Political Institutions and Policy Volatility

Checks and balances that limit the discretion of policy-makers reduce the volatility of government expenditure and revenue. While this assumption is at the heart of a large body of empirical work, the association between political institutions and policy volatility has itself been the focus of only limited empirical testing. The results presented here support the existence of this link, allow for a comparison between two prominent measures of checks and balances and provide insight into the relative impact of checks and balances on the volatility of nine different types of fiscal policy both during times of macroeconomic stability and upheaval.     

Liberalisation and de-regulation of the public sector in the transition from plan to market

The above analysis allows several conclusions to be drawn:

Creating an Environment for Economic Growth: Creativity,Entrepreneurship or Human Capital?

Scholars and policymakers interested in the growth and prosperity of regions have long recognized that talent and knowledge are fundamental. Yet the question is what types of talent are needed in a growing twenty‐first‐century economy: human capital, creativity and innovation, or entrepreneurship? The latter we define broadly to include any type of risk taking, and not only radical innovation. The literature does not clearly point to one factor as being the most essential. This study assesses this question separately for rural and urban United States (US) counties. We find that human capital––measured by educational attainment––is considerably more conducive to employment growth than the share of creative occupations. Likewise, the share of small and medium businesses is also very conducive to local growth, although this does not apply to the self‐employment share. Rural and urban areas experience similar patterns, although the magnitude thereof tends to be larger for urban counties, whereas high‐technology employment share has had a positive effect in rural areas. Policy conclusions suggest that enhancing small business development and increasing educational attainment are the two strategies that are most likely to succeed.     

Knowledge,Competence, And Regional Development

This study examines the impact that locational spillovers have on firm performance. On the basis of a uniquely created data set consisting of high-technology start-ups publicly listed in Germany, this paper tests the proposition of locational spillovers positively affecting firm performance, as measured by abnormally high profits on the stock market. The results provide evidence that geographic proximity and university spillovers are complementary determinants of firm performance. Although neither geographic proximity nor academic research spillovers alone can explain firm performance, a combination of both factors results in significant higher stock market performance. The results also show that academic spillovers are heterogeneous in their impact, depending on the type. In particular, spillovers from social sciences have a different impact on firm performance than do spillovers from natural sciences.     

Fibre tracks: explaining investment in fibre optic backbones

This paper examines the US portion of the global communications network known as the Internet. The stages in the Internet's evolution, telecommunications deregulation, and a rush by new competitors to new market opportunities associated with the Internet combined to prompt a flurry of investment in new fibre-optic networks. Frameworks to explain new networks built upon, and added to, existing telecommunications networks include network economies and the opportunity-rich paths located between the large markets on the east and west coasts of the country and a capital-driven set of new and old network suppliers. The paper then reviews the small but growing body of research on the geographic structure of the Internet. The empirical section of the paper focuses on analyses of the variation among urban areas both in bandwidth on interurban Internet backbone networks and in the number of web design firms in the USA. Bandwidth investment was attracted not only to cities with larger populations but also to cities with ‘knowledge economies’, indicated by doctoral degree-granting institutions and economic dynamism. The paper concludes with remarks about future research priorities.     

Spinning gold: The financial returns to stakeholder engagement

We provide direct empirical evidence in support of instrumental stakeholder theory's argument that increasing stakeholder support enhances the financial valuation of a firm, holding constant the objective valuation of the physical assets under its control. We undertake this analysis using panel data on 26 gold mines owned by 19 publicly traded firms over the period 1993–2008. We code over 50,000 stakeholder events from media reports to develop an index of the degree of stakeholder conflict/cooperation for these mines. By incorporating this index in a market capitalization analysis, we reduce the discount placed by financial markets on the net present value of the physical assets controlled by these firms from 72 percent to between 37 and 13 percent. Copyright © 2013 John Wiley & Sons, Ltd.     

Political hazards,experience, and sequential entry strategies: the international expansion of Japanese firms, 1980–1998

We find support for the role of experiential learning in the international expansion process by extending the stages model of internationalization to incorporate a sophisticated consideration of temporal and cross‐national variation in the credibility of the policy environment. Using a sample of 3857 international expansions of 665 Japanese manufacturing firms, we build on the concepts of uncertainty and experiential learning, to show that firms that had gathered relevant types of international experience were less sensitive to the deterring effect of uncertain policy environments on investment. One implication of our results is that research on international strategy should emphasize understanding the political institutions that constrain or enable political actors, just as entry mode research has done. A second implication is that research in the stages model of internationalization should give the same weight to the policy environment as a source of uncertainty to a firm, as it has given to cultural, social and market institutions. Copyright © 2003 John Wiley & Sons, Ltd.     

Information source usage in the migration decision

This paper examines the characteristics of information source usage in the migration decision. Its first task is to put forth a conceptual frame-work. This draws upon a framework developed earlier by one of the authors, but extends it to include phases of the migration decision-awareness, interest, and evaluation-under the hypothesis that the intensity of information source usage and the type of information gathered varies by phase. The second task involves reporting the results of a survey based upon a questionnaire that incorporated the conceptual framework. This instrument was administered to 274 migrants to Columbus, Ohio. In reporting the empirical findings of the survey, three questions are addressed: (1) What is the pattern, frequency and effectiveness of information source usage by migrants? (2) What type of information is obtained from each information source? (3) Does information source usage and/or type of information obtained vary by phases of the migration decision process?