Which Companies Benefit from Liberalization? a Study of the Influence of Initial Productivity

Theoretical research shows that competition has positive effects on productivity, for companies that are initially efficient, but not for unproductive firms. Our empirical analysis on a panel data of Czech companies, years 1995–2004, confirms this result. In addition, our analysis shows that when economic reforms affect both domestic and foreign competition, controlling for domestic competition is crucial when assessing the impact of trade liberalization. Otherwise, the effect of trade liberalization on firm productivity is upward biased.     

Nach welchen Regeln werden Arbeitsleistungen vergütet?

Die aktuelle Diskussion über zu hohe Managergeh?lter am oberen und zu niedrige L?hne am unteren Ende der Gehaltsskala führt zu den Grundregeln der Lohnbildung. In der ?konomischen Theorie stehen dabei vor allem individuelle Produktivit?tsunterschiede als Ursache von Lohnunterschieden im Vordergrund. Wenig — wie einige ?konomen finden zu wenig — wird dabei auf die Machtstrukturen auf dem Arbeitsmarkt geachtet.     

An Institutionalist Vision of a Good Economy

The current crisis in global capitalism and the wide-ranging problems that have been caused by the promulgation of a regime of deregulation of goods, services, and labor markets across the globe, but especially in the United States over the past thirty years, may indeed prove to be the end of the neoliberal era. Thus it is an opportune time to reconsider how the global economy could be restructured along more equitable and progressive lines. This paper will present the institutionalist vision of just such a good economy, building on the ideas of Veblen, Ayres, Commons, and Galbraith. The institutionalist vision of a good economy is productive but also non-invidious, democratic but also pragmatic, egalitarian but also efficient. The good economy must therefore be embedded in key social institutions, and be regulated appropriately to preserve the most beneficial social and cultural institutions. The good economy must, furthermore, be a full-employment economy, with jobs available to all who are capable of making productive contributions to their society and to enable those who labor to work in decent conditions. Finally, the good economy must provision all its members with the necessary means of subsistence for them to achieve their human aims.     

Losing the thread: a response to Robert Allen†

In an earlier article we used archival and printed primary sources to construct the first long-run wage series for hand spinning in early modern Britain. This evidence challenged Robert Allen's claim that spinners were part of the ‘high wage economy’, which he sees as motivating invention, innovation, and mechanization in the spinning section of the textile industry. We respond to Allen's subsequent criticism of our argument, sources, and methods, and his presentation of alternative evidence. Allen contends that we have understated both the earnings and associated productivity of hand spinners by focusing on part-time and low-quality workers. His rejoinder rests on an ahistorical account of spinners’ work and similarly weak evidence on wages as did his initial claims. Our augmented version of the spinners’ wages dataset confirms our original findings. Spinners’ wages were low even compared with other women workers, and neither wages nor the piece rates that determined unit labour costs followed a trajectory that could explain the invention and spread of the spinning jenny.     

Training and commitment in a German manufacturing company during the post-2008 crisis: a case of internal flexicurity

Studies on the links between training and organizational commitment have only looked at professional and managerial workers, mostly in the U.S. This paper focuses on a German manufacturing company that employed many blue-collar workers and offered generous training opportunities during short-time work in the post-2008 crisis. In an analysis based on employee survey data, only training in job-specific skills and training in skills usable outside of work were found to be associated positively with organizational commitment. The findings suggest that employer-provided training programs may be part of a model that achieves internal flexicurity in economies such as Germany.     

Two-step QCA revisited: the necessity of context conditions

Quality & Quantity - The so-called two-step QCA approach as formulated by Schneider and Wagemann (Eur J Polit Res 45(5):751–786, 2006) proposes a separation of conditions into two...     

Response Surface Regressions for Critical Value Bounds and Approximate p‐values in Equilibrium Correction Models1

We consider the popular ‘bounds test’ for the existence of a level relationship in conditional equilibrium correction models. By estimating response surface models based on about 95 billion simulated F‐statistics and 57 billion t‐statistics, we improve upon and substantially extend the set of available critical values, covering the full range of possible sample sizes and lag orders, and allowing for any number of long‐run forcing variables. By computing approximate P‐values, we find that the bounds test can be easily oversized by more than 5 percentage points in small samples when using asymptotic critical values.     

Transformation of China's sovereign wealth fund since the 2008‐2009 global crisis

China Investment Corporation (CIC) transformed its initial investment strategy of focusing mainly on the US financial sector during 2007‐2008 into a new strategy of diversified investments across geography and sectors since 2009. Massive financial losses and domestic political backlash during the global financial crisis of 2008 gave impetus to CIC's rethinking of strategy. In the midst of the crisis, CIC engineered a capacity‐building and reorganization exercise to reposition itself for a new strategy that has since allowed for more diversification of investments. A more receptive global investment climate for sovereign wealth funds has also aided CIC's efforts to present itself as a responsible global investor and facilitated its investments. Postcrisis, CIC's new strategy of diversification is characterized by continued investments in the financial sector, but with new investments increasingly directed to real sectors of energy, natural resources, and real estate in both developed and emerging economies. Notwithstanding a global recovery that is fraught with uncertainties, CIC's judicious timing in making diversified investments, and its attention to reducing risks and enhancing returns, have been rewarded by an impressive turnaround in performance since 2009. Going forward, the success and sustainability of the new strategy will be contingent on how well CIC can navigate domestic bureaucratic rivalry and the shifting climate of the international investment environment in the medium to long term. Ultimately, CIC's shareholder, the government of the People's Republic of China (PRC), holds the key to its future direction and goals. © 2012 Wiley Periodicals, Inc.