Adjustment Problems in Developing Countries and the U.S.-Central America-Dominican Republic Free Trade Agreement

Abstract

In this study, MERCOSUR's past exports to the EU under the protectionist environment of the period between 1988 and 1996 are examined and an attempt is made to determine MERCOSUR's exports' growth potential in a liberalized EU market. A sectoral study is considered indispensable since tariff and non-tariff trade barriers vary strongly among sectors. The influence of the macroeconomic environment on MERCOSUR's exports is examined in a dynamic panel analysis. A simulation study based on a quite comprehensive evaluation of EU trade barriers is performed for the Argentinean case to evaluate the impact of EU trade liberalization.     

Qualitative Insights into the International New Venture Creation Process

This paper adopts a qualitative approach to uncover the experiences of founders of international new ventures or born global firms. The data which are based on in-depth interviews, focus on the major characters, events and surrounding conditions from the time the firm is conceived until it becomes involved with foreign markets. From these data, the major elements contributing to the creation of an international new venture are identified.     

Does foreign aid really raise per capita income? A time series perspective

Abstract. We analyze the relationship between per capita income and foreign aid. We employ annual data and five‐year averages and carefully examine the time‐series properties of the data. Panel estimations with dynamic feasible generalized least‐squares (DFGLS) show that aid generally has an insignificant or minute negative significant impact on per capita income (particularly in highly aid‐dependent countries). This holds true for countries with different levels of human development and income, as well as for different regions. We also find that aid has a small positive impact on investment, but a significant negative impact on domestic savings (crowding out) and the real exchange rate (appreciation). JEL classification: F35, O11, C23, C51     

Does foreign aid promote recipient exports to donor countries?

This paper uses the gravity model of trade to investigate the effect of foreign aid on exports of aid recipients to donor countries. Most of the theoretical work emphasises the possible negative impact of aid on recipient countries’ exports, primarily due to exchange rate appreciation, disregarding possible positive effects of aid in overcoming supply bottlenecks and promoting bilateral trade relations. Using non-stationary panel (cointegration) estimators to control for omitted variable and endogeneity bias, we find that the net effect of aid on recipient countries’ exports is insignificant, both for our sample (of 123 countries) as a whole and for important regional sub-samples. This finding is in line with the small or insignificant macroeconomic impact of aid found in earlier studies and also suggests that exporters in recipient countries are not benefiting from improved trade relations with donors.     

Being green in a materialistic world: Consequences for subjective well-being

This paper explores the potential negative side-effects of the sustainability movement in societies with large segments of materialistic consumers. Across three studies, there is evidence that a conflict between materialistic and green value profiles can arise in consumers. When it arises, it seems to be related to diminished well-being. Study 1 shows that consumers with a higher value conflict (VC) experienced higher levels of stress. Consumers with higher degrees of stress then reported lower satisfaction with life. Study 2 reveals the underlying process by which this value conflict affects well-being. The results suggest that the value conflict is related to a reduced clarity of consumers’ self-concept (SCC), which in turn is related to increased levels of stress and a lower satisfaction with life. Results of Study 3 show that preference for consistency (PfC) serves as a boundary condition to this effect. The negative effect of VC on SCC is most pronounced among consumers high in PfC, while low PfC consumers seem to suffer less from the negative consequences of a conflict between green and materialistic values. Conceptual and public-policy implications of these results are discussed.     

Using response behaviour theory to solicit survey participation in consumer research: An empirical study

Abstract

The purpose of this article is to report on research that examines survey participation rates (i.e. response rates) for personal interview surveys where solicitation for participation is based on different theories of survey-response behaviour in two culturally distinct countries. Field experiments were designed to investigate the extent to which the theories of exchange, cognitive dissonance, self-perception, and involvement/commitment can influence potential respondents to participate in a personal interview survey in Australia and Hong Kong. The results show that there were significant differences in Australia with the theory of self-perception having the strongest impact on survey-response behaviour, while cognitive dissonance has the least impact. In contrast, the effects in Hong Kong were not significant. This study adds to the limited empirical research regarding why consumers participate in surveys, particularly personal interview surveys. The theories are applied at the self-introduction and invitation to participate, which is a crucial stage in the potential respondent's decision about participation.     

Transforming learning into export performance by Chinese firms

Organisational learning plays a vital role in enhancing firm performance, particularly for companies operating in foreign markets. Knowledge gained from various markets needs to be integrated for it to have a significant impact on performance. This study seeks to demonstrate how organisational learning can transform knowledge into performance through an organization-wide commitment to learning, a knowledge integration system and an organisational capability to learn. A survey undertaken in South China would show that there is a sequential chain of effects among these constructs.     

EXPORT‐LED GROWTH IN CHILE: ASSESSING THE ROLE OF EXPORT COMPOSITION IN PRODUCTIVITY GROWTH

This study examines the export‐led growth hypothesis using annual time‐series data from Chile in a production function framework. It addresses the limitations of the existing literature and focuses on the impact of manufactured and primary exports on productivity growth. In order to investigate if and how manufactured and primary exports affect economic growth via increases in productivity, several single‐equation and system cointegration techniques are applied. The estimation results can be interpreted as evidence of productivity‐enhancing effects of manufactured exports and of productivity‐limiting effects of primary exports.     

Trade Openness and Income: A Tale of Two Regions

In this paper, we present evidence of the long‐run effect of trade openness on income per worker for two regions that have followed different liberalisation strategies, namely Asia and Latin America. A model that re‐examines these questions is estimated for two panels of Asian and Latin American countries over the 1980–2008 period using a novel empirical approach that accounts for endogeneity as well as for the time series properties of the variables involved. From an econometric point of view, we apply recent panel co‐integration techniques based on factor models that account for two additional elements usually neglected in previous empirical literature: cross‐dependence and structural breaks. The results point to a positive impact of trade openness in both Asia and Latin America although the size is smaller in the second region. We associate this finding with the degree to which trade was managed in both regions of the developing world.