MARKET REFORM AND FOREIGN DIRECT INVESTMENT IN LATIN AMERICA: Evidence from an Error Correction Model

This study models dollar values of foreign direct investment (FDI) inflows to conditions in seven Latin American countries (Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Venezuela) during the 1988-1992 period. Although much research on FDI has used time series data to explain inward or outward flows, two things set this study apart. First, this study includes market reforms as independent variables. Second, this study uses newer time series econometric tools (unit root test and cointegration analysis) to correct for a spurious regression. Our model is robust, explaining 79.4 percent of variation. We found three independent variables (size of current account deficit, size of GDP, and value of privatization less FDI in privatized companies) to be significant. Although we found directional support for three other independent variables (degree of capital market liberalization, low inflation rate, and depreciation of the real exchange rate), none of these proved significant.     

An integrative model of e-learning use: Leveraging theory to understand and increase usage

Employees are increasingly using technology to access content for learning, and theory development has been outpaced by practice. Drawing on a well validated theory of behavior change (the Transtheoretical Model of Change), as well as theories on technology acceptance and employee development, this paper offers an integrative model of factors that influence employee use of e-learning as well as practical recommendations for how use might be increased. Recommendations for future research on e-learning are also offered.     

Exchange rate pass-through in Canadian manufacturing: its direct and indirect components

Changes in the exchange rate have direct and indirect effects on the prices of domestically produced goods and imports in the domestic market. The direct effects originate with the impact of the exchange rate on the marginal cost of imports; the indirect effects, with its impact on the price of materials used by domestic producers and hence on their marginal costs. Direct and indirect exchange rate pass-through elasticities are estimated for 37 Canadian manufacturing industries and their determinants are examined in a cross-section analysis. It is found that the direct and indirect elasticities are approximately equal in size for domestic goods, while the direct effect is dominant for imports. For a small number of industries, the net result of the direct and indirect effects is that a depreciation of the domestic currency increases the competitiveness of imports, contrary to conventional analysis. Important determinants of the direct (indirect) elasticities are the import share and non-tariff barriers (the responsiveness of domestic costs to changes in the exchange rate, and concentration).     

Technology transfers and the clean development mechanism in a North–South general equilibrium model

This paper analyses the potential welfare gains of introducing a technology transfer from Annex I to non-Annex I in order to mitigate greenhouse gas emissions. Our analysis is based on a numerical general equilibrium model for a world-economy comprising two regions; North (Annex I) and South (non-Annex I). In a cooperative equilibrium, a technology transfer from the North to the South is clearly desirable from the perspective of a ‘global social planner’, since the welfare gain for the South outweighs the welfare loss for the North. However, if the regions do not cooperate, then the incentives to introduce the technology transfer appear to be relatively weak from the perspective of the North; at least if we allow for Southern abatement in the pre-transfer Nash equilibrium. Finally, by adding the emission reductions associated with the Kyoto agreement, our results show that the technology transfer leads to higher welfare in both regions.     

Building long-term orientation in buyer–supplier relationships: The moderating role of culture

This research investigates buyer–supplier relationships in international markets. Research and practice have shown that buyer–supplier relationships benefit when partners to the relationship exhibit a long-term orientation. The extant literature suggests that a buyer's trust of a supplier and the supplier's performance affect the buyer's long-term orientation toward the relationship. We propose that the relative effects of trust and performance on long-term orientation are moderated by culture – specifically the individualism/collectivism dimension. Hypotheses are tested on data from two individualist and two collectivist cultures, using responses from over 600 purchasing professionals in the United States, Anglophone Canada, Francophone Canada and Mexico. Taken together, empirical findings suggest that cultural differences warrant consideration in developing successful purchasing strategies.