Business regulation,labor force participation and employment in industrial countries

Using data from 19 industrial countries for 5 years in the period 1990–2002, this paper analyzes to what extent anticompetitive business regulations, like price controls and administrative obstacles to start a new business, affect labor force participation and employment rates. According to the regression results, they appear to lower both. Corruption, which is one result of strict business regulation, is also found to lower labor force participation and employment rates. While most effects on the general population seem to be modest, the effects on the low-skilled are likely to be substantial. The results are robust to variations in specification.     

Wann dürfen Journalisten Türken Türken nennen?

Is the journalists’ professional ethos still a relevant object for a rationality concerned with media ethics? The example of the rule forbidding discrimination against minorities in the German press codex (number 12 and rule 12.1) shows that the lack of effects, which professional ethics is often said to have, cannot be explained only by commercial influences from outside, but also by a lack of persuasiveness of the ethical norms themselves, which are formulated in an unsystematic way and not equally applied. Rule 12.1 can neither be justified by the effort to achieve truth nor by the protection of personality and youth. A systematic analysis, taking the professional function of manufacturing public attention almost as serious as general morals, leads to the recommendation to distinguish between different measures of journalistic responsibility when probing which course rule 12.1 prescribes. A more consequential solution would be to abandon the problematic rule in favor of a communication policy that aims at a stronger participation of minorities in media production.     

Greasing the wheels of international commerce: how services facilitate firms’ international sourcing

Abstract We use plant‐level data to study the link between the local availability of services and the decision of manufacturing firms to source materials from abroad. We develop a model to generate predictions about how the intensity of international sourcing of materials depends on the availability of services and firm characteristics. These predictions are supported by the data. Greater availability of services across regions, industries, and time increases firms’ foreign sourcing of materials relative to sales. The impact of services differs by firm type. National firms’ sourcing responds to changes in regional service conditions, whereas multinationals tend to be less affected.     

The choice of market entry mode: Greenfield investment,M&A and joint venture

Multinationals may enter a host market by different modes of foreign direct investment (FDI). This paper examines the choice of FDI mode, and shows that the profitability of greenfield investment influences this choice not only directly, but also indirectly since it determines the outside option of potential acquisition targets and joint venture partners. In particular, even if greenfield investment is a viable option, the multinational may prefer a joint venture to M&A, and M&A to greenfield investment, provided that M&A and joint venture both involve sufficiently low fixed costs. The reason is that the profitability of greenfield investment both reduces the acquisition price in the case of M&A, and gives local firms an incentive to agree to a joint venture.     

Firm Productivity and the Foreign‐Market Entry Decision

We use Japanese firm‐level data to examine how a firm’s productivity affects its foreign‐market entry strategy. The firm faces a choice between exporting and foreign direct investment (FDI). In the case of FDI, the firm has two options: greenfield investment or acquisition of an existing plant (M&A). If it selects greenfield investment, it has two ownership choices: whole ownership or a joint venture with a local company. Controlling for industry‐ and country‐specific characteristics, we find that the more productive a firm is, the more likely it is to choose FDI rather than exporting and greenfield investment rather than M&A.     

Equilibria in systems of social interactions

In this paper, we establish existence and uniqueness results for equilibria in systems with an infinite number of agents and with local and global social interactions. We also examine the structure of the equilibrium distribution and derive a “Markov”property for the equilibrium distribution of a class of spatially homogeneous systems.     

Creativity Workshops in Product Innovation

The process of creative thinking has long been a concern of both researchers and managers alike. Recently, the business press has begun to address a variety of approaches being taken to enhance creativity. One of the current structures which incorporates the use of a variety of specific techniques is the Creativity Workshop. It structures a collective group effort designed to solve a complex problem. Horst Geshka has led a number of Creativity Workshops and has summarized his experiences for the growing number of managers who recognize the importance of giving special attention to the process of creative thinking.