Competitive and Information Effects of Cross-Border Stock Listings

We examine the effect of 269 cross‐border listings on rivals in the listing and domestic markets and find that U.S. rivals experience significant gains whereas domestic rivals do not. Both competitive and information effects are important in explaining the reaction of U.S. rivals. Regarding the competitive effects, the reaction of rivals is less favorable when listings originate in developed countries and more favorable when listing firms do not have prior operating presence in the United States. Regarding the information effects, the reaction is less favorable when listings are combined with equity offerings and more favorable when the listing is the first to occur within an industry.     

The Coevolution of the Real and Financial Sectors in the Growth Process

The role of debt and equity changes over time and with the levelof development. What are these changes, and why should theysystematically occur across different countries and time periods?This article characterizes financial innovation as a dynamicprocess that both influences and is influenced by the developmentof the real sector. It focuses on the emergence and developmentof equity markets, using a model that allows for growth andfor capital accumulation that is financed externally througha combination of debt and equity. As an economy develops, theaggregate ratio of debt to equity will generally fall; yet,debt and equity remain complementary sources for the financingof capital investments. The results suggest how various governmentpolicy actions might affect capital accumulation and equitymarket activity.     

Determinants of Canadian bilateral aid allocations: humanitarian,commercial or political?

Abstract.  In this paper we examine the determinants of the allocation of Canadian bilateral aid over the period 1984–2000. We draw on models of donor behaviour that allow us to incorporate humanitarian, commercial and political considerations – the 'trinity of mixed motives'– that affect Canadian aid. We find that allocations are moderately altruistic. Recipient country human rights and membership in the Commonwealth and La Francophonie also affect aid flows. Most strikingly, our results suggest that Canadian aid flows became less altruistic over this period and commercial motives became increasingly important. JEL Classification: H50, O10     

Accidents will happen: safety-critical knowledge and automated control systems

This article presents findings from a study of control operators that raise concerns about safety-critical knowledge, culture and training. It is argued that the adoption of automated control systems can hinder the transfer of knowledge amongst operators, and this becomes an increasingly serious hazard as tacit knowledge is lost because of employee turnover.     

WINDOW ON EASTERN EUROPE: Ethical Perceptions of Polish Business Students

An experienced educationalist comments on the views of top Polish business students on ethics in public life, government and business in modern Poland. The author is Wicklander Professor of Professional Ethics at DePaul University, Chicago, and also served recently as Visiting Fulbright Professor at the Adam Mickiewicz University in Poznan, Poland. He is currently President of the Society of Business Ethics in the USA.     

A Property Rights Paradox: George and Rothbard on the Conservation of Environmental Resources

A bstract . Murray N. Rothbard is recognized as one of the most articulate modern critics of Henry George's land value tax. A leading libertarian thinker, Rothbard condemns George's recommendation that government act to affect private transactions in land, arguing that such interventions infringe on previously defined private property rights. However, Rothbard's social system has no explicit mechanism for accommodating the emergence of tradeable property rights to newly recognized environmental resources. In effect, Rothbard calls for controls on such resources—no trading. Henry George, on the other hand, provides for the evolution of new property rights and their emergence into private markets. The paradox here is that George's solution to the property rights question might accommodate the social yearnings of one of his most severe critics, Murray N. Rothbard.     

Book Reviews

Richard Robison, Indonesia: The Rise of Capital, Allen and Unwin, Sydney, 1986 pp. xxv + 425. Indexed. $19.95.

W.L. Korthals Altes, Changing Economy in Indonesia: Volume 7: Balance of Payments, 1822–1939, Amsterdam: The Royal Tropical Institute. pp. 167.

Trade Statistics, Java, 1823–73: Trade Statistics, Indonesia 1874–1937. Mededeelingen van het Centraal Kantoor voor de Statistiek nos 160 and 161

Om Prakash, The Dutch East India Company and the Economy of Bengal, 1630–1720, Princeton: Princeton University Press, 1985 pp. xii + 291, map, tables. graphs, glossary, index. Cloth $38.50.

Sediono M.P. Tjondronegoro, Social Organization and Planned Development in Rural Java, Singapore, Oxford University Press for the Institute of Southeast Asian Studies, 1984, pp. xv + 326.

A. Fujimoto and F. Matsuda (eds), An Economic Study of Rice Farming in West Java, Tokyo: NODAI Research Institute, Tokyo, University of Agriculture, 1986.

A. Fujimoto and T. Matsuda (eds), A Comparative Study of the Structure of Rice Productivity and Rural Society in Southeast Asta Two Village Studies in Indonesta and Thailand, Tokyo: University of Agriculture, 1985. Reviewed by C.L J. van der Meer (1986) Bulletin of Indanesian Economic Studies, 22(2) pp. 124–27

David Jenkins, Suharto and His Generals: Indonesian Military Politics, 1975–1983, Ithaca: Cornell Modern Indonesia Project, Monograph Series No. 64, 1984, pp. xiii + 280. US$12.50. David Bourchier, Dynamics of Dissent in Indonesia Sawito and the Phantom Coup, Ithaca: Cornell Modern Indonesia Project, Interim Reports Series, 1984, pp. 128. US$9.00.

Linda G. Martin (ed), The ASEAN Success Story: Social, Economic, and Political Dimensions, East-West Center, distributed by the University of Hawaii Press, Honolulu, 1987, pp. xviii + 253. $15.00.

Mubyarto and Edy Suandy Hamid (eds), Kredit Pedesaan di Indonesia, Badan Penerbit Fakultas Ekonomi, U.G.M., 1986 pp, 160.

Ron Hatley, et al., Other Javas Away from the Kraton, Melbourne: Monash University, 1984, pp. 60.

K.S. Nathan and M. Pathmanathan (eds), Trilateralism in Asia: Problems and Prospects in US-Japan-ASEAN Relations, Antara Book Company, Kuala Lumpur, 1986, pp. xviii + 205. $18.00 (cloth): $12.00 (paper).     

The identification of South African technological innovations: A proposed methodology

Technological innovations represent significant indicators of scientific and economic vigour in any society. They are however, extremely difficult to both identify, and to evaluate in terms of their importance.

This paper addresses itself to the problems of identification and measurement. As such it forms a necessary prerequisite to a survey of technological innovations in South Africa, and, in the process, seeks to contribute to the general field of technological enquiry.