‘Los von London’: A comparative,empirical analysis of German and British global foreign banking and trade development, 1881–1913

The role of finance in the development of trade draws increasing attention from economists and economic historians. Yet empirical studies, especially from an historical perspective, continue to be scarce. This study analyses the role of German and British foreign banks in the internationalisation of trade during the first globalisation. It creates a novel data set on the bilateral trade of Germany and Great Britain with the rest of the world and the number and geographical distribution of German and British foreign banks between 1881 and 1913. Using an augmented gravity model of trade, the article shows that banks had a significant positive impact on exports and imports and that this effect was even more pronounced in case of German banks and trade. Moreover, the effect of German banks on trade is the highest in the years closer to bank entry, supporting the idea of German banks being initiators of trade. In contrast, the effect of British banks seems constant over time.     

Evolution of locations,specialisation and factor returns with two distinct waves of globalisation

This article presents an economic geography model with two differentiated sectors that exhibit weaker inter and stronger intra-industry input-output linkages. Labour is also differentiated according to skills in a hierarchy of tasks they can perform. Globalisation occurs in two distinct phases, leading to the agglomeration of an industry (manufacturing) in the first wave, which is subsequently displaced by the other industry (services) when the second wave of globalisation takes place. Because of agglomeration effects, the increase in relative endowment of a factor may increase its relative wages, leading to more inequality. Within and between nations inequality can result.     

The impact of trade on aggregate productivity and welfare with heterogeneous firms and business cycle uncertainty

This paper presents a model with monopolistic competition, productively heterogeneous firms, and business cycle aggregate shocks. With firm-specific productive heterogeneity, weaker firms quit when faced with a negative aggregate shock. Consequently, trade does not always increase firm-level aggregate productivity as negative shocks on the home market can be compensated for by positive shocks elsewhere. Weaker firms, which would otherwise quit in autarky, can continue to operate by exporting. Despite this, trade can still improve welfare for the risk-averse consumer by reducing aggregate price fluctuations.     

The impact of economic globalisation on unemployment: The Malaysian experience

Malaysia plans to emerge as one of the high-income economies by 2020 through the Economic Transformation Programme. A key component of this programme is to adopt more trade liberalisation policies that can generate a variety of economic activities, particularly more jobs. Although the integration with the world market bears the promise of prosperity for the developing and transitional economies, such integration may also adversely affect such economies. Preceding studies regarding labour market and international trade policies are still inconclusive and raise questions that require further examination; particularly in terms of whether exposure to the external sector can create or destroy jobs. The present study evaluates how Malaysia labour market has responded to the economic globalisation of the country. The study focuses on the long-run impact of economic globalisation on unemployment within the period between 1980 and 2014. The study uses autoregressive distributive lags method to examine the pattern of the relationship. The results show that economic globalisation have significant and positive impact on reducing unemployment in Malaysia in the long run. These findings indicate that policy-makers in Malaysia should facilitate the economy globalisation to maintain the current low level of unemployment rate.     

Financial globalisation and the labour share in developing countries: The type of capital matters

In this paper, we investigate how de facto financial globalisation has influenced the labour share in developing countries. Our main argument is the need to distinguish between different types of capital in this context as they differ in their effect on the host countries' production process and vary concerning their bargaining power vis-à-vis labour. Our econometric analysis of the impact of foreign direct versus portfolio investment in a sample of about 40 developing and transition countries after 1992 supports this claim. Using different panel data techniques to address potential endogeneity problems, we find that foreign direct investment has a positive effect on the labour share in developing countries, while the impact of portfolio investment is significantly smaller and potentially negative. Our results also highlight that de facto foreign investment cannot explain the decline of the labour share in developing countries over the investigated period.     

Financial literacy and support for free trade in the UK

Recent events in Europe and the United States suggest that open economies are increasingly under stress as nationalist, protectionist and populist political entrepreneurs are gaining significant ground across the Western world. Many theories have been formulated as to which factors are more likely to explain such policy preferences. The hypothesis tested in this paper is that financial literacy affects economic policy preferences. I analyse data from the British Election Study and test my theory on support for free trade in the United Kingdom. Findings suggest that financial literacy does affect economic policy preferences. On average, financially literate individuals are more likely to think that free trade is good for the British economy. Furthermore, this is true regardless of economic self-interest, as both financially literate winners and losers from globalisation are more likely to support free trade than their illiterate counterparts.     

Business history,global networks and the future of mobility

Globalisation raises serious concerns about ecological sustainability and social equality. This article proposes that business historians should write a usable past that is framed by the imperative of addressing these issues. The transport and communication networks that underpin global trade and travel offer an opportunity to narrate such a past. In particular business enterprises have historically helped to shape the ways consumers think about and realise bodily movement. By contributing to a genealogy of these mobility cultures, business historians can help to uncover the mythic traces that continued to shape contemporary public and policy understandings of global mobility.     

Between a rock and a hard place: US industrial unions, shop-floor participation and the lean, mean global economy

Utilising historical and contemporary studies of metalworkingplants, a review of current trends in labour-management relations,and observations from 15 years as a machinist and local unionofficer, the author describes the efforts of US workers andtheir local unions to play a positive role in shop-floor productionmatters in the post-Second World War period, only to be rebuffedby corporations intent on gaining hegemony on the factory floor.This history is juxtaposed to contemporary efforts by managersto kindle interest among workers in participating in variousshop-floor continuous improvement schemes, in the context ofthe implicit and explicit threats to employment security thatglobal production flexibility provides to corporations.     

Introverts abroad? Long-term visitors' adaptations to the multicultural tourism context of Costa Blanca,Spain

Many people from North-Western Europe have quite long stays in Mediterranean Spain, partly related to phenomena such as ‘wintering’, seasonal movements and sabbatical holidays, for the most part dwelling in their own houses or apartments. This paper explores intercultural relations of long-term visitors and it raises some questions on differentiation and dedifferentiation in the consolidated holidaymaking context of Costa Blanca (Alicante, Spain). The paper includes visitors' assessments of certain central aspects of their (temporary) life in Spain, based on an exit survey. It is revealed that long-term visitors have far more varied and wide-ranging adjustments to their new and/or temporary surroundings than is usually assumed in news media and in some previous scholarly works. The study also demonstrates that generalised views depicting long-term visitors as secluded and living predominantly in compatriot enclaves are too simple, especially in long-established holiday destination areas. A considerable proportion of long-term visitors make an effort to relate to the language, culture, and social conditions of the host society. It is argued that a more nuanced and complex analysis is needed in order to describe the varied life situations of sojourners and other long-term visitors in Mediterranean Spain.     

Allotment holding as an eco‐leisure practice: the case of the Sataf village

This article explores the phenomenon of allotment holding as a leisure practice, by drawing upon on a 2‐year field study conducted at the Sataf village allotment site near the city of Jerusalem. The findings indicate that plotting at the Sataf involves an ideological commitment to nature and environment‐friendly related themes. Accordingly, plot holding at the Sataf is termed an eco‐leisure practice. In addition, the findings indicate that plotting at Sataf is an individual rather than a socially oriented experience. These findings are interpreted with regard to all of the particular features and developments in Israel, the specific literature on allotment holding, the study fields of leisure and tourism, and George Simmel's philosophy of experience.