global strategies multinational subsidiary roles and economic impact in scotland young s hood n and dunlop s 1988 global strategies multinational subsidiary roles and economic impact in scotland reg studies 22 487 497 this paper considers in a preliminary way the influence of mne global strategies on foreign subsidiary roles in scotland and from this some of the economic effects on the scottish economy are highlighted the study is based on a postal survey of mne subsidiaries in scotland the responses being analysed using the statistical techniques of cluster analysis and discriminant analysis despite the weaknesses of the former technique in particular the preliminary findings suggest substantial benefits to the economy from the one third of affiliates in the strategic independent product specialist categories as compared with the conventional branch plants rationalized manufacturers and miniature replica subsidiaries young s hood n et dunlop s 1988 strategies globales role des filiales des societes multi nationales et impact economique en ecosse

minding america s business the decline and rise of the american economy only the economy s competitive position internationally but also the nation s moral fiber in the liberal camp the present confusion which has arisen out of attempts to reconcile reagan s new federalism with longstanding democratic demands for a large share of public goods in the economy has been camouflaged by the visions of felix rohatyn and lester thurow who want to rebuild america s in

optimal growth with many consumers abstract a method is described for constructing all pareto optimal allocations for a dynamic economy with many heterogeneous consumers under certainty in which both the technology and consumer preferences are recursive but preferences need not be additively separable over time optimal perfect foresight competitive equilibrium allocations are obtained through the study of a dynamic program for an economy with one consumption good sufficient conditions are given for the existence of a unique interior stationary distribution of consumption and wealth for a two person exchange economy sufficient conditions are given for the global asymptotic stability of the unique interior stationary point

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

subsidiary size and the level of subsidiary autonomy in multinational corporations a quadratic model investigation of australian subsidiaries we investigate the relationship between subsidiary size and subsidiary autonomy in multinational corporations mncs and conclude that a quadratic inverted u shaped model is the best fit to our data founding our arguments in resource dependence theory we propose that while the subsidiary is relatively small increasing subsidiary size will correlate with increasing resources in the subsidiary and a consequent increase in subsidiary autonomy this positive linear relationship persists until an inflection point is reached and subsidiary autonomy begins to decline we argue that this is due to increasing subsidiary size bringing increasing coordination complexity a need for greater inputs of managerial experience and expertise and growing interdependence between the subsidiary and the rest of the corporation employing a sample of 313 australian subsidiaries of mostly us uk european and japanese mncs we use a three step hierarchical regression to investigate controls only linear and quadratic effects of subsidiary size on subsidiary autonomy the quadratic inverted u model supports and extends hedlund s 1981 proposition a post hoc investigation suggested that there might be value in exploring a sinusoidal relationship between size and autonomy

autonomy and procedural justice a framework for evaluating subsidiary strategy using the well supported dimensions of autonomy and procedural justice a four quadrant model of subsidiary strategy is proposed and a four part typology hypothesized partner collaborator militant and vassal subsidiaries a clustering process is used to develop a four group taxonomy that corresponds with the induced model the four groups of subsidiaries are analysed across seven alternative strategic dimensions integration responsiveness coordination configuration market scope product scope and value added scope the external and internal validity of the framework is confirmed and its utility discussed in terms of subsidiary s movement from one strategy state to another

a test of the habit formation hypothesis using household data numerous studies have confirmed the importance of habit formation as represented by a lagged dependent variable in demand analysis although all work to date has been based on aggregate time series data this study uses household level bls interview panel data to test the habit hypothesis an interrelated demand system for seventeen goods is estimated from cross section data and compared with a similar system based on time series data the results show that the habit component is significantly different between the two data sets and much smaller in the cross section data habit effects while not as large in cross section data as time series are still highly significant several explanations are offered concerning why the two sets of estimates differ copyright 1991 by mit press

assessing the impacts of foreign manufacturing on regional economies the cases of wales scotland and the west midlands brand s hill s and munday m 2000 assessing the impacts of foreign manufacturing on regional economies the cases of wales scotland and the west midlands reg studies 34 343 355 this paper examines the direct and indirect contributions made by foreign manufacturing companies to the regional economies of wales scotland and the west midlands survey data derived from foreign manufacturers in each region were used in conjunction with regional input output tables to assess the comparative contributions of defined foreign and domestically owned sectors to regional value added the analyses are a starting point for the more accurate targeting of regional resources to industry sectors in the respective regional economies brand s hills s et munday m 2000 evaluer les retombees de l industrie etrangere sur les economies regionales etude de cas du pays de galles de l ecosse et des west midlands reg studies 34 343 355 cet article cherche a examiner les roles direct et indirect joue par les en

branch plants and the evolving spatial division of labour a study of material linkage change in the northern region of england phelps n a 1993 branch plants and the evolving spatial division of labour a study of material linkage change in the northern region of england reg studies 27 87 101 recent literature has suggested that manufacturing industry including that in peripheral regions is becoming more locally embedded as a result of processes of externalization and localized linkage formation this paper explores the hypothesis that branch plants have in terms of spatial patterns of material linkages become more locally embedded as a result of recent industrial restructuring evidence from a survey of manufacturing establishments in the northern region of england is used to explore hypotheses regarding the contribution of new greenfield investments and in situ restructuring to aggregate changes in spatial patterns of linkages the results suggests that despite processes of externalization northern region branch plants continue to be poorly integrated into the regional economy consequently it is argued that the cont

a simple dynamic general equilibrium model abstract we analyse a single sector economy with h 1 infinitely lived agents that operate in a continuous time framework utility functions are recursive but not additive both efficient and perfect foresight competitive equilibrium allocations are considered the existence and stability of such allocations are investigated locally i e in a neighbourhood of steady state allocations the model is shown to be useful for explaining the distribution of wealth and consumption across agents and for analysing the way in which wealth redistribution can affect the dynamics of aggregate economic variables

international business cycles what are the facts abstract modern business cycle theory involves developing models that explain stylized facts for this strategy to be successful these facts should be well established in this paper we focus on the stylized facts of international business cycles we use the generalized method of moments and quarterly data from twenty industrialized countries to estimate and test hypotheses concerning pairwise cross country correlations of macroeconomic aggregates a remarkable common feature emerges these correlations are mostly positive not very high and of a similar order of magnitude the most important discrepancy with the theory is the low cross country correlation of consumption

temporary and permanent government spending in a small open economy abstract this paper studies a dynamic optimizing small open economy model that emphasizes the supply side responses of labor and capital to changes in fiscal policy the model used generates results that are consistent with a number of empirical regularities in small open economies furthermore temporary fiscal shocks are shown to have permanent positive effects on output and negative effects on consumption and welfare the strength of these effects are shown to depend on intertemporal elasticities of substitution and the persistence of policies

the rise of the pentagon and u s state building the defense program as industrial policy state centered theories stress the potential for states to be proactive as well as reactive but the analytic tools developed in this literature have not been employed to examine the most impressive episode of state building in the postwar united states the rise of the pentagon this article examines the bureaucratic resources at the disposal of the pentagon and concludes that high ranking military officers have operated as relatively autonomous bureaucrats case studies of the aeronautics and microelectronics industries provide evidence that the pentagon has implemented a de facto industrial policy in the name of national defense the substantive conclusion that the autarkic pentagon has implemented a massive industrial policy contradicts the view that the hegemonic u s state is strong in the international arena but too weak and fragmented to plan the domestic political economy

welfare and macroeconomic interdependence we develop a baseline model of monetary and fiscal transmission in interdependent economies the welfare effects of expansionary policies are related to monopolistic supply in production and monopoly power of a country in trade an unanticipated exchange rate depreciation can be beggar thyself rather than beggar thy neighbor as gains in domestic output are offset by deteriorating terms of trade smaller and more open economies are more prone to suffer from inflationary shocks larger economies benefit from moderate demand led expansions but may be worse off if policy makers attempt to close the output gap fiscal shocks are generally beggar thy neighbor in the long run in the short run they raise domestic demand at given terms of trade thus reducing the welfare benefits from monetary expansions analytical tractability makes our model uniquely suitable as a starting point to approach the recent new open economy macroeconomic literature

how multinational subsidiary mandates are gained and lost a subsidiary mandate is a business or element of a business in which the subsidiary participates and for which it has responsibilities beyond its national market this research studied thirty one mandates in six canadian subsidiaries of u s owned multinational corporations a life cycle framework was proposed and used to explore the factors associated with the gain development and loss of mandates by subsidiaries two key findings emerged first it was shown that there is a risk in having a full scope world product mandate because it is possible to become marginal to the corporate strategy second it was observed that the engine of subsidiary growth is its distinctive capabilities and that for a mandate to be effective it must be built on those capabilities implications for mandate sustainability are proposed on the basis of these two insights

habits and time preference this paper proposes a utility function incorporating both habit formation and an endogenous rate of time preference in a manner consistent with the intuition of irving fisher regarding the influence of past consumption on impatience it is shown that the ne w specification is tractable and generates new predictions in the cont ext of three model economies 1 a closed economy with heterogeneous agents 2 a small open economy with one traded good and one nontra ded good and 3 a small open economy with a traded good and domestic money copyright 1993 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

capital accumulation and the current account in a two country model abstract this paper examines the joint determination of international debt and capital accumulation in a two country model national rates of time preference are endogenous adjusting along an optimal path to come into equality with one another in the steady state the characteristics of short run current account dynamics are crucially linked to world capital accumulation and to a country s long run net external asset position steady state creditor countries tend to have current account surpluses during episodes of world output growth and vice versa for debtor countries this gives rise to possible non monotonic adjustment in the current account and consumption

fiscal policy profits and investment this paper evaluates the effects of fiscal policy on investment using a panel of oecd countries we find a sizeable negative effect of public spending and in particular of its wage component on profits and on business investment this result is consistent with different theoretical models in which government employment creates wage pressure for the private sector various types of taxes also have negative effects on profits but interestingly the effects of government spending on investment are larger than those of taxes our results can explain the so called non keynesian i e expansionary effects of fiscal adjustments jel e22 e62

intertemporal dependence impatience and dynamics abstract this paper develops simple geometric methods for analyzing consumer behavior under recursive but intertemporally dependent tastes since the preferences studied need not be time additive they allow the marginal utility of consumption on a given date to vary with consumption on other dates intertemporal dependence is induced by the presence of a variable individual rate of time preference the optimal consumption responses to transitory and anticipated changes in incomes and interest rates are easily derived and are similar in many respects to the responses implied by the standard constant time preference model intuitive explanations of the first order conditions describing optimal paths are provided

technology transfer within multinational firms and its impact on the productivity of scottish subsidiaries siler p wang c and liu x 2003 technology transfer within multinational firms and its impact on the productivity of scottish subsidiaries reg studies 37 15 25 this paper aims to examine the extent to which the technology generated in us parent firms is transferred to their scottish affiliates in the form of productivity gains using a firm level panel data set the empirical results show that the labour productivity growth of scottish subsidiaries is positively linked to the rd those that already have achieved a relatively high level of productivity and those that compete in industries based on product technology the results have implications

habit persistence and the harberger laursen metzler effect in an infinite horizon model abstract the habit persistence model of ryder and heal is used to examine the harberger laursen metzler h l m effect our results are in contrast to the general view in the literature that the stability requirements preclude the h l m effect in an infinite horizon model we show that if the marginal utility of real consumption is strongly increasing in the habitual standard of living then the h l m effect holds and a terms of trade deterioration reduces savings however if the marginal utility of real consumption is not sufficiently strongly increasing or is decreasing in the habitual standard then the h l m effect is overturned

what are the effects of fiscal policy shocks we propose and apply a new approach for analyzing the effects of fiscal policy using vector autoregressions specifically we use sign restrictions to identify a government revenue shock as well as a government spending shock while controlling for a generic business cycle shock and a monetary policy shock we explicitly allow for the possibility of announcement effects i e that a current fiscal policy shock changes fiscal policy variables in the future but not at present we construct the impulse responses to three linear combinations of these fiscal shocks corresponding to the three scenarios of deficit spending deficit financed tax cuts and a balanced budget spending expansion we apply the method to us quarterly data from 1955 to 2000 we find that deficit financed tax cuts work best among these three scenarios to improve gdp with a maximal present value multiplier of five dollars of total additional gdp per each dollar of the total cut in government revenue 5 years after the shock copyright 2009 john wiley sons ltd

monopoly capital organized labor and military expenditures in the united states 1949 1976 in this paper we systematically assess the neo marxian view that military expenditures are used by the state as a countercyclical fiscal policy either to forestall a serious recession or to facilitate economic recovery in particular we examine the post world war ii political economic experience of the united states because the military expenditures thesis was most fully developed initially in an attempt to explain postwar american prosperity we evaluate what we term the naive model of baran and sweezy which suggests that the degree to which national output is absorbed by military spending should be dependent on aggregate economic conditions such as unemployment finding only inconsistent evidence to support the naive view we incorporate the insights of recent neo marxists especially o connor on the linkages among the monopoly corporate sector the unionized sector of labor and the state the empirical evidence appears consistent with this modified view with unemployment in the unionized sect

welfare capitalism and the social security act of 1935 a central concern of political theorists has been the relationship between the state and the economy or more specifically how political power gets translated into economic power recent debates have been shaped around critiques of the corporate liberal thesis which contends that class conscious capitalists manipulate the polity so that government comes to pursue policies favorable to capitalism alternative theories suggest that the state is capable of transcending the demands or interests of any particular social group or class the social security act of 1935 which represented the beginning of the welfare state in the united states was a conservative measure that tied social insurance benefits to labor force participation and left administration of its public assistance programs to the states in this paper the social security act is used as a case study to adjudicate between several competing theories of the state the analysis demonstrates that the state functions as a mediating body weighing the priorities of various interest groups with unequal access to power negotiating compromises between class factions and incorporating working class demands into legislation on capitalist terms a central concern of political theorists has been the relationship between the state and the economy or more specifically how economic power gets translated into political power recent debates have been shaped around critiques of the corporate liberal thesis which stresses the strategies of class conscious capitalists to manipulate the polity alternative theories suggest that the state is capable of transcending the demands or interests of any particular social group or class the core agenda of those espousing some variant of corporate liberalism has been to explain how major economic interests manipulated the polity in the twentieth century so that government came to pursue policies favorable to capitalism domhoff 1979 kolko 1963 o connor 1973 useem 1983 according to this perspective capitalists rationally pursued a series of policies designed to allow them control of the political process resulting in a synthesis of politics and economics for example kolko 1963 has argued that the regulatory reforms of the progressive era traditionally explained as a respose to muckraker s criticism were actually desired by large industry as a way not only of controlling

habit formation adjustment costs and international transmission of fiscal policy abstract the paper studies the effects of fiscal policy in an integrated world economy the setup is one with habit forming endogenous rates of time preference and adjustment costs in investment most of the predictions of the model are in line with the recent empirical literature on fiscal policy for instance in response to a balanced fiscal expansion we obtain positive long run output multipliers long run increases in employment short and medium run increases in wages and decreases in investment our results suggest that short run government spending multipliers are smaller than tax multipliers most importantly we show that the model can generate positive short and medium run consumption responses to a positive fiscal shock this is relevant as negative consumption responses are considered to be one of the main challenges facing neo classical models of fiscal policy

fiscal policy in good times and bad in the 1980s several countries with large government debt or deficit implemented substantial and in some cases drastic deficit cuts contrary to widespread expectations in many cases private consumption boomed rather than contracted this paper shows that in times of fiscal stress shocks to government revenues and especially expenditure have very different effects on private consumption than in normal times

fiscal policy in general equilibrium this paper studies four classic fiscal policy experiments within a quantitatively restricted neoclassical model the authors main findings are as follows 1 permanent changes in government purchases can lead to short run and long run output multipliers that exceed one 2 permanent changes in government purchases induce larger effects than temporary changes 3 the financing decision is quantitatively more important than the resource cost of changes in government purchases and 4 public investment has dramatic effects on private output and investment these findings stem from important dynamic interactions of capital and labor absent in earlier equilibrium analyses of fiscal policy copyright 1993 by american economic association

fiscal shocks and their consequences this paper investigates the response of hours worked and real wages to fiscal policy shocks in the post world war ii us we identify these shocks with exogenous changes in military purchases and argue that they lead to a persistent increase in government purchases and tax rates on capital and labor income and a persistent rise in aggregate hours worked as well as declines in real wages the shocks are also associated with short lived rises in aggregate investment and small movements in private consumption we describe and implement a methodology for assessing whether standard neoclassical models can account for the consequences of a fiscal policy shock simple versions of the neoclassical model can account for the qualitative effects of a fiscal shock once we allow for habit formation and investment adjustment costs the model can also account reasonably well for the quantitative effects of a fiscal shock

sourcing patterns of foreign owned multinational subsidiaries in europe tavares a t and young s 2006 sourcing patterns of foreign owned multinational subsidiaries in europe regional studies 40 583 599 this paper investigates the determinants of the international sourcing propensities of foreign owned multinational mne subsidiaries in four european union host countries major findings concern the impact of subsidiary roles and economic integration on international sourcing patterns regional and global integration are leading to a greater import orientation among mne subsidiaries including product mandate firms that are assumed to be strongly embedded within host economies the results cast doubts on existing criteria for inward foreign direct investment fdi attraction policy implications are developed relating to the attraction of inward fdi and to corporate development policies tavares a t et young s 2006 la distribution des sources d approvisionnement des filiales multinationales a capital etranger en europe regional studies 40 583 599 cet article che

on the macroeconomic policy implications of habit persistence this paper studies some policy implications of the habit persistence model of harl e ryder and geoffrey m heal 1973 for a small open economy it is shown that often the policy implications of the model that are consistent with the findings in the asset pricing literature are in conflict with the more widely understood implications that were previously derived from hirofumi uzawa s 1968 utility function copyright 1996 by ohio state university press