Financing preferences: evidence from the Korean market

We investigate the financing decisions of Korean firms during the period of 1996–2015. Korean firms follow a matching strategy for funding their cash needs. Cash inflows from investing activities are the primary source of funding for capital expenditures, and cash inflows from financing activities are the major means of covering cash outflows from financing activities. We also find that Korean firms’ financing practice of handling cash deficits can be described by the pecking order model modified and augmented by cash flow variables. Cash inflows from investing activities account for the major portion of financing to make up for cash deficits, followed by short- and long-term debt, and then equity financing.     

Institutionalism,Critical Theory,and the Administered Society

Paul Krugman recently suggested that John Maynard Keynes helped economists study and resolve mass unemployment at a time when few of them could understand the problem and institutionalists seemed unable to articulate a clear policy strategy. This article responds by outlining John R. Commons' case for full employment with liberty and his three-part strategy (addressing money, people and politics) for curing joblessness while saving capitalism. Commons' argument and recommendations offer insights that extend beyond Keynesian economics in important ways, and his contributions have special relevance today in light of the recent global financial crisis and still ongoing Great Recession.     

Software to support business teams

Organizations are increasingly using the business team concept to gain competitive advantage. Collaboration support software is gaining acceptance as a viable tool among both researchers and practitioners, and an opportunity exists to investigate the specific needs of teams: users working in longitudinal time frames on a variety of tasks. In this article, team software requirements are first derived from a theoretical perspective: office automation and task literature are used to identify a set of domain-independent individual tasks. Group process literature is then used to develop a set of collaborative tasks composed of these individual task components. These individual and collaborative tasks are aggregated with team task and communication support requirements to develop requirements for an integrated software environment that effectively supports business teams. Design considerations for a comprehensive team support system are outlined, a prototype implementation is described, and project contributions and key future research considerations are summarized.     

Process Versus Product Innovation: Do Consumption Data Contain Any Information?

In a model of endogenous growth in which product and process innovations are the joint outputs of an unspecified research program, we show that if quality growth is not captured by official price indices the usual isomorphism of product and process innovations breaks down. We derive and estimate a Euler equation for a representative consumer under the assumption of measurement error. Unobserved quality improvements account for at least half of growth, and real productivity growth in postwar United States was two to five times greater than measured total factor productivity (TFP) growth. We also find that at least 15% of the measured slowdown in TFP growth can be attributed to unobserved increases in the relative importance of product innovations.     

If you dig it, they will come!: Archaeology heritage sites and tourism development in Belize, Central America

Tapping into a growing global tourism market, in recent years the Government of Belize has been marketing and promoting tourism as its primary economic sector. The latest efforts have included the cruise ship sector and marketing Mayan cultural history for tourism. Three phases of Mayan excavation can be identified: (1) pre-mid-1990s when sites were scientific exercises with tourism following; (2) the 1990s to present with the archaeological digs such as at Caracol fostering tourism development as the project is undertaken; and, (3) future sites yet to be excavated. This paper explores the positive and negative impacts of developing Mayan sites for tourism in Belize. The results are based on a survey of face-to-face interviews conducted with tourists based in San Ignacio, a community in west-central Belize. San Ignacio is adjacent to the Cahal Pech archaeological site and within a short drive of the Xunantunich and Caracol sites. Caracol is only partially excavated with temporary infrastructure providing access to tourists. In fact, the income generated from this access pays for continued excavations. The findings indicate that while there are obvious educational and economic benefits for such development, there are also concerns about how much is too much.     

Asymmetric effects of oil price changes on the balance of trade: Evidence from selected African countries

The main new contribution of this study was to delve into the asymmetric impacts of changes in oil prices on the trade balance in the framework of six major African economies. To tackle this topic carefully, we employ three measures of external balances—oil, non‐oil and total trade balances, and assess the asymmetric response of the external balances of those six economies to oil price changes in the short and long run. Like most previous studies, we first assume the impacts of oil price fluctuations to be symmetric and employ the linear autoregressive distributed lag (ARDL) method to explore the topic. We then separate oil price hikes from oil price plunges and implement the non‐linear ARDL method to reveal that the price of crude oil has a vital role to play in the trade balances for those six African economies. Further, there is evidence of significant asymmetric impacts of oil prices typically on the oil trade balance of Africa's top oil producing countries. For the non‐oil and total trade balances, in contrast, there is little evidence of the asymmetry of oil price changes.