renewable natural resource management and use without markets natural resources by their nature are not readily bent to the status of private property efficient resource use is complicated by jurisdictional externalities public goods non use values and beneficiaries spatially separated from the location of resources the task is made more challenging by ecological complexity that obscures cause benefits and effects costs and dramatic time lags between individual actions and subsequent social consequences that together with substantial uncertainty introduce the chance of irreversibilities resource economists have played a major role in the literature on externalities the development of individual transferable quotas non market valuation techniques and common property management

cross country evidence on the link between the level of infrastructure and capital inflows the relationship between public infrastructure and international capital flows is empirically investigated out of a sample of 30 countries a cross sectional econometric model is constructed to estimate the effects different components of infrastructure variables are tested in relation to their impact on different kinds of external capital liabilities the results suggest a positive relationship between the level of infrastructure and capital inflows however statistical significance cannot be established for all variables in question

resource based fdi and expropriation in developing economies abstract globally foreign direct investment fdi assets are expropriated more in resource extraction industries compared to other sectors despite the higher apparent risk of expropriation in resources countries more likely to expropriate also have a larger share of fdi in the resource sector an incomplete markets model of fdi is developed to account for this puzzle the type of government regime is stochastic with low penalty regimes facing a relatively low exogenous cost of expropriating fdi and country risk is measured by the variation in these costs across different regimes the key innovation of the model is that the government before the regime type is known is able to charge different prices to domestic and foreign investors for mineral rights granting cheap access increases fdi and reduces the country s share of resource rents increasing the temptation to expropriate in a relatively low penalty regime in very high risk countries subsidizing resource fdi increases the total value of output by raising investment and the net gains from expropriating in a low penalty regime outweigh the rents foregone under a high penalty one however a stochastic resource output price results in relatively low risk countries restricting fdi inflows to the resource sector instead windfall profits in this sector raise incentives to expropriate when prices are high yet minimization of the ex ante risk of expropriation is preferred owing to the relatively high penalty for expropriating these results imply a higher average share of resource based fdi in countries most likely to expropriate while resources account for a high share of expropriated assets compared to the sector s global share of fdi we show that the model is able to reconcile observed patterns of foreign investment and expropriation for a sample of 38 developing and emerging economies

going the distance the pros and cons of expanding employees global knowledge reach while some scholars have suggested mnes to be superior to markets for managing knowledge across geographically distant boundaries how they actually accomplish this has not been fully considered we address this void by developing and testing a model that highlights the critical role of organizational incentives in enhancing employees internal search and use of knowledge data from 166 knowledge intensive projects support our argument that in contrast to process based incentives that influence more local search outcome based incentives motivate employee teams to reach well beyond their immediate location which in turn enhances performance at the same time we demonstrate that expanded reach also increases the likelihood of accessing more codifiable knowledge which can hurt performance our model examines the contradictory and previously unknown effects of global knowledge reach

tax competition between developed emerging and developing countries same same but different abstract this paper analyzes tax competition between countries which differ in their country specific risks we show that the outcome of asymmetric tax competition crucially depends on the ability of multinational firms to shift profits with high costs of profit shifting higher risk countries set lower tax rates than lower risk countries whereas the opposite is true if the costs of profit shifting are low the results provide an explanation for the patterns observed in the corporate income tax policies across countries differing in their level of development moreover for intermediate costs of profit shifting we show that countries absolute risk level plays an important role in tax rate setting these results carry important implication for the empirical tax competition literature

entry mode deviation a behavioral approach to internalization theory we explore when and why decision makers choose international entry modes e g hierarchies or markets that deviate from internalization theory s predictions by applying a cognitive perspective on entry mode decision making we propose that the performance of prior international activities influences decision makers behavior in different ways than assumed in internalization theory more specifically due to a representativeness bias underperforming overperforming past ventures influence the decision to change continue using the previous entry mode choice which may result in an entry mode deviation in addition the propensity to deviate from theoretical predictions is stronger when the experience is recent and or salient due to an availability bias in conclusion we argue that internalization theory can benefit from incorporating more systematically important behavioral assumptions on how firms enter international markets in so doing we contribute to the recent conversation on how variations in human behavior influence internalization theory

opportunism corruption and the multinational firm s mode of entry abstract the paper develops a theoretical approach to the boundaries of the multi national firm in the context of institutional constraints in host countries focusing especially on corruption the model incorporates two types of corruption petty bureaucratic corruption and high level political corruption the model predicts that in the absence of corruption multinational firms will prefer fdi internal expansion with strong control rights to debt arm s length expansion with loose control rights the weaker the host country s ability to commit however both types of corruption shift the trade off marginally toward debt cross country panel empirical evidence supports these conclusions corruption has a second order marginal effect and matters mostly through its interaction with political risk

the expansion of foreign direct investments discrete rational location choices or a cultural learning process it is recognized in the literature that experience may affect the cost and the uncertainty of operating in foreign markets and experience and market knowledge may therefore influence the location decisions of fdis economic theory does not however predict a general expansion pattern of fdis across industries on the other hand the theory associated with the internationalization process approach highlights the importance of cultural distance and predicts a movement from close to more distant markets as more experience is acquired by the firm the internationalization process approach is rooted in a behavioral theory of the firm

stickiness and the adaptation of organizational practices in cross border knowledge transfers the reuse of organizational practices in multiple locations is a fundamental way in which mncs leverage knowledge to seek competitive advantage scholars approaching the issue of adaptation from both a market and an institutional perspective argue that in order to achieve fit with the local environment some degree of adaptation is advisable and the need for adaptation increases as the institutional distance between source and recipient locations increases however arguments to date have examined the effect of adaptation primarily on a subsidiary s long term performance a necessary precursor is to understand the effect of adaptation on the transfer process itself as transfer difficulty or stickiness may preclude the reuse of an organizational practice in the first place in this paper we explore how the adaptation of organizational practices affects the stickiness of cross border transfers we use structural equation modeling to analyze data from 122 internal transfers of best practice contrary to expectation we find that adaptation significantly increases rather than decreases the stickiness of cross border knowledge transfer

incentive problems and the pattern of international risk sharing abstract this paper analyzes the implications of moral hazard and a lack of contract enforcement for risk sharing across countries and regions we demonstrate that both incentive problems can considerably restrict efficient risk sharing however we show that the cross sectional risk sharing component is much more affected than the intertemporal component we argue that this may help to explain several stylized facts of international risk sharing such as the low degree of insurance against permanent shocks

explaining stakeholder evaluations of hrm capabilities in mnc subsidiaries this paper examines how functional and line management stakeholders evaluate operational human resource management capabilities in multinational corporation mnc subsidiaries we suggest that such evaluations are a function of two key structural factors 1 that focal subsidiary human resource hr departments respond differentially to the expectations of differently located stakeholders and 2 that the structural position of the stakeholder determines what cues he or she relies upon to construct the evaluation our findings show that the focal hr subsidiary department is likely to exert more effort towards meeting the expectations of line management stakeholders and we suggest that this is a function of line management s co location with the focal hr department second we find that co located line management stakeholders are more likely to rely on experience based cues when constructing evaluations whereas headquarters located functional stakeholders tend to rely on cognition based evaluation driven by their ability to compare across different subsidiary hr departments we contribute to the literature by going beyond existing research that has tended to focus on evaluation from the perspective of organizational behavior by providing a structural perspective on capability evaluation in mncs that combines the insights of role theory and cognitive choice heuristics

towards a more balanced treatment of culture in international business studies the need for positive cross cultural scholarship the results of a content analysis of 1141 articles published in the journal of international business studies over a 24 year time period 1989 2012 reveal that a pervasive tendency exists in the international business ib literature towards emphasizing the adverse outcomes associated with cultural differences more than the positive effects we argue that this imbalance is not an accurate reflection of the reality of cross cultural contact in ib and that it has hindered our understanding of the processes and conditions that help organizations leverage the benefits of cultural differences in a wide range of contexts we offer several explanations for the predominance of the negative over the positive in theory and research on culture in ib and using a positive organizational scholarship lens couched in the context of march s 1991 exploration vs exploitation organizational learning framework highlight a complementary perspective namely the idea that cultural differences can be an asset not just a liability in a range of ib contexts we conclude by offering an integrative framework within which both positive and negative effects of cultural differences can be understood and provide a road map for future research on culture in ib

evaluating international financial integration in a center periphery economy abstract does opening up capital markets facilitate risk diversification across borders are all countries gradually better off in the process of international financial integration this paper explores welfare implications for various countries in a center periphery framework with endogenous portfolio choice financial integration is divided into four stages financial autarky two country integration center periphery integration and global integration two effects from financial integration emerge diversification effects and financial terms of trade effects results show that financial integration between the center and a new periphery in center periphery integration generates welfare losses for the peripheral country already integrated and welfare gains for the central country allowing for financial integration between peripheries in global integration leads the welfare in the center to deteriorate from two country integration directly to global integration the large country gains while the small one loses

determinants of international activity evidence from the chemical processing industry abstract this paper empirically investigates two important determinants of international activity through wholly owned operations joint ventures and technology licensing namely country risk and intellectual property rights iprs protection using a comprehensive database on investments in chemical plants during the period 1981 1996 we show that higher levels of country risk are associated with less activity into recipient economies the analysis also suggests that international activity with smaller resource commitment tends to be preferred in countries with higher levels of risk and that multinational investment is more responsive to changes in risk conditions than indigenous investment after controlling for several country characteristics we do not find iprs protection playing a significant role in fostering international activity or conditioning its mode

the effects of absorptive and joint learning on the instability of international joint ventures in emerging economies the objective of this study is to advance a theoretical framework pertaining to how interpartner learning in international joint ventures ijv may affect ijv instability in emerging economies the proposed framework expands the interpartner learning theory of ijv instability in the current literature which is focused on absorptive learning of ijv partners by incorporating ijv partners joint learning using longitudinal dyadic data from ijvs in china we found that local and foreign ijv parties absorptive learning capacity decreases one party s dependence on the other while joint learning capacity in ijv increases both parties dependence on each other in addition an ijv partner s absorptive learning capacity positively moderates the effect of joint learning capacity on its dependence on another partner these findings lend support to the expanded interpartner learning perspective of ijv instability and have important theoretical and managerial implications for ijvs in emerging economies the results underscore the importance of the ijv actively developing organizational rules procedures and structures to create and embed new knowledge in order to maintain the stability of the ijv finally we found that ijv partners dependence asymmetry increases ijv instability whereas their total dependence decreases ijv instability

mnc knowledge transfer subsidiary absorptive capacity and hrm based on a sample of 169 subsidiaries of multinational corporations mncs operating in the usa russia and finland this paper investigates the relationship between mnc subsidiary human resource management hrm practices absorptive capacity and knowledge transfer first we examine the relationship between the application of specific hrm practices and the level of the absorptive capacity second we suggest that absorptive capacity should be conceptualized as being comprised of both employees ability and motivation further results indicate that both ability and motivation absorptive capacity are needed to facilitate the transfer of knowledge from other parts of the mnc

the great moderation in international capital flows a global phenomenon abstract this paper highlights a recent great moderation in global capital flows characterised by smaller volumes and lower volatility of cross border transactions however there are substantial differences across countries and regions which we analyse by comparing the level of international capital flows observed in 2005 06 immediately prior to the onset of the global financial crisis to the post crisis period of 2013 14 when global flows arguably settled at a new normal we find that since the pre crisis period gross capital inflows recovered more for economies with smaller pre crisis external and internal imbalances lower per capita income improving growth expectations a less severe impact of the global financial crisis and less stringent macroprudential policy on the asset side countries with a more accommodative monetary policy a milder impact of the crisis and oil exporters managed to increase gross capital outflows in the post crisis period

asset exploitation versus asset seeking implications for location choice of foreign direct investment from newly industrialized economies this study examined several hypotheses regarding the location choice of foreign direct investment from newly industrialized economies nies using a sample of 328 taiwanese firms in the analysis this study found that the firms motivations had a significant impact on the choice of their investment location developed countries vs less developed countries yet this impact was moderated by the capabilities that the firms possessed the results suggest that both asset exploitation and asset seeking aspects of investments are predictive of the nie firms location choice of investment

a perspective on regional and global strategies of multinational enterprises multinational enterprises mnes are the key drivers of globalization as they foster increased economic interdependence among national markets the ultimate test to assess whether these mnes are global themselves is their actual penetration level of markets across the globe especially in the broad triad markets of nafta the european union and asia yet data on the activities of the 500 largest mnes reveal that very few are successful globally for 320 of the 380 firms for which geographic sales data are available an average of 80 3 of total sales are in their home region of the triad this means that many of the world s largest firms are not global but regionally based in terms of breadth and depth of market coverage globalization in terms of a balanced geographic distribution of sales across the triad thus reflects a special and rather unusual outcome of doing international business ib the regional concentration of sales has important implications for various strands of mainstream ib research as well as for the broader managerial debate on the design of optimal strategies and governance structures for mnes journal of international business studies 2004 35 3 18 doi 10 1057 palgrave jibs 8400073

economic growth pollution and renewable resources abstract this paper first analyzes a model of economic growth with stock pollution allowing smooth substitution between emissions and reproducible capital when emissions are optimally controlled the steady state consumption is lower than without pollution control but the optimal steady state equilibrium may not exist if the marginal productivity of capital is bounded the steady state is shown to be a local saddle point independent of the rate of discount if pollution is not controlled a competitive economy moves along a stable growth path toward a too heavily polluted steady state next a growth model in which pollution affects the growth of renewable resources is presented the conditions for the existence and saddle point property of the steady state are given and the consequences of nonoptimal externality taxes are discussed when renewable resources are included higher than optimal pollution may decrease steady state consumption contrary to the case where renewable resources are ignored

foreign direct investment exchange rate variability and demand uncertainty variable real exchange rates influence the location of production facilities chosen by a multinational with risk averse investors and fixed productive factors parent companies should not be indifferent to production location even with identical expected costs of production across countries if a nonnegative correlation exists between export demand and exchange rate shocks the multinational optimally locates some productive capacity abroad the capacity share abroad increases as exchange rate volatility rises and becomes more correlated with export demand shocks these results are confirmed using quarterly u s bilateral foreign direct investment flows with canada japan and the united kingdom copyright 1995 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

a theory of expropriation and deviations from perfect capital mobility there are many reasons why commodity trade fails to equate the rewards to factors of production in different countries consequently there is an incentive for factor movements between countries while movements of factors especially capital are important in the world economy they have not been sufficient to equate factor returns among countries the failure of capital flows to equate returns to capital is frequently attributed to political risks and left outside the sphere of economic analysis specifically investments abroad especially in ldc s are said to be more subject to the risk of expropriation or at least to unpredictable changes in the tax and exchange control regime adopted by the host country fears of foreign investors have often been realised williams i975 estimates that about 20 of the value of foreign investments carried into or made during i956 72 in ldc s was expropriated without compensation in this period in the past researchers in disciplines other than economics have been responsible for most of the analysis of expropriations we argue that an important set of economic considerations affect the nature of these impediments to capital mobility and this paper provides a theory of expropriation based on maximising behaviour by host countries and investors we use this theory to identify industry and national characteristics increasing the threat of expropriation and implying large deviations from equal returns on capital and to examine host country and home country policies minimising distortions from the threat of expropriation three broad conclusions follow from the analysis first the threat of expropriation can significantly distort the international allocation of capital even if the act of expropriation is relatively rare in the extreme acts of expropriation would never occur in a world of perfect foresight and rational decision making yet actions by investors to ensure that countries do not expropriate would be distorting second the ability of a country s government to expropriate foreign investments may actually reduce its welfare furthermore a host may be better off if home governments can retaliate against an expropriating country indeed an increase in the penalty imposed on an expropriating country may increase its welfare a government s power to expropriate after investments are made may alasdair smith and an associate editor made numerous valuable suggestions we would also like to thank g m grossman r w jones l a sjaastad n h stern and j e stiglitz for comments much of eaton s work on this paper was completed while he was a visitor at the graduate institute for international studies geneva an earlier version of this paper appeared under the same title as rpds

hot money in bank credit flows to emerging markets during the banking globalization era this paper investigates the relative importance of hot money in bank credit and portfolio flows from the us to 18 emerging markets over the period 1988 2012 we deploy state space models a la kalman filter to identify the unobserved hot money as the temporary component of each type of flow the analysis reveals that the importance of hot money relative to the permanent component in bank credit flows has significantly increased during the 2000s relative to the 1990s this finding is robust to controlling for the influence of push and pull factors in the two unobserved components the evidence supports indirectly the view that global banks have played an important role in the transmission of the global financial crisis to emerging markets and endorses the use of regulations to manage international capital flows

taxes institutions and foreign diversification opportunities abstract investors can access foreign diversification opportunities through either foreign portfolio investment fpi or foreign direct investment fdi the worldwide tax regime employed by the us potentially distorts this choice by penalizing fdi relative to fpi in low tax countries on the other hand weak investor protections in foreign countries may increase the value of control creating an incentive to use fdi rather than fpi by combining data on us outbound fpi and fdi this paper analyzes whether the composition of us outbound capital flows reflects these incentives to bypass home and host country institutional regimes the results suggest that the residual tax on us multinational firms foreign earnings skews the composition of outbound capital flows a 10 decrease in a foreign country s corporate tax rate increases us investors equity fpi holdings by approximately 10 controlling for effects on fdi investor protections also seem to shape portfolio choices though these results are not robust when only within country variation is employed

sustainable growth renewable resources and pollution abstract our intention is to present a growth model with an environmental resource which has its own regeneration process the stock of this resource serves as a source of utility and an input to production we also intend to introduce a negative externality caused by a pollution flow which we assume to be proportional to production in the context of this model it is shown that by using the utility level of the green golden rule as a generalization of the ramsey s bliss point for solving an optimal growth problems with a zero discount rate an optimal path converges to the green golden rule configuration

the eclectic paradigm of international production a restatement and some possible extensions this article reviews some of the criticisms directed towards the eclectic paradigm of international production over the past decade and restates its main tenets the second part of the article considers a number of possible extensions of the paradigm and concludes by asserting that it remains a robust general framework for explaining and analysing not only the economic rationale of economic production but many organisational and impact issues in relation to mne activity as well

innovation in multinational subsidiaries the role of knowledge assimilation and subsidiary capabilities subsidiaries of multinational firms play an important role in the globalization of innovation yet we have an incomplete idea of the influences on their innovative activity drawing on prior research in international business and strategy we identify two sets of factors that influence the absorption and utilization of knowledge in multinational corporation subsidiaries a the range of external and internal knowledge sources available and b the subsidiary capabilities associated with knowledge absorption and utilization we find that knowledge absorbed from the host country is useful to subsidiary innovation we also find support for the role of subsidiary capabilities both sourcing capability and combinative capability have a significant influence on the scale and quality of innovation

fdi waves waves of neglect of political risk studies of the impact of local political risk on foreign direct investment inflows overlook that worldwide fdi comes in waves using a simple model we show that the impact of political risk on fdi inflows is likely to be weaker the larger the worldwide amount of fdi which may question standard estimates and their policy implications using a large sample of developing and developed economies we estimate the sensitivity of the distribution of fdi inflows across countries to the local political risk we find that it is a decreasing function of the worldwide amount of fdi this finding has been upheld after many robustness checks

the role of path dependency and managerial intentionality a perspective on international business research several decades of research in the field of international business have advanced various theories and studies on the internationalization of firms our assessment of the literature on internationalization shows that the focus has been primarily on path dependency and learning based aspects of internationalization while managerial intentionality and the possibility of managers making deliberate strategic choices towards further internationalization have not been very prominent in the ib literature we argue that internationalization paths and processes should be approached as a joint outcome of management intentionality and experience based learning in other words managers are assumed to have the ability and the intention to influence the evolutionary paths of the firm we derive a future research agenda that calls for the pursuit of this promising and emergent research stream moreover we develop a model integrating managerial intentionality knowledge experience and other factors institutional and selection forces to explain heterogeneous outcomes of internationalization positions paths and processes

endogenous growth asymmetric trade and resource dependence the aggregate income of oil exporting countries relative to that of oil poor countries has been remarkably constant in recent decades despite the existence of structural gaps in productivity growth rates this stylized fact is rationalized in an endogenous growth model of asymmetric trade where resource poor and resource rich economies display productivity differences but stable income shares due to terms of trade dynamics the model yields two testable predictions that deserve empirical scrutiny i the asymmetric impact between exporters and importers of national taxes on resource use on income shares and ii the inverse relation between terms of trade dynamics and total factor productivity growth

internationalising in small incremental or larger steps we argue that companies may enter foreign environments either incrementally as suggested by long established theory or by taking larger steps that may result in lower initial performance but through learning and experience lead to increased performance in future expansions this idea is corroborated by the experience of dutch companies entering into central and eastern europe we also find that expansion steps may be too large thereby limiting the exploration of foreign environments our study suggests that sequential internationalisation strategies do still matter and that companies have to balance exploitation and exploration in internationalisation

international business cycles with endogenous incomplete markets backus kehoe and kydland 1992 baxter and crucini 1995 and stockman and tesar 1995 find two major discrepancies between standard international business cycle models with complete markets and the data in the models cross country correlations are much higher for consumption than for output while in the data the opposite is true and cross country correlations of employment and investment are negative while in the data they are positive this paper introduces a friction into a standard model that helps resolve these anomalies the friction is that international loans are imperfectly enforceable any country can renege on its debts and suffer the consequences for future borrowing to solve for equilibrium in this economy with endogenous incomplete markets the methods of marcet and marimon 1999 are extended incorporating the friction helps resolve the anomalies more than does exogenously restricting the assets that can be traded

fortune favors the prepared firm a critical factor in industrial competitiveness is the ability of firms to exploit new technological developments we term this ability a firm s absorptive capacity and argue that such a capability not only enables a firm to exploit new extramural knowledge but to predict more accurately the nature of future technological advances we develop a stylized model in which we focus exclusively on firms decisions to invest in their absorptive capacities we first examine a monopolist s investment decision analyzing the path dependence of its investment and the effect of uncertainty we then consider the effect of competition by modeling the impact of entry on an incumbent s investment behavior implications for management and public policy are then discussed

on the dynamics of trade reform abstract empirical studies of trade reforms suggest that these reforms have a surprisingly small impact on a country s industrial configuration this industrial structure inertia is difficult to rationalize in standard trade models this paper develops a two sector industry dynamics model in which industrial composition inertia arises naturally the model is then used to study the consequences of different types of trade reforms e g permanent temporary gradual pre announced on investment employment composition and income distribution

managerial cognition and internationalization how do the senior decision makers within a multinational enterprise mne think through and determine an internationalization decision despite the cognitive foundations of several key constructs standard internationalization models do not explicitly incorporate managerial cognition we argue that the boundedly rational decision maker is underspecified in international business models and this oversight contributes to weak empirical findings on experience learning internationalization strategy and mne performance drawing on these extant models we identify seven knowledge domains and interdependencies that may make up decision makers mental models granted rare access to senior executives and board members engaged in a foreign direct investment decision we find substantial heterogeneity in the mental models these individuals used to make sense of the opportunity this variance aligns with differences in individuals experience along four dimensions international breadth depth diversity and prior strategic decision making we argue these cognitive processes how individuals exercise judgment about information search parameters assessment and decision integration and how decision teams coalesce in their thinking are crucial microfoundations for modeling heterogeneity in firm level internationalization strategies and performance

on the effectiveness of capital controls the experience of colombia during the 1990s abstract this paper analyzes the effectiveness of capital controls in colombia the evidence presented points towards a relative inability of the measures adopted to reduce the level of capital inflows nonetheless the evidence suggests that non remunerated deposits have been successful in inducing a recomposition of foreign liabilities in favor of long term maturities it is likely that this is a positive result as it has made the country less vulnerable to a reversal in capital flows in this sense controls may be viewed as an effective way of internalizing the negative externality imposed by short term maturities

routine microprocesses and capability learning in international new ventures drawing on the distinction between the ostensive aspects abstract patterns and performative aspects specific actions of organizational routines the paper offers a micro level explanation of capability learning in international new ventures invs that is firms that internationalize actively from inception the paper argues that variability in the performative aspects of internationalization routines is associated with improvisational learning and new capability development whereas variability in the ostensive aspects is associated with trial and error learning and existing capability improvement furthermore psychic distance moderates these relationships low psychic distance facilitates both improvisation and trial and error learning high psychic distance frustrates learning of both types moderate psychic distance makes the success of both learning forms more likely but only for more experienced invs the paper also argues that social capital may mitigate the negative effects of high psychic distance it contributes to the extant literature by providing a micro level explanation of how invs accomplish capability learning and avoid wasteful learning efforts and by theorizing the moderating effects of psychic distance on the relationships between routine microprocesses and capability learning

resources innovation and growth in the global economy the relative performance of open economies is analyzed in an endogenous growth model with asymmetric trade a resource rich country trades resource based intermediates for final goods produced by a resource poor economy the effects of an increase in the resource endowment depend on the elasticity of substitution between resources and labor in intermediates production under substitution complementarity the resource boom generates higher lower income lower higher employment in the primary sector and faster slower growth in the resource rich economy in the resource poor economy the shock induces a higher lower relative wage and positive negative growth effects that are exclusively due to trade

financial crises in asia and latin america then and now in this paper we analyze the extent to which past financial crises share common characteristics in latin america asia europe and the middle east we examine the recent crises in asia and in latin america in particular their severity to assess whether the considerable historical differences that we have documented for the earlier sample have eroded we conclude that in a deregulated world the well behaved asian financia1 crises are a relic of the past

endogenous growth and property rights over renewable resources abstract we study how different regimes of access rights to renewable natural resources namely open access versus full property rights affect sustainability growth and welfare in the context of modern endogenous growth theory resource exhaustion may occur under both regimes but is more likely to arise under open access moreover under full property rights positive resource rents increase expenditures on manufacturing goods and temporarily accelerate productivity growth but also yield a higher resource price at least in the short to medium run we characterize analytically and quantitatively the model s dynamics to assess the welfare implications of differences in property rights enforcement

hot money accounting labels and the permanence of capital flows to developing countries an empirical investigation using maximum likelihood kalman filtering techniques and non parametric variance ratio statistics we gauge the relative importance of permanent and temporary components of capital flows to latin american and asian developing countries over the period 1988 1997 for the broad categories of flows in the capital account equity flows ef bond flows bf official flows of commercial bank credit bc and foreign direct investment fdi we find relatively low permanent components in ef bf and of while commercial bc flows appear to contain quite large permanent components and fdi flows are almost entirely permanent these results have a natural interpretation and clear policy implications

perspective absorbing the concept of absorptive capacity how to realize its potential in the organization field the purpose of this perspective paper is to advance understanding of absorptive capacity its underlying dimensions its multilevel antecedents its impact on firm performance and the contextual factors that affect absorptive capacity twenty years after the cohen and levinthal 1990 paper the field is characterized by a wide array of theoretical perspectives and a wealth of empirical evidence in this paper we first review these underlying theories and empirical studies of absorptive capacity given the size and diversity of the absorptive capacity literature we subsequently map the existing terrain of research through a bibliometric analysis the resulting bibliometric cartography shows the major discrepancies in the organization field namely that 1 most attention so far has been focused on the tangible outcomes of absorptive capacity 2 organizational design and individual level antecedents have been relatively neglected in the absorptive capacity literature and 3 the emergence of absorptive capacity from the actions and interactions of individual organizational and interorganizational antecedents remains unclear building on the bibliometric analysis we develop an integrative model that identifies the multilevel antecedents process dimensions and outcomes of absorptive capacity as well as the contextual factors that affect absorptive capacity we argue that realizing the potential of the absorptive capacity concept requires more research that shows how micro antecedents and macro antecedents influence future outcomes such as competitive advantage innovation and firm performance in particular we identify conceptual gaps that may guide future research to fully exploit the absorptive capacity concept in the organization field and to explore future fruitful extensions of the concept

resource abundance growth and welfare a schumpeterian perspective abstract this paper takes a new look at the long run implications of resource abundance it develops a schumpeterian model of endogenous growth that incorporates an upstream resource intensive sector and yields an analytical solution for the transition path it then derives conditions under which as the economy s endowment of a natural resource rises i growth accelerates and welfare rises ii growth decelerates but welfare rises nevertheless and iii growth decelerates and welfare falls which of these scenarios prevails depends on the response of the natural resource price to an increase in the resource endowment the price response determines the change in income earned by the owners of the resource the households and thereby the change in their expenditure on manufacturing goods since manufacturing is the economy s innovative sector this income to expenditure effect links resource abundance to the size of the market for manufacturing goods and drives how re source abundance affects incentives to undertake innovative activity

international diversification and firm performance the s curve hypothesis a proposed theoretical framework for the study of multinationality and performance includes both benefits and costs of geographic expansion over different phases of internationalization data on 1 489 japanese firms over 12 years show a consistent horizontal x s shaped x relationship between multinationality and performance further firms investing more heavily in intangible assets such as technology and advertising achieved greater profitability gains from growth in foreign direct investment our framework and findings highlight complexity and temporal dynamics

adaptation as information restriction the hot stove effect individuals and social systems are often portrayed as risk averse and resistant to change such propensities are characteristically attributed to individual organizational and cultural traits such as risk aversion uncertainty avoidance discounting and an unwillingness to change this paper explores an alternative interpretation of such phenomena we show how the reproduction of successful actions inherent in adaptive processes such as learning and competitive selection and reproduction results in a bias against alternatives that initially may appear to be worse than they actually are in particular learning and selection are biased against both risky and novel alternatives because the biases are products of the tendency to reproduce success that is inherent in the sequential sampling of adaptation they are reduced whenever the reproduction of success is attenuated in particular when adaptation is slowed made imprecise or recalled less reliably the propensity to engage in risky and new activities is increased these protections against the error of rejecting potentially good alternatives on inadequate experiential evidence are costly however they increase the likelihood of persisting with alternatives that are poor in the long run as well as in the short run

the pecking order of cross border investment abstract is there a pecking order of cross border investment in that countries become financially integrated through some types of investment rather than others using a novel database of bilateral capital stocks for all types of investment fdi portfolio equity securities debt securities as well as loans for a broad set of 77 countries we show that such a pecking order indeed exists the paper focuses on two key determinants of this pecking order information frictions and the quality of host country institutions overall we find that in particular fdi and to some extent also loans are substantially more sensitive to information frictions than investment in portfolio equity and debt securities we also show that the share as well as the size of fdi that a country receive are largely insensitive to institutional factors in host countries while portfolio investment is by far the most sensitive to the quality of institutions this provides new evidence in favor of some hypotheses but contradicts others put forward in the literature on trade in financial assets

what drives the global land rush the authors review evidence regarding the size and evolution of the land rush in the wake of the 2007 8 boom in agricultural commodity prices and authors study the determinants of foreign land acquisition for large scale agricultural investment the use of data on bilateral investment relationships to estimate gravity models of transnational land intensive investments confirms the central role of agro ecological potential as a pull factor however this finding contrasts the standard literature insofar as the quality of the destination country s business climate is insignificant and weak tenure security is associated with increased interest for investors to acquire land in the country policy implications are discussed

imitation costs and patents an empirical study it has long been recognised that the costs of imitating new products have an important effect on the incentives for innovation in a market economy as arrow i962 and others have pointed out if firms can imitate an innovation at a cost that is substantially below the cost to the innovator of developing the innovation there may be little or no incentive for the innovator to carry out the innovation in their discussions of the innovation process economists frequently have called attention to the major role played by the costs of imitation but there has been little or no attempt to measure these costs to test various hypotheses concerning the factors influencing them or to estimate their effects in this paper we report some findings of what seems to be the first study of this topic in addition we present data regarding the effects of patents on imitation costs and on the rate of innovation

communication commitment and growth abstract we study the effect on the growth of an economy of alternative financing opportunities in a stochastic growth model with incentive constraints efficient accumulation mechanisms are designed and computed for economies that differ in their incentive structure we show that when borrowing is subject to information constraints there is a computable efficient transfer mechanism that does not affect capital accumulation and investment patterns even though consumption patterns and the distribution of wealth are affected in contrast enforcement constraints can severely reduce the outside financing opportunities and affect investment patters and economic growth we adapt numerical algorithms for obtaining numerical solutions of these models

the catalytic effect of lending by the international financial institutions for many less developed countries ldcs and countries in transition cits external financing is frequently an effective constraint on economic growth and development capital inflows may be used to overcome shortages of domestic saving thereby permitting higher levels of investment as well as shortages of foreign exchange thereby permitting larger quantities of imports

risk sharing and counter cyclical variation in market correlations abstract i present a consumption based dynamic asset pricing model in which international market correlations vary counter cyclically over time the driving force in the model is the time varying effective risk aversion induced by external habit formation market returns are driven by fundamental outputs and discount rates when risk aversion is high the effect of discount rates on market returns rises with the market price of risk to the extent that countries share risk the cross country correlation of discount rates exceeds the cross country correlation of fundamental outputs in bad times market correlations rise as returns are mostly driven by discount rates thus consistent with the empirical evidence periods of high risk aversion are associated with high market correlations and high market volatility after calibration my model is consistent with the observed variation in market correlations as well as other features of asset prices including the equity premium and market volatility

the effect of cultural distance on entry mode choice international diversification and mne performance a meta analysis although a growing literature indicates that cultural distance that is differences between national cultures is an important determinant of organizational actions and performance both empirical and theoretical concerns abound in this study the relationships of cultural distance with entry mode choice international diversification and mne performance are examined by meta analyzing data from 66 independent samples with cumulative sample sizes ranging from 2 255 to 24 152 regression results failed to provide statistical evidence of significant relationships between cultural distance and entry mode choice international diversification and mne performance the examination of moderator effects however yielded important results we found a strong negative association between cultural distance and entry mode choice for us based mnes the cultural distance international diversification relationship was negative for high technology industries while it was positive for other industries cultural distance also had a strong positive effect on mne performance for developed country investments a similar strong positive relationship was found between cultural distance and international diversification in studies with more recent samples results of this study indicate that substantial additional research is needed before the role of cultural distance is fully understood

incumbents and protectionism the political economy of foreign entry liberalization abstract this paper investigates the influence of incumbent firms on the decision to allow foreign direct investment into an industry using data from india s economic reforms the results show that firms in concentrated industries are more successful at preventing foreign entry state owned firms are more successful at stopping foreign entry than privately owned firms and profitable state owned firms are more successful at stopping foreign entry than unprofitable state owned firms the pattern of foreign entry liberalization supports the private interest view of policy implementation and suggests that it may be necessary to reduce the influence of state owned firms to optimally enact reforms

a pecking order of capital inflows and international tax principles abstract even though financial markets today show a high degree of integration the world capital market is still far from the textbook story of high capital mobility the purpose of this paper is to highlight key sources of market failure in the context of international capital flows and to provide guidelines for efficient tax structure in the presence of capital market imperfections the analysis distinguishes three types of international capital flows foreign portfolio debt investment foreign portfolio equity investment and foreign direct investment the paper emphasizes the efficiency of a non uniform tax treatment of the various vehicles of international capital flows

the effects of mnc parent effort and social structure on subsidiary absorptive capacity although the literature provides ample evidence that the global transfer and local implementation of knowledge represents a key advantage for multinational corporations mncs we lack comparable understanding as to whether knowledge creating mnc parents can actively expand the absorptive capacity of their subsidiaries using a teacher student lens this study examines the combined impact of specific structural mechanisms and motivational processes by mnc parents on the ability of 216 subsidiaries to absorb parent initiated marketing strategies the findings reveal that mnc parents can indeed cultivate subsidiaries ability to appropriate marketing knowledge through a combination of adopting specific social structures and investing in particular efforts however the effect of social structure on subsidiary absorptive capacity is indirect and accounted for by the parents intensity of effort a number of theoretical implications emerge from the findings for research on absorptive capacity in relation to the role of the knowledge source the need to examine organizational influences in relation to one another and validating the original absorptive capacity dimensions for managers in the global marketplace the findings lead to the suggestion that mncs devote attention to nurturing the absorptive capacities at different organizational levels in order to optimize the global transfer of knowledge

modes of foreign entry a transaction cost analysis and propositions a frontier issue in international marketing is the appropriate choice of entry mode in foreign markets the objective of this paper is to offer a transaction cost framework for investigating the entry mode decision this framework provides 1 a theoretical basis for systematically interrelating the literature into propositions 2 propositions about interactions which resolve the apparently contradictory arguments advanced to date specifically the paper illustrates the feasibility of clustering 17 entry modes into the degree of control the mode provides the entrant proposes that the most appropriate i e most efficient entry mode is a function of the tradeoff between control and the cost of resource commitment advances testable propositions delimiting the circumstances under which each mode maximizes long term efficiency

portfolio capital flows hot or cold a distinction is often made between short term and long term capital flows the former are deemed unstable hot money and the latter are deemed stable cold money using time series analysis of balance of payments data for five industrial and five developing countries we find that in most cases the labels short term and long term do not provide any information about the time series properties of the flow in particular long term flows are often as volatile as short term flows and the time it takes for an unexpected shock to a flow to die out is similar across flows long term flows are also at least as unpredictable as short term flows and knowledge of the type of flow does not improve the ability to forecast the aggregate capital account copyright 1995 by oxford university press

do managers behave the way theory suggests a choice theoretic examination of foreign direct investment location decision making many empirical examinations of foreign direct investment location choice have relied on the use of secondary data and surveys on the choices made by firms about the form and location of overseas investment these studies have two inherent and related problems first they rely solely on the location choices made by different firms and assume that the domains of possible options considered were the same second there is an assumption about the rules used by firms to make these decisions yet the decisions are made by boundedly rational managers after reviewing the literature this study examines managers choices about foreign investment location through the use of structured experimentation the results show that in creating sets of investments to consider managers appear to follow fairly rational rules however the choice of actual investments appears less aligned to traditional models

institutions and the external capital structure of countries abstract a widespread view holds that countries that finance themselves through foreign direct investment and portfolio equity rather than bonds and loans are less prone to crises but what determines countries external capital structures in a cross section of advanced economies emerging markets and developing countries we find that equity like liabilities as a share of countries total external liabilities are positively and significantly associated with indicators of educational attainment openness natural resource abundance and especially institutional quality these relationships are robust to attempts to control for possible endogeneity suggesting that better institutional quality may help improve countries external capital structures

a microfoundations approach to transnational capabilities the role of knowledge search in an ever changing world scholars seeking to understand the origin of dynamic capabilities have struggled to articulate specific capabilities and locate their source of variation within the firm we propose that the transnational imperative and a microfoundations approach to knowledge search can help to develop this topic adopting an engaged scholarship approach hypotheses are tested in a global consulting company counter to traditional capabilities arguments we find that drawing from globally dispersed colleagues will more strongly impact local responsiveness than drawing from locals outside the company though both may still be needed efficiency increases when teams draw upon codified knowledge but decreases when they draw upon embedded tacit knowledge finally through continual learning teams can change and re direct the composition of their responsiveness and efficiency activities in ways sensitive to an ever changing world

optimal lending contracts and firm dynamics we develop a general model of lending in the presence of endogenous borrowing constraints borrowing constraints arise because borrowers face limited liability and debt repayment cannot be perfectly enforced in the model the dynamics of debt are closely linked with the dynamics of borrowing constraints in fact borrowing constraints must satisfy a dynamic consistency requirement the value of outstanding debt restricts current access to short term capital but is itself determined by future access to credit this dynamic consistency is not guaranteed in models of exogenous borrowing constraints where the ability to raise short term capital is limited by some prespecified function of debt we characterize the optimal default free contract which minimizes borrowing constraints at all histories and derive implications for firm growth survival leverage and debt maturity the model is qualitatively consistent with stylized facts on the growth and survival of firms comparative statics with respect to technology and default constraints are derived borrowing constraints are an important determinant of firm growth and survival 1 such constraints may arise in connection to the financing of investment opportunities faced by firms or temporary liquidity needs such as those required to survive a recession this paper develops a theory of endogenous borrowing constraints and studies its implications for firm dynamics in our model debt is constrained by the firm s limited liability and option to default a lending contract specifies an initial loan size future financing and a repayment schedule the choice of these variables in turn determines future growth the firm s future borrowing capacity and its ability and willingness to repay hence borrowing constraints and firm dynamics are jointly determined we study this dynamic design problem our model builds on thomas and worral s 1994 model of foreign direct investment at time zero a risk neutral borrower firm or entrepreneur has a project which requires a fixed initial set up cost every period the project yields revenues that increase with the amount of 1 there is considerable evidence suggesting that financing constraints are important determinants of firm dynamics gertler and gilchrist 1994 argue that liquidity constraints may explain why small manufacturing firms respond more to a tightening of monetary policy than do larger manufacturing firms perez quiros and timmermann 2000 show that in recessions smaller firms are more sensitive to the worsening of credit market conditions as measured by higher interest rates and default premia evans and jovanovic 1989 show that the liquidity constraints are essential in the decision to become an entrepreneur fazzari hubbard and petersen 1988 among others view financial constraints as an explanation for the dynamic behaviour of aggregate investment and cabral and mata 1996 are able to fit reasonably well the size distribution of portuguese manufacturing firms by estimating a simple model of financing constraints for surveys see hubbard 1998 and stein 2003

knowledge acquisition from foreign parents in international joint ventures an empirical examination in the hungarian context in this paper we examine organizational characteristics structural mechanisms and contextual factors that influence knowledge acquisition from the foreign parent in international joint ventures ijvs we in turn relate assessments of knowledge acquisition to ijv performance the data come from a survey of ijvs in the hungarian context where learning and knowledge acquisition from the foreign parent is thought to be particularly critical adaptation mechanisms such as capacity to learn articulated goals and structural mechanisms such as the provision of training technology and managerial assistance by foreign parents all were positively associated with the degree to which ijvs reported acquiring knowledge from their foreign parents we also found limited support for the belief that cultural conflicts can impede knowledge acquisition but only for two party joint ventures with 50 50 equity arrangements we also looked at the relationship between knowledge acquisition and different dimensions for evaluating ijv performance the relationship between knowledge acquisition and performance was significant for all indicators of performance through knowledge acquisition from the foreign parent and the organizational characteristics hypothesized to enhance ijv knowledge acquisition affected assessments of some dimensions of performance more than others our findings contribute to advancing knowledge about the relationship between organizational characteristics and organizational knowledge acquisition in ijvs as well as the relationships between knowledge acquisition and different dimensions of ijv performance

the composition of international capital flows risk sharing through foreign direct investment abstract evidence on international capital flows suggests that foreign direct investment fdi is less volatile than other financial flows to explain this finding i model international capital flows under the assumptions of imperfect enforcement of financial contracts and inalienability of fdi imperfect enforcement of contracts leads to endogenous financing constraints and the pricing of default risk inalienability implies that it is not as advantageous to expropriate fdi relative to other flows these features combine to give a risk sharing advantage to fdi over other capital flows this risk sharing advantage of fdi translates into a lower default premium and lower sensitivity to changes in a country s financing constraint the model offers the new implication that financially constrained countries should borrow relatively more through fdi this is because fdi is harder to expropriate and not because fdi is more productive or less volatile using several creditworthiness and country risk ratings to measure financing constraints i present new evidence linking fdi and financing constraints moreover numerical simulations of the model generate stronger serial correlation for fdi than for other flows into developing countries this corroborates the view that non fdi flows are more short term and more likely to change direction

towards a renaissance in international business research big questions grand challenges and the future of ib scholarship in this article we review critiques of international business ib research with a focus on whether ib scholarship tackles big questions we identify three major areas where ib scholars have addressed important global phenomena but find that they have had little influence outside of ib and only limited effects on business or government policy we propose a redirection of ib research towards grand challenges in global business and the use of interdisciplinary research methods multilevel approaches and phenomena driven perspectives to address those questions we argue that ib can play a more constructive and vital role by tackling expansive topics at the business societal interface

repeated moral hazard and one sided commitment abstract this paper considers a repeated unobserved endowment economy with a restriction that agents can walk away from insurance contracts at the beginning of any period and contract with another insurer one sided commitment an equilibrium is derived characterized by a unique market determined insurance contract with the property that agents never want to walk away from it the paper shows that trade or insurance still occurs and that a non degenerate long run distribution of consumption exists a numerical example shows that this distribution is nearly log normal journal of economic literature classification numbers d30 d31 d80 d82

microfoundations in international management research the case of knowledge sharing in multinational corporations microfoundations have become an important theme in recent macro management research however the international management im field is an exception to this we document the lack of attention on microfoundations in im research by focusing on knowledge sharing a key im research field which we investigate by means of a keyword based literature study of the leading im and general management journals we discuss possible reasons why microfoundations have so far met with less resonance in im research we point to the training and background of im scholars as possible reasons we also highlight the significance that im scholars place on context and structure in explanation these may be seen as contrary to a microfoundations perspective a view that we show is incorrect we end by identifying several microfoundational issues in im research calling for a sustained effort with respect to theory heuristics and empirics

global cities and multinational enterprise location strategy we combine the concept of location derived by economic geographers with theories of the multinational enterprise mne and the liability of foreignness developed by international business scholars to examine the factors that propel mnes toward or away from global cities we argue that three distinctive characteristics of global cities global interconnectedness cosmopolitanism and abundance of advanced producer services help mnes overcome the costs of doing business abroad and we identify the contingencies under which these characteristics combine with firm attributes to exert their strongest influence consistent with these arguments our analysis of a large sample of mne location decisions using a multilevel multinomial model suggests not only that mnes have a strong propensity to locate within global cities but also that these choices are associated with a nuanced interplay of firm and subsidiary level factors including investment motives proprietary capabilities and business strategy our study provides important insights for international business scholars by shedding new light on mne location choices and also contributes to our understanding of economic geography by examining the heterogeneous strategies and capabilities of mnes the primary agents of economic globalization that shape the nature of global cities

the shifting composition of external liabilities what determines the composition of external liabilities both across countries and over time more specifically which countries account for the massive increase in equity like liabilities foreign direct investment and portfolio equity especially since the mid 1990s the empirical analysis draws on the newly released external wealth of nations mark ii dataset in the cross section we find that larger more open economies with a better institutional quality score have a greater equity share in external liabilities which is also positively related to natural resource production along the time series dimension we find that the shift towards equity financing is stronger among those countries that have undertaken a greater degree of domestic financial reform jel f21 f34 f36

a general theory of springboard mnes the springboard view has become one theoretic lens to analyze emerging market multinationals emnes in the past decade a decade after its first introduction in 2007 new developments offer keen insights on these firms and mnes in general that aggressively engage in critical asset seeking we compare this view with other ib theories highlighting their differences as well as complementarity we articulate unique strengths and weaknesses of emnes including their vulnerability and complexity caused in part by home country institutions we discuss amalgamation ambidexterity and adaptation advantages that differentiate springboard mnes from more established advanced country mnes and explain why and how springboard acts should be analyzed along with global competitiveness augmentation we introduce an upward spiral concept to advance our understanding of linkages between springboard and post springboard activities and explain some critical cross cultural and human resource management issues in the process to help continued research on springboard mnes we highlight macro and micro management issues that are particularly worth exploring

accessing vs sourcing knowledge a comparative study of r d internationalization between emerging and advanced economy firms research and development r d internationalization is on the rise for advanced economy multinationals amnes as well as emerging economy multinationals emnes we study emne r d internationalization by comparing it to that by amnes in the context of an emerging knowledge intensive industry we find that these two are fundamentally different processes while the internationalization of amnes r d activities can largely be explained in terms of the twin strategies of competence exploitation and competence creation emne r d internationalization is rooted in the firms overall catch up strategy to get on par with industry leaders an in depth comparison of knowledge flows reveals that within amnes headquarters often serves the primary source of knowledge for r d subsidiaries in contrast within emnes headquarters accesses knowledge from r d subsidiaries in advanced economies for innovation catch up within this dichotomy the innovative capabilities of emne headquarters develop more slowly and with greater difficulty than those of amne subsidiaries

optimal growth with renewable resources and pollution abstract this paper presents three models which combine the optimal dynamics of economic growth renewable resource harvesting and pollution we investigate growth pollution and renewable resources as a three state variable problem the economy has three inputs man made capital renewable resources and emissions endogenous pollution affects both the growth of the renewable resource stock and the social welfare it is shown that the existence of the steady state depends in a complicated manner and in addition to preferences on the production technology growth of the renewable resource and the rate of decay of pollution the sufficient conditions for the existence of a global saddle point are given conditions under which the market solution equals the optimal solution of the social planner and the consequences of a too low externality tax on emissions or on common property resource harvesting are discussed

the falsification of four popular hypotheses about the asian crisis various claims have been made about the causes of the asian crisis and its spread here we use data on the behaviour of capital flows during the crisis to test the strong forms of four such hypotheses that portfolio investors and hedge funds played a dominant role in initiating and or spreading the crisis that moral hazard kept efficient markets from predicting the crisis and finally the common lender hypothesis of kaminsky and reinhart in the process we also test implications of the calvo mendoza model of rational investor ignorance all are falsified as monocausal explanations for example portfolio investments that could not have been subject to substantial moral hazard continued to flow into asia until very shortly before the crisis likewise banks were a much larger source of capital outflows during the crisis than were portfolio investors while falsified in their strongest forms several of these hypotheses in less strong forms should play a role in a more nuanced analysis it is necessary to move past simple single factor approaches in order to produce a more complete synthetic explanation of this episode

searching locally and globally applying daniel levinthal s scholarship to international business daniel a levinthal has made several important contributions to the fields of strategy and management his research has been pivotal in enhancing our understanding of interactions between the internal and external contexts that organizations face as well as the roles of experience search and learning processes despite substantial overlap between the core issues in international business ib and levinthal s work the ib field has yet to fully embrace key tenets of his research we aim to bridge this gap by providing a number of concrete suggestions for areas in which ib research may benefit from levinthal s work and vice versa

creative tension the significance of ben oviatt s and patricia mcdougall s article toward a theory of international new ventures the article by oviatt and mcdougall threw the spotlight on international entrepreneurs on international new ventures and on their importance in the globalising world economy recognising the rich theoretical implications of this phenomenon they mounted a challenge to received internationalisation process theories and established a new and exciting research theme that of international entrepreneurship this article reviews the impact of their contribution and discusses new research themes raised by their challenge to the process theories of internationalisation

on repeated moral hazard with discounting in this paper we analyze optimal contracts in an infinitely repeated agency model in which both the principal and agent discount the future we show that there is a stationary representation of the optimal contract when the agent s conditional discounted expected utility is used as a state variable this representation reduces the multi period problem to a static variational problem which can be analyzed using standard variational techniques this reduction is used to obtain several properties of the contract