Determinants of ICT adoption: evidence from firm-level data

We analyse factors driving inter- and intra-firm diffusion of Information and Communication Technologies (ICT) using data from Irish manufacturing firms over the period 2001 to 2004. We find that the path of ICT diffusion has been uneven across firms, industries and space, which is consistent with the theory of new technology adoption. Our results suggest that firms that are larger, younger, fast growing, skill-intensive, export-intensive and firms located in the capital city region have been relatively more successful in adopting and using ICT. We find positive technology spillovers from firms that have adopted ICT located in the same industry and region.     

Do foreign mergers and acquisitions boost firm productivity?

This paper examines the causal relationship between foreign mergers and acquisitions (M&A) and the productivity of acquired firms using micro-data from the UK over the period 1999–2007. Our results suggest a significant heterogeneity in the total factor productivity (TFP) effects of foreign M&A at the industry level. Overall, we uncover a systematic pattern of post-acquisition TFP effects that is consistent with the most recent theoretical models of firm heterogeneity and cross-border mergers and acquisitions as mode of foreign entry. Furthermore, we find positive aggregate effects on labor productivity due to capital deepening but not due to changes in TFP.     

Economic Integration and Manufacturing Concentration Patterns: Evidence from MERCOSUR

Over the past two decades, Argentina, Brazil, Paraguay, and Uruguay have implemented unilateral trade liberalization programs and formed MERCOSUR. The effects of these reforms on production structures in these countries have not received a great deal of attention. This paper analyses patterns of relative manufacturing concentration in Argentina, Brazil, and Uruguay over the period 1985–1998. Our results indicate that localisation of demand and comparative advantages are the main driving forces of these patterns. The establishment of MERCOSUR has fostered the relative importance of factor endowments and production linkages in shaping the spatial distribution of manufacturing in the above three countries. JEL Classification Numbers: F14, F15, L60, C23     

Firm strategies in expanding and diversifying exports

This paper provides novel empirical evidence on the patterns and dynamics of exports by Irish firms over the past two decades from a highly detailed data set of export records at the firm‐product‐destination level. We identify patterns of export concentration and specialisation and how these evolved over time. Firms’ strategies for export growth along product and destination markets mixes are then examined and the contributions of intensive (average sales) and extensive (number of products or markets) margins to overall exports and to export growth are calculated. We find that most exporting firms are quite small, selling a few products to a small number of destinations while export values are dominated by a relatively small group of highly globalised large firms selling many products to many destinations. Continuing exporters frequently introduce new products, drop products and enter and exit markets. Export growth in the case of Irish‐owned exporters appears largely driven by the extensive margin of product and destination changes. However, the opposite pattern holds for foreign‐owned firms with growth mainly coming from the intensive margin.     

Bonding and dynamical changes

This theoretical exercise looks at how public expenditures for bonding can change the internal dynamics of an economic system. This new approach allows for a model of growth with institutions. These institutions, called bonding institutions, will put an economic system attracted by a low and stable equilibrium output onto a path of economic growth. Questions such as under what circumstances these institutions will come into place and whether their result, a new and higher output level, is a stable outcome of the system can now be addressed.     

Regional output growth synchronisation with the Euro Area

This paper investigates the patterns and determinants of the co-movement of economic activity between regions in the European Union and the Euro Area. We use a panel dataset of 208 regions over the period 1989–2002 and estimate a system of simultaneous equations to analyse the impact of regional trade integration, industry specialisation and exchange rate volatility on regional output growth synchronisation with the Euro Area. We find that deeper trade integration with the Euro Area had a strong direct positive effect on the synchronisation of regional output growth with the Euro Area. Industrial specialisation and exchange rate volatility were sources of cyclical divergence. Industrial specialisation had however an indirect positive effect on regional output growth synchronisation via its positive effect on trade integration, while exchange rate volatility had an indirect additional negative effect on regional output growth synchronisation by reducing trade integration.     

The Romanian researchers＇ profile and career in the knowledge based economy

This study examines the international profile and career of 157 Romanian researchers. The majority considers the insufficient funding of research in Romania as playing a major role in their decision to work in the knowledge based economy. In addition, the survey reveals several other factors which motivate the emigration of Romanian scientists. While abroad, the majority kept in touch with their former university/research institute, colleagues and/or the Romanian scientific community, in general. More than half of the respondents prefer to work outside Romania, after completing their current professional projects.