multinational supermarket chains in developing countries does local agriculture benefit there is no consensus in the empirical literature on how entry of multinational supermarket chains affects farmers in developing countries econometric analyses struggle with causality issues and are unclear about the channel of effects we quantify the dynamic effects of supermarket expansion on agriculture within a structural framework that clarifies the adjustment mechanisms involved the model specification allows for endogenous interaction between agricultural productivity and supermarkets choice of suppliers based on numerical simulations two results emerge first we offer a possible interpretation of the conflicting evidence in the empirical literature whether farmers benefit from supermarkets or get stuck in a low productivity trap depends on the extent of local constraints related to production capacity and market access second supply chain development initiated by supermarkets can help farmers escape the low productivity trap while supermarkets face a short run cost to supplier upgrading they gradually gain from more productive local suppliers

structural factors in the economic reforms of china eastern europe and the former soviet union reform in china and russia jeffrey sachs and wing thye woo china s experience does not show that gradual reform is superior to the shock therapy undertaken in eastern europe and the former soviet union eefsu differing performance primarily reflects different economic structures prior to reform china was a peasant agricultural society eefsu was urban and overindustrialized in both jobs in state enterprises were so heavily subsidized that workers refused to move to new industries elsewhere even when productivity in the latter was much higher in eefsu the large state sector impeded structural adjustment curtailing subsidies would have produced many losers who used their power to resist this outcome failure to curtail subsidies then cut off the potential supply of labour and other factors to new emerging firms china s state enterprises have not performed as well as the rest of the chinese economy and do not explain its success rapid growth was possible because the large agricultural sector contained vast surplus labour and did not enjoy subsidies and soft budget constraints once constraints on migration across regions and jobs were removed this labour was available to fuel expansion in new industries unlike the distributional conflict in eefsu in china reallocation of labour allowed all groups to gain in both partial liberalization also unleashed macroeconomic pressures manageable in china because of rapid growth and adequate monetary policy but explosive in much of eefsu because of deeper structural problems and gross monetary mismanagement

decision specific experience in foreign ownership and establishment strategies evidence from japanese firms in this paper we examine the importance of decision specific experience for a multinational firm s foreign ownership structure and establishment mode decisions a unique procedure to measure the decision specific experience construct is developed based on data for the period 1969 1991 we find strong empirical evidence from experiences of japanese firms to support the hypotheses that firms tend to select ownership structures and establishment modes based on their experiences with similar ownership structures and establishment modes in the past

balanced and unbalanced growth abstract a model is developed that shows how two sectors or regions interact out of steady state through product labor and capital markets and how if the former interaction dominates the growth of one sector pulls along the growth of the other while if the latter interactions dominate one sector or region booms while the other declines it is then shown why liberalization of foreign trade should lead to a transition from a lower to a higher steady state growth rate and why during the course of this transition growth might initially be even slower than before liberalization

beyond privatization institutional innovation and growth in china s large state owned enterprises abstract this article demonstrates that china s large state owned enterprises soes are not stagnant fossils waiting to die under economic reform policies this sector has undergone large change due to enhanced enterprise autonomy the impact of market forces rapid growth of domestic demand for upstream products strategic integration with the world economy and the state s policy to promote large businesses china s large soes are developing new institutional forms that do not neatly fit into existing patterns china is experimentally changing its institutions through a combination of central policy local initiative and interaction with international investment this presents a challenge to the transitional orthodoxy and to ideas concerning property rights in development economics there is not a universal model of property rights and government action that works best in all circumstances china s experience with the reform of large soes shows the diverse possibilities for effective industrial institutions

mass privatization state capacity and economic growth in post communist countries why did the transition from socialism to capitalism result in improved growth in some countries and significant economic decline in others scholars have advanced three main arguments 1 successful countries rapidly implemented neoliberal policies 2 failures were not due to poli cies but to poor institutional environments and 3 policies were counterproductive because they damaged the state we present a state centered theory and empirically demonstrate for the first time one of several possible mechanisms linking neoliberal policies to poor economic performance mass privatization programs where implemented created a massive fiscal shock for post communist governments thereby undermining the development of private sector gover nance institutions and severely exacerbating the transformational recession we performed cross national panel regressions for a sample of 25 post communist countries between 1990 and 2000 and found that mass privatization programs negatively affected economic growth state capacity and property rights protection we further tested these findings with firm level data from a rep resentative survey of managers in 3 550 companies operating in 24 post communist countries within countries that implemented mass privatized programs newly privatized firms were sub stantially less likely to engage in industrial restructuring but considerably more likely to use bar ter and accumulate tax arrears than their state owned counterparts

why haven t developing countries privatized deeper and faster abstract despite a decade of privatization in the developing world the vast majority of state owned enterprise soe assets continue to be in government hands bureaucrats in business world bank 1995 correctly identifies politics as one reason for the slow pace of privatization but it underestimates the role of institutional and economic constraints success stories of privitization are rare in low income countries and the long term promise of privatization in sectors posing regulatory complications remains to be established countries in crisis may reform soes quickly and deeply despite these uncertainties but others may opt for gradual reform which need not be altogether bad if speedy privatization results in poorly conceived schemes the cure can be worse than the illness finally bureaucrats are likely to stay in business for years to come and therefore it is important to improve their effectiveness in the roles they are unlikely to shed in the future a market friendly approach to soe reform need not be government un friendly

entry mode organizational learning and r d in foreign affiliates evidence from japanese firms this paper develops hypotheses concerning the role of entry mode and experience based organizational learning as determinants of the r d intensity of foreign affiliates and tests these hypotheses on a sample of 420 japanese manufacturing affiliates abroad entry mode has a major impact on r d activities the r d intensities of acquired affiliates substantially exceed those in wholly owned greenfield affiliates while the r d intensities of minority owned ventures are higher if japanese parent firms lack strong r d capabilities at home for greenfield operations support is found for an incremental growth pattern of foreign r d as a function of organizational learning and affiliate capability building the results are consistent with the view that part of the explanation for japanese firms relative lack of involvement in overseas r d must be sought in their status as latecomers in the establishment of overseas manufacturing networks at the same time a number of japanese firms have actively used foreign acquisitions and joint ventures to gain access to overseas technology and to establish overseas r d capabilities at a faster pace copyright 2002 john wiley sons ltd

trade policy in a growth model with technology gap dynamics and simulations for south africa we extend an open economy ramsey model to include the technology gap to the world technology frontier the setting is a middle income country with productivity growth driven by technology adoption and foreign capital goods stimulating spillover and catching up the interaction of technology adoption and capital accumulation generates prolonged transition growth and strengthens the growth effect of increased openness model simulations reproduce the changing openness in south africa 1960 2005 international sanctions and protectionism are represented by a calibrated tariff equivalent and the counterfactual elimination of the tariff equivalent shows large potential for gdp growth according to our preferred parameterization increased trade share by 10 points raises gdp level over time by about 12 separating the effects of openness between investment and productivity we find that almost 60 of the increase in gdp is due to increased productivity partly because of interaction with higher investment

clashing paradigms total quality financial restructuring and theories of the firm the american corporate sector saw major reform movements during the 1980s despite frequent admixture in practice two key movements can be singled out as analytically distinct financial restructuring generally debt financed often involving mergers and total quality management a particular approach to productive restructuring unfortunately the precepts and practices of these movements often clashed this paper examines these tension and explores them by reference to economic theories of the firm associated with each movement while financial restructuring has been interpreted through the lens of neoclassical agency theory total quality management has strong links with alternative approaches that can be grouped under the heading capabilities theory copyright 1997 by oxford university press

equilibrium interest rates and financial liberalisation in developing countries it is a central argument of the financial repression literature that interest rates should be determined by the market to reflect the true cost of capital this article suggests that the notion of an equilibrium interest rate may be undefined since the rate required to balance financial markets differs from that required to equilibrate savings and investment thus liberalisation introduces an intrinsic instability into the financial system as a result of portfolio adjustment the article examines the chilean and korean experiences and concludes that a sustainable reform requires positive but low real interest rates and broad regulation of the financial system to ensure macroeconomic stability

tacitness learning and international expansion a study of foreign direct investment in a knowledge intensive industry this paper examines the impact of knowledge tacitness on a firm s propensity to establish plants in foreign rather than domestic locations our predictions build on knowledge based internalization and evolutionary theories of foreign direct investment we argue that the tacitness of technology has an inverted u effect on the propensity to undertake foreign investment we also expect that as a firm learns about a technology it will become more likely to make foreign investments we examine two forms of learning that which accumulates as a function of the number of plants previously built by the firm transfer based learning and that which accumulates as a function of time since the firm started using a technology time based learning we investigate empirical effects in a sample of investments in the memory segment of the semiconductor industry our predictions about the curvilinear effect of tacitness are supported the results also suggest that learning is a matter of taking time to become acquainted with the use of the technology and of gaining experience through successive foreign plant investments the study adds to the understanding of the effects of knowledge on corporate expansion

high interest rates a new conventional wisdom for development policy some conclusions from sri lankan experience abstract the paper is concerned with the general proposition that high interest rates paid to savers can contribute significantly to the long run development of ldcs as well as to stabilization of their economies in the short run by relating this general proposition to some simple theory about the behaviour of imperfect financial markets as well as to specific institutional circumstances in sri lanka it is demonstrated that there are important qualifications that have to be borne in mind in particular in the current institutional circumstances of sri lanka which are closely replicated in other ldcs the instinctive argument of the neoclassical economist that interest rates should reflect the scarcity price of capital is not a great deal of help to policy makers

the underdetermined knowledge based theory of the mnc in this note we revisit two core propositions of the knowledge based view of the firm found in the seminal work of kogut and zander 1 that multinational corporations mncs exist because transfers and re combinations of knowledge occur more efficiently inside mncs than between mncs and third parties and 2 that the threat of opportunism is not necessary although it may be sufficient to explain the existence of the mnc their knowledge based view shifted the conceptualization of the firm from an institution arising from market failure and transaction costs economizing to a progeny of superior knowledge governance we question these conclusions arguing that firms are but one of the many types of epistemic communities possessing and nurturing procedural norms identity and the cognitive linguistic and reflexive attributes conducive to efficient exchange and re combination of knowledge among their members important insights may be gained by applying the concept of epistemic communities implicit in the knowledge based perspective beyond firm level hierarchies journal of international business studies 2011 42 427 435

knowledge market failure and the multinational enterprise a reply debate is an indication that an issue warrants discussion the comments of james love and donald mcfetridge in this issue are fine statements that articulate a received wisdom their comments differ with each other and these differences remind us that there is less consensus in our understanding of internalization and transaction costs than commonly supposed if we do not address all of the commentators specific points it is not for lack of appreciation but because it is our belief that a fuller vision of the terrain already mapped and that which is yet uncharted would provide a more useful basis for exploration and discovery a listing of issues is the task of a referee while a published debate might perform a useful task by laying out the contours of the research tradition and future

large firms and industrial reform in former planned economies the case of china in china s industrial reform alongside the much studied dynamism of small industries there has been a simultaneous powerful growth of large scale state industry state planning has played an important role in this process through heavy protection from international competition and support for selected enterprises which it was hoped would benefit from economies of scale and scope these enterprises have undergone gradual institutional change with growing foreign investment and slow movement towards multiplant operation this process is one in which there are emerging institutions resembling the modern business corporation albeit with specific chinese features c 1996 academic press limited copyright 1996 by oxford university press

toward an economic model of the japanese firm i owe a great deal to professor moses abramovitz who suggested that i write this article i appreciate his constant encouragement and guidance which aided me throughout its preparation i am also indebted to three anonymous referees of the journal and to professors ryutaro komiya and michael riordan for their critical comments and helpful suggestions needless to say i am solely responsible for the views expressed in this paper

new institutional economics in the post socialist transformation debate the paper suggests that there is a tension between the basic tenant of new institutional economics nie and the manner in which it has been applied in the debate on post socialist transformation this tension is explored in the context of four main perspectives on nie i property rights ii transaction costs economics iii new economic history and iv evolutionary economics there are two main arguments the first is that the transformation phase should be seen as open ended rather than a closed process where the pure market is the inevitable end result the second is that although the nie literature touches on most of the issues which are relevant to post socialist transformation the insights that it offers are still too general for policy guidance

the interest elasticity of savings in developing countries the existing evidence abstract this paper presents a critical analysis of some of the most recent empirical work on the interest elasticity of savings in developing economies supported by a set of empirical results the paper argues that a the real interest elasticity of savings is not easily detected using the existing empirical models which generally yield insignificant interest rate parameters in the seventies b the existing models suffer from serious defects that make if very difficult to interpret the estimated parameters

international spillovers productivity growth and openness in thailand an intertemporal general equilibrium analysis thailand has experienced economic growth well above world averages for about 40 years it is a challenge to understand the sources of this high growth path and in particular why growth has not slowed down with assumed decreasing returns to capital we develop an intertemporal general equilbrium model separating between agriculture and industry and with open capital market and endogenous productivity growth to analyze the underlying adjustment mechanisms foreign technology spillover embodied in trade is assumed to be the driving force of the productivity growth consistent with available econometric evidence the high growth experience is understood as a transition path with interaction between productivity growth openness and capital investment counterfactual analysis shows how protection may have had serious detrimental effect on growth rate due to productivity and investment slowdown the role of relative prices in constraining growth is investigated inspired by the acemoglu ventura hypothesis of growth slowdown due to terms of trade effect in our setting low elasticity between domestic and exports goods in supply leads to large relative price shifts for domestic goods but promotes investment and growth during transition

a critical appraisal of mckinnon s complementarity hypothesis does the real rate of return on money matter for investment in developing countries this is the post print version of the final paper published in world development the published article is available from the link below changes resulting from the publishing process such as peer review editing corrections structural formatting and other quality control mechanisms may not be reflected in this document changes may have been made to this work since it was submitted for publication copyright 2009 elsevier b v

interest rates saving investment and growth in mexico 1960 90 tests of the financial liberalisation hypothesis the theory of financial liberalisation argues that rising real interest rates induces more saving and investment and therefore acts as a positive stimulus to economic growth this hypothesis is tested for mexico over the period 1960 90 making the important distinction between financial saving and total saving financial saving is found to be positively related to real interest rates partly through capital flows and partly through domestic asset substitution but total saving is invariant with respect to real interest rates investment is positively related to the supply of credit from the banking system but the net effect of interest rates on investment is negative furthermore taking mckinnon s virtuous circle model of economic growth shows no favourable effects of interest rates on economic growth it is concluded that any favourable effect of financial liberalisation and higher real interest rates on economic growth must come through raising the productivity of investment

the ownership advantage in latin american fdi a sectoral study of us direct investment in mexico this article develops a model which tests the hypothesis that sectoral fdi flows from the united states to mexico over a four year period can be explained by the ownership advantages of us multinationals theoretical developments in the concept of ownership advantage are used to guide the formulation of the research the findings suggest that direct investment into us mnes affiliates in mexico is driven by benefits derived from embedded human knowledge technology embodied advantages and possibly from scale advantages local r d is negatively associated with fdi

strategy meets institutions the transformation of management labor relations at deutsche telekom and ntt this comparison of labor management relations at deutsche telekom dt and ntt group formerly nippon telephone and telegraph demonstrates the value of considering both institutions and strategic decision making to under stand the interaction between companies and unions as corporations diversify multi divisional or holding company structures emerge but the degree of diversity introduced in employment relations within the corporate group de pends on the interaction between corporate strategy and the strategy of orga nized labor the authors field research based on interviews with managers and labor leaders shows that despite a broadly similar corporate strategy of diversi fication by dt and ntt after the liberalization of telecommunication markets employment relations became more decentralized both for unions and for works councils within the dt group than within the ntt group this differ ence in outcomes is explained by the relative power and strategic choices of labor and management rather than by constraints and opportunities specific to the existing national institutions

the effects of financial liberalization on savings and investment in uruguay the following sections are included introductionfinancial reforms financial deepening and financial crisisstylized outcomes savings investment and growthfinancial liberalization savings and investmentfinancial resource allocation at the micro levelconclusions

privatization in the united kingdom lessons from experience abstract although the reasons for privatization vary across countries in the united kingdom as in other countries it also reflects a renewed belief in market forces the search for policy options that emerges from this renewal however needs to be tempered by an understanding of market as well as regulatory failures although problems facing government enterprises in developed and developing countries may differ the objective of privatization should be to reconstruct these enterprises so as to create conditions that make private sector operations effective and efficient at the same time one should recognize that this may require continued public sector activity in the sector

public sector banking efficiency and economic growth in india abstract this paper develops a framework that integrates harrod domar growth model and mckinnon shaw hypothesis via molho s dynamic adjustment mechanism the model is used to determine the impact of bank nationalization through aggressive bank branch expansion programs and priority sector credit allocation on india s financial savings investment productivity and gdp the empirical findings indicate that the bank nationalization policy has been a mixed blessing the aggressive bank branch program since 1969 resulted in an increased in savings investment productivity of capital and gdp however the priority sector credit allocation policy did not fully achieve its desired goals

national culture and expatriate deployment we hypothesize that expatriate deployment is a control function predicted by home country culture dimensions with transaction cost and agency repercussions rather than culture in the aggregate this departure from the traditional conceptualization and measurement of cultural impact also yields a hypothesized asymmetrical effect which is tested for a multi country sample of 236 multinational subsidiaries using multiple measures of national culture hypotheses are supported with assertiveness and power distance confirmed as prime predictors of expatriate deployment

reform in eastern europe how can the new governments of eastern europe succeed in moving from centrally planned to freemarket economies this incisive report identifies and describes the major policy choices to be made and discusses what will work and what will not reform in eastern europe provides a comprehensive easily read statement of reform policy that stands in the mainstream of modern western economics based on their experience with stabilization policies in other countries the authors show how eastern europe can reduce unemployment during the painful adjustment process create effective and socially acceptable mechanisms to subject enterprises to market discipline and replace barter trade under cmea with market based international trade

economic development in shanghai and the role of the state this article examines the economic development process underlying shanghai s rapid urban transformation in the 1990s it analyses the key factors that have contributed to the economic development there and assesses critically the role of the state in this process it concludes that the sheer scale of investment and the national contexts rather than far sighted economic management at the local level are the keys to its economic success the article further argues that the prevailing views regarding the local state market relationship in shanghai need to be revised beneath the facade of a proactive and omnipotent state are numerous instances of failure and ineffectiveness moreover the market is much more than a tool in the state s decision making it is a growing force that the state is trying hard to control but with increasing difficulties

knowledge transfer capacity and its implications for the theory of the multinational corporation this study updates and extends research on foreign entry modes by examining the impacts of knowledge transfer capacity and knowledge tacitness research on international corporate expansion has long emphasized that deploying intangible knowledge based assets is required for successful international expansion more recently research from a knowledge based perspective has addressed the role of tacitness in constraining a firm s ability to transfer knowledge internationally we combine these perspectives to describe how knowledge tacitness affects the relative suitability of four archetypal entry modes exporting licensing establishing an alliance and wholly owned entry we then examine and develop conceptually a seldom studied firm characteristic knowledge transfer capacity we offer predictions that describe the combined effects of knowledge tacitness and transfer capacity on entry mode choice we distinguish between the transfer capacity of the organization that develops knowledge source transfer capacity and that of the organization that seeks to access that knowledge recipient transfer capacity the discussion addresses how our model generalizes to knowledge seeking strategies and to the study of ongoing multinational networks the study enriches and reconciles multiple theoretical perspectives on entry strategy it brings together the study of knowledge characteristics and firm heterogeneity in the theory of the multinational corporation and in international and strategic management more generally journal of international business studies 2003 34 356 373 doi 10 1057 palgrave jibs 8400037

the impact of business group affiliation on performance evidence from china s national champions an important aspect of china s economic reforms has been an ambitious policy to develop 100 or so large internationally competitive business groups very little is known about these national champion groups or the benefits to subsidiary firms of belonging to them this study building from insights and methods used in existing literature examines the performance of subsidiaries affiliated to china s national champion groups our results find that they perform comparatively well we discuss possible reasons for this finding and comment more generally on the important role that business groups now play in china s reform and development

knowledge market failure and the multinational enterprise a comment the purpose of this note is to comment briefly on two papers published in this journal kogut and zander 1993 and love 1995 kogut and zander k z argue that market failure is not necessary to explain the existence of multinationals or indeed any firm love argues that the existence of a firm necessarily reflects a market failure but that opportunism is not necessary for market failure to occur i have problems with the logic of both papers

economic liberalization the changing role of the state and wagner s law china s development experience since 1978 summary the paper applies wagner s law of increasing state activity to illustrate the changing function of the state in china as a consequence of economic liberalization wagner s law describes the association between increasing national wealth in progressive states and the rise in state activity and expenditure this indicates that the causes of bureaucratic expansion are to be sought not just in terms of political pressures but the interplay between political considerations and the economic necessities resulting from the emergence of new property rights a simple illustrative model is developed to measure the effects of increasing national wealth and the growth of the public sector this suggests that the patterns of economic development observed by wagner in 19th century europe are not unlike those observed in china today

interest rates and investment in east asia an empirical evaluation of various financial liberalisation hypotheses the article attempts to shed light on the appropriate interest rate policy in the process of economic development to this end we examine whether higher interest rates lead to higher investment and growth in four east asian countries we find that the investment rate went up with real interest rates up to 9 per cent in all four countries but started declining at still higher interest rates in two of the countries further a banking crisis occurred in each of the three countries for which the real interest rates exceeded 9 per cent this evidence rejects the neo structuralist argument nor does it support unbridled financial liberalisation yet it provides only limited support to stiglitz s case for mild financial repression real interest rates near zero since reducing real interest rates from say 6 to 3 or 0 per cent would have reduced investment the optimum policy seems to be closest to mckinnon s restrained financial liberalisation policy that is liberalisation with a moderate upper lim

macroeconomic adjustment and private manufacturing investment in turkey a time series analysis despite the drastic switch to market based policies and outward orientation in turkey during the 1980s private investment in manufacturing industry has still not revived after seventeen years of structural adjustment this paper examines the main determinants of private investment in the manufacturing sector and the impacts of structural adjustment particularly financial liberalisation as an integral part of the reform on it the results show that liberalisation policies in financial markets appear to have positive effects by reducing the stringency of quantity constraints on investment while the high interest rates resulting from financial liberalisation had no significant impact on investment macroeconomic instability proxied by the variability of the inflation rate seems to have discouraged investment in manufacturing

financial liberalisation and private investment evidence from turkey abstract the paper tests for shifts in aggregate private investment functions for turkey as a consequence of financial liberalisation in the early 1980s results for a neoclassical model in error correction form suggest that the short run dynamics of investment were altered by financial liberalisation with reduced sensitivity to the availability of credit but with no evidence of increased sensitivity to the cost of capital estimation of an euler equation model indicates that credit constraints remained binding after liberalisation we interpret this as evidence of significant structural change to private investment functions after financial liberalisation but with credit constraints continuing to operate

investment spending and interest rate policy the case of financial liberalisation in turkey the purpose of the present study is to analyse the impact of interest rate policy on investment spending in turkey over a period which covers years of both financial repression and financial liberalisation the model presented suggests that investment will be positively correlated with below equilibrium interest rates and negatively correlated with above equilibrium rates the model is tested using a switching regime model with an unknown equilibrium rate of interest the results suggest that setting interest rates too high may be as detrimental to economic health as setting them too low moreover there is evidence of an autonomous downward shift in the investment function during the liberalisation period which may have resulted from heightened uncertainty during the period

the firm in the information age organizational responses to technological change in the processed foods sector the transformation of production processes that occurred across a range of manufacturing industries during the industrial age generated new and more complex requirements for the process of intermediation as well as for the production systems themselves the development of hierarchical organizations provided firms with the ability to oversee directly many of these new tasks and to create markets that supported them in contrast the advent of the information age has tended not so much to require the creation of markets de novo but has rather altered the nature of existing relationships of intermediation in ways that have facilitated a much wider collection of organizational forms

employment tenure and earnings profiles in japan and the united states comments the relationship between job tenure and annual earnings in japan has received considerable attention from social scientists examining employment contracts and the japanese compensation system in their widely cited article masanori hashimoto and john raisian 1985 using data for 1980 showed that japanese men have greater job tenure than comparable workers in the united states and that the earnings of japanese men rise more rapidly with increased tenure they found that an additional year of tenure increases earnings in both small and large firms in japan more than does an additional year of general market experience their results for the united states indicate that general market experience increases earnings more than an additional year of job tenure the 1970 s and 1980 s were a period of substantial change in japanese labor markets due to the rapid aging of the population and the restructuring of the economy following the oil crisis the present analysis extends the work of hashimoto and raisian by estimating earnings equations for japanese men for the years 1971 1976 1981 and 1986 specifically we wish to investigate whether hashimoto and raisian s findings have been stable over time or whether changes in the labor market have altered the importance of tenure relative to total labor market experience in the japanese labor market i changes in the labor market

global linkages the chinese high tech community and industrial cluster development the semiconductor industry in wuxi jingsu the development of industrial clusters in china has become a subject of international interest but attention has primarily focused on government efforts to attract fdi to promote industrial clusters and regional development the local process which supports the rise and growth of clusters driven by the domestic firms has been relatively ignored in this debate thus this article considers the analytical framework of strategic coupling and uses a case study of the wuxi semiconductor industry to investigate the cluster formation dynamics and effects driven by domestic rather than fdi firms with the mediating role of the transnational chinese technical community the state and domestic firms it concludes that the rise and growth of the semiconductor domestic led cluster in wuxi is not dependent on fdi but instead results from the dynamic interplay of several elements effects of technology spillover from the government funded research institutions as well as mutual competition and co operation in tech

a memoir and reflection knowledge and an evolutionary theory of the multinational firm 10 years later the production of the 1993 article awarded the jibs decade award was written during a time when ideas regarding knowledge and the international expansion of the firm confronted a hostile audience the sources of these ideas were directly related in winter s and roger s prior work but also to a broader literature on category errors and technology transfer the theory of the firm as a social community is a distinctly sociological theory and though sharing many key ideas with the resource based view that developed at the same time is deeply opposed to engineering conceptions of firms as legomodular pieces that can be easily shifted bought and sold we describe our individual biographies and the subsequent intellectual development of the

energy intensity and investment ownership across chinese provinces abstract the main objective of this paper is to investigate whether openness and investment ownership are key factors in explaining the diffusion of energy saving technologies in china compared with previous studies the novel aspect of this work is the use of a rich dataset at provincial level which allows the high level of regional heterogeneity to be taken into consideration the unbalanced regional growth has been translated into differences in the need for energy resources across the vast territory of china a detailed analysis of these issues may provide new insights into the energy situation in this country the analysis is also disaggregated by type of energy coal electricity and petroleum we estimate the models by panel corrected standard errors developed by beck and katz 1995 over the period 1985 2008 results obtained confirm the hypothesis that both foreign and non state investments play a leading role in the decline of energy intensity across chinese regions whereas there is no evidence of a positive contribution of state investment the findings also reveal differences in energy intensity across regions thus confirming the importance of accounting for the regional dimension when analyzing energy consumption in china

knowledge market failure and the multinational enterprise a theoretical note this article offers a critique and extension of recent work by bruce kogut and udo zander kogut and zander are correct to argue that opportunism is unnecessary to explain the existence of the multinational but wrong to infer that this indicates an absence of market failure they have identified an important class of transaction costs and market failure which arises in the absence of opportunism but do not cat doubt on the market failure approach to the theory of the multinational their argument that they have identified an important source of ownership advantage is unconvincing and is not supported by the empirical evidence however kogut and zander s work is of considerable significance but in areas different from those that they highlight

privatization not the only answer abstract governments in many developing countries created state owned enterprises soes to produce goods or provide services the private sector seemed unwilling or unable to offer in many cases soes have turned out to be problem children at best inefficient and at worst unable to fulfill their original functions now the recommended solution to the problem of state owned enterprises is privatization but privatization is no more a solution to the problems of soes than soes were a solution to the problems they were created to solve the problem of soes is not ownership but rather a lack of explicit goals and objectives and an absence of organization cultures and systems that support and encourage fulfillment of those goals and objectives in some circumstances privatization may aid in fulfillment of an enterprise s goals and objectives because of the culture and systems it fosters in other cases not

bureaucrats in business chinese style the lessons of market reform and state entrepreneurialism in the people s republic of china in the 1990s parts of the state bureaucracy in china have been setting up new profit seeking risk taking businesses some of these businesses are entrepreneurial rather than rent seeking and are an unplanned and unanticipated development in china s market oriented economic reforms what are the lessons of this phenomenon for the developing world state entrepreneurialism may create problems such as reduced government control over departmental finance loss of state assets and uneven provision of services it is nevertheless an innovative solution to the politically difficult problem of bureaucratic restructuring and confounds the development orthodoxy fostered by neoliberalism that states will resist market reform it also demonstrates that to understand fully the politics of market reform we must research the activities of subcentral state bureaucrats as well as central leaders and policymakers