Foreign direct investment via M&A and domestic entrepreneurship: blessing or curse?

There are conflicting predictions in the literature about the relationship between FDI and entrepreneurship. This paper explores how foreign direct investment (FDI) inflows, measured by lagged cross-border mergers and acquisitions (M&A), affect entrepreneurial entry in the host economy. We have constructed a micro-panel of more than two thousand individuals in each of seventy countries, 2000–2009, linked to FDI by matching sectors. We find the relationship between FDI inflows and domestic entrepreneurship to be negative across all economies. This negative effect is much more pronounced in developed than developing economies and is also identified within industries, notably in manufacturing. Policies to encourage FDI via M&A need to consider how to counteract the prevailing adverse effect on domestic entrepreneurship.     

商业模式创新失败的五个原因

CEO及高管团队并不热衷于商业模式创新,他们对当前的模式很满意,希望组织中的其他人都集中精力来优化它。每当提到新的商业模式或者颠覆性的技术时,他们一般仅仅视为威胁。     

Long-run supply responses under self-management

The determination of optimal production is analyzed in a competitive self-managed firm when all inputs are treated as variable. It is shown that the relationship between output and product price depends on a parameter of production technology that relates returns to scale to optimal factor proportions. On this basis, the enterprise planning problem can be reformulated to provide simple analytic results that can be illustrated diagrammatically and could be tested empirically. The approach highlights the sensitivity of results to technical assumptions.     

The Russian Default

This article argues that the international financial markets' massive involvement in Russia had at best a limited basis in developments in the real economy, while financial inflows from the West both enabled and encouraged Russia to avoid the restructuring which lies behind the economic recovery elsewhere in Central and Eastern Europe. The best hope for a positive future for Russia is to allow many Russian banks and firms to go bankrupt and to change the nature of foreign financing. Liberal reforms could then be pursued with a clean slate. However, the author sees little likelihood of either of these happening.