monetarism and the us economy we take a small macroeconomic model due to stein designed to capture the essential aspects of keynesian and monetarist propositions especially on the question of crowding out we show that stein s empirical procedure is inadequate he ignores the restrictions that he imposed on the structure of his model and concentrates on single equation reduced form estimation we are able to derive complete maximum likelihood estimates of the structural parameters subject to the non linear restrictions of the model using identical data and the same specifications but with these more appropriate estimation techniques we show that conclusions opposite to those of stein may be reached

foreign investment and spillover efficiency in an underdeveloped economy evidence from the mexican manufacturing industry abstract in this paper we consider the question whether differences in technical efficiency of mexican plants in part derive from spillover efficiency associated with foreign direct investment we use labour productivity as a measure of technical efficiency and relate this to capital intensity labour quality and scale of production we measure the degree of competition by different concentration indices and the final factor determining efficiency is the presence of foreign subsidiaries if there is a positive relation between efficiency of domestic plants and the foreign participation of various industries we conclude that there is a spillover of technical efficiency the empirical evidence from the study indicates that this is the case

economic globalization and women s employment the case of manufacturing in mexico sociological research has been generally critical of the effects of economic globalization on developing countries however greater worldwide economic integration may have created new employment o

an equilibrium efficiency frontier data envelopment analysis approach for evaluating decision making units with fixed sum outputs abstract based on the minimal reduction strategy yang et al 2011 developed a fixed sum output data envelopment analysis fsodea approach to evaluate the performance of decision making units dmus with fixed sum outputs however in terms of such a strategy all dmus compete over fixed sum outputs with no memory that will result in differing efficient frontiers evaluations to address the problem in this study we propose an equilibrium efficiency frontier data envelopment analysis eefdea approach by which all dmus with fixed sum outputs can be evaluated based on a common platform or equilibrium efficient frontier the proposed approach can be divided into two stages stage 1 constructs a common evaluation platform via two strategies an extended minimal adjustment strategy and an equilibrium competition strategy the former ensures that original efficient dmus are still efficient guaranteeing the existence of a common evaluation platform the latter makes all dmus achieve a common equilibrium efficient frontier then based on the common equilibrium efficient frontier stage 2 evaluates all dmus with their original inputs and outputs finally we illustrate the proposed approach by using two numerical examples

the impact of foreign direct investment on uk manufacturing is there a profit squeeze in domestic firms this paper examines the extent to which foreign direct investment fdi in selected uk manufacturing sectors has an impact on reported profits in domestic firms foreign manufacturing firms are characterized by relatively high labour productivity and low wage shares entry by foreign firms not only impacts on domestic market shares but also on domestic cost conditions as a result profitability in the indigenous sector may be reduced there are a number of policy implications of this analysis which are explored

mne subsidiaries versus domestic enterprises an analysis of their ownership and location specific advantages this paper compares the ownership advantages of multinational enterprises mnes subsidiaries and domestic enterprises dmes in greece previous studies have tested the hypothesis that ownership specific advantages oa are a major source of firm differences this study analyses the processed food sector sic 20 the leading industrial sector in greece with the highest inward and outward internationalization degree using a panel data set of 75 firms and 5 years the findings of a probabilistic regression analysis indicate that there are significant differences between the two groups of firms in the degree of possession of observed ownership advantages mne subsidiaries have higher market shares use multiplant operations and have higher advertising and r d to sales ratios compared to dmes dmes use their well established position knowledge of domestic and regional market conditions and size economies in order to compete effectively with mne subsidiaries it is inferred that pursuit of domestic ma

the profits of foreign firms in a less developed country ghana abstract using a proxy for the rate of profit this study does not confirm for ghana 1970 the hypothesis that foreign firms make excessive profits as compared with other ownership groups of firms instead the general tendency of the data is to rank the rates of profit for mixed private local foreign and private local firms higher than those of wholly foreign mixed state foreign and wholly state owned firms explanations of these observations in terms of transfer pricing through imports and differential cost reduction incentives available to the firms are attempted

mode of rivalry and comparative behaviour of multinational and local enterprises the case of indian manufacturing abstract in order to maximize the revenue productivity of their intangible assets affiliates of mnes are more likely to pursue non price rivalry than their host country counterparts the choice of rivalry is expected to get reflected on different aspects of firms conduct and performance comparing the behaviour of two groups of firms in 49 indian industries this paper finds in tune with the predictions that mne affiliates operate at relatively larger scales enjoy higher profit margins are more vertically integrated and fund flush witm more skilled personnel for advertising and r d inputs they benefit also from the global expenditures of their associates

intra and inter industry externalities from foreign direct investment in the mexican manufacturing sector new evidence from mexican regions summary this paper presents new empirical evidence on externalities from foreign direct investment fdi in several mexican regions in the early 1990s the main findings are threefold first the presence of fdi creates negative externalities within industries and positive externalities between industries through backward linkages second fdi externalities are stimulated by large technological differences between fdi and mexican firms and by geographic concentration of industries third we identify a substantial level of regional heterogeneity of the externality impact of fdi in line with the notion that fdi may have contributed to processes of changing regional prosperity under trade liberalization the findings also imply that maquiladora firms in the border states are generating positive externalities

ranking dmus by using interval dea cross efficiency matrix with acceptability analysis abstract cross efficiency method is an extension of data envelopment analysis dea and has been widely used for ranking performance of decision making units dmus to eliminate the non uniqueness of cross efficiency scores the aggressive and benevolent strategies have been proposed as secondary goals to determine the unique cross efficiency score the current paper aims to propose an alternative strategy which does not consider the preference of the decision maker in choosing aggressive or benevolent strategy instead the paper considers all possible weight sets in weight space when computing the cross efficiency and each dmu is given an interval cross efficiency by using the stochastic multicriteria acceptability analysis smaa 2 method all dmus in the interval cross efficiency matrix cem could be fully ranked according to the acceptability indices a numerical example about efficiency evaluation to seven academic departments in a university is illustrated

money and inflation the case of western developed countries 1960 80 1990 money and inflation the case of western developed countries 1960 80 applied economics vol 22 no 7 pp 863 869

are multinational corporations safer the failure probabilities of a sample of multinational corporations mncs are derived and compared with those of a control group of domestic corporations dmcs the results suggest that the mean insolvency probability of dmcs is significantly higher than that of the mncs it is also observed that mncs are significantly more capitalized and the standard deviation of their equity as well as their average systematic risk are also significantly lower furthermore the average insolvency probability of the dmcs is more sensitive to changes in the values of the parameters than those of the mncs

the monetarist versus the neo keynesian views on inflation abstract this empirical inquiry investigates the relative merits of the monetarist and the neo keynesian hypotheses regarding the behavior of inflation in the italian economy over the 1955 1983 period based on testing three alternative dynamic models that have been proposed in the literature the empirical results support the monetarist proposition that unemployment has an insignificant impact upon inflation a finding that is at odds with the neo keynesian hypothesis indeed consistent with the monetarist hypothesis the results suggest that the rate of monetary expansion is a prime determinant of the rate of inflation and its acceleration in italy

ranking ranges in cross efficiency evaluations the existence of alternate optima for the dea weights may reduce the usefulness of the cross efficiency evaluation since the ranking provided depends on the choice of weights that the different dmus make in this paper we develop a procedure to carry out the cross efficiency evaluation without the need to make any specific choice of dea weights the proposed procedure takes into consideration all the possible choices of weights that all the dmus can make and yields for each unit a range for its possible rankings instead of a single ranking this range is determined by the best and the worst rankings that would result in the best and the worst scenarios of each unit across all the dea weights of all the dmus this approach might identify good bad performers as those that rank at the top bottom irrespective of the weights that are chosen or units that outperform others in all the scenarios in addition it may be used to analyze the stability of the ranking provided by the standard cross efficiency evaluation

the comparative performance of foreign and domestic firms in brazil abstract this paper analyzes data for 282 pairs of foreign owned and private brazilian firms which are matched by sales and by four digit manufacturing industry differences between the two types of firms are surprisingly large and highly significant compared to their local counterparts foreign firms operate fewer plants have higher ratios of value added to output higher levels of advertising and royalty payments greater exports higher labor productivity higher wages and greater capital intensity

monetarism and the aggregate economy some longer run evidence a simple macro model is used to investigate various monetarist propositions over the period 1923 82 initial tests indicate a structural break over this period and the subperiods 1923 60 and 1961 82 are analyzed separately results obtained for the latter period support the monetarist propositions put forward by stein and others however upon closer investigation it appears that the crucial long run neutrality that characterizes these findings is essentially generated by government policy and is not necessarily an intrinsic property of the economy over that period by contrast results obtained for the period 1923 60 are much less supportive of these same propositions

foreign direct investments environmental externalities and capital segmentation in a rural economy this paper examines the possible effects of external investment inflows on the development of local rural economies taking into account two recurrent features of many developing countries capital market segmentation and environmental externalities to investigate this issue we examine a model with two sectors the local sector and the external sector physical capital accumulation in the latter sector is driven by foreign direct investments while in the former sector it follows a solow type accumulation mechanism we assume that the production activity of the external sector damages the environment while the local sector relies on natural resources in this context we give the conditions under which capital inflows can promote diversification of host economy while improving welfare of local populations if these conditions are not satisfied external investments fuel a welfare reducing process for the local community and a self enforcing growth of the external sector at the expense of the local one

mode size and location of foreign direct investments and industry markups abstract several studies find that inward foreign direct investment fdi raises host industries competition and productivity using aggregate fdi measures the monetary flows or the change in the industries foreign production share yet fdi flows are composed of many individual heterogeneous investments reflecting this heterogeneity i ask how the average traits of the individual investments that constitute the fdi flow further affect the host while the results show that inward fdi does heighten competition for us manufacturing industries in 1987 1991 price cost markups fall even more when foreign investments locate further away from incumbent industry which is consistent with endogenous location choice

mutual productivity spillovers between foreign and local firms in china the existing literature treats advanced technology sourcing as the only cause of reverse productivity spillovers from local to foreign firms and implies that mutual spillovers between foreign and local firms can only happen in the developed world this paper argues that the diffusion of indigenous technology and local knowledge helps the productivity enhancement of multinationals so that there can be mutual spillovers even in a developing country the results from a large sample firm level econometric analysis and a comparative case study of seven companies in chinese manufacturing support this new argument as mutual spillovers are identified between local chinese firms and overseas chinese or oecd invested firms

the firm demand for liquid assets in an inflationary environment measures of inflation and the price level are added to the standard model of liquid asset demand and estimated with cross section data on brazilian manufacturing firms over a four year period characterized by substantial inflation annual rates of 19 23 34 and 35 results indicate that economies of scale exist in a model that is stable over time interest rates have a strong and elastic impact on liquid asset demand when inflation is explicitly controlled for although this result is not consistent across all subsets of data used the usual assumption of a unitary price level elasticity of liquid asset demand is rejected and firms appear to conserve on liquid asset holdings as the rate of inflation increases suggesting more careful management of payments flows some of these findings contradict those of ungar and zilberfarb 1980 there are also some difference in behaviour across ownership groups brazilian firms do not exhibit economies of scale while multinationals do and brazilian firms adjust ac

some alternative models for dea cross efficiency evaluation abstract cross efficiency evaluation is an effective method for ranking decision making units dmus in data envelopment analysis dea and can be performed with different formulations aggressive or benevolent secondary goals and models this paper proposes some new alternative models for dea cross efficiency evaluation to provide more methodological options for the decision maker dm to choose from the proposed new alternative models are illustrated with two numerical examples the results are believed to be more realistic than those obtained by the alternative secondary goals suggested by liang et al liang l wu j cook w d and zhu j 2008a alternative secondary goals in dea cross efficiency evaluation international journal of production economics 113 2 1025 1030

spillovers from foreign direct investment within or between industries this paper contributes an estimation framework to measure both technological and linkage externalities from foreign direct investment fdi empirical research dealt mainly with intra industry spillovers from fdi with restrictive treatment of inter industry effects until recently however as optimal organization of the multinational corporation mnc involves minimization of profit losses due to leakage of technical information to competitors host country firms within the mnc s sector experience limited productivity gains ensuing fdi host country producers in other sectors may benefit for example mncs transfer knowledge to local downstream clients or outsource to local upstream suppliers hence fdi substitutes within sector domestic investment but complements it across sectors the net impact on aggregate capital formation by host country producers hinges on the interaction between linkages and spillovers estimations based on the colombian manufacturing census yield the sectoral pattern of fdi spillovers displaying knowledge propagation between but not within industries the findings reveal outsourcing relationships of mncs with local upstream suppliers as the channel of diffusion

foreign ownership market structure and industrial performance brazil s electrical industry abstract using an industrial organization approach this article tests the hypothesis that the ownership of firms exerts an independent influence on industrial performance we compare the behavior of foreign and domestic firms in brazil s electrical industry in four areas the association of firms with particular types of domestic market structures their technology their trade conduct and their profitability regression analysis shows that tncs tend to produce in tightly organized differentiated oligopolies they generally employ a more capital intensive technology they import more per unit of sales but do not necessarily export more finally reported earnings of tncs are found not to be any higher than domestic firms but reported profits of all firms are positively related to the level of industrial concentration and product differentiation markets which tend to be the domain of tncs rather than domestic enterprises it is concluded that ownership is a strong variable of market structure in brazil s electrical industry and that the systematic effect of foreign ownership on industrial performance is not always helpful in attaining development objectives

market structure and performance of u s multinationals in brazil and mexico this paper presents the results of a regression analysis of the market structure determinants of profitability among the brazilian and mexican manufacturing affiliates of us multinational corporations the study employs data on 206 firms derived from a special survey specifically designed to obtain detailed information on their market structure environments and performance characteristics our estimates confirm that seller concentration product differentiation and relative market share are three sources of market power of these firms despite the many economic and noneconomic differences between brazil and mexico there are no systematic differences between the two in their underlying structure performance relationships

a technique for obtaining improved proxy estimates of minimum optimal scale in the field of industrial organization the concept of economies of scale is of fundamental importance large minimum optimum scale mos 1 and significant unit cost reduction up to mos size together suggest the possibility of high industry concentration and significant barriers to entry 2 however a recent paper in this review caves shirazi and porter 1975 has pointed to the severe difficulties encountered by students of industrial organization in empirical analyses of these relationships the chief problem is that objective measures of mos i e engineering estimates 3 and of the cost disadvantage of suboptimal scale production are available for only a small minority of all u s manufacturing industries at say the 4 digit level since there are more than 400 such industries it is most unlikely that there ever will be much change in this situation this means that in large scale cross section statistical analyses various proxies for scale economy influences must be used this is also the case in other fields of economics in which the influence of industrial organization has been recently felt in the investigation of sectoral patterns of direct foreign investment and the commodity composition of international trade for example unfortunately little has been achieved in terms of the development of reliable proxies for scale economies or minimum optimal scale this relative poverty in the data seriously jeopardizes the empirical analyses undertaken in all the above mentioned fields the present paper is a first step at overcoming this deficiency it offers a critical analysis of the proxies currently in vogue and it suggests an alternative technique for generating estimates of mos that appear to be substantially superior to them

united arab emirates fdi outlook fdi is important in building a sustainable and diversified knowledge based uae economy the stock of fdi grew at an average annual growth rate of 45 3 percent over the past decade reaching us 95 billion or nearly 27 percent of gdp in 2012 fdi flows have not recovered from the global financial crises most fdi stock is concentrated in finance construction and real estate recent greenfield fdi is concentrated in construction while more than half of top m a deals took place in finance transportation communications and utilities the list of top oecd home countries for fdi flows to the uae include italy germany chile united kingdom luxembourg france united states and belgium though uae investment policy limits foreign investment and reduces competition the government has undertaken reforms and contracted investment treaties that have encouraged investment efforts are under way to speed up the ratification of a new foreign investment law which removes several of the current legal barriers to fdi and offers foreign investors similar rights to those of uae nationals the uae has high fdi potential with plenty of room for improving fdi performance and benefiting the economy

causality between foreign investment and spillover efficiency while there is considerable evidence on the observed linkage between foreign investment and technical efficiency of the developing countries the question of causality between them has not been investigated this paper re examines the relationship between foreign direct investment and technical efficiency in mexico brazil chile singapore and zambia using granger causality tests the results suggest that foreign direct investment and labour productivity are causally independent variables however capital formation of the host country is found to exert causal influence on foreign investment

technical environmental and eco efficiency measurement for supplier selection an extension and application of data envelopment analysis with increased global awareness of environmental sustainability green supply chain management gscm has received considerable attention in the literature over the decade green supplier selection and assessment in gscm is one of the most significant and complex challenges for supply chain managers this paper provides a new model and approach for green supplier selections by decomposing their efficiency indicators into technical environmental and eco efficiency scores we show that the models in the literature are computationally intensive and are not able to measure eco efficiency properly instead of running three different models linear goal programming is used to integrate technical environmental and eco efficiency objectives into a multiple objective linear programming molp data envelopment analysis dea model therefore the model proposed in this paper is less computationally intensive than the models in the literature the new model provides a more valid eco efficiency indicator of decision making units dmus by utilizing a better combination of the technical and environmental efficiency objectives compared to the conventional models unlike the conventional models the new model identifies dmus as being eco efficient if and only if they are both technically and environmentally efficient we also discuss the non dominated weights as the solutions of the molp model and use them to construct technical environmental and eco cross efficiency matrices of the dmus in order to illustrate the effectiveness and applicability of the proposed model we present the real world business case of the hyundai steel company and its suppliers

the demand for liquid assets a firm level analysis analysts have exerted considerable effort attempting to demonstrate that the firm demand for liquid assets or money conforms to microeconomic theory the theory itself is splintered along three lines of inquiry a keynesian version stressing the transaction and asset motives 28 33 35 an essentially quantity theory approach 19 6 and an approach which incorporates money into the firm s production function 22 31 7 29 the empirical work used to test these theoretical approaches has a common element a measure of the firm s scale is included usually sales or business receipts and generally a common flaw the use of aggregated data most studies have used industry level data because it is more readily available this forces the analyst to assume that firms within an industry are homogeneous while firms across industries are heterogeneous the authors can then use the typical firm as the unit of analysis the typical firm is a hypothetical construct whose characteristics are statistical means of all firms aggregated within the industrial category while this is a useful assumption the aggregation may hide the influence of the distribution of firms within the industry these distributional impacts may be significant if there are substantial economies of scale or if firm size influences such things as cash management practices and access to financial markets katsimbris and miller 15 have warned that the size distribution of firms within an industry may alter money demand the greater the inequality in sales the lower the industry s demand for money they find no support for the assumption of identical structural specification across industries these observations have been echoed by hunter 12 and by other work of katsimbris and miller 13 14 under such circumstances the use of industry average data may yield misleading conclusions on the firm demand for money any study of firm behavior in this area should at the very least control for industry some time ago vogel and maddala 33 called for empirical studies using firm level data a call which has gone largely unanswered this study attempts to fill this void by using a comprehensive set of firm level data over a five year period but we also attempt to answer several other questions does the presence of foreign ownership alter the firm s demand for liquid assets

unemployment inflation and monetarism the council s report provides a look at the 1969 71 game plan to disinflate by means of retarding aggregate demand the president elect s task force on inflation recommended as a first interim step that aggregate demand be slowed so as to bring the unemployment rate back to some equilibrium region around 4 5 percent what happened was that under the cover of the expectation and acceptance of such a limited step towards re equilibration the administration gradually tightened monetary and fiscal policy so severely as gradually to send the unemployment rate whizzing past the equilibrium zone to around 6 percent to my knowledge the theory of how and how well this medicine would act to cure the patient of his inflation was never spelled out by the council of economic advisers pp 533 34