Business Cycles and FDI: Evidence from German Sectoral Data

Globalization has affected business cycle developments in OECD countries and has increased activities of firms across national borders. This paper analyzes whether these two developments are linked. We use a new firm-level data set on the foreign activities of German firms to test whether foreign activities are affected by business cycle developments. We aggregate the data by the sector of the reporting firm, the sector of the foreign affiliate, and the host country. Data are annual and cover the period 1989–2002. We find that German outward FDI increases in response to positive cyclical developments abroad and in response to a real depreciation of the domestic currency. JEL no. E3, F23     

Household and market production of families in a late nineteenth century American city

Urban families in the late nineteenth century depended upon their children as their most important source of labor income apart from the male head of house-hold. This paper explores the determinants of the labor force participation of children over 10 years old within the context of the economic theory of household and market production, using microlevel data from 1880 Philadelphia. The father's income and unemployment, the presence of the mother or father, boarders, servants, older and younger siblings, parents' literacy, and ethnicity, among other variables, are used in a probit analysis of the labor force participation of children. The results validate the economic theory of household and market production demonstrating, in particular, substitution between mothers and their daughters and the role of comparative advantage in family decisions concerning the allocation of their members' time. Ethnic differences were only important for daughters.     

Disentangling barriers to internationalization

Abstract. Recent literature on multinational firms has focused on low productivity as a barrier to the internationalization of firms. But labour market frictions or financial constraints may also hamper internationalization. In order to assess the importance of these barriers, we present new empirical evidence on the extensive and intensive margin of exports and foreign direct investment (FDI) based on micro‐level data of German firms. First, we find a positive impact of firm size and productivity on firms’ international activities. Second, labour market frictions can constitute barriers to foreign activities. Third, self‐reported financial constraints have no impact on firms’ internationalization decisions. JEL classification: F23, G2     

Estimating the Impact of Climate Change on Agriculture in Low-Income Countries: Household Level Evidence from the Nile Basin, Ethiopia

This paper presents an empirical analysis of the impact of climate change on agriculture in a typical developing country. The economic implications of climate change are estimated by using both a farm productivity and a Ricardian framework. Data are drawn from about 1,000 farms producing cereal crops in the Nile Basin of Ethiopia. The thin plate spline method of spatial interpolation was used to predict household specific rainfall and temperature values using meteorological station data collected for 30?years across the regions. We found that climate change adaptation has a significant impact on both farm productivity and farm net revenues. We complement the analysis by providing an estimation of the determinants of adaptation. Extension services (both formal and farmer to farmer), as well as access to credit and information on future climate changes are key drivers of adaptation.     

Becoming a preferred customer one step at a time

A preferred customer is a buying organization who receives better treatment than other customers from a supplier, in terms of product quality and availability, support in the sourcing process, delivery or/and prices. The decision to become a preferred customer implies a continuous commitment by the purchaser to a complex, expensive and often uncertain process. It is important to use a strategic approach, as well as appropriate tactics. Based on well-known models on the development of buyer-supplier relationship, on customer portfolio analysis and on the emergent literature in customer attractiveness and preferred customer status, we suggest four steps to become – and remain – a preferred customer: initial attraction, performance, engagement and sustainability. The process takes the perspective of a buyer willing to obtain the preferential status and focuses on the strategies and tactics that could influence the supplier's decision of granting this status. The proposed process considers that the supplier is continuously comparing the value offered by the customer to its expectations, and to the value offered by other customer relationships.     

Combining backcasting and adaptive management for climate adaptation in coastal regions: A methodology and a South African case study

Developing adaptation strategies for deltaic and coastal regions is a major challenge, due to future uncertainties of climate change and complexity of the social–ecological systems to be managed. This paper investigates how desirable futures or normative scenarios approaches, in particular backcasting, can be used to develop more robust climate strategies in coastal regions. The paper develops a methodology in which participatory backcasting and adaptive management are combined, and its applicability is demonstrated for the Breede–Overberg coastal region in South Africa where a catchment management strategy has been developed. It is concluded that the methodology offers an adequate framework for developing and implementing long-term climate adaptation strategies and policies, including a transition management scheme for intermediate assessments.     

Common information asymmetry factors in syndicated loan structures

This paper provides a comprehensive study of the syndicate structure and its relationship to information asymmetry and loan spread by using principal component analysis on a large set of 40 structure-related variables. A total of six structure components are identified and related to syndicate quality, syndicate members’ heterogeneity or share concentration, lead arranger’s characteristics, lead lender’s or syndicate’s location, lender–borrower relationships, and lead institution type. In multivariate settings, all six components are significant determinants of loan spread, either directly or indirectly through their impact on other components. Lead share retention, previous lender–borrower relationships and syndicate quality are shown to be bilaterally related to loan spread. Structure components differ regionally, which can provide an explanation for the European pricing discount observed in the literature. An Asian discount is observed and cannot be explained by structure differences.     

Fashionable subjects and complicity resistance: power,subjectification, and bounded resistance in the context of plus-size consumers

ABSTRACT

The relationship between consumer governability and consumer resistance has received increasing attention in consumer research, especially with regard to consumers’ physical bodies. However, a deeper understanding of how consumers juxtapose different forms and strategies of governability with respect to which discourses they embody or resist is necessary. Through an analysis of various sources of data, including interviews, fashion blogs, an online retailer’s website, and a fashion magazine, we explore the nuances between processes of subjectification and resistance in the fashion field by considering the multiple powers that act on overweight female consumers’ bodies. We demonstrate the complicated process by which these vulnerable consumers attempt to establish themselves as fashionable subjects as they move between adherence to expectations (biopower and subjectification) and resistance when faced with the impossibility of subjectification in a creative-agentic manner. Finally, we propose the idea of complicit resistance. This resistance only partially confronts the strategies of biopower in the process of subjectification because it is limited by a threshold imposed by biopower.     

COVID-19 Is Transforming Economic Policy in the United States

Intereconomics - Cutbacks in government spending slowed the recovery and led to lasting damage to workers and economic growth.     

Extrinsic and intrinsic food product attributes in consumer and sensory research: literature review and quantification of the findings

Management Review Quarterly - As recent years have seen a growing interest in integrating consumer and sensory science, this paper aims at presenting a systematic literature review of empirical...