Structural change and blurred sectoral boundaries: assessing the extent to which knowledge-intensive business services satisfy manufacturing final demand in Western countries

This paper focuses on the vertical integration of knowledge-intensive business services (KIBS) into manufacturing sectors, using a subsystem approach to input–output analysis. It aims at correctly assessing the process of structural change that has occurred in the four main European countries (France, Germany, Italy and the UK) over time (1995–2005). It does not focus on KIBS sectors per se, but on their function as carriers and sources of knowledge which influences the performance of sectors, value chains and clusters across industries and within countries. The analysis shows that KIBS’ contribution to satisfying the final demand of manufacturing is in general largely underestimated; that KIBS vertical integration into manufacturing has increased over time in all the countries investigated except the UK; and that the extent to which manufacturing sectors outsource to KIBS is significantly affected by their technological intensity.     

SENSITIVITY AND UNCERTAINTY ANALYSIS IN MRIO MODELLING; SOME EMPIRICAL RESULTS WITH REGARD TO THE DUTCH CARBON FOOTPRINT

Environmental multi-regional input–output (MRIO) models require large amounts of data that all have their specific uncertainties. This paper presents a sensitivity and uncertainty analysis in order to gain an understanding of the directions in which efforts should be made to reduce these uncertainties. The analyses were carried out for an MRIO model to calculate the Dutch carbon footprint. A sensitivity analysis of the technical coefficients showed that changes in the coefficients in the domestic blocks and in the Dutch import blocks had the largest effects on the calculated footprint. The uncertainty analysis consisting of a Monte Carlo simulation based on probability distributions around the model coefficients showed a relatively low degree of uncertainty in the total Dutch carbon footprint; uncertainties in the carbon emissions allocated to regions, sectors and products were larger. Both analyses showed that, in certain cases, it is justified to apply a partial MRIO analysis.     

Managing Competing Institutional Logics in Public–Private Joint Ventures

Abstract

Cross-sector inter-organizational partnerships, alliances and networks have become extremely popular. Yet, we may expect competing societal-level institutional logics to play an important role in cross-sector alliances, hence making their management central to alliance success. This article responds to the general research question: How do participants of public–private joint ventures manage competing institutional logics? Based on in-depth interviews we empirically characterize two competing logics in a cross-sector collaborative and identify two practices used to cope with them.     

Expectations of Working Relationships in International Buyer–Seller Relationships: Development of a Relationship Continuum Scale

This study is an attempt to develop a scale to measure expectations of buyer–seller working relationships on a cross-cultural basis in the hospitality industry. The focus is on North American and Asian hotel salespeople. The scale development drew from previous research in guanxi relationships, purchasing, and selling strategies. While the results did not support a reliable unidimensional scale that could distinguish between transactional and collaborative working relationships, the methodology did create a framework for further scale development.     

TRADE INTEGRATION,OUTSOURCING AND EMPLOYMENT IN AUSTRIA: A DECOMPOSITION APPROACH

Outsourcing and trade integration of advanced countries is debated with respect to employment effects, in particular for low educated workers – at least in relative terms. We study the employment effects – differentiated by educational attainment levels – of changes in the patterns of trade integration and outsourcing in the Austrian economy over the periods 1995–2000 and 2000–2005 using hierarchical decomposition analysis based on deflated input–output tables. Outsourcing is modeled as changes in the shares of domestically produced intermediates in total intermediates. A similar decomposition of the final demand vector allows us to draw conclusions on the overall employment effects of trade integration. The results suggest that the expected negative employment effects of outsourcing and rising import penetration have been overcompensated by increasing exports. Thus, the overall employment effects of Austrian trade integration have been positive for all educational attainment groups. However, whereas the total effects have been strongest for medium and high educated workers over the period 1995–2000, employment of low educated workers have been strongest and positively affected over the period 2000–2005. This pattern can be explained by a more sluggish export performance together with stronger negative effects of outsourcing and import penetration in medium and high-skill intensive products.     

Economic impacts of conservation farming in a marginal environment: the case of ‘Landcare’ in the Philippines

In the marginal, upland regions of the Philippines, soil erosion and poverty are significant problems. The Landcare Programme has sought to address these twin problems. We assess the economic impacts of the Landcare Programme in the Province of Bohol. We first explore whether the adoption of Landcare practices, particularly those of contour farming and tree planting, in a highly degraded landscape has resulted in improved livelihood outcomes for upland farming families. Second, we analyse the potential for the piecemeal adoption of these measures to deliver tangible benefits at the watershed scale. Finally, using a benefit–cost approach, these outcomes are compared with the costs of research and extension projects that have helped achieve them. We conclude that the net economic impact of the Landcare Programme in Bohol is positive, with the primary beneficiaries being the individual households that adopt the Landcare practices. These benefits are largely generated by productive opportunities that arise once the hillsides have been stabilized. Although the downstream impacts of land-use changes associated with the Landcare Programme are positive, they are of marginal economic importance. Hence, the focus and primary justification of the Landcare Programme should be on improving the productivity and livelihoods of upland farming households.     

Are microfinance markets monopolistic?

Do microfinance institutions (MFIs) operate in a monopoly, monopolistic competition environment or are their revenues derived under perfect competition markets? We employ the Panzar–Rosse revenue test on a global panel data to assess the competitive environment in which MFIs of five selected countries operate: Ecuador, India, Indonesia, Peru and Philippines, over the period 2005–2009. We estimate the static and the dynamic revenue tests, with analyses of the interest rate and the return on assets. We control for microfinance-specific variables such as capital-assets-ratio, loans-assets and the size of the MFI. The analyses also account for the endogeneity problem by employing the fixed-effects two-stage least squares and the fixed-effects system generalized method of moments. Our results suggest that MFIs in Peru and India operate in a monopolistic environment. We also find weak evidence that the microfinance industry in Ecuador, Indonesia and Philippines may operate under perfect competition.     

Public–private partnerships for nature-based tourist attractions: the failure of Seal Rocks

In 1998, the Seal Rocks Sea Life Centre opened on Phillip Island, Australia. It was a public–private partnership, with a privately funded tourist attraction built on a government-owned protected area. Almost immediately it was beset by problems and court action found in favour of the private developer, who was awarded $A37 million in damages, with ownership of the centre returning to the state. This article fills a gap in the literature examining public–private partnerships by considering this failed venture. It is a qualitative case study, analysing the 2003 appeal court judgement in the case and newspaper accounts from 1995 to 2004. Our findings highlight that deficiencies with the drafting of commercial contracts for public–private partnerships may limit the environmental and economic benefits that are being sought by governments through these arrangements. In this case, the application of a “best efforts” clause was critical, as it required that priority was given to the commercial success of the project over environmental and planning concerns. Furthermore, the development was a centralised decision made by the state government, affording very little input from local parks management and community stakeholders. Such a court finding has important ramifications for future developments of partnership agreements in nature-based tourism.     

Convergence,Divergence or Stability – How do Politicians' and Bureaucrats' Attitudes Change During an Election Period?

Abstract

The possibility that administrators mould politicians into bureaucratic thinking has been a recurring theme in politics since the writings of Weber and von Mises. However, empirical studies of attitude change in the interface between politics and officials are scarce. This study, using data from thirty Norwegian municipalities, investigates whether political attitudes towards diverse political issues change during an election period, and whether any such change aligns politicians' attitudes with those of the administrative leaders in the municipalities. Attitudes were measured among both politicians and administrators in 2000 (six months after the election) and 2003 (six months before the election). In general, there are few signs that politicians' attitudes converged with those of the administrators in the period studied. When attitudinal change does occur, it appears to be parallel in both groups. The findings do not support the notion that politicians' attitudes become aligned to the attitudes of leading administrators. Different explanations are discussed.     

How to deal with real estate booms: Lessons from country experiences

The financial crisis showed, once again, that neglecting real estate booms can have disastrous consequences. In this paper, we spell out the circumstances under which a more active policy agenda on this front would be justified. Then, we offer insights on the pros and cons as well as implementation challenges of various policy tools that can be used to contain the damage to the financial system and the economy from real estate boom–bust episodes. These insights derive from econometric analysis, when possible, and case studies of country experiences. Broadly, booms financed through credit and involving leverage are more likely to warrant a policy response. In that context, macroprudential measures can be targeted more precisely to specific sources of risk, but they may prove ineffective because of circumvention. In that case, monetary policy may have to be used to lean against the wind.