exploitation- and exploration-based innovations: The role of knowledge in inter-firm relationships with distributors

Learning capacity is a critical factor for a firm’s innovation and competitiveness. This study explores the issue of how knowledge in inter-firm relationships with distributors influences manufacturers’ exploitation- and exploration-based innovations and performance. The empirical model examines the effect of three different types of knowledge-related issues in inter-firm relationships: (i) the acquisition of substantial knowledge (about products, technology, or markets) from distributors; (ii) the learning about collaborating with each distributor as the relationship evolves; and (iii) the general firm’s knowledge about managing distributors. A model of learning—innovation—performance is developed and tested in a sample of 201 firms in the food and beverages sector. The results reveal that: (i) knowledge about managing distributors promotes continuous learning from them; (ii) learning to collaborate is critical, as it favours knowledge acquisition and both types of innovations (exploitation- and exploration-based); (iii) learning from distributors weakens firms’ tendency to stress one type of innovation strategy over another; and (iv) knowledge in inter-firm relationships with distributors affects performance in a completely mediated way, that is, through innovation. Theoretical and managerial implications of these findings are discussed in the conclusion of the paper.