original accumulation equity and late industrialization the cases of socialist china and capitalist taiwan abstract this paper explores two dynamic approaches to original accumulation one socialist and one capitalist in a search for clues to the developmental options available for pre industrial predominantly agrarian nations the comparative analysis of two cases which have been hailed in widely divergent literatures for their developmental implications highlights the human costs associated with each indeed it suggests the necessity to rethink the categories of socialist and capitalist development paths the analysis focuses on the relationships among the state the peasantry and the dominant landed classes in the struggle to control and channel the agricultural surplus and on state mechanisms to transfer resources from agriculture to industry and from the private sector to the state and the institutions it controls

country of origin effects for uni national and bi national products this study examines the effects of country of origin and brand name cues on consumer evaluations of uni national and bi national products and estimates the perceived values of such cues from personal interviews with a regional quota sample of household residents the study found the salience of country of origin in product evaluations under within subject experimental design finally managerial implications are discussed in regards to international branding and sourcing strategies

brand popularity country image and market share an empirical study this study examines how brand popularity in conjunction with other marketing variables influences market share directly as well as indirectly by interacting with country related intangible assets or simply country image the results of our empirical analysis show that a competitive analysis without the recognition of country image would be misleading we found that country specific intangible assets exist and that they significantly interact with marketing variables differently for u s and japanese brands in the subcompact car market in the usa brand popularity and advertising were found to be key factors for intangible assets for both the u s and the japanese brands brand popularity was the most significant factor for market share in both the short run and the long run japanese firms direct investment fdi in the target country directly influenced market share only in the short run several important implications for international marketing are presented

measuring market efficiency and welfare loss this study presents a general methodology capable of addressing a number of fundamental questions in consumer policy are consumers paying more than the minimum price for a given bundle of attributes if so what brands cost more than the consumer needs to pay what would be the degree of improvement in the consumer s well being if some intervention sets the price of such inefficient brands at the efficient level we apply the methodology to data on atuomobiles and several other goods and analyze the determinants of efficiency

competitive industrial policy and macro performance has south korea outperformed taiwan taiwan adopted a competitive industrial policy before south korea but pursued it more cautiously according to orthodox theory taiwan s less interventionist policy should have increased its initial per capita income lead over south korea in fact the income gap narrowed and income distribution improved relatively in south korea casting doubt on the orthodox criticism of south korean industrial policy but some qualification of the south korean success is in order the south korean gains were achieved at the cost of greater consumption fore gone and greater concentration of economic power than in the case of taiwan moreover the crucial post 1985 taiwanese economic slow down was partly due to economic maturation as well as to tardy financial reform and to the opportunities created by the chinese diaspora for taiwanese firms to invest abroad

stagnation income distribution and monopoly power the deceleration in the rate of industrial growth in the indian economy since the middlesixties initially interpreted by some as a temporary downward deviation from trend hasnow come to be generally accepted as reflecting long run tendencies towards stagnation several explanations for these tendencies have been offered bhagwati and desai 1970 and bhagwati and srinivasan 1975 have focused on inefficiencies and the misallocationof resources arising from industrial policies pursued by the government others chakravarty 1974 raj 1976 and vaidyanathan 1974 among them have emphasisedthe sluggishness of agricultural growth which is alleged to have retarded industrial growthby limiting markets and the supply of wage goods and raw materials a third view reflectedin srinivasan and narayana 1977 for example has put the blame on a slackening of invest ment demand due to lower public investment but does not explain why public investmentfell or why its fall restrained industrial growth finally there is the explanation put forthin bagchi 1970 1975 1982 in nayyar 1978 and in parts of mitra 1977 that inequali ties in income distribution have resulted in a limited demand for industrial goods reducedincentives for investment and therefore reduced growth this view seems to suggest apositive relation between growth and income equality which is opposed to the generallyaccepted idea derived from cambridge growth models that higher growth requires greaterinequality the purpose of this paper is to examine the last explanation by considering the inter action between growth and income distribution in an underdeveloped economy with thehelp of a simple macroeconomic model the model is a stylisation of the indian economy so that we will be able to use the model to assess the argument that a deceleration in therate of growth of the indian industrial economy could have been caused by an unequaldistribution of income the argument will not be made that this income distributional con straint is the binding constraint on industrial growth the model will merely examine theinternal consistency of the argument that a bad income distribution could explain stagnation in the sense of reduced growth and show that in the indian context as in other similarcontexts this argument can be put forward in explaining stagnation our argument is first presented with a highly simplified schematisation of the indianeconomy which we shall call the basic model the economy modelled produces only one

unemployment a survey this paper presents a survey of the economics of unemployment it covers competitive and imperfect competition models the role of different methods of wage determination and explanation of postwar unemployment patterns in the oecd countries copyright 1990 by royal economic society

matching product catgeory and country image perceptions a framework for managing country of origin effects the study of country of origin coo effects examines how consumers perceive products emanating from a particular country this study examines coo in terms of the fit between countries and product categories a framework is suggested which matches the importance of product category dimensions with the perceived image of the country of origin along the same dimensions such matches or mismatches can be either favorable or unfavorable managers can use product country match information to assess consumers purchase intentions and assist them in managing their product s coo data collected from consumers in ireland mexico and the united states demonstrate the product country match framework and its strategic implications

customer evaluation of products in a global market marketing scholars interest in the influence of source countries on product evaluations has intensified during the past twenty five years as this research tradition has evolved the literature has gradually gained more depth and sophistication nevertheless research in this area lacks a common conceptual framework furthermore research priorities with regard to the role of this area of inquiry within the broader field of consumer behavior marketing and general business decisions have not been made clear this article rationalizes the buying decision processes within the context of source country influences and offers a conceptual framework for further development in addition it links country level considerations to firm level decisionmaking thus providing a foundation for meaningful managerial decisions

the effects of culture and socioeconomics on the performance of global brand image strategies developing and managing brand image is an important part of a firm s marketing program however little research has been done 1 on linking the use of brand image strategies to product performanc

distribution aggregate demand and unemployment in oecd countries the primary aim of this paper is to investigate the role of income distribution in the determination of unemployment to this end the author develops a post keynesian model that shows that unemployment is effectively determined by income distribution aggregate demand and the inadequacy of capital equipment the deriv ed unemployment equation is applied to ten large industrial countries o ver the period 1976 89 the empirical findings provide strong support fo r the hypothesis that shifts in income distribution and inadequacy of capital equipment are major sources of unemployment copyright 1993 by royal economic society

general equilibrium macroeconomic models of unemployment can they explain the unemployment path in the oecd several theories which seek to explain the high and apparently persistent unemployment in the oecd countries over the past two decades have arisen within the framework of imperfections in the goods and labour markets probably the most prominent theories within this class of models are the general equilibrium models of phelps 1994 layard and nickell 1986 and layard et al 1991 labelled structuralist theories of unemployment by phelps 1994 common to the structuralist theories is that the low frequency movements in unemployment or the nairu are determined by structural variables such as unemployment benefits taxes real interest rates etc however the high frequency movements in unemployment are determined by wage and price surprises and in the layard and nickell 1986 model also by cyclical mark ups employment is entirely determined by the firms willingness to supply and the firms are never sales constrained by contrast the general equilibrium model of sarantis 1993 which is in post keynesian spirit suggests that unemployment on all frequencies is mainly an outcome of demand side factors in this model imperfections in the goods and labour markets are less important determinants of unemployment in this paper i estimate the extent to which the models of phelps 1994 layard and nickell 1986 henceforth l n and sarantis 1993 are able to explain the unemployment path of the oecd countries using annual data over the period 1960 to 1993 the theoretical set up of the models is presented in section 1 and the empirical estimates are set out in section 2

a stagnationist model of economic growth in an economy subject to persistent excess capacity demand related factors will play a key role in determining patterns of secular change this thesis has a long history in econ omics sometimes in the underworld and occasionally at the height of fashion as recounted by rowthorn 1982 recent manifestations in the first world are the theories of monopoly capitalism of baran and sweezy 1966 and steindl 1952 who in turn follow kalecki 1971 hobson 1902 luxemburg 1951 and the marx of realisation crises and reproduction schemes in volume ii of capital other radicals such as boddy and crotty 1975 add a profit squeeze explanation of the cycle which underlays the dynamics of the growth model specified here in developing countries difficulties in both realisation and sectoral proportions are emphasised as obstacles to growth witness lustig s 1980 review of latin american structuralist theory and dutt s 1984 model which formalises an ongoing controversy in india about how income redistribution might affect prospects for industrialisation all these authors are stagnationist in assuming that both the growth rate and the level of capacity utilisation can be different under different conditions of income distribution and or macroeconomic policy their preferred policies will presumably lead to greater equality increase utilisation or step up growth they typically ask two analytical ques tions how does output respond in the short run to shifts in the income distribution how do output adjustments feed back into distributional dynamics especially under conditions when price and wage inflation rates may be influenced by employment levels productivity changes and conflicting income claims in what follows we set out a simple model to address these questions and explore the implications for macroeconomic policy of the answers that arise since the approach is not familiar to economists with a standard training a verbal description of the growth model is given first those who wish to jump directly into a formal presentation can proceed to section 1 output x is assumed to meet demand in an instantaneous short run we measure activity as the ratio of firms net cash inflow to the value of capital stock i e the rate of profit r during the short run the price level p is fixed by a mark up rule p 1 x wb where r is the mark up rate w the money wage and b the labor output ratio with this rule the share of profits or mark up income in the value of output is r l t let u stand for the output capital ratio or capacity utilization xik by simple identity

korea s macroeconomic prospects and policy issues for the next decade the purpose of this paper is to evaluate korea s macroeconomic prospects and major policy issues for the next decade after reviewing the intial conditions the report examines growth strategies and prospects for growth then it discusses external borrowing options and the role of monetary and fiscal policy in the next decade from the review of korea s macroeconomic prospects for the next decade the report concludes that although the external environment will not be as favorable as in the 1983 86 period still the korean economy will be resilient enough to achieve a 6 7 percent annual growth rate for the next decade areas where new policy actions will be required are in the management of monetary policy and the provision of social welfare although there is an indication of some increase in the protectionist threat against korea s exports the report maintains that the pressures for higher consumption and investment and the less favorable external environment will result in smaller trade surpluses in the years ahead

aggregate supply and demand factors in oecd unemployment an update unemployment in the oecd countries has continued to rise to unprecedented levels the eec countries which on average ended the turbulent 1970s with an unemployment rate of close to 7 per cent are now in the mid 1980s approaching an 11 per cent level the united states is virtually the only country for which the changes in unemployment during the 1970s have not been systematically upward and for which the 1984 rate was more or less back to where it had been both ten years and five years earlier see figure 1 the reasons for the sustained increase in unemployment during the 1970s as well as the possible reasons for differences in patterns across industrial countries have been studied but question marks undoubtedly remain our own emphasis in an earlier study has been on the combination of the great supply shocks of the previous decade and the contractionary macro policy response of most oecd countries to these shocks as well as on the more recent policy coordination problem between the united states and europe with a few more years that have elapsed and quite a few percentage points of additional unemployment there is obviously room for both an update and a reappraisal starting from a fairly conventional aggregate supply as and aggregate demand ad macro framework an increase in unemployment may come

the rise in unemployment a multi country study one of the most remarkable features of recent economic history has been the remorseless rise in unemployment throughout the industrialized countries however while the trend to higher unemployment is universal the experience of individual countries also differs widely the increase is especially marked within the european community where unemployment rates rival those reached in the interwar years by contrast in the scandinavian countries and japan unemployment is lower and has risen very much less experience in the united states lies somewhere between these extremes and in the last few years unemployment there has fallen sharply

an east asian model of economic development japan taiwan and south korea the east asian model of economic development focuses on 5 shared characteristics that seem significant in the contemporary economic development of japan taiwan and korea they are economic characteristics and include 1 high investment ratios 2 small public sectors 3 competitive labor markets 4 export expansion and 5 government intervention in the economy large and efficient investments in human capital and well developed capacities to absorb new technology are 2 other economic features shared by the three one could add overcrowding high man land ratios and scarcity of natural resources though these are handicaps rather than sources of economic strength it is possible however that virtue springs from necessity and that ample arable land or abundant natural resources mainly permit governments to postpone the difficult decisions needed to promote development rather than provide the wherewithal needed to finance development other noneconomic characteristics of the three such as ethnic and linguistic homogeneity relatively compact geography manageable population size and the confucian tradition have not been considered in the model even though they have undoubtedly influenced labor productivity savings behavior and other aspects of economic performance whether the east asian model ought to be followed depends on whether current and foreseeable circumstances are sufficiently like those faced by the three to justify using the same policies that they used applicability of the east asian model should also depend on whether the strategy employed by the three has been responsible for their economic success 2 aspects of the east asian models policy features are noteworthy 1 the policies typically work by influencing rather than replacing private market decisions and 2 the public expects government to intervene to influence economic growth

industrial policy reform in six large newly industrializing countries the resource curse thesis abstract all six large newly industrializing countries nics in this study favored an autarkic industrial policy aip in the 1950s aip required however the rapid build up of heavy and chemical industry hci which caused foreign exchange shortages if the hci matured slowly this is because the import and subsidy demands of the growing protected hci sector became too burdensome for the competitive primary sector whose rents shrank in relative importance as the economic structure evolved the two least well endowed nics abandoned aip early in favor of a competitive industrial policy cip which relied on labor intensive exports to earn foreign exchange and resulted in rapid economic growth in contrast the resource bonus of the four best endowed nics sustained aip longer but the longer aip lasted the harder it became to reform and the slow maturing hci sector adversely affected economic growth in this way the resource bonus became a curse rather than a blessing

multinational production effect on brand value direct foreign investment in manufacturing abroad has a number of consequences for the firm one aspect particularly salient when the company s image is tied to its home country is the impact of the dfi upon customer perceptions of the brand the present study shows how changes in perceptions can be assessed prior to the investment decision and how the brand value consequences of a particular location can be estimated the proposed method is illustrated using data from a japanese company s entry into the u s

foreign debt balance of payments and growth prospects the case of the republic of korea 1965 1988 the rapid buildup in the external debt of the developing countries since 1973 has created serious economic and political difficulties that could frustrate the development efforts of these countries and threaten the international financial system in terms of outstanding debt the republic of korea ranks fourth among third world borrowers and has experienced a noticeable deterioration in its debt servicing capacity yet at the same time it is widely recognized that the country has successfully adjusted to a series of adverse external developments since 1973 and in the process has maintained growth momentum while avoiding the financial difficulties other countries now face the exceptional performance of its economy in recent years supports this assessment the purpose of this study is twofoid the first is to analyze korea s experience with debt accumulation and management over the past two decades with a view to identifying some of the factors that may explain its successful debt management the second objective is to examine the prospects of the national economy for the 1984 88 period section 2 discusses profiles of the country s external obligations and analyzes several aspects of the outstanding debt pertinent to the discussion section 3 is devoted to a discussion of the evolution and causes of the country s foreign debt accumulation this discussion is followed by a review of its response to external and internal shocks in sections 4 and 5 section 6 examines questions related to the efficiency and optimality of foreign borrowing section 7 investigates the prospects of the national economy for the next five years for this purpose this section highlights some of the target revisions made in 1983 for the remainder of the fifth five year economic and social deveiopment plan 1982 86 and the government s macroeconomic projections through 1988 comparisons are made with simulation exercises under a number of scenarios that generate projections for the economy until 1990 a summary and concluding remarks constitute the final section

a cross cultural study of made in concepts cross cultural studies of the perceptions of countries of origin by industrial users have been few but they are important because of their managerial implications for multinational firms this study uses data obtained from american and french directors of purchasing of major industrial firms concerning their perceptions of 5 major made in concepts after the data were corrected for response bias results show both how the respondents perceive the made in concepts and the differences between the american and french perceptions

international product positioning one of the cornerstones of a firm s marketing strategy in any market is the development of an appropriate product positioning plan this paper argues that may of the same considerations that go into the positioning strategy in the home country are directly relevant for international markets there is an added elements of complexity in that the country of origin of the imported product will often be a salient factor in the buyer evaluation process the effect of country stereotype will be to shift the position of the product in the perceptual space and alter the overall evaluation of its merits the competitive strength of the product will thus be affected by country biases the paper shows how these factors can be dealt with in the management of the international product positioning task

new brand positioning and pricing in an oligopolistic market the positioning and pricing of a new brand requires knowledge about the relationship of both demand and cost with potential attribute locations and prices this paper addresses this problem and illustrates it in the context of the automobile market multi attribute expected utility theory which allows for consumer uncertainty about the brands is used to model individuals behavior attribute weights are estimated from market survey data on brands attributes and preferences using linmap as an estimation procedure expected utility is then updated using the multinomial logit model and choice data to account for the observation that stated preferences do not perfectly reflect the eventual choice it is hypothesized that when faced with an actual choice price may become more important to the consumer while other attributes may become more or less important than is reflected in stated preferences the resulting estimated choice probabilities are aggregated to form demand functions facing each brand which depend on all brands prices and attribute space locations assuming there is a price equilibrium in the existing market and that firms have the same variable cost function variable costs as a function of a brand s attribute levels are estimated given the demand and cost functions facing each firm including the potential new entrant the profit maximizing positioning and pricing of a new brand is analyzed using a game theoretic approach a solution is sought under the assumption that incumbents react to entry by changing their prices possible approaches to the translation of the perceptual attribute positioning of the new brand to physical and engineering attributes are reviewed improvements and future extensions of the study are discussed

a cost function analysis of import demand and growth in south africa abstract this study investigates the substitutability relationships among capital labor and imported inputs for south africa utilizing the estimates obtained from an aggregate cost function our results are consistent with the hypothesis that capital is a substitute for both domestic labor and imports but that labor and imports are complementary inputs this latter result suggests that relaxing south african trade restrictions may have a positive impact in both the long and the short run on the demand for domestic labor other results suggest that the reduction of market impediments may also positively impact the production of investment goods and economic growth