regional diversification and firm performance this study examines how regional diversification affects firm performance the results indicate that regional diversification has linear and curvilinear effects on firm performance regional diversification enhances firm performance linearly up to a certain threshold and then its impact becomes negative the results also show that firms of developed countries maximize their performance when they operate across a moderate number of developed regions and a strictly limited number of developing regions this explains why internationalization by most international firms is regional rather than global

a market performance comparison of u s firms active in domestic developed and developing countries direct foreign investment dfi may benefit investors through superior cash flows or lower risk relative to purely domestic firms this paper considers three groups of u s firms those without significant international operations those with international operations in developed countries and those with international operations in developing countries after performing risk return performance analysis on the three groups the findings show developing country dfi results in inferior performance but that there are no statistically significant differences in market performance among the three

inequality of opportunity in energy consumption in china abstract this paper proposes an empirical implementation of the concept of inequality of opportunity in energy consumption expenditure and applies this to data from chinese general social survey cgss we examine the role played by circumstances beyond the control of individuals for instance gender hukou status family background and region of birth in generating inequality in energy consumption expenditure in china this study shows that the relative share of inequality of opportunity ior in energy consumption expenditure in china is 10 02 for the entire sample ior turns out to be larger for the older cohort peaking at 14 40 for the 1955 64 cohort a shapley value decomposition presents that hukou status and region of birth are the two largest contributors to inequality of opportunity across birth cohorts a heterogeneity analysis further shows that more disadvantaged groups for instance female individuals born in the west of rural china with worse family backgrounds are facing more unequal opportunities in energy consumption in china these results suggest that energy policies focused on zero discrimination in opportunities should be encouraged

the nexus between financial development and energy consumption in the eu a dynamic panel data analysis abstract the relationship between financial development and energy consumption has newly started to be discussed in energy economics literature this paper investigates this issue in the eu over the period 1990 2011 by using system gmm model no significant relationship is found in the eu27 the empirical results however provide strong evidence of the impact of the financial development on energy consumption in the old members greater financial development leads to an increase in energy consumption regardless of whether financial development stems from banking sector or stock market by contrast we find for the new members that the impact of financial development on energy consumption depends on how financial development is measured using bankindex the impact of financial development displays an inverted u shaped pattern while no significant relationship is detected once it is measured using stockindex

energy consumption and gdp in developing countries a cointegrated panel analysis in this paper we re investigate the co movement and the causality relationship between energy consumption and gdp in 18 developing countries using data for the period 1975 to 2001 recently developed tests for the panel unit root heterogeneous panel cointegration and panel based error correction models are employed the empirical results provide clear support of a long run cointegration relationship after allowing for the heterogeneous country effect the long run relationship is estimated using a full modified ols the evidence shows that long run and short run causalities run from energy consumption to gdp but not vice versa this result indicates that energy conservation may harm economic growth in developing countries regardless of being transitory or permanent

is the energy led growth hypothesis valid new evidence from a sample of 85 countries abstract the energy growth literature contains a large number of discussions on the causal relationship between energy consumption and economic growth the central debate focuses on whether energy consumption contributes or not to economic growth since it has direct implications for the formulation of strategic policies nevertheless current studies cannot provide a conclusive suggestion due to mixed causality results this inconclusive evidence is potentially attributed to model specifications and the stage of economic development of the countries under investigation hence this study attempts to empirically re investigate the validity of the energy led growth hypothesis using a different model specification and different stages of economic development for 85 selected countries around the globe overall although the causality results are mixed among countries we do find a systematic pattern in particular granger causality models with three and four variables are more likely to support the hypothesis compared to their counterparts that contain only two variables in addition both developed and developing countries are more likely to support the energy led growth hypothesis compared to the less developed or low income countries therefore causality results are very sensitive to the choice of the model specification along with the stages of economic development finally energy conservation policies should only focus on low income countries as these policies may not retard the process of economic growth

modeling the long run drivers of total renewable energy consumption evidence from top five heavily polluted countries abstract a boom in renewable energy consumption as a percentage of final energy consumption rec has a significant impact on cleaner production and environmental sustainability however studies on rec as for an individual country case and panel case approach for top emitters are rare against this backdrop this study investigates the long run drivers of rec by using a time series data from 1990 to 2015 the fmols grouped results indicate that economic growth and trade openness increase rec whereas population growth has a negative but significant impact on rec to check for causal links the innovating accounting approach using variance decomposition analysis is applied the results show that there is a unidirectional causality running from economic growth trade openness and population growth to rec further the predictive accuracy of the fmols based econometric output and the bi directional long short term memory bi lstm is analyzed the bi lstm formulated algorithm outperformed the econometric output the bi lstm is utilized to forecast rec to the year 2030 the output from the bi lstm shows that china the us india the russian federation s and japan s rec will hit 11 3395 11 1245 34 6969 2 9097 and 7 4859 respectively the us and japan s rec levels will increase while that of china india and russia federation will decrease as a policy implication new policy directives for china india and the russian federation are required to boost rec levels

an econometric study of co2 emissions energy consumption income and foreign trade in turkey abstract this study attempts to empirically examine the dynamic causal relationships between carbon emissions energy consumption income and foreign trade in the case of turkey using the time series data for the period 1960 2005 this research tests the interrelationship between the variables using the bounds testing to cointegration procedure the bounds test results indicate that there exist two forms of long run relationships between the variables in the case of first form of long run relationship carbon emissions are determined by energy consumption income and foreign trade in the case of second long run relationship income is determined by carbon emissions energy consumption and foreign trade an augmented form of granger causality analysis is conducted amongst the variables the long run relationship of co2 emissions energy consumption income and foreign trade equation is also checked for the parameter stability the empirical results suggest that income is the most significant variable in explaining the carbon emissions in turkey which is followed by energy consumption and foreign trade moreover there exists a stable carbon emissions function the results also provide important policy recommendations

firm size and the nature of innovation within industries the case of process and product r d the effect of firm size on the allocation of r d effort between process and product innovation is examined it is hypothesized that relative to product innovations process innovations are less saleable in disembodied form and spawn less growth this implies that the returns to process r d will depend more on the firm s output at the time it conducts its r d than the returns to product r d incorporating this distinction in a simple model the authors derive and test predictions about how the fraction of r d devoted to process innovation varies with firm size within industries

measuring organizational downside risk despite widespread incorporation of risk measures in strategy research there is little consensus regarding the meaning and measurement of risk in contrast to the variability measures widely used in strategy studies this paper draws from behavioral decision theory finance and management theory to present an alternative perspective on organizational risk downside risk the paper explains three categories of organizational downside risk measures based on the concept of lower partial moments the latter sections of the paper present considerations involved in specifying operational measures of downside risk and an empirical comparison of alternative downside risk measures

top managerial prestige and organizational bankruptcy this paper extends earlier work on an alternative view of bankruptcy suggesting that bankruptcy occurs when creditors withdraw then support from a firm s top management team it further proposes that support for the top team depends upon the team s prestige five characteristics measuring the relative status of top teams were tested for their association with bankruptcy three of the characteristics focused on items commonly associated with membership in economic elites elite educational backgrounds board memberships and previous employment as officers in other corporations the fourth and fifth characteristics focused on membership in political and military elites the results indicated that political and board connections were negatively associated with bankruptcy in the year of failure even when financial factors and cooptive board linkages were controlled the results also showed that failing firms attempted to improve their managerial prestige three to four years before they failed they were how

identifying deprivation profiles in spain a new approach usually an indirect approach for measuring deprivation or poverty is used with poverty lines however some studies have used a direct approach to measure deprivation or poverty the aim of this study is improving the identification of the poor people the central point of the concept of deprivation used is related to the opportunity to have or do something therefore deprivation means an inability to get the goods facilities and opportunities which are usual in the household environment since all of the needed variables are categorical the latent class model is used to solve this problem because it is the best model to achieve this objective

does financial development increase energy consumption the role of industrialization and urbanization in tunisia this paper assesses the relationship among energy consumption financial development economic growth industrialization and urbanization in tunisia from 1971 to 2008 the autoregressive distributed lag bounds testing approach to cointegration and granger causality tests is employed for the analysis the result confirms the existence of long run relationship among energy consumption economic growth financial development industrialization and urbanization in tunisia long run bidirectional causalities are found between financial development and energy consumption financial development and industrialization and industrialization and energy consumption hence sound and developed financial system that can attract investors boost the stock market and improve the efficiency of economic activities should be encouraged in the country nevertheless promoting industrialization and urbanization can never be left out from the process of development we add light to policy makers with the role of financial development industrialization and urbanization in the process of economic development

does globalization affect growth evidence from a new index of globalization the study develops an index of globalization covering its three main dimensions economic integration social integration and political integration using panel data for 123 countries in 1970 2000 it is analysed empirically whether the overall index of globalization as well as sub indexes constructed to measure the single dimensions affect economic growth as the results show globalization indeed promotes growth the dimensions most robustly related with growth refer to actual economic flows and restrictions in developed countries although less robustly information flows also promote growth whereas political integration has no effect

performance effects of added cultural distance in the path of international expansion the case of german multinational enterprises this paper contributes to the debate on the performance impact of added cultural distance in the multinational enterprise s mne s expansion path our research focuses on the ability of mnes to handle complexity associated with added cultural distance in international expansion and on the effect this may have on profitability we hypothesise that firms that make expansion moves involving a high level of added cultural distance per unit of time and those that expand in culturally distant countries in an irregular fashion that is with a higher variability will be less profitable we test these hypothesised relationships using detailed data on 2404 expansion moves undertaken by our panel of 91 german mnes whose expansion paths we tracked during periods ranging between 5 and 20 years

accounting for endogeneity when assessing strategy performance does entry mode choice affect fdi survival firms choose strategies based on their attributes and industry conditions therefore strategy choice is endogenous and self selected empirical models that do not account for this and regress performance measures on strategy choice variables are potentially misspecified and their conclusions incorrect i highlight how self selection on hard to measure or unobservable characteristics can bias strategy performance estimates and recommend an econometric technique that has been developed to account for this effect although this concern applies to a wide range of strategy questions to demonstrate its effect i empirically examine if entry mode choice acquisition versus greenfield influences foreign direct investment survival in specifications that do not account for self selection i find that greenfield entries have survival advantages compared to acquisitions this confirms previous findings however the significance of this effect disappears once i account for self selection of entry mode in the empirical estimates the results confirm that estimates from models that do not account for self selection of strategy choice can lead to incorrect or misleading conclusions

free trade and the environment development system abstract we develop a simulation model to analyze the trade environment development system that contains a number of important advances over the earlier and current theoretical models our model like other models has an income induced pollution policy allows country factor endowments to influence trade patterns and allows production factors to be mobile intersectorally unlike other theoretical models our model treats pollution stemming from both production and consumption in a way that does justice to empirical observations we model pollution policy explicitly as an abatement investment thus effectively allowing for differences in pollution intensive technology across countries in addition we allow for an internationally traded intermediate good a natural resource as a result of this novel approach we find that 1 the benefits of trade i can be either positive or negative and ii depend on country endowments and 2 the pollution effects of trade are closely tied to the benefits of trade our model generally shows higher pollution levels under free trade than autarky however our results do not support the pollution haven hypothesis i e trade causes less pollution in developed countries and more pollution in developing ones some developing countries produce more of the pollution intensive good but ultimately consume less pollution under autarky because they have higher per capita income and thus invest more heavily in environmental upgrading under autarky

energy gdp relationship revisited an example from gcc countries using panel causality abstract this work investigates the causality relationship between gross domestic product gdp and energy consumption in the six countries of the gulf cooperation council gcc recently developed panel cointegration and causality techniques are used to uncover the direction of energy gdp causality in the gcc empirical results indicate a unidirectional causality running from gdp to energy consumption evidence shows no support for the hypothesis that energy consumption is the source of gdp growth in the gcc countries such results suggest that energy conservation policies may be adopted without much concern about their adverse effects on the growth of gcc economies

strategic implications of darwinian economics for selling efficiency and choice of integrated or independent sales forces most managers when confronted with a difficult strategic decision would like to know what is the prevailing practice in their industry prevailing practice interests managers in part because it may indicate which decisions are good even best the rationale is darwinian economics which proposes that competitive markets operate to force at least an approximation of optimal behavior because wrong decisions are extinguished by the market mechanism if so the bulk of survivors make good business decisions and their collective practice is worth knowing meaning it should be difficult to improve upon this paper tests whether prevailing practice represents good decisions the context is the decision whether to fill a sales district with a company integrated sales force or with outside agents independents the outcome of the choice is the ratio of sales to the cost of running the sales force i e selling efficiency a model is described which summarizes industry decisions and two propositions are developed proposition 1 a simple version states that efficiency declines as firms depart from the industry rule as to when they should integrate proposition 2 a contingent version states that efficiency declines as firms depart from the industry rule in unpredictable selling environments but that conforming to the rule has no impact in predictable environments the rationale is that firms learn the environment well enough to know when to depart from the rule in predictable settings but not otherwise the relationship between efficiency and conformity to prevailing practice is examined for 93 sales districts of 11 recognized electronic component manufacturers the results support proposition 2 the most efficient sales forces conform to prevailing practice and the least efficient deviate but only in uncertain environments in more certain environments conformity and efficiency are unrelated implications such as when it pays to be different and suggestions for future research are discussed

a three stage theory of international expansion the link between multinationality and performance in the service sector it is generally assumed that the performance of a firm improves with greater multinationality yet recent empirical studies have shown both a u shaped relationship which suggests an initially negative effect of international expansion on performance before the positive returns of international expansion are realized and an inverted u shaped relationship which suggests that international expansion beyond an optimal level is again detrimental to performance and results in a negative slope this paper proposes a new unified three stage theory of international expansion that incorporates both concepts in a sigmoid hypothesis it then tests this on data from 11 service industries highlighting the difference between knowledge based and capital intensive service sectors

electricity consumption and economic growth a time series experience for 17 african countries abstract while the availability of electricity by itself is not a panacea for the economic and social problems facing africa the supply of electricity is nevertheless believed to be a necessary requirement for africa s economic and social development this paper tests the long run and causal relationship between electricity consumption per capita and real gross domestic product gdp per capita for 17 african countries for the period 1971 2001 using a newly developed cointegration test proposed by pesaran et al 2001 and using a modified version of the granger causality test due to toda and yamamoto 1995 the advantage of using these two approaches is that they both avoid the pre testing bias associated with conventional unit root and cointegration tests the empirical evidence shows that there was a long run relationship between electricity consumption per capita and real gdp per capita for only 9 countries and granger causality for only 12 countries for 6 countries there was a positive uni directional causality running from real gdp per capita to electricity consumption per capita an opposite causality for 3 countries and bi directional causality for the remaining 3 countries the result should however be interpreted with care as electricity consumption accounts for less than 4 of total energy consumption in africa and only grid supplied electricity is taken into account

impact of infrastructure expenses in strategic sectors for brazilian poverty abstract this paper analyzes the impact of infrastructure investments in the reduction of poverty in brazil controlled through other determinants such as economic growth income inequality average schooling years unemployment rate and state budgets from 1995 to 2011 a model for a dynamic panel data estimated by the generalized method of moments gmm in two steps as developed by arellano bond 1991 and blundell bond 1998 found among other conclusions a significant inverse relation between public investment in infrastructure and poverty the granger causality test for panel data proposed by hurlin and venet 2001 2004 and hurlin 2004 2005 reinforced results validation

multinational corporations vs domestic corporations financial performance and characteristics the analysis in this paper is composed of two segments first the financial performance of a sample of multinational corporations mncs is compared with that derived for a control group of domestic corporations dmcs using market based performance measures then the paper presents a comparison of selected financial characteristics of the firms in the two groups the results suggest the dmcs appear to have a significantly superior risk adjusted market based performance are significantly less capitalized and have higher total risk as well as higher systematic risk the fact that mncs are substantially larger than dmcs is not found to be a significant factor in explaining the observed difference between the two groups performance

from m p to ma p multinationality alignment and performance rather than searching for a universal optimal level of multinationality for all firms we argue that firm specific attributes should result in firm specific optimal levels of multinationality specifically we draw upon transaction cost and internalization theory to argue that there will be different optimal levels of multinationality for individual firms and if firms internalize foreign operations to an extent less than or greater than their individual optimal levels transaction costs will increase and performance will decrease to test this idea we use transaction cost models in the context of large us law firms during the time period from 1986 through 2008 to estimate firm specific optimal multinationality next we test relationships between alignment with or deviations from firm specific optimal levels of multinationality and performance ma p consistent with the ma p hypothesis insufficient and excessive levels of multinationality are both negatively related to financial performance in addition excessive multinationality is positively associated with downside performance risk one key implication is that an ma p approach may offer greater theoretical validity and clarity than traditional multinationality and performance m p approaches

financial development and energy consumption in central and eastern european frontier economies this study examines the impact of financial development on energy consumption in a sample of 9 central and eastern european frontier economies several different measures of financial development are examined including bank related variables and stock market variables the empirical results obtained from dynamic panel demand models show a positive and statistically significant relationship between financial development and energy consumption when financial development is measured using banking variables like deposit money bank assets to gdp financial system deposits to gdp or liquid liabilities to gdp of the three stock market variables investigated only one stock market turnover has a positive and statistically significant impact on energy consumption both short run and long run elasticities are presented the implications of these results for energy policy are discussed

energy consumption in china and underlying factors in a changing landscape empirical evidence since the reform period abstract in recent decades the phenomenal growth in the chinese economy has created increasing energy consumption this is the first study analysing energy consumption in china considering economic social and political dimensions of globalisation along with the effects from trade and financial sectors the time period covers the full trajectory since the start of economic reform until recent times in this respect we use the konjunkturforschungsstelle kof globalisation index to explore the dynamic link between economic growth financial development trade and various dimensions of globalisation and energy consumption modern time series econometric techniques are used in establishing stationarity long run dynamics and causality of the series the findings suggest that globalisation decreases energy consumption in the short run but increases it in the long run however the effect of financial development on energy consumption in china is opposite to the globalisation effect on energy consumption granger causality reveals a feedback effect between economic globalisation and financial development globalisation in china can only reduce energy consumption if china develops its financial sector to a greater extent in future china should invest in its financial sector and low carbon energy alternatives to achieve sustainable development prevention of energy shortfalls and cleaner environment would assist in bridging the gap both from social and political aspects to ensure china benefits significantly with high economic growth in this asian century

how economic growth renewable electricity and natural resources contribute to co2 emissions abstract this study explores the relationship between economic growth and co2 emissions in the so called european union 5 eu 5 countries germany france italy spain and the united kingdom for the 1985 2016 period in doing so we employ a carbon emission function to investigate the environmental kuznets curve phenomenon which describes a relationship between economic growth and environmental degradation the empirical results confirm the existence of an n shaped relationship between economic growth and co2 emissions in the eu 5 countries we incorporate additional variables such as renewable electricity consumption trade openness natural resource abundance and energy innovation to augment the carbon emission function renewable electricity consumption natural resources and energy innovation improve environmental quality while trade openness and the interaction between economic growth and renewable electricity consumption exert a positive impact on co2 emissions this study is novel in that it presents an interaction between economic growth and renewable electricity consumption we also confirm the need for renewable energy regulations related to increasing renewable sources and promoting energy innovation to reduce the negative effects of energy and fossil energy resources on environmental degradation

energy and economic growth in the usa a multivariate approach abstract this paper examines the causal relationship between gdp and energy use for the period 1947 90 in the usa the relationship between energy use and economic growth has been examined by both biophysical and neoclassical economists in particular several studies have tested for the presence of a causal relationship in the granger sense between energy use and economic growth however these tests do not allow a direct test of the relative explanatory powers of the neoclassical and biophysical models a multivariate adaptation of the test vector autoregression var does allow such a test a var of gdp energy use capital stock and employment is estimated and granger tests for causal relationships between the variables are carried out although there is no evidence that gross energy use granger causes gdp a measure of final energy use adjusted for changing fuel composition does granger cause gdp

the impact of growth energy and financial development on the environment in china a cointegration analysis this article aims to investigate the impact of financial development economic growth and energy consumption on environmental pollution in china from 1953 to 2006 using the autoregressive distributed lag ardl bounds testing procedure the main objective is to examine the long run equilibrium relationship between financial development and environmental pollution the results of the analysis reveal a negative sign for the coefficient of financial development suggesting that financial development in china has not taken place at the expense of environmental pollution on the contrary it is found that financial development has led to a decrease in environmental pollution it is concluded that carbon emissions are mainly determined by income energy consumption and trade openness in the long run moreover the findings confirm the existence of an environmental kuznets curve in the case of china

the relationship between energy and gnp further results this paper reexamines the casuality between gnp and energy consumption by using updated us data for the period 1947 1979 as a secondary contribution we investigate the causal relationship between energy consumption and employment applying sims technique we find no causal relationship between gnp and energy consumption we find further that there is a slight unidirectional flow running from employment to energy consumption economic interpretations of the empirical results are also presented

social acceptance of renewable energy innovation an introduction to the concept this paper introduces the special issue on social acceptance of renewable energy innovation it is a collection of best papers presented at an international research conference held in tramelan switzerland in february 2006 while there are ambitious government targets to increase the share of renewable energy in many countries it is increasingly recognized that social acceptance may be a constraining factor in achieving this target this is particularly apparent in the case of wind energy which has become a subject of contested debates in several countries largely due to its visual impact on landscapes this paper introduces three dimensions of social acceptance namely socio political community and market acceptance factors influencing socio political and community acceptance are increasingly recognized as being important for understanding the apparent contradictions between general public support for renewable energy innovation and the difficult realization of specific projects the third dimension market acceptance has received less attention so far and provides opportunities for further research particularly from management scholars

what are the distributional implications of halving poverty in south africa when growth alone is not enough the united nations millennium declaration commits to halving extreme poverty between 2000 and 2015 the south african government has set a goal of halving poverty by 2014 although the meaning of this goal has not yet been defined this article frames government s stated target of halving poverty by 2014 in terms of specific measures of the poverty gap and poverty headcount ratio using income and expenditure survey microdata with the poverty line as defined here approximately half the south african population falls below the poverty line despite this the aggregate poverty gap is surprisingly small at about 3 of gross domestic product projections of poverty in 2014 under various growth scenarios indicate that growth alone will be insufficient to halve poverty by then and that any worsening of distribution will put the target of halving poverty by 2014 far beyond reach however projections of the effects of a range of growth and distributional scenarios on poverty using a new method for simulating

energy efficiency and the slump in labour productivity in the usa energy consumption is included in an aggregate cobb douglas production function for the usa the data suggest that energy conservation has not reduced the growth rate for real gnp by more than 0 3 percentage points and that less than one fifth of the overall slump in labour productivity since 1973 should be attributed to higher energy prices

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

are multinational corporations safer the failure probabilities of a sample of multinational corporations mncs are derived and compared with those of a control group of domestic corporations dmcs the results suggest that the mean insolvency probability of dmcs is significantly higher than that of the mncs it is also observed that mncs are significantly more capitalized and the standard deviation of their equity as well as their average systematic risk are also significantly lower furthermore the average insolvency probability of the dmcs is more sensitive to changes in the values of the parameters than those of the mncs

the effect of national culture on the choice of entry mode characteristics of national cultures have frequently been claimed to influence the selection of entry modes this article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry two hypotheses are derived which relate culture to entry mode choice one focusing on the cultural distance between countries the other on attitudes towards uncertainty avoidance using a multinomial logit model and controlling for other effects the hypotheses are tested by analysing data on 228 entries into the united states market by acquisition wholly owned greenfield and joint venture empirical support for the effect of national culture on entry choice is found

capital market liberalization globalization and the imf one of the most controversial aspects of globalization is capital market liberalization not so much the liberalization of rules governing foreign direct investment but those affecting short term capital flows speculative hot capital that can come into and out of a country in the 1980s and 1990s the imf and the us treasury tried to push capital market liberalization around the world encountering enormous opposition not only from developing countries but from economists who were less enamoured of the doctrines of free and unfettered markets of market fundamentalism that were at that time being preached by the international economic institutions the economic crises of the late 1990s and early years of the new millennium which were partly or even largely attributable to capital market liberalization reinforced those reservations this paper takes as its point of departure a recent imf paper to provide insights both into how the imf could have gone so wrong in its advocacy of capital market liberalization and into why capital market liberalization has so often led to increased economic instability not to economic growth copyright 2004 oxford university press

economic growth trade and energy implications for the environmental kuznets curve abstract the environmental kuznets curve ekc hypothesis asserts that pollution follows an inverted u path with respect to economic growth the ekc has been explained in terms of structural changes in the composition of economic output and increased environmental regulation at higher income levels while some authors have incorporated the impact of trade policy orientation on the ekc the impact of the actual movement between countries of goods that embody pollution has not been considered this paper attempts to econometrically quantify the effect using pooled cross country and time series data the ekc hypothesis is examined with respect to commercial energy consumption the source of many serious environmental problems it was found that while both industrializing and industrialized countries have added to their energy requirements by exporting manufactured goods the growth has been substantially higher in the former at the same time industrialized countries have been able to reduce their energy requirements by importing manufactured goods exports of manufactured goods by industrialized countries has thus been an important factor in generating the upward sloping portion of the ekc and imports by industrialized countries have contributed to the downward slope

growth elasticity of poverty direct estimates from recent data using recent poverty data for developing countries elasticity of 2 poverty headcount with respect to the growth of gross domestic product gdp per capita is directly calculated for the 1990s and the 2000s the global estimate is around 0 84 which is much smaller in absolute magnitude than what some highly influential studies have reported or used for the poverty dense south asia region the elasticity is of the order of 0 22 which is a dramatic contrast from the previous estimates for india where the number of poor people is by far the largest of any country and where the poverty rate is higher than even in sub saharan africa ssa the elasticity is of the order of 0 13 which is an even bigger contrast from earlier studies policymakers and researchers are urged to keep these estimates in mind while judging the likely effect of income growth on poverty and to discount poverty reduction claims based on higher elasticity estimates that have been reported or used in many influential studies i

trade and the environment a partial synthesis there is an emerging consensus in the environmentalist community opposing free trade while some economists view this as simply another outlet for protectionism recent work has begun to move beyond the rhetoric to probe more deeply into the theoretical and empirical relationships between international trade and environmental quality the purpose of the present paper is twofold we first integrate some of the existing literature by using the simple concepts of general equilibrium pollution supply and demand our survey of the trade and environment literature is more

the effect of robust growth on poverty a nonlinear analysis previous research has shown that economic growth should help to reduce the rate of poverty however a number of recent studies have found that the economic expansion of the 1980s had no statistically significant effect on aggregate poverty it is shown that both a threshold regression and a fourier approximation provide a better empirical model of poverty than the standard linear model it is noteworthy that the nonlinear specifications show a large and significant effect on poverty of the 1980s expansion

the salesperson as outside agent or employee a transaction cost analysis this descriptive study explores the reasons for integration of the personal selling function i e the use of employee direct salespeople rather than manufacturers representatives reps a hypothesized model is developed based on both transaction cost analysis and the sales force management literature data from 13 electronic component manufacturers covering 159 u s sales districts are used to estimate a logistic model of the probability of going direct in a given district results are shown to be stable across specification and estimation methods and to fit the data well the transaction cost model is generally supported the principal finding is that the greater the difficulty of evaluating a salesperson s performance the more likely the firm to substitute surveillance for commission as a control mechanism i e to use a direct sales force among other findings direct sales forces are also associated with complex hard to learn product lines and with districts that demand considerable nonselling activities several factors prove unrelated including company size the amount of travel a district requires and the importance of key accounts this article was originally published in marketing science volume 4 issue 3 pages 234 254 in 1985

distinguished lecture on economics in government fighting poverty lessons from recent u s history in his 1964 state of the union address his first after assuming the presidency president lyndon johnson declared a war this administration today here and now declares unconditional war on poverty in america the result of johnson s declaration was a series of major legislative changes whose success or failure is still hotly debated by the mid 1990s the focus of policy concern had shifted from fighting poverty to reducing welfare dependence however one might argue that the 1990s rather than the 1960s were truly the decade in which the united states fought a war on poverty the 1990s were a time of substantial legislative change in programs designed to assist low income families at the same time a remarkable change also occurred in the behavior of low income families with plummeting use of public assistance and substantial increases in labor market involvement i will start by documenting the magnitude and speed of these behavioral changes during the 1990s and then investigate the role of both the macroeconomy and policy in producing these outcomes i end by discussing how these changes may or may not translate into improvements in long term family well being

energy consumption economic growth and prices a reassessment using panel vecm for developed and developing countries this paper reinvestigates the energy consumption gdp growth nexus in a panel error correction model using data on 20 net energy importers and exporters from 1971 to 2002 among the energy exporters there was bidirectional causality between economic growth and energy consumption in the developed countries in both the short and long run while in the developing countries energy consumption stimulates growth only in the short run the former result is also found for energy importers and the latter result exists only for the developed countries within this category in addition compared to the developing countries the developed countries elasticity response in terms of economic growth from an increase in energy consumption is larger although its income elasticity is lower and less than unitary lastly the implications for energy policy calling for a more holistic approach are discussed c 2006 elsevier ltd all rights reserved

what drives carbon dioxide emissions in the long run evidence from selected south asian countries abstract this study empirically investigates the relationship between co 2 emission and four of its potentially contributing factors i e energy consumption income trade openness and population using time series data from 1971 to 2013 on five selected economies of south asia after confirming that all the series are stationary using unit root test process the study incorporates three different and advance panel cointegration tests i e pedroni kao and johansen fisher panel cointegration all the panel cointegration tests confirm that all the variables cointegrated the long run association between the variables is checked using fmols grouped and individual cross section country in the panel the fmols grouped results show that energy consumption trade openness and population increases environmental degradation in the panel countries with exception of income which has negative impact and sounds the existence of environmental kuznet curve between income and emission the innovative accounting approach using variance decomposition test and impulse response function is applied to examine the causality amongst the underlined vectors the results show that there is bidirectional causality between energy consumption and trade openness and uni directional causality running from energy consumption trade openness and population to co 2 emission the results enumerate that the energy consumption and population density will increase in long run and foresee further environmental degradation in the region

more than intent a bundling model of mne sme interactions abstract as a counterpoint to prashantham and birkinshaw i present an alternative model of mne sme cooperation where either type of firms can take the role of content provider or distributor i argue that mnes will interact with smes when there are differences in optimal scale between the content creation and distribution stages of the value chain and it is not feasible or efficient for either party to vertically integrate between these two stages i then build two 2 2 bundling models one in which the sme provides content and the mne distributes it and another with the reverse configuration in these 2 2s the axes are the transactional properties of the two complementary inputs content and distribution that mnes and smes bundle to create value i show that these models can explain the forms taken by mne sme cooperation and their dynamics

the dynamics of organizational status this paper examines the growth and decline of organizational status it is argued that an organization s status is determined by two factors past performance outcomes and the status of the organization s affiliates the better the past performance outcomes and the higher the status of the affiliates the greater the organization s growth in status this basic proposition is tested in an examination of status changes among investment banks in the non investment grade market between 1981 and 1987 implications and extensions are discussed in the conclusion copyright 1996 by oxford university press

interrelationship between poverty and the wildland urban interface in metropolitan areas of the southern us this research disentangles the relationship between wildland urban interface wui area and poverty in metropolitan areas of the southern us where urban sprawl has intensified and high poverty regions have persisted results confirm that the enlargement of wui areas increases urban poverty which in turn causes wui areas to expand this finding validates the underlying hypothesis expansion of the wui excludes people in poor inner city neighbourhoods from educational and economic opportunities that occur in suburban areas and the problems related to inner city poverty push the rich away from the inner city

an empirical examination of the form of the relationship between multinationality and performance this paper reports findings from a study that systematically evaluated the form of the relationship between multinationality and performance in contrast to most of the prior conceptualizations that rely on linear monotonic models of the linkage this study examined a curvilinear model that addresses both the costs and benefits associated with multinationality it used time series techniques to capture both the static and dynamic components of the relationship results show that increasing levels of multinationality bring significant performance benefits up to a certain optimum level beyond which benefits begin to decelerate while costs accelerate

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

causality between trade openness and energy consumption what causes what in high middle and low income countries abstract this paper explores the relationship between trade openness and energy consumption using data of 91 high middle and low income countries the study covers the period of 1980 2010 we have applied panel cointegration to examine long run relationship between the variables the direction of causal relationship between trade openness is investigated by applying homogenous non causality homogenous causality and heterogeneous causality tests our variables are integrated at i 1 confirmed by time series and panel unit root tests and cointegration is found between trade openness and energy consumption the relationship between trade openness and energy consumption is inverted u shaped in high income countries but u shaped in middle and low income countries the homogenous and non homogenous causality analysis reveals the bidirectional causality between trade openness and energy consumption this paper opens up new insights for policy makers to design a comprehensive economic trade and policies for sustainable economic growth in long run following heterogeneous causality findings

a critical review of china s rapidly developing renewable energy and energy efficiency policies renewable energy and energy efficiency reee policies have far reaching implications for energy security climate change economic competitiveness pollution and human livelihood for these reasons reee has become a national priority for the chinese government particularly since 2005 this paper aims to critically review china s reee policies in six sectors electricity industry transportation buildings and local government in addition to examining the progress china has made in the development and implementation of reee policies this review also identifies limitations and room for improvement finally five policy recommendations are presented

the impact of financial development on energy consumption in emerging economies abstract financial development is often cited as a very important driver of economic growth in emerging economies and it is thus likely that financial development affects energy demand this study uses generalized method of moments estimation techniques to examine the impact of financial development on energy consumption in a sample of emerging countries several different measures of financial development are examined using a panel data set on 22 emerging countries covering the period 1990 2006 the empirical results show a positive and statistically significant relationship between financial development and energy consumption when financial development is measured using stock market variables like stock market capitalization to gdp stock market value traded to gdp and stock market turnover the implications of these results for energy policy are discussed

from the editors explaining theoretical relationships in international business research focusing on the arrows not the boxes distinctive features of articles accepted by the journal of international business studies are that they are multidisciplinary in scope and interdisciplinary in content and methodology and they make a substantial theoretical contribution to international business studies failure to meet this last requirement is an often cited reason given by reviewers for article rejection sometimes reviewers mean that a manuscript does not conform to the dominant paradigm in that it is not the next logical step in the study of a phenomenon or they mean that there is little if any integration of several theories used to explain a phenomenon however perhaps the most common underlying meaning when reviewers cite lack of a theoretical contribution for rejection is that the nature of the relationships proposed is not well explained while the first two meanings may be influenced by the specific discipline or methodology involved this final one is not in this editorial we provide a set of guidelines that authors can use to ensure that their paper meets the standard of explaining the logic of the relationships they propose

the long run and causal analysis of energy growth openness and financial development on carbon emissions in turkey abstract the aim of this paper is to examine the causal relationship between financial development trade economic growth energy consumption and carbon emissions in turkey for the 1960 2007 period the bounds f test for cointegration test yields evidence of a long run relationship between per capita carbon emissions per capita energy consumption per capita real income the square of per capita real income openness and financial development the results show that an increase in foreign trade to gdp ratio results an increase in per capita carbon emissions and financial development variable has no significant effect on per capita carbon emissions in the long run these results also support the validity of ekc hypothesis in the turkish economy it means that the level of co 2 emissions initially increases with income until it reaches its stabilization point then it declines in turkey in addition the paper explores causal relationship between the variables by using error correction based granger causality models

causality between energy and output in the long run though there is a very large literature examining whether energy use granger causes economic output or vice versa this literature is fairly inconclusive almost all existing studies use relatively short time series or panels with a relatively small time dimension additionally many recent papers continue to use what seem to be misspecified models we apply granger causality and cointegration techniques to a swedish time series data set on energy and economic growth spanning 150 years to test whether increases in energy use and energy quality have driven economic growth we show that these techniques are very sensitive to variable definition choice of additional variables in the model and sample periods all of the following appear to make a finding that energy causes growth more likely using multivariate models defining variables to better reflect their theoretical definition using larger samples and including appropriate structural breaks however it is also possible that the relationship between energy and growth has changed over time and that results from recent smaller samples reflect this energy prices have a significant causal impact on both energy use and output

a further inquiry into the pollution haven hypothesis and the environmental kuznets curve abstract empirical research on the relationship between economic growth and its impact on the environment often tests the environmental kuznets curve ekc a hypothesis that rising national output leads to increases in pollution emissions until an economy reaches a certain size and decreases thereafter this paper addresses a branch of ekc literature focused on the role international trade plays in shaping this relationship in particular we test the pollution haven hypothesis which posits that emission reductions observed in developed nations are partly the result of shifting dirty production to developing nations with lax environmental standards we estimate ekcs for seven oft studied pollutants and find little evidence that pollution havens play a significant role in shaping the ekc we also find that confidence intervals around ekc turning points are very wide often including values well above the range of the data this leads us to be skeptical of the optimistic view that economic growth naturally leads to improvements in environmental quality

cultural diversity and the performance of multinational firms we test the hypothesis that culturally related international diversification will have a positive impact on firm performance and that the opposite will be true for culturally unrelated globalization cultural diversity for fortune 500 firms was used to predict performance over a ten year period 1985 1994 controlling for several organizational and industry characteristics regression tests using nine indicators of cultural diversity revealed no significant cultural effects alternate interpretations are offered

real options in multinational corporations organizational challenges and risk implications in this study we investigate how multinationality affects firms risk levels our investigation builds on the idea from real options theory that international operations offer switching options to multinational corporations yet we also emphasize different sources of coordination costs that can mitigate the benefits of operational flexibility the findings from tobit models accounting for self selection underscore the importance of unobserved heterogeneity in the relationships between international investments and risk levels consistent with the coordination costs surrounding international operations we find that the relationship between multinationality and downside risk is curvilinear risk first declines and then increases as a firm s portfolio of international investments becomes extensive in addition downside risk is an increasing function of the average cultural distance between a firm s home base and the host countries in which its foreign subsidiaries operate

the relationship between energy consumption energy prices and economic growth time series evidence from asian developing countries this paper estimates the causal relationships between energy consumption and income for india indonesia the philippines and thailand using cointegration and error correction modelling techniques the results indicate that in the short run unidirectional granger causality runs from energy to income for india and indonesia while bidirectional granger causality runs from energy to income for thailand and the philippines in the case of thailand and the philippines energy income and prices are mutually causal the study results do not support the view that energy and income are neutral with respect to each other with the exception of indonesia and india where neutrality is observed in the short run c 2000 elsevier science b v all rights reserved jel classifications c22 q43 q48

does trade liberalization harm the environment a new test recent events such as the nafta and the completion of the uruguay round have raised concern over the impact of trade liberalization on the environment in particular it is believed that less stringent environmental standards in developing countries will give them a comparative advantage in pollutionintensive goods using single equation models existing empirical studies have found either no relationship between environment and trade flows or a positive relationship between trade liberalization and the environment this paper develops a simultaneous equations model to estimate this relationship directly incorporating the effects of openness on growth of income and of income growth on environmental damage a two good trade model with endogenous factor supply is estimated using pooled provincial data on chinese water pollution from 1987 1995 estimation of this model reveals that trade liberalization directly aggravates environmental damage via its influence on the terms of trade but indirectly mitigates it via its effect on income growth simulations suggest that trade reform during the period may have had a net beneficial impact on emissions growth

energy consumption income and carbon emissions in the united states abstract this paper investigates the effect of energy consumption and output on carbon emissions in the united states earlier research focused on testing the existence and or shape of an environmental kuznets curve without taking energy consumption into account we investigate the granger causality relationship between income energy consumption and carbon emissions including labor and gross fixed capital formation in the model we find that income does not granger cause carbon emissions in the us in the long run but energy use does hence income growth by itself may not become a solution to environmental problems

multinationality and performance among british manufacturing companies over the period 1972 84 profitability among 304 large british manufacturing companies was positively related to their degree of multinationality moreover increases in overseas production were strongly associated with increases in sales and profitability the profitability of multinational growth over the whole period was independent of its destination supporting the view that the primary source of the superior performance of multinationals was competitive advantage rather than the higher rate of profit in the industries of other countries

co2 emissions in australia economic and non economic drivers in the long run abstractaustralia has sustained a relatively high economic growth rate since the 1980s compared to other developed countries per capita co2 emissions tend to be highest amongst oecd countries creating new challenges to cut back emissions towards international standards this research explores the long run dynamics of co2 emissions economic and population growth along with the effects of globalization tested as contributing factors we find economic growth is not emission intensive in australia while energy consumption is emissions intensive second in an environment of increasing population our findings suggest australia needs to be energy efficient at the household level creating appropriate infrastructure for sustainable population growth high population growth and open migration policy can be detrimental in reducing co2 emissions finally we establish globalized environment has been conducive in combating emissions in this respect we establish the beneficial effect of economic globalization

the saving and investment nexus for china evidence from cointegration tests the saving and investment nexus as postulated by feldstein and horioka fh 1980 is revisited the saving investment correlation for china is estimated over the periods 1952 1998 and 1952 1994 the latter culminating in a period of fixed exchange rate regime amongst the key results it is found that saving and investment are correlated for china for both the period of the fixed exchange rate and the entire sample period with high saving investment correlation the results suggest that the chinese economy is in conformity with the fh hypothesis this is a valid outcome for in china capital mobility was fairly restricted over the 1952 1994 period as indicated by the relatively low foreign direct investment