do national soccer results really impact on the stock market this study is a response to klein et al 2008 which was highly critical of earlier work by ashton et al 2003 this work considering the link between international soccer results and stock market returns was challenged by klein et al 2008 who reject the presence and importance of this link in response this work provides a reassessment of the link between international soccer results and stock market returns within ashton et al 2003 this new analysis extends the original work by using a larger dataset employing an extended range of tests and allowing for outliers it is reported that contrary to the findings of klein et al 2008 the link between international soccer results and stock market prices does indeed exist particularly within the sample period 1984 2002 used by ashton et al 2003 after extending the dataset to include observations from 2002 until 2009 it is reported that the effect on stock market returns has declined in importance over this period particularly the impact

do soccer players play the mixed strategy nash equilibrium mixed strategy nash equilibrium msne is a commonly used solution concept in game theoretic models in various fields in economics management and other disciplines but the experimental results whether the msne predicts well actual play in games is mixed consequently the evidence for naturally occurring games in which the msne predicts the outcome well is of great importance as it can justify the vast use of msne in models the game between the kicker and the goalkeeper in soccer penalty kicks is a real world game that can be used to examine the application of the msne concept or its accuracy because payoffs are a common knowledge the players have huge incentives to play correctly the game is simple enough to analyse its nash equilibrium is in mixed strategies and players actions can be observed we collected and analysed the data on the direction of kicks and jumps in penalty kicks in various top leagues and tournaments our analysis suggests that the msne predictions are the closest to the act

the effect of environmental regulation on the locational choice of japanese foreign direct investment this article assesses the impact of environmental regulation er in host countries on japanese foreign direct investment fdi decision making it tests the pollution haven hypothesis using data on national er standards and japanese inward fdi in five dirty industries iron and steel industry nonferrous metals industry chemicals industry paper and pulp industry nonmetallic products industry the results do not support the pollution hypothesis on the contrary inward japanese fdi appears to be attracted to countries which have committed themselves to a transparent and stable environment regulatory environment suggesting that the quality of the regulatory framework in terms of its certainty and transparency has a greater influence on foreign investors choice of location than the level of environmental regulatory measures

political risk institutions and foreign direct investment how do they relate in various european countries this paper examines theoretically and empirically the extent to which the decision by foreign firms to invest in a group of countries is influenced by economic factors as opposed to political risk and institutional performance we consider the importance of these factors as drivers of foreign direct investment fdi for 32 european countries subsequently divided into three pooled clusters by means of panel regression techniques in two specifications over the 1995 2008 period our results suggest that risk and institutional factors considered in both static and dynamic perspectives significantly influence the behaviour of investors policies and institutions that vary widely between countries modify their decision making so that the purely economic factors have different statistical significance and impacts on the intensity of fdi as was revealed by clustering countries into three groups according to levels of economic maturity additionally not all factors of risk have an identical impact on fdi decisions in particular groups of countries however we find that as measures of political risk monetary discipline low regulation effective government and good education prove to be highly significant for most country groupings all of these measures reduce political risk and positively affect the level of fdi this abstract was borrowed from another version of this item

corruption investments and contributions to public goods experimental evidence from rural liberia we analyze how corruption affects incentives to invest or contribute to public goods we obtain a proxy for corruption among liberian community leaders by keeping track of a flow of inputs associated with a development intervention measuring these inputs before and after giving them in custody to the chief we then use the gap between these measurements missing inputs to explain variation in investment behavior of villagers investment behavior is gauged with two simple artefactual field experiments our main results are that corruption i undermines incentives for voluntary contributions to local public goods and ii may reduce private investments of individuals subject to rent seeking by the chief in real life we also provide weaker evidence that the impact of corruption on investments and contributions to public goods is heterogeneous this impact may be gender specific and appears to vary with accessibility of communities

reconsidering the impact of national soccer results on the ftse 100 in past decades many empirical studies revealed return anomalies in many different asset classes and markets very recent publications have however even found evidence that stock markets react to the results of soccer matches in this article we argue that such empirical studies should be analysed carefully we thus endorse the use of replication studies to verify results consequently by rebuilding the study of ashton et al 2003 we are able to detect mistakes in the empirical set up based on these findings we demonstrate how even minor flaws can have a crucial influence on the results of such studies and point out pitfalls that are frequently encountered we furthermore emphasize the importance of robustness checks to validate the results of empirical studies

sports sentiment and stock returns this paper investigates the stock market reaction to sudden changes in investor mood motivated by psychological evidence of a strong link between soccer outcomes and mood we use international soccer results as our primary mood variable we find a significant market decline after soccer losses for example a loss in the world cup elimination stage leads to a next day abnormal stock return of 49 basis points this loss effect is stronger in small stocks and in more important games and is robust to methodological changes we also document a loss effect after international cricket rugby and basketball games this paper employs a novel mood variable international soccer results to investigate the effect of investor sentiment on asset prices using a cross section of 39 countries we find that losses in soccer matches have an economically and statistically significant negative effect on the losing country s stock market for example elimination from a major international soccer tournament is associated with a next day return on the national stock market index that is 38 basis points lower than average we also document a loss effect after international cricket rugby and basketball games on average the effect is smaller in magnitude for these other sports than for soccer but is still economically and statistically significant we find no evidence of a corresponding effect after wins for any of the sports that we study controlling for the pre game expected outcome we are able to reject the hypothesis that the loss effect after soccer games is driven by economic factors such as reduced productivity or lost revenues we

global economic integration in developing countries the role of corruption and human capital investment globalization is multifaceted and involves the interaction among businesses services governments and societies beyond national borders as a result the flow of foreign direct investment fdi international trade in goods and services and the economic interdependence of the nations of the world have been increasing at the same time much attention has been paid to the effect of corruption prevalent within many cultures and societies and its impact on the economies especially developing economies this paper examines the relationship between human capital investment the level of national corruption and the global economic integration gei of a nation in developing countries based on the data collected from over 60 countries and building on the fdi and human capital theories it was found that human capital investment and corruption are related to gei it was also found that the level of corruption moderates the relationship between human capital investment and gei of developing economies the findings of the study can help to deepen our understanding of gei and have practical implications for developing countries in terms developing human capital which plays a critical role in today s knowledge based economy

structural change competitive balance and the rest of the major leagues i introduction competitive balance is the object of significant attention in the analysis of pro sports leagues under rottenberg s 1956 uncertainty of outcome hypothesis enough imbalance may actually drive down the demand for pro sports and league revenues with it but the analysis of competitive balance itself also is insightful for the impact of league self regulation choices in this paper we extend recent approaches in time series analysis found in schmidt 2001 schmidt and berri 2001a 2001b 2003 2004 lee and fort 2005 henceforth lf and fort and lee 2006 beyond its exclusive focus on major league baseball mlb to the national basketball association nba the national football league nfl and the national hockey league nhl we restrict ourselves only to north american leagues henceforth nals although davies downward and jackson 1995 simmons 1996 and dobson and goddard 1998 provide interesting time series analysis in world leagues as well these works add dramatically to the understanding of structural impacts found from ad hoc cross section approaches the review is in lf in nals a number of structural changes have been hypothesized to dramatically alter competitive balance among teams over time first there are the familiar macro occurrences of depression and war and exogenous league factors like the fundamental alteration in local revenue brought on by increases in the value of local tv broadcast rights beginning in the late 1970s second there are more direct league circumstances changes in the rules of the games the draft the end of the reserve clause changes in the number of teams merger and expansion and their locations salary caps and labor issues lf also examined the impact of racial integration on competitive balance but for the rest of the nals there is no clearly defined point marking their racial integration finally schmidt and berri 2003 and eschker perez and siegler 2004 have begun to investigate the impacts of the influx of foreign born players we apply break point detection techniques described at length in lf to within season competitive balance measures in the rest of the nals there are a number of interesting insights all breaks detected for these other nals occur after 1966 and not until 1970 in the nba rule changes in the nfl in the late 1970s correspond with a break point in that league but generally rule changes do not correspond to any break points the imposition in nals of the draft and free agency conform to rottenberg s invariance proposition ip except for a general negative trend in competitive balance in the nba when they do correspond with break points league expansion and team relocation have predictable impacts but some of these alterations do not have corresponding break points mergers in all three of the other nals correspond in interesting ways with break points that enhance competitive balance but not all mergers correspond with break points there is no correspondence between the break points and the imposition of the salary caps in the nba and the nfl finally we can find no correspondence between break points and any labor issues in any of these leagues except for enhanced balance that followed after the 1998 nba lockout explanations for the negative trend in nba are consistent with the idea that there is a short supply of tall people that is a truly physical limit on talent inputs in the nba originally proposed by berri et al 2005 and an explanation for the second break point in the nhl may have to do with the influx of european players the paper proceeds as follows in section ii we specify the empirical approach and handle the important details of stationary series and detrending the results are shown and discussed within the context of the limits of the break point technique in section iii conclusions round out the paper in section iv ii

fear unemployment and pay flexibility the paper uses newly available cross section data to study wage determination in the united kingdom in the 1980s the main results are as follows 1 fear of unemployment substantially depresses pay 2 there is some evidence of a wage ratchet whereby rates of pay are more flexible upwards than downwards 3 the unemployment elasticity of pay averages 0 1 and 4 wages are much more flexible in nonunion workplaces than they are in union workplaces copyright 1991 by royal economic society

is foreign aid a vanguard of foreign direct investment a gravity equation approach summary this paper investigates whether and how foreign aid facilitates foreign direct investment fdi flows into less developed countries we employ a large data set of source recipient country pairs and conduct gravity equation type estimation our empirical methodology enables us to examine an effect through which aid from a donor country promotes fdi from the same donor in particular which we call a vanguard effect we find that foreign aid in general does not have any significant effect on fdi however when we allow for differences in the size of aid effects across donor countries we find robust evidence that foreign aid from japan in particular has a vanguard effect i e japanese aid promotes fdi from japan but does not attract fdi from other countries

the determinants of fdi location choice in china a discrete choice analysis this study addresses two questions what are the determinants of foreign direct investment fdi location choice in china what are the factors that determine investors choice between economic zo

distinction between intermediate and finished products in intra firm trade abstract although intra firm trade has been viewed as associated with vertical integration which exploits opportunities for exchange between inherently dissimilar economies it is more common between developed countries where horizontal integration is expected to dominate using unique data from 1974 to 1990 on swedish firms application of a tobit model explains variations in majority owned manufacturing affiliates internal imports of intermediate and finished goods on the basis of firms international organization of production effects which are unobservable in aggregate figures show up only when finished and intermediate goods are separated

human capital and fdi inflow an assessment of the african case summary this study assesses the role of human capital hk on fdi inflows to sub saharan africa it uses panel data for the period 1980 2012 to asses if changing skill needs influence fdi inflows several measures of hk are used to assess whether the quality of labor explains fdi flows over the study period various versions of an fdi model were estimated and the results show that all measures of hk have a significant influence on fdi as are the traditional variables there is no evidence of the increasing importance of hk on fdi over time probably reflecting the type of fdi flowing into ssa

demand for sport this article reviews international literature on the demand for professional sport the first part presents a conceptual framework for understanding the sources and determinants of the demand for professional sporting contests the second part reviews empirical evidence on key determinants of attendance at sporting events and on other sources of demand such as broadcasting sponsorship and merchandising the review concludes that there is still much to be learned about demand for professional sport and that there are no simple lessons to be drawn from existing literature but important messages do emerge from studies of demand for attendance with regard to effects of uncertainty of outcome quality of contest and quality of viewing copyright 2003 oxford university press

the demand for standing and seated viewing accommodation in the english football league using match attendance data collected from a postal survey of football league clubs separate demand equations are estimated for standing and seated viewing accommodation some significant differences between attendance patterns for the two types of accommodation are identified current form the championship significance of the match and a geographical distance variable are found to be important determinants of standing attendance while the club s historical record is of particular importance for seated attendance the paper also discusses the implications of the results in view of the current moves towards the conversion of stadia to all seated accommodation

confronting the environmental kuznets curve t he environmental kuznets curve posits an inverted u relationship between pollution and economic development kuznets s name was apparently attached to the curve by grossman and krueger 1993 who noted its resemblance to kuznets s inverted u relationship between income inequality and development in the first stage of industrialization pollution in the environmental kuznets curve world grows rapidly because people are more interested in jobs and income than clean air and water communities are too poor to pay for abatement and environmental regulation is correspondingly weak the balance shifts as income rises leading industrial sectors become cleaner people value the environment more highly and regulatory institutions become more effective along the curve pollution levels off in the middle income range and then falls toward pre industrial levels in wealthy societies the environmental kuznets curve model has elicited conflicting reactions from researchers and policymakers applied econometricians have generally accepted the basic tenets of the model and focused on measuring its parameters their regressions typically fitted to cross sectional observations across countries or regions suggest that air and water pollution increase with development until per capita income reaches a range of 5000 to 8000 when income rises beyond that level pollution starts to decline as shown in the conventional ekc line in figure 1 in developing countries some policymakers have interpreted such results as conveying a message about priorities grow first then clean up numerous critics have challenged the conventional environmental kuznets curve both as a representation of what actually happens in the development process and as a policy prescription some pessimistic critics argue that crosssectional evidence for the environmental kuznets curve is nothing more than a

football spectator no show behaviour in the german bundesliga despite an extensive literature on stadium attendance demand our understanding of those factors shaping spectator no show behaviour is rudimentary at best here we explore such behaviour by using

an equilibrium queuing model of bribery it is sometimes argued that bribery is inefficient because bureaucrats may cause delays for attracting more bribes this hypothesis is examined in the context of a queue where customers having different values of time are ranked by their bribe payments to the queue s server the nash equilibrium strategies of the customers are derived it is shown that the server is unlikely to slow down the allocation process when bribery is allowed the model does not have stringent informational requirements and the equilibrium outcome minimizes the average value of time costs of the queue it also suggests a useful auctioning procedure

testing for unit roots in panel data are wages on different bargaining levels cointegrated theoritical considerations suggest that spillover forces equalize wages for similar jobs thus it is expected that firm wages are cointegrated with the corresponding wage rates on an industrial level in this paper we apply various unit root tests to a panel of wage data we show that the familiar techniques can be adopted to this type of data allowing for unobserved heterogeneity and common time effects our results suggest that firm and industry wages both possess a unit root in the autoregressive representation however ther is only weak evidence for a cointegration realtionship

distance trade and fdi a hausman taylor sur approach this paper analyses the effects of distance as a common determinant of exports and fdi in a three factor new trade theory model assuming that distance affects both pure trade costs and plant set up costs exports and fdi are not necessarily substitutes with respect to distance since the predicted impact depends on its importance for fixed plant set up costs relative to transportation costs and on the relative importance of vertical mnes for the empirical specification we suggest that the impact of time invariant variables such as distance is most appropriately analysed in a hausman taylor sur model we apply our model to industry level data of bilateral outward fdi stocks and exports of the us and germany copyright 2004 john wiley sons ltd

evaluating changes in league structure the reorganization of the scottish football league this article investigates the relationship between league structure and the demand for professional team sport using data from the scottish football league sfl 1971 to 1980 the sfl was restructured in 1975 and thus provides an excellent opportunity for the empirical analysis of the influence of league structure the general channels by which league structure affects demand are explored estimates are made of the impact on individual clubs by predicting what attendances would have been in the absence of the league reorganization finally the distribution of attendances across clubs is examined for evidence of the influence of league structure

an empirical investigation of the pollution haven effect with strategic environment and trade policy abstract using a new dataset on the stringency and enforcement of environmental policy this study is the first to find robust confirmation of a pollution haven effect in a cross country context by accounting for strategically determined environment trade and intellectual property right ipr policies a simple game theoretic approach to policy determination is described which suggests an identification strategy based on other country characteristics it is found that for the top 20th percentile of countries in terms of growth in u s multinational affiliate value added as much as 8 6 of that growth between 1999 and 2003 can be attributed to declining relative stringency and enforcement of environmental policy the results are robust to a number of identification tests weak iv tests and third country spatial effects further evidence is found that relatively footloose industries are more likely to be affected by environmental policy than more traditionally dirty industries and enforcement of environmental policies tends to be a more important deterrent than the stringency of the policy set

reappraising the eclectic paradigm in an age of alliance capitalism this article discusses the implications of the advent of alliance capitalism for our theorizing about the determinants of mne activity in particular it argues that due to the increasing porosity of the boundaries of firms countries and markets the eclectic or oli paradigm of international production needs to consider more explicitly the competitive advantages arising from the way firms organize their inter firm transactions the growing interdependencies of many intermediate product markets and the widening of the portfolio of the assets of districts regions and countries to embrace the external economies of interdependent activities

do stock markets react to soccer games a meta regression analysis this study applies meta regression analysis to aggregate a sample of 1126 empirical estimates of the stock market reaction to soccer matches collected from 37 primary studies our results indicate

information costs agglomeration economies and the location of foreign direct investment in china1 he c 2002 information costs agglomeration economies and the location of foreign direct investment in china reg studies 36 1029 1036 foreign investors suffer from adverse information asymmetry and face internal and external uncertainties in host economies better access to information and a variety of agglomeration economies could attenuate the disadvantages that foreign investors encounter statistical results strongly buttress the argument that foreign investors are inclined to favour such locations that could minimize information costs and offer a variety of agglomeration economies theoretical and policy implications and further research directions are discussed at the end 1 this paper was presented at the 63rd annual meeting of the association of pacific coast geographers sept 13 16 2000 arcata ca

the effects of additive outliers on tests for unit roots and cointegration this article discusses the properties of the univariate dickey fuller test and the johansen test for the cointegrating rank when there exist additive outlying observations in the time series we provide analytical as well as numerical evidence that additive outliers may produce spurious stationary hence the dickey fuller test will reject a unit root too frequently and the johansen test will indicate too many cointegrating vectors the results easily generalize to models with temporary change outliers through an empirical example we discuss how additive and temporary change outliers can be detected in practice and we show how dummy variables can be used to remove the influence of such extreme observations

the demand for league football a demand equation is estimated for total football league attendances for the period 1948 49 to 1979 80 plausible values are obtained for the elasticities of demand with respect to income and to a price variable which includes the cost of travel to the stadium the values imply that football spectating is an inferior good with a low price elasticity equations are also estimated for the league s separate divisions the implications of the results for the football league clubs are discussed

the location of overseas production and production for export by u s multinational firms abstract the location of overseas manufacturing production is influenced by common factors that operate in all industries notably proximity to the united states and to other markets within industries opposites attract low wage and low capital intensity parents choose high wage countries production for export is attracted by large internal markets in host countries economies of scale in production presumably make large markets economical as export bases another factor is high trade propensities of host countries u s firms tend to export from high wage countries but labor cost is not in general a major influence on the location of export production

multinational firms technology and location this thesis consists of four essays its main theme is the location of production in multinational firms subsidizing away exports a note on strategic trade policy investigates how strategic

good day sunshine stock returns and the weather psychological evidence and casual intuition predict that sunny weather is associated with upbeat mood this paper examines the relationship between morning sunshine in the city of a country s leading stock exchange and daily market index returns across 26 countries from 1982 to 1997 sunshine is strongly significantly correlated with stock returns after controlling for sunshine rain and snow are unrelated to returns substantial use of weather based strategies was optimal for a trader with very low transactions costs however because these strategies involve frequent trades fairly modest costs eliminate the gains these findings are difficult to reconcile with fully rational price setting

corruption and development a review of issues in this paper we start with a discussion of some of the different denotations of the problem of corruption we then consider the ways in which the damaging consequences of corruption operate in a developing economy while not ignoring its possible redeeming features in some cases we pursue the question of why corruption is perceptibly so different in different societies and also persistent finally we examine the feasible policy issues that arise in this context

the demand for english league football a club level analysis a demand equation is estimated for 19 large urban based english football league clubs over the period 1962 3 to 1991 2 in order to analyse the economic determinants of club attendances while controlling for football specific factors attendances are measured with and without correction for admission of season ticket holders using an error correction specification to model attendances it is shown that both adjusted and unadjusted attendances respond to real ticket prices in the long run in 17 and 18 clubs respectively the price elasticity is typically larger for adjusted attendances suggesting that casual spectators are more price sensitive than season ticket holders among football specific factors league position goals scored and promotion and relegation between the divisions are all important determinants of attendance patterns

the demand for football in the regions of england and wales dobson s m and goddard j a 1996 the demand for football in the regions of england and wales reg studies 30 443 453 this paper investigates the determinants of the demand for football in the regions of england and wales using annual time series data over a 37 year period we use a dynamic error correction model to identify economic and football specific factors which determine attendances in the short run and long run the short run influences on demand are performance admission price and goal scoring performance and the unemployment rate are identified as significant long run determinants of attendance although the relationship between attendance share and performance seems to exhibit a strong regional dimension we find only weak evidence of regional variation in the coefficients of the attendance model itself dobson s m et goddard j a 1996 la demande de football aux regions de l angleterre et des pays de galles reg studies 30 443 453 cet article examine les determinants de la de

competing destinations gravity model an application to the geographic distribution of fdi the competing destinations formulation of the gravity model ensues from the fact that unlike the classical version this approach explicitly acknowledges the interdependence of the flows between a set of alternative locations i e country recipients are competing for foreign direct investment fdi this article examines empirically a range of theoretical hypotheses about the determinants of fdi location in a panel data regression framework the results of the estimation of a gravity model lend support to the proximity concentration and internalization hypotheses also the fact that fdi has been found to be decreasing in the competition posed by alternative locations is suggestive of the superiority of the competing destinations version of the gravity equation over its classical formulation

natural disasters and foreign direct investment the world s population has witnessed the concurrence of two powerful global trends an unprecedented growth in foreign direct investment fdi and an increase in natural disasters since investment decisions are based on an evaluation of expected risks and returns we consider whether fdi decisions are influenced by natural disasters we do so by considering the relation between fdi in 94 countries between 1984 and 2004 and the number of disasters striking those countries across a variety of empirical tests that control for two way fixed effects we find natural disasters to be negatively and statistically significantly associated with a country s fdi

investment climate and fdi in developing countries firm level evidence this paper uses firm level data across 77 developing countries to show that constraints related to investment climate hamper foreign direct investment fdi the main results show that physical infrastructure problems financing constraints and institutional problems discourage fdi these results are robust to an alternative definition of fdi introduction of additional explanatory variables and some breakdown analyses different sectors of activity and comparison between sub saharan africa and other developing countries the results also highlight that exporter foreign firms are more constrained in their activity by physical infrastructure hurdles and the lack of skilled workers compared to firms supplying the domestic market

investing to cooperate theory and experiment we study theoretically and in a lab experiment investment decisions in environments where property rights are absent in our setting a player chooses an investment level before interacting repeatedly with a given set of agents the investment stochastically affects the payoffs of the game in every subsequent period we show that more volatile returns make investment more difficult in the absence of legal protection and might force the investor to invest more to guarantee cooperation experimental results are broadly consistent with the theoretical findings

the impact of eu preferential trade agreements on foreign direct investment although north south preferential trade agreements ptas are expected to affect foreign direct investment fdi there is not much evidence to date on the impact of eu ptas on the pattern of fdi the aim of this study is to assess the impact of eu ptas on the outward stocks of fdi of the eu we estimate a model based on the knowledge capital theory of the multinational enterprise over the period 1995 2005 using a sample of 173 host countries explanatory variables include measures of the level of bilateral protection and a dummy to capture the impact of deep integration provisions of ptas a dynamic panel model with fixed effects is used in order to take into account the dynamic behaviour of fdi and the heterogeneity bias results show that eu fdi is both horizontal and vertical the level of eu protection affects fdi negatively while the impact of the tariffs applied by host countries varies across groups of partner countries deep integration provisions affect eu fdi positively

multinational enterprises and wage costs vertical fdi revisited abstract this study explores how wage costs for high skilled and less skilled labor in host countries affect the level of affiliate activities conducted by foreign mnes we find support for vertical fdi in the sense that more fdi is conducted in countries where less skilled labor is relatively cheap in addition we find that skilled wage cost premia also affect fdi activities previously associated with horizontal fdi i e local affiliate sales consequently the potential effects of relative wage costs on mne activities are large rough calculations suggest that more than 20 percent of us affiliate sales in 1998 can be attributed to skilled wage cost premia

exploring the regional distribution of inbound foreign direct investment in the uk in theory and practice evidence from a five region study fallon g and cook m exploring the regional distribution of inbound foreign direct investment in the uk in theory and practice evidence from a five region study regional studies this paper examines the main factors that attract inbound foreign direct investment fdi at the uk regional level using econometric data from five sample uk regions the south east the west midlands the north west wales and scotland broadly representing the country s regional economic divide the findings indicate that regional and national but not european union level factors linked to several underlying strategic determinants help determine the regional distribution of inbound foreign direct investment and its inter regional variation the paper concludes that governmental policy makers at the national and regional levels can have an important role to play in drawing targeted foreign direct investment inflows to the uk regions fallon g et cook m examiner la distribution regionale de l ide au royaume uni en the

bureaucratic corruption and the rate of temptation do wages in the civil service affect corruption and by how much abstract this paper presents what is to our knowledge the first empirical estimate of the effect of pay in the civil service on corruption first we show that theory is ambiguous on the relationship between civil service pay and corruption then we examine the issue using a new data set on wages for low income countries we find evidence of a statistically and economically significant relationship between relative civil service pay and corruption in regressions based on cross country averages where we control for a wide array of variables the relationship implies that a rather large increase in wages is required to eradicate corruption solely by raising wages

does the dow 10 investment strategy beat the dow statistically and economically a comparison of returns from 1946 to 1995 on a portfolio of the 10 dow jones industrial average stocks with the highest dividend yields the dow 10 with those from a portfolio of all 30 stocks in the djia the dow 30 shows that the dow 10 portfolio beats the dow 30 statistically that is the dow 10 has significantly higher average annual returns after adjusting for the dow 10 portfolio s higher risk extra transaction costs and unfavorable tax treatment however the dow 10 does not beat the dow 30 economically in some subperiods dow 10 performance is economically superior but the question is how to interpret this information in light of the potential for data mining and investor learning

sorting through global corruption determinants institutions and education matter not culture abstract identifying the robust determinants of corruption among cultural economic institutional and geographical factors has proven difficult from a policy perspective it is important to know whether inherent largely unchangeable attributes are responsible or if institutional and economic attributes are at work accounting for model uncertainty we use bayesian model averaging bma to analyze a comprehensive list of 36 potential corruption determinants across 123 countries covering 87 percent of the world population the bma methodology sorts through all 68 719 476 736 possible model combinations 2 36 in order to carve out the robust correlates we then take a step toward alleviating endogeneity concerns in an instrumental variable bma framework our results indicate that cultural factors are largely irrelevant whereas particular economic and institutional characteristics matter the rule of law emerges as the most persistent predictor with a posterior inclusion probability pip in the true model of 1 00 whereas we find strong evidence for government effectiveness pip of 0 88 urbanization 0 85 and the share of women in parliament 0 80 as meaningful determinants of lower corruption levels in developing countries the extent of primary schooling enters as a powerful factor with a pip of 1 00

the effect of corruption on japanese foreign direct investment in an effort to reduce risk and uncertainty we hypothesize that investors avoid countries where high corruption exists we investigate this issue by examining the relationship of levels of perceived corruption on japanese foreign direct investment fdi in both industrialized and emerging economies the analysis presented utilizes a sample of 29 546 investments in 59 countries results suggest that in emerging nations where comprehensive legal and regulatory frameworks do not exist to effectively curtail fraudulent activity corruption serves to reduce fdi managers need to consider the level of perceived corruption in their assessment of any market prior to potential investment

how corruption influences foreign direct investment a panel data study abstract this article analyzes the sign and development of the effect of corruption on foreign direct investment fdi economic theory distinguishes grabbing hand corruption from helping hand corruption the former suggests a negative impact of corruption on fdi the latter one a positive effect empirically we apply a data set of 21 home and 59 developed and less developed host countries covering between 1983 and 1999 to investigate the corruption impact we employ a panel data model that particularly refers to the knowledge capital model of multinational activity we find a negative relationship between corruption and fdi this in turn suggests that the helping hand effects of corruption are outweighed by the grabbing hand effects further we observe that corruption is an important impediment of fdi in developed economies but not in less developed ones finally we demonstrate that the importance of corruption has decreased over the years

dyed in the wool an empirical note on fan loyalty this article attempts to investigate empirically the strength of intracity football club support and seeks to test the commonly held belief among the sports community that supporters will not switch allegiance between city rivals very readily to test this phenomenon data on the attendances of five english and two italian city rival clubs is used to conduct a cointegration analysis the results imply that a stable relationship does not exist between the attendance series which throws doubt on the proposition that supporters of a team are unlikely to switch their support to a rival club to test the possibility that this result could be due to fickle supporters ceasing to attend a sensitivity analysis is conducted between attendances and performance

the volatility of offshore investment abstract offshore investment often bears the image of footloose industry with little to hinder movement to the most favorable environment an effort to describe this particular segment of u s direct investment supports some elements of the colorful anecdotal portrait painted by critics in the third world semiconductor assemblers are moderately sensitive to wage rates and adjust quite rapidly in maintaining what they perceive as a diversified portfolio of risky ldc production locations on the other hand this reaction is small enough to guarantee that modest increases in wages will not send all investment fleeing from an export platform new methods of modelling direct foreign investment when risk diversification is important in explaining industrial location decisions are introduced in this paper

are asean countries havens for japanese pollution intensive industry in an era of closer worldwide economic integration the role that environmental regulations play in shaping a country s comparative advantage is greater than ever this has led to fears that dirty firms will relocate from developed to developing countries where environmental regulations may be less stringent the so called pollution haven hypothesis to date however there is little support for the existence of pollution havens despite anecdotal evidence and the theoretical predictions in this paper we employ a unique industry level dataset for japan and examine whether japanese industries have relocated production to their asean neighbours in response to the relative stringency of japanese environmental regulations not only do we find no evidence for pollution haven consistent behaviour but also some indication that the complex relationship between the characteristics of japanese dirty industries and environmental regulations may actually have reduced japanese outward fdi to the philippines

performance and revenue in professional league football evidence from granger causality tests using a dataset comprising annual performance measured by final league position and gate revenue for 77 football league clubs which maintained unbroken league membership between 1946 and 1994 the relationship between performance and revenue is investigated using cointegration and causality tests a cointegrating relationship between performance and revenue is established in only 10 cases out of 77 although it is argued that some caution is required in interpreting these results due to the low power of the relevant tests in relatively small samples in granger causality tests more evidence is found of causality running from lagged revenue to current performance than of causality in the opposite direction while the dependence of performance on revenue seems to be greater for the smaller clubs than for the larger these results lend empirical support to the popular view that unless checked by mechanisms for revenue redistribution within the league the natural tendency is for success to become concen

international investment location decisions abstract in international location tournaments governments compete for foreign investment with tax and other short run incentives such tournaments can be won if agglomeration economies are sufficiently powerful to overcome investors desire to spread investments as a hedge against risk we focus on manufacturing investments by u s multinationals in the 1980s our econometric results suggest that agglomeration economies are indeed the dominant influence on investor calculations paradoxically short run incentives have limited apparent impact on location choice we conclude that high cost tournament play is unnecessary for countries with good infrastructure development specialized input suppliers and an expanding domestic market

foreign direct investment and local linkages this paper analyses the pattern of local linkages in foreign direct investment fdi treating such local linkages as an investment in local relationships using taiwanese manufacturing firms investing abroad as the sample for our case study we find that the local linkage intensity of a foreign subsidiary differs by fdi location entry mode firm size and the nature of the production network in which an investor is embedded more local linkages will be pursued by an investor if it is in search of distinctive and inimitable resources as opposed to homogeneous and reproducible resources investment in local linkages always begins with the linkage that carries the lowest risk to the original business network for manufacturing firms the sequence of such linkages is workers components and parts subcontracting and finally sources of r d

event studies in economics and finance the event study is an important research tool in economics and finance the goal of an event study is to measure the effects of an economic event on the value of firms event study methods exploit the fact that given rationality in the marketplace the effects of an event will be reflected immediately in security prices thus the impact can be measured by examining security prices surrounding the event in this paper event study methods are described including some of the potential complications an example is included to illustrate the approach

determinants of export orientation of foreign production by u s multinationals an inter country analysis this paper examines the role of structural and policy factors in explaining a country s attractiveness as a base for export oriented production by u s mnes empirical analysis finds wage rates and industrial capability to be important determinants of export oriented production attracted by a country exports generated by relocation are found to be dependent upon intra firm imports u s mnes are found to be using their hosts as export bases more selectively

losing sleep at the market the daylight saving anomaly reply motivated by the recent flurry of activity in sleep research this paper explores the connection between sleep disruptions following spring and fall clock shifts associated with daylight savings time and equity returns it is shown that the weekend effect in the form of the lower than expected friday to monday returns is particularly pronounced for the two weekends involving daylight savings clock changes this abstract was borrowed from another version of this item