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

bioeconomics of sustainable harvest of competing species abstract the concept of maximum sustainable yield frontier msf is applied to a gause model of competing species maximizing the present value of economic rent under costless harvesting with positive discount rate implies optimal stock levels below the locus of msf stocks maximizing economic rent with positive harvesting costs and zero discount rate implies optimal stock levels above the locus of msf stocks it is shown how the optimal steady state stock levels are altered by changes in the exogenous discount rate harvest prices and harvest costs optimal harvesting might imply harvesting of one of the two species at a loss

international sourcing and supply chain stability an international supply chain is conceptualized as a complex dynamic system in which disruptions interact with long shipping and lead times to generate costs findings from a case study and simulation model indicate that demand related disruptions created substantial and unexpected costs in terms of expedited shipping high inventories and lower demand fulfillment production related disruptions declined over time but demand related disruptions did not implications for management are discussed

environmental influences on mne subsidiary roles economic integration and the nordic countries we seek to examine the importance of environmental factors in determining mne subsidiary roles in particular we examine the environmental factors associated with deep integration schemes such as the eu such schemes require a convergence of economic structure due to the establishment of common regional institutions regulations and policies specifically we distinguish between the scope of activities performed by subsidiaries and the level of competence of those subsidiaries the empirical analysis is based on a large scale survey of foreign owned units in denmark finland and norway these nordic countries differ with regard to their eu membership status norway being the outsider while the others are members but are very similar to each other in most other respects our data show that subsidiaries in norway report significantly lower scores for both scope of activities and levels of competence the effects remain strong even when we are controlling for other potentially influential factors the findings indicate that being on the outside of the eu may indeed carry the price of becoming less attractive to mne activity

technological and organizational change in automobile production spatial implications 1 schoenberger e 1987 technological and organizational change in automobile production spatial implications reg studies 21 199 214 the origins and implications of recent technological and organizational changes in the automobile industry are examined the nature of competition in the industry is linked to the adoption of flexible automation technologies in production this it is argued may foster the spatial re integration of production in contrast to earlier decentralizing trends an effect that may be reinforced by the move to just in time principles of production organization implications for regional development are considered with cautions stressed concerning the meaning of spatial proximity and the firm s ability to construct agglomeration economies away from traditional industrial centres schoenberger e 1987 changements technologiques et organisationnels dans la production automobile implications spatiales reg studies 21 199 214 les origines et les implications des recents changem

this time is the same using bank performance in 1998 to explain bank performance during the recent financial crisis are some banks prone to perform poorly during crises if yes why in this paper we show that a bank s stock return performance during the 1998 crisis predicts its stock return performance and probability of failure during the recent financial crisis this effect is economically large our findings are consistent with persistence in a bank s risk culture and or aspects of its business model that make its performance sensitive to crises banks that relied more on short term funding had more leverage and grew more are more likely to be banks that performed poorly in both crises

the effect of common property on the optimal structure of the fishing industry abstract this paper extends previous fisheries models by generalizing the necessary and sufficient conditions under which coexistence of specialized and generalized vessels occurs in a multispecies fishery economies of scope and demand conditions are argued to dictate coexistence inefficiency in market structure is also shown to arise with an inappropriate property rights regime

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

open access common property and scarcity rent in fisheries open access resources are frequently not managed efficiently resulting in falling stock levels and a declining income for fishermen in the late 1970 s the policy response to this problem was the implementation of 200 mile fishing zones which enabled the european union to formulate and implement the common fisheries policy aimed at among other things conservation and distribution of available stocks in germany this shift from an open access regime towards a common property regime had favourable outcomes the trend of falling prices was reversed the conclusion was that intertemporal efficiency had increased as a result of inter governmental policy apparently a wedge was formed between price and marginal harvesting costs implying that scarcity rent had returned as a component of prices

asset stock accumulation and sustainability of competitive advantage given incomplete factor markets appropriate time paths of flow variables must be chosen to build required stocks of assets that is critical resources are accumulated rather than acquired in strategic factor markets barney barney j 1986 strategic factor markets expectations luck and business strategy management sci october 1231 1241 sustainability of a firm s asset position hinges on how easily assets can be substituted or imitated imitability is linked to the characteristics of the asset accumulation process time compression diseconomies asset mass efficiencies inter connectedness asset erosion and causal ambiguity

has the cds market lowered the cost of corporate debt abstract many have claimed that credit default swaps cdss have lowered the cost of debt financing to firms by creating new hedging opportunities and information for investors this paper evaluates the impact that the onset of cds trading has on the spreads that underlying firms pay to raise funding in the corporate bond and syndicated loan markets employing a range of methodologies we fail to find evidence that the onset of cds trading lowers the cost of debt financing for the average borrower further we uncover economically significant adverse effects on risky and informationally opaque firms

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

collateral loan quality and bank risk abstract most commercial loans are made on a secured basis yet little is known about the relationship between collateral and credit risk several theoretical studies find that when borrowers have private information about risk the lowest risk borrowers tend to pledge collateral in contrast conventional wisdom holds that when risk is observable the highest risk borrowers tend to pledge collateral an additional issue is whether secured loans as opposed to secured borrowers tend to be safer or riskier than unsecured loans empirical evidence presented here strongly suggests that collateral is most often associated with riskier borrowers riskier loans and riskier banks

measuring globalization of industries using a national industry approach empirical evidence across five countries and over time this paper presents an objective measurement of industry globalization although crucial in understanding firm strategies industry globalization has been largely subjectively measured consisting of mostly case studies this research develops a two pronged measure of industry globalization based on a the extent of an industry s international linkages lit and b the integration of value added activities within the industry iit in addition of providing a quantitative equivalent to porter 1986 and bartlett and ghoshal s 1989 conceptual industry categorizations this measure permits the examination of important but previously untested notions regarding globalization using data for chemical and manufacturing industries for five major trading nations we find that 1 chemical industries are less global than manufacturing industries despite high levels of fdi found in chemical industries 2 u s globalization frequently assumed to be representative of worldwide globalization of industries is less than that of other major industrial countries and 3 industries in both sectors are globalizing over time consistent with the literature

financial innovation systematic risk and commercial banks stability in china theory and evidence abstractwe are dedicated to revealing the impacts of financial innovation and systematic risk on commercial banks stability in china both theoretically and empirically we established a theoretical model and derived a theoretical mechanism from this model revealing two distinctive patterns of the impacts determined by the profitability of financial derivatives the impacts of financial innovation and systematic risk on banks stability in china are linear under the circumstances of a positive expected risk premium of financial derivatives conversely the impacts can be linear u shaped or cubic when the expected risk premium is negative we make three propositions to analyse the patterns and conditions of these impacts in detail in the empirical analysis we do not focus only on the banking industry but also on individual commercial banks the empirical results demonstrate that the impact of financial innovation on both the banking industry s and most individual commercial banks stability are u shape

local input linkages a comparison of foreign owned and domestic manufacturers in georgia and south carolina barkley d l and mcnamara k t 1994 local input linkages a comparison of foreign owned and domestic manufacturers in georgia and south carolina reg studies 28 725 737 input purchasing patterns of foreign owned and domestic manufacturers were compared to determine if local economic impacts varied by country of ownership input purchasing data were obtained from a 1990 survey of south carolina and georgia manufacturers tobit estimation results indicate nonmetro foreign owned firms had significantly higher propensities to purchase inputs in county than domestic branch plants located in nonmetro counties no significant differences existed between the input purchase propensities of metro domestic and foreign owned manufacturers however foreign owned firms were disproportionately represented in industries with relatively weak indirect and induced effects on the local economies relatively strong overall impacts may not be associated with the relatively large initial input purchases of foreign owned

allocatable fixed inputs and jointness in agricultural production implications for economic modeling allocatable fixed inputs such as land are a potentially important source of jointness in agriculture as with other causes of jointness they necessitate multiple product systems for modeling product supply and input demand in other important ways however their analytical implications are very different from other causes of jointness model specification differs demand functions for the quantities of each input used in the production of individual commodities can be derived if a primal approach is used but such allocation equations cannot in general be identified from a dual specification available allocation data are not even useful in such dual estimations

managing foreign subsidiaries agents of headquarters or an interdependent network in this study two different theoretical perspectives are used to develop sets of hypotheses regarding the mechanisms used to manage foreign subsidiaries of multinational corporations first agency theory serves as the basis for a model that predicts the use of monitoring mechanisms and incentive compensation then it is argued that these mechanisms are insufficient for managing subsidiaries characterized by high levels of intra firm international interdependence the management of which is critical to many of today s complex global firms a second set of hypotheses is argued linking international interdependence to several social control mechanisms primary and secondary data from u s based multinational corporations were used to test both sets of hypotheses the results indicate that agency theory although a useful foundation for studies of control within mncs is limited in its ability to explain fully the phenomenon of foreign subsidiary control however the model based on intra firm interdependence had much greater predictive ability copyright 2000 john wiley sons ltd

asymmetric valuations and the role of collateral in loan agreements loan contracts with provision for collateral are of two general types in one the collateral may be an existing asset of the borrowing firm which is pledged to a lender in the event of default in this case collateral does not increase the assets that the borrower would lose if there is default since all the borrower s assets are attachable therefore the expected marginal cost to the borrower of providing an additional unit of collateral includes principally transactions costs associated with the collateral l this describes the usual type of commercial loan arrangement with the collateral being either equipment real estate accounts receivable or inventories in the other type of loan contract the collateral is an additional asset that is given up by the borrower if there is default that is in addition to the usual assets that are available to its lenders the borrower assigns as collateral to a creditor an asset that would normally not be legally attachable this arrangement is more common in small business loans that are secured by a personal asset e g a house of the entrepreneur likewise debt issued by a legally separate subsidiary may be secured by an asset of the parent firrn in these cases the expected marginal cost to the borrower the owner manager of the small firm or the parent corporation in the latter example of providing an additional unit of collateral

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

stages of diversification this paper studies the evolution of sectoral concentration in relation to the level of per capita income we show that various measures of sectoral concentration follow a u shaped pattern across a wide variety of data sources countries first diversify in the sense that economic activity is spread more equally across sectors but there exists relatively late in the development process a point at which they start specializing again we discuss this finding in light of existing theories of trade and growth which generally predict a monotonic relationship between income and diversification

credit default swaps in general equilibrium endogenous default and credit spread spillovers this paper shows that credit default swaps cds can affect the type of debt firms issue firms face a trade off between investment scale and the cost of capital measured by the credit spread small scale investment is safe fully collateralized but earns modest profits in all states large scale investment is risky requires a positive credit spread but yields high profits only in good states and default in bad states cds only affect risky credit spreads which in turn affects the opportunity cost of issuing collateralized safe debt covered naked cds lower raise credit spreads and raise lower the likelihood of issuing risky debt finally we show that cds generate credit spread and investment spillovers for non cds referenced firms

winners and losers from financial derivatives use evidence from community banks this article provides empirical evidence on how profitability of small community banks was affected by derivatives use before and after the 2008 crisis we use an endogenous switching regressions m

the changing corporate head office and its spatial implications aksoy a and marshall n 1992 the changing corporate head office and its spatial implications reg studies 26 149 162 a substantial body of literature suggests that during the 1980s large firms reorganized in response to volatility in product markets and in a search for new competitive advantage using evidence from a survey of twenty large firm head offices in great britain this paper examines the extent of large firm reorganization and its impact on regional economies it shows that associated with corporate restructuring employment in large firm head offices has declined substantially headquarters functions have been delegated to operating companies and contracting out has increased in a review of the geographical consequences of these changes which goes beyond the discussion of high tech complexes and industrial districts the paper suggests that reorganization is modifying rather than transforming patterns of spatial development in britain corporate restructuring is encouraging the dec

contrasting experience of recession and spatial restructuring british shipbuilders plessey and metal box peck f w and townsend a r 1984 contrasting experience of recession and spatial re structuring british shipbuilders plessey and metal box reg studies 18 319 338 trends in aggregate economic indicators in the recent recession conceal marked variations in the experience of different industrial corporations within the meso economic sector in the uk this paper demonstrates such variations by comparing the nature of employment decline in three major uk corporations british shipbuilders plessey and metal box despite similar employment profiles since 1977 these three corporations have experienced very different trends in output productivity and profitability suggesting that their respective job losses have occurred for different reasons the origins of these job losses are examined in detail concentrating in particular on the regional incidence of major redundancies and closures the conclusion summarizes the factors which influence job loss and suggests extending the analysis to wider groups of

multi product allocation under imperfect raw material supply conditions the case of fish products an otherwise conventional model of multi product supply is applied to circumstances in which the raw material is provided under highly imperfect market conditions satisfactory results are obtained from a specification in which the supply allocation is a function of both the price and the quantity of the raw material

import sourcing dynamics an integrative perspective the character of import sourcing for manufacturing has changed beyond the reach of current explanatory schemes this study knits several evolving trends in the area of import sourcing into a theoretical framework in order to facilitate research in this under researched topic and expose to practitioners the increasing strategic value of import sourcing

sourcing strategies of european and japanese multinationals a comparison based on a typology of sourcing strategies this study identifies various sourcing patterns adopted by european and japanese multinational manufacturing firms in serving the u s market the study has found that the product s market performance is not at all related to its life cycle stage in world trade or to production location but is positively related to the internal components sourcing and negatively related to the product adaptation the findings strongly support levitt s call for a global product

collateral and rationing sorting equilibria in monopolistic and competitive credit markets the authors examine how market structure affects credit allocation under universal risk neutrality and asymmetric information about borrowers they consider both monopolistic and perf ectly competitive banks and examine the role of collateral in each ca se when a bank is a monopolist on the loan side they find collatera l is never used and asymmetric information results in reduced bank le nding under perfect competition collateral has a useful sorting rol e moreover rationing is possible even with collateral availability and perfectly elastic deposit supply in this setting the authors sh ow co signers are valuable social welfare properties of the monopoly and competitive equilibria are also compared copyright 1987 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

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

credit default swaps and the credit crisis many observers have argued that credit default swaps contributed significantly to the credit crisis of particular concern to these observers are that credit default swaps trade in the largely unregulated over the counter market as bilateral contracts involving counterparty risk and that they facilitate speculation involving negative views of a firm s financial strength some observers have suggested that credit default swaps would not have made the crisis worse had they traded on exchanges i conclude that credit default swaps did not cause the dramatic events of the credit crisis that the over the counter credit default swaps market worked well during much of the crisis and that exchange trading has both advantages and costs compared to over the counter trading though i argue that eliminating over the counter trading of credit default swaps could reduce social welfare i also recognize that much research is needed to understand better and to quantify the social gains and costs of derivatives in general and credit default swaps in particular

financial innovation the bright and the dark sides based on data from 32 countries over the period 1996 2010 this paper is the first to assess the relationship between financial innovation on the one hand and bank growth and fragility as well as economic growth on the other hand we find that different measures of financial innovation capturing both a broad concept and specific innovations are associated with faster bank growth but also higher bank fragility and worse bank performance during the recent crisis these effects are stronger in countries with larger securities markets and more restrictive regulatory frameworks in spite of these seemingly ambiguous findings our evidence points to a positive net effect of financial innovation on economic growth financial innovation is associated with higher growth in countries and industries with better growth opportunities

the role of financial intermediaries in monetary policy transmission the recent financial crisis has stimulated theoretical and empirical research on the propagation mechanisms underlying business cycles in particular on the role of financial frictions many issues concerning the interactions between banking and monetary policy forced policy makers to redefine economic policies and motivated macroeconomists to focus on the implications of financial intermediation constraints for asset price fluctuations the behavior of non financial firms households governments and in turn for real macroeconomic performance this paper surveys research on the role of financial intermediaries and financial frictions in the transmission of monetary policy and discusses how to design both the new banking regulatory and supervisory structures and monetary policy in order to stabilize the economy it also serves as an introduction to this special issue

globalization of production and innovation how outsourcing is reshaping an advanced manufacturing area cusmano l mancusi m l and morrison a globalization of production and innovation how outsourcing is reshaping an advanced manufacturing area regional studies this paper investigates the determinants and the spatial and functional dimensions of firms outsourcing based on a large survey of manufacturing firms in lombardy italy the analysis shows that outsourcing is remarkably wide across sectors and has a clear regional dimension concerning highly skilled firms at most offshoring is still a minor fraction of the deverticalization process largely related to wider strategies of internationalization by foreign group subsidiaries at intermediate stages of the value chain the evidence suggests the regional system is inserting onto global knowledge networks but also points at the risk of branch plant effects in high technology segments cusmano l mancusi m l et morrison a la mondialisation de la production et de l innovation comment l approvisionnement a l exterieur reorganise une zone ind

production technology costs and multiproduct industry structure an application of the long run profit function to the new england fishing industry the long run multiproduct profit function is developed to provide a more general procedure than the static minimum cost function to examine the technological and cost determinants of multiproduct industry structure and the likely form of any market equilibrium in this approach outputs are endogenous and the long run equilibrium levels of quasi fixed factors are endogenously determined the multiproduct structure of the multispecies new england fishing industry and the likely multi

characteristics of foreign subsidiaries in industry clusters this paper examines the characteristics of foreign owned subsidiaries in export intensive leading edge industry clusters as defined by porter 1990 using a sample of 229 subsidiaries from three countries we show that subsidiaries in such clusters are more embedded more autonomous and more internationally oriented than subsidiaries in other industry sectors we also show that there are significant differences in the roles of foreign owned subsidiaries from one leading edge cluster to the next that are associated with the dynamism of the cluster and the overall level of foreign ownership the results indicate 1 that typologies of subsidiary roles should give increased consideration to environmental factors and 2 that thinking on industry clusters instead of treating them identically should recognize that they have heterogeneous characteristics

the determinants of contract terms in bank revolving credit agreements the paper examines the determinants of contract terms on bank revolving credit agree ments revolvers of medium large publicly traded companies we model the duration maturity secured status and pricing decisions within a simultaneous decision frame work thereby overcoming the biased and inconsistent estimates in prior single equation studies of debt contract terms we find strong interrelationships between contract terms with significant bi directional relationships between duration and secured status and be tween the all in spread and commitment fees and a unidirectional relationship from both duration and secured status to all in spread we also illustrate how several single equa tion studies of contract terms draw incorrect conclusions because of their inappropriate assumption that other contract terms and leverage were exogenous finally our results sup port the hypothesis that the setting of contract terms plays an important role in alleviating contracting problems

financial innovation and bank behavior evidence from credit markets this paper investigates whether and through which channel the active use of credit derivatives changes bank behavior in the credit market and how this channel was affected by the crisis of 2007 2009 our principal finding is that banks with larger gross positions in credit derivatives charge significantly lower corporate loan spreads while banks net positions are not consistently related to loan pricing we argue that this is consistent with banks passing on risk management benefits to corporate borrowers but not with alternative channels through which credit derivative use may affect loan pricing we also find that the magnitude of the risk management effect remained unchanged during the crisis period of 2007 2009 in addition banks with larger gross positions in credit derivatives cut their lending by less than other banks during the crisis and have consistently lower loan charge offs in sum our study is suggestive of significant risk management benefits from financial innovations that persist under adverse conditions that is when they matter most

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

the influence of hymer s dissertation on the theory of foreign derect investment the great contribution of stephen hymer s seminal dissertation 1960 was to escape from the intellectual straightjacket of neoclassical type trade and financial theory and move us towards an analysis of the multinational enterprise mne based upon industrial organization theory the magnitude of this breakthrough can be put into perspective by considering the state of the art when hymer wrote twenty five years ago in 1960 the prevailing explanation of international capital movements relied exclusively upon a neoclassical financial theory of portfolio flows in this frictionless world of perfect competition with no transaction costs capital moves in response to changes in interest rate or profit differentials see carl iversen 1936 according to this arbitrage theory capital is assumed to be transacted between independent buyers and sellers that is there is no role for the mne at the time there was no separate theory of foreign direct investment fdi the work did not even ask the question of why is there fdi despite the evidence of sectoral cross investments and the existence of large mnes with intra industry trade if anything the early work on fdi focused upon the where of investment in a particular nation or industry for example dunning 1958 was chiefly interested in explaining u s fdi in britain there was little interest in understanding the reasons for the mne or the nature of its operations the pioneering conceptual insight of hymer was to break out of the arid mold of international trade and investment theory and focus attention upon the mne per se this permits us to treat fdi as a modality by which firms extend their territorial horizons abroad the unique feature of fdi is a mechanism by which the mne maintains control over productive activities outside its national boundaries that is fdi means international production in this view fdi is more than a process by which assets or claims are exchanged internationally see robert aliber 1970 1983 hymer s great insight was in focusing attention upon the mne as the institution for international production rather than international exchange until hymer articulated the process of fdi as an international extension of industrial organization theory it was not possible to understand why the mne transfers intermediate products such as knowledge or technology among its units across different nations while still retaining property rights over such assets today it is widely recognized that the theory of fdi i e international production is primarily about the transfer of nonfinancial and ownershipspecific intangible assets by the mne which needs to appropriate and control the rate of use of its internalized advantage s see rugman 1981 david teece 1981 1982 richard caves 1982 and mark casson 1983 in this paper we first acknowledge hymer s contribution to the theory of fdi and then move on to reinterpret his dissertation in the light of the modern theory of the mne we tdiscussants raymond vernon harvard university robert z aliber university of chicago paul streeten boston university

loan sales and the cost of corporate borrowing when a loan is sold it goes to a lower cost financing source than its originator yet lending markets are less than perfectly competitive despite the lower funding cost therefore the loan price is not necessarily more favorable to the borrower however corporate borrowers are averse to the participation of their loans to other lenders because of the complexity of dealing with multiple banks and the potential information costs of the sale announcement consequently i conjecture that the borrower extracts a price concession in exchange for allowing the bank to sell participations in the loan using a hand matched dataset of loans borrowers and lenders i find that the average yield spread on loans originated by active loan sellers is about 20 basis points lower than the average spread on loans originated by moderate loan sellers copyright 2006 oxford university press

factors governing the development of high tech industry agglomerations a tale of three cities glasmeier a 1988 factors governing the development of high tech industry agglomerations a tale of three cities reg studies 22 287 301 high tech industries are thought to precipitate structural change in local economies through the creation of backward and forward linkages and new firm spinoffs case studies of high tech firms and products indicate interindustry linkage development is closely associated with product type and organizational structure of firms three product configurations one of a kind customized and standardized generate differing levels of linkage and spinoff potential firms producing customized products with highly variable input structures and established subcontracting relationships are more amenable to linkage and spinoff creation than firms producing one of a kind or standardized products the potential for linked industry development is further diluted because the spatial expansion path of high tech firms has been through the creation of technical branch plants which a