bluuebunny/crossref_metadata_2025 huggingface dataset:
Process improvement programmes: a model for assessing sustainability
Authors: Bateman Nicola , David Arthur
Published: July 2002

This paper outlines a model for assessing the sustainability of shop floor based process improvement programmes. The model was developed as part of a larger research programme, investigating the inhibitors and enablers for process improvement. The model is based on the SMMT (Society of Motor Manufacturers and Traders) Industry Forum MasterClass Process Improvement activity, but can be applied to any intensive shop floor based process improvement programme. The model’s purpose is to identify the level of sustainability achieved by process improvement programmes and consists of two elements. The first element identifies five different levels of sustainability at cell level. The second element operates at factory level and examines the degree to which the tools and techniques have been spread between cells.
Utilization and Benefits of Expert Systems in Manufacturing
Authors: Wong Bo K. , Chong John K.S. , Park Jaesun
Published: July 2002

An analysis of survey data collected from a sample of 98 Fortune 500
industrial companies reveals that expert systems (ESs) are utilized in
manufacturing by 52 per cent of the companies, among which ESs are
perceived to be more useful in process planning, product design, layout,
facility design and maintenance; and less useful in forecasting
production demand and reducing accidents/ safety hazards. Some
suggestions are offered on integrating ESs with simulation and
logistical knowledge, and involving top management in ES development
projects to maximize the pay‐off of utilizing ESs in manufacturing.
The Evaluation of Manufacturing Cell Designs
Authors: Aurrecoechea A. , Busby J.S. , Nimmons T. , Williams G.M.
Published: July 2002

It is essential in the design process to have a measure of a cell′s
goodness which reflects current commercial and operational priorities.
Develops a measuring framework with one component which makes the firm′s
weighted manufacturing goals explicit, and a second which examines the
impact of cell design decisions on these goals. Since the framework is
concerned with design decisions, not the design process, it should be
generally applicable to different kinds of design process. Although the
framework is essentially subjective, this is largely unavoidable. One of
its main benefits is to make the assumptions that underlie subjective
judgements explicit and communicable.
Automation in a Customer Contact Environment
Authors: Walley Paul , Amin Viresh
Published: July 2002

Service industries, contrary to popular opinion, can have a high level
of investment in automation and technology, but most attention focuses
on back office technology. Investigates the use of automation in the
customer contact environment in order to examine the role of technology
in front office design. Concludes that the use of technology by the
customer remains limited by the opportunities to train the customer to
use the technology, which restricts the degree of complexity of the
technology; and by other limitations such as the need for the provision
of customer “reward” for appropriate use of the technology.
Making Best Use of Performance Measures and Information
Authors: Dumond Ellen J.
Published: July 2002

Managing a complex, boundary‐spanning function to maximize its
contribution to the firm can be a challenging task. This research is
concerned with providing management with increased understanding of the
effects of different ways of managing a function, especially a
significant boundary‐spanning operation. Conducted in the context of a
procurement function, through a laboratory experiment, explores the
impact of performance measures, interaction with other internal
organizations and access to information about external events on an
individual′s decision making and “comfort level”. Results indicate that
the performance measurement system determines an individual′s
decision‐making performance. The broader, more effectiveness‐oriented
measures also tend to make the individuals more confident and satisfied
with their operating environment and decisions. The availability of
interaction with other internal organizations and the access to
information about external events impact on an individual′s decisions
but have relatively little effect on his/her comfort level.
Decision support models for the location of firms in industrial
sites
Authors: Badri Masood A. , Davis Donald L. , Davis Donna
Published: July 2002

Investigates the industrial location decision behaviour of firms.
The behaviour was determined by an examination of the firms′ attitudes
measured on “location variables”. Firms representing various
countries that actually located in an international industrial park and
those that considered but did not locate in the park, provided a sample
frame for the study. Three models were developed from the data that
supplement or complement traditional approaches to industrial location
analysis. The models provide a method for management of an existing
industrial site to develop an appropriate marketing strategy for the
target firms, and to plan modifications based on firms′ attitudes. For
those considering the construction or alteration of an industrial site
the models can provide additional insight into the planning and
development of the facilities.
Do JIT lines perform better than traditionally balanced lines?
Authors: Chakravorty Satya S. , Brian Atwater J.
Published: July 2002

Over the past decade, JIT approach for designing and operating
lines has evolved to compete on time dimensions. Traditionally, the
lines designed and operated using line balancing approach are considered
optimal. Uses simulation methodology to compare each of these approaches
under various levels of system variability and total inventory in the
system. Shows that when system variability is low, the JIT line produces
lower cycle time at almost all levels of total inventory in the system.
However, when system variability is high the balanced line yields lower
cycle time, especially at lower levels of inventory in the system.
A study on just‐in‐time practices in Singapore
Authors: Hum Sin‐Hoon , Ng Yong‐Tjoon
Published: July 2002

The just‐in‐time (JIT) production system represents a new
technology that has been widely promoted by the Singapore government and
which has been adopted by several organizations operating in this newly
industrialized economy (NIE). Presents the first comprehensive study of
JIT practices in Singapore. Describes the major survey findings on the
profile of JIT companies, their pre‐implementation and implementation
experiences, and the JIT practices targeted for future implementation.
In this way, the study is similar to other such studies conducted in the
USA, the UK, Europe, Australia, Hong Kong, Korea and Taiwan, and hence
adds to the empirical database of actual JIT practices as published in
the literature. Also seeks to provide empirical insights to three
specific research issues pertaining to the strategic significance of
JIT, the speedy and effective implementation of JIT, and the need for
local suppliers to practise JIT. Such empirical insights derived from
the JIT practices of companies operating within a successful NIE like
Singapore could be helpful towards encouraging the rapid diffusion of
the JIT technology in other developing economies.
Production data modelling: an integrated approach
Authors: Yeh Chung‐Hsing
Published: July 2002

An effective production planning and control system requires
combining the bill of material (BOM) and routeing data to reflect the
material flow through the production process. Presents an integrated BOM
and routeing data model which allows flexibility in handling
relationships between materials and operations to suit specific needs.
It can also be used as a standard data resource for creating production
jobs. Maintaining job data independently of the BOM and routeing data
allows the system to accommodate a wide range of production variations
in practice. In a make‐to‐order environment, jobs are created for making
line items on customer orders. To manage customer orders better,
develops an extended job model to allow line items of a customer order
to be made by one job. Perceives the concept of the extended job model
as having considerable value in a wide range of production applications.
Action research: a new paradigm for research in production and
operations management
Authors: Westbrook Roy
Published: July 2002

The continuing debate on production and operations management (POM)
research has led to a new emphasis on empirical methods. Claims that,
while surveys and case research are increasingly recommended to POM
researchers, action research has been relatively neglected. The distinct
characteristic of action research is the intervention by the researcher
in the situation under study. The nature of the intervention, and of
action research outputs, differs however from consulting or from the
applications reported by APICS. Explains these differences and offers a
simple model of action research. Action research is particularly
valuable for theory building, as has been seen in the fields of
organization behaviour (OB) and management information systems (MIS),
where qualitative methods have often been employed rather than
traditional scientific methods. POM researchers can learn from the
experience of other disciplines and use action research to create new
theory. Since many POM researchers will be unfamiliar with action
research, explores some practical aspects of conducting such
investigations with illustrations from the author′s own research
experience. Concludes by showing that a properly conducted action
research project can be as rigorous as other methods.
Lean organization, management by process and performance measurement
Authors: De Toni A. , Tonchia S.
Published: July 2002

Shows how the pursuit of excellence and the organizational change required by lean production leads to a management‐by‐process organization, and that management by process influences the performance measurement system (PMS). Uses Zanussi‐Electrolux ‐ the biggest European producer of domestic appliances ‐ as a case study example. Provides a detailed analysis of the organizational change and its effects on performance measurement.
An empirical exploration of the relationship between manufacturing strategy and environmental management
Authors: Rocky Newman W. , Hanna Mark D.
Published: July 2002

Explores the interrelationships between environmental issues and manufacturing strategy. Based on the theoretical underpinnings of previous work in the field of manufacturing strategy and insights from an open‐ended and exploratory survey of strategic decision makers in a wide variety of manufacturing settings, attempts to illustrate the potential synergies between environmental management and manufacturing strategy. Expands the models of Wheelwright and Hayes (1985) and Hill (1994) in order to suggest that operational excellence may provide leverage towards environmental excellence for manufacturers.
An investigation of service‐based manufacturing performance relationships
Authors: Youngdahl William E.
Published: July 2002

Reports recent findings of a two‐phase study investigating new dimensions of manufacturing competitiveness, factory‐based services. Examines relationships between broadly defined service role performance and manufacturing performance. Data were provided by 64 manufacturing firms from the USA, Canada and the UK. Also addresses under what conditions a vital element of such service‐information would be of greatest benefit to the factory’s key internal customer ‐ marketing. A survey of manufacturing and marketing respondents within 32 organizations provides empirical evidence of the positive relationship between factory information measured as a service construct and delivery performance. Anecdotal evidence from interviews provides additional insight into the roles of organizational structure and information technology with respect to the information component of factory‐based service.
International manufacturing strategies: experiences from the clothing industry
Authors: Bolisani Ettore , Scarso Enrico
Published: July 2002

In traditional sectors, due to the strong incidence of labour costs, the progressive delocalization of manufacturing activities in low‐wage countries has been typically considered unavoidable. However, this process appears to be very different at national, industrial, and also corporate level. Empirical studies are needed to investigate the existing linkages among industry general conditions, each firm’s global operations strategy and specific operative choices for implementing it. Presents empirical research on the patterns and the factors characterizing the international relocation of manufacturing followed by Italian clothing firms.
Flexibility and technology in services: a conceptual model
Authors: Harvey Jean , Lefebvre Louis A. , Lefebvre Elizabeth
Published: July 2002

In common with most service companies, banks today are faced with a myriad demands on their delivery processes made by an increasingly fragmented market. Management theorists and consultants prescribe up‐to‐date technology and service personnel generalists as progenitors of the flexibility required by companies seeking to deliver quality of service. However companies gear up their systems to deal with variable market demands and expectations, penalties of time, finance and quality are inevitable. So, how flexible need a service company be, and what degree of variability need it countenance as acceptable from its customers in today’s marketplace? Can service companies approach such questions in ways similar to those taken in the past by manufacturing companies? Indeed, does “flexibility” mean the same in services as it does in manufacturing? Does it involve the same challenges and, if not, is a radically different model required in order to delineate the concept and challenges of flexibility in services? Attempts to answer such questions conceptually and in terms of information technology’s role in enhancing flexibility of service delivery. Proposes a model by which to integrate the most relevant elements in the service and manufacturing literature, and applies this model to explore four service‐specific dimensions of flexible delivery.
GMRG survey research in operations management
Authors: Clay Whybark D.
Published: July 2002

The Global Manufacturing Research Group (GMRG) is an informal group of researchers conducting operations management research throughout the world. Describes aspects of their survey research on manufacturing practices. Presents the background of the project, a bit about the group itself, and specifics on getting involved in the group. Presents the principles which guided the first and second rounds of the GMRG global survey and the theory underlying their survey instrument and its revision. Finally, provides several details of the research methodology and some of the research findings.
Survey methodology issues in manufacturing strategy and practice research
Authors: Collins Robert S. , Cordon Carlos
Published: July 2002

Identifies and discusses a number of methodological issues which can arise in the design and administration of instruments for the purpose of large‐scale survey research in manufacturing strategy and practice. Describes two such surveys. Both were undertaken by researchers at IMD, Lausanne, Switzerland. The first was a study of manufacturing strategies in western Europe, while the second was a study of manufacturing practice and performance in Switzerland. A comparison of the approaches taken in the design and administration of the two instruments allows for the identification of a number of methodological issues which are discussed in greater detail. These include sample (sector) selection, respondent preparation, quality assurance for data input, the elimination of bias and gathering of complementary data.
A new taxonomy of modern manufacturing practices
Authors: Bolden Richard , Waterson Patrick , Warr Peter , Clegg Chris , Wall Toby
Published: July 2002

Outlines a comprehensive taxonomy of modern manufacturing practices. Previous attempts have tended to be partial in coverage and to concentrate on performance issues, rather than explain the reasons why a particular practice may have been adopted. In order to overcome these problems, the new taxonomy categorizes manufacturing practices according to two dimensions: strategic emphasis and primary domain of application. Suggests 20 different categories of practice for a total of 87 practices. Supplements the taxonomy by a list of definitions which specify each of the practices identified. Considers practical implications of the taxonomy, as well as its limitations. Future research suggestions include using the taxonomy to provide the basis for systematic surveys of manufacturing, as well as closer examination of the links between companies’ manufacturing strategy and financial performance.
Implementing early supplier involvement: a conceptual framework
Authors: Dowlatshahi S.
Published: July 2002

Explores the impact of early supplier involvement (ESI) on product development practices. Develops a conceptual framework and a case study for effective implementation of ESI. A conceptual framework for ESI in product development consists of the four building blocks of design, procurement, supplier, and manufacturing requirements. Notes that, while each of the building blocks has a unique role in ESI, their interrelationships are the focus of the ESI conceptual framework. These blocks are decomposed into a set of specific tasks required to implement ESI. Applies the framework in a company that currently implements ESI in order to test and validate its viability. This comparison enumerates the examples of success and failure of ESI and two measurements of the company’s ESI effectiveness. Discusses the framework’s validity and proposes modifications. Additionally, presents a set of findings, hypotheses, and recommendations for implementing ESI. Also presents a set of hypotheses as a basis for future ESI theory building and testing.
Framework for the development of a product data management strategy
Authors: Sackett Peter John , Bryan Michael G.
Published: July 2002

Manufacturing industry’s success in reducing time‐to‐market, costs, environmental impact; and improving quality, and flexibility, has exposed an underlying factor limiting further significant improvement in competitive performance ‐ the effective management of production data. This article identifies the business benefits of product data management and examines the building blocks for a product data management strategy.
Total punctuality approach for the jobbing industry
Authors: Sarmento Costa Ricardo , Jardim Eduardo G.M.
Published: July 2002

Presents results of a nine‐year research and development project. At the beginning a scheduling simulation software was built and assessed in real contexts. Then it has grown into a technology for shop‐floor planning and control in the jobbing industry, developing now into a philosophy for strategic jobbing production management, named here as “Total punctuality approach”. Based on this approach, a conceptual model was developed to orientate control system design in the jobbing industry. The model was conceived on a manufacturing strategy base being clearly driven by punctuality which was identified as being the main order winning criteria in such markets, when quality and price issues have already been resolved. Flexibility, speed and costs were addressed as well according to their relative importance to competitiveness. Concepts extracted from the various technologies available are mixed up forming a special blend with regard to the total punctuality goal. Almost all aspects of the model were implemented in a software that has been successfully used in small Brazilian jobbing firms. Using the software, it is possible to assess a large range of shop‐floor management practices in terms of their contribution to the competitiveness of the company.
A framework for the management of product variety
Authors: Da Silveira Giovani
Published: July 2002

This study introduces a framework for the management of product variety in strategy and operations. It combines the analysis of five case studies in the UK and Brazil with a research background based on the existing literature. The framework describes the elements and steps involved in the process of dealing with product variety needs in manufacturing systems. The results suggest how operations management should evaluate the gaps between the importance and performance of product variety to develop appropriate adaptive and flexibility measures when dealing with product variety requirements in operations and strategy.
Identifying effective PMSs for the deployment of “green” manufacturing strategies
Authors: Azzone Giovanni , Noci Giuliano
Published: July 2002

Environmental issues are rapidly emerging as one of the most important topics in strategic manufacturing decisions. Growing public awareness and increasing government interest in the environment have induced many companies to adopt programmes aimed at improving the environmental performance of their operations. State of the art literature has proposed many models to support executives in the assessment of a company’s environmental performance. Unfortunately, none of these identifies operating guidelines on how the systems should be adapted to support the deployment of different types of “green” manufacturing strategies. The present paper seeks to illustrate techniques and architecture for performance measurement systems (PMSs) to support the implementation of feasible “green” manufacturing strategies.
Manufacturing paradigms versus strategic approaches: a misleading contrast
Authors: Spina Gianluca
Published: July 2002

This paper is aimed at overcoming the contrast between the paradigmatic views and the strategic approaches to manufacturing. It challenges the idea that the paradigmatic perspective actually narrows the strategic space for manufacturers to build their own competitive advantages, because it drives them to conform to emerging best practice. The empirical evidence is drawn from a global sample of 79 production units in the engineering industry that revealed consistent orientation to the strategically flexible production, an emerging manufacturing paradigm characterised by three generic principles to organise and manage production systems, namely: multi‐focusedness and strategic flexibility; integration of business processes across functions and firms’ boundaries; and process ownership, i.e. delegation, involvement and harnessing of intellectual capabilities of the workers. The purpose of the article is twofold: first, to verify the existence of different manufacturing strategies within strategically flexible production, in terms of improvement goals and innovative programs; and, second, to build an empirically‐based taxonomy of such strategies.
Global business process re‐engineering: a system dynamics‐based approach
Authors: Ashayeri J. , Keij R. , Bröker A.
Published: July 2002

This paper presents a structured approach for business process re‐engineering (BPR) in a large (global) corporation. The paper defines BPR, explores the principles and assumptions behind re‐engineering, and looks for common factors behind its successes or failures. In order to overcome the potential failures, we propose to view a global business as a system and use the system dynamics methodology in conjunction with analytic network process. This approach will enable corporations to understand the relationships among the components of a global business and link different sub‐systems properly when a re‐engineering process is taking place. The purpose of this approach is to increase the effectiveness of the re‐engineering process.
Perceived importance of the Internet as an information channel for OM professionals
Authors: White Gregory P. , Jacobs F. Robert
Published: July 2002

Previous research, conducted before the Internet was widely accessible, has shown that information sources and channels can influence the initiation, adoption, and implementation of innovations. The field of operations management faces a wide variety of innovations, the eventual diffusion of which may depend on changes that are now occurring in information technology. This study uses data collected from two surveys, one conducted postally and one conducted over the Internet, to identify how operations management practitioners, consultants, academics, and students perceive and use information from various sources (books, journals, etc.) and channels (conferences, the Internet, etc.). The results indicate that the Internet is growing in importance as an information channel, with more than 40 percent of all respondents having used information obtained from the Internet during the year preceding our study. Although most respondents view that information as being less important to them professionally than information from other sources and channels, those who use the Internet most frequently have a much higher opinion of the information it provides. Multidimensional preference analysis indicates that the Internet is perceived as being quite different from traditional sources and channels, but because of that difference it currently meets the preferences of only a small subset of individuals.
Evaluating manufacturing strategy for a learning organization: a case
Authors: Mohanty R.P. , Deshmukh S.G.
Published: July 2002

The key issue in today’s dynamic and competitive global scenario is how to develop, utilize and sustain continuously the knowledge potentials in an enterprise. This issue is about knowledge management. In this paper, an attempt is made to discuss the various issues of a learning organization and present an organizational learning model, which has helped to evaluate manufacturing strategies and select advanced manufacturing technology, based on strategic, tactical and monetary factors. The efficacy of the model is illustrated through an application.
Electronic data interchange for process change in an integrated supply chain
Authors: Walton Steve V. , Gupta Jatinder N.D.
Published: July 2002

Many companies have adopted electronic data interchange (EDI), often with results inconsistent with the expectations of the company. In these instances, it is often the mismatch between expectations and the company’s activities undertaken to achieve the desired performance gain that fuels their dissatisfaction with EDI. This same mismatch often causes academic research into EDI and supply chain management to lose focus. This article presents a framework of EDI benefits in a supply chain management context that can be used to match a company’s EDI efforts with its desired outcomes from EDI use. The framework states that two critical factors to understanding EDI’s impact on supply chain management are the span of management control of the business process in question and whether EDI directly or indirectly influences that same business process. The proposed framework is then used to develop a research agenda for EDI and supply chain management. We suggest possible directions for research methods, measure development and hypothesis generation that can be used in future research studies.
Valuing transferred machine tool technology
Authors: Bennett David , Vaidya Kirit , Hongyu Zhao
Published: July 2002

The value of technology and the appropriate form of transfer arrangement are important questions to be resolved when transferring technology between Western manufacturing firms and partners in industrialising and developing countries. This article reports on surveys carried out in the machine tool industries in the UK and China to establish the differences and similarities between owners and acquirers of technology regarding the relative importance of the factors they evaluate, and the assessments they make, when considering a technology transfer. It also outlines the development of a framework for technology valuation. The survey results indicate that the value of product technology is related to superior technical performance, especially on reliability and functionality, and the prospects of premium prices and increased sales of the technology transfer based machine tools. Access to markets is the main objective of UK companies, while Chinese companies are concerned about improving their technological capability. There are significant risks, especially related to performance in the market, and while owners and acquirers have benefited in the short term, the long term collaboration required for strategic benefits has been difficult to achieve because of the different priorities of the owners and the acquirers.
A new strategy of technology transfer to China
Authors: Xing Ming Wang , Xing Zhou
Published: July 2002

In the face of an integrating world economy where significant changes are taking place as a result of rapidly developing science and technology, China’s government must attach more importance to technology transfer to improve its economy. This paper analyses the features of the new environment and discusses the framework of technology transfer based on a review of theory, surveys and studies of Chinese enterprises. In particular, it considers the role of foreign funded enterprises and the importance of creating a positive cycle of technology “transfer‐digestion‐absorption‐dissemination” in China for increasing involvement in international production and trade activities within a global market.
Flexible kanban system
Authors: Gupta Surendra M. , Al‐Turki Yousef A.Y. , Perry Ronald F.
Published: July 2002

Just‐in‐time (JIT) systems were originally designed for deterministic production environments such as constant processing times and smooth and stable demand. However, once implemented, JIT is fraught with numerous types of uncertainties, including variations in processing time and demand, planned interruptions such as preventive maintenance and unplanned interruptions such as equipment failure. These uncertainties lead to lowered production throughput, decreased machine utilization, increased order completion time and greater backlogs and overtime requirements. In this paper, we introduce a newly developed system, which we refer to as the flexible kanban system (FKS), to cope with uncertainties and planned/unplanned interruptions. We demonstrate the superiority of the new system by considering four case examples covering various uncertainties, conducting numerous studies and comparing the overall performances of the FKS with that of the traditional JIT system. In all the cases considered, the performance of the FKS was, indeed, superior to that of the traditional JIT system.
Assessing the responsiveness of existing production operations
Authors: Matson Jeremy B. , McFarlane Duncan C.
Published: July 2002

Production responsiveness refers to the ability of a production system to achieve its operational goals in the presence of supplier, internal and customer disturbances, where disturbances are those sources of change which occur independently of the system’s intentions. A set of audit tools for assessing the responsiveness of production operations is being prepared as part of an EPSRC funded investigation. These tools are based on the idea that the ability to respond is linked to: the nature of the disturbances or changes requiring a response; their impact on production goals; and the inherent response capabilities of the operation. These response capabilities include information gathering and processing (to detect disturbances and production conditions), decision processes (which initiate system responses to disturbances) and various types of process flexibilities and buffers (which provide the physical means of dealing with disturbances). The paper discusses concepts and issues associated with production responsiveness, describes the audit tools that have been developed and illustrates their use in the context of a steel manufacturing plant.
Empirically testing the impact of manufacturing system complexity on performance
Authors: Guimaraes Tor , Martensson Nils , Stahre Johan , Igbaria Magid
Published: July 2002

As the increase in manufacturing competitiveness forces organizations to use more sophisticated and complex software, system performance depends on clever systems design, efficient planning and scheduling of the related processes. For these advanced manufacturing systems the dependence on human competence is greater. However, previous studies indicate that the human aspects for successfully implementing such systems have been neglected. The objective here is to test the hypotheses that system complexity is inversely related to performance, and that training of system operators, and the quality of the man/machine interface reduces the negative impact of system complexity. A sample of discreet manufacturing systems from 128 organizations was used to test these hypotheses empirically. Moderated multivariate regression indicates that man/machine interfaces are significant contributors to reducing the negative effect of systems complexity. With a lower level of significance, operator training has a similar impact. For complex manufacturing systems software, it behoves managers to insure that the man/machine interface provides the desirable features outlined in this study.
The use and abuse of mathematical economics
Authors: Hudson Michael
Published: July 2002

Seeks to define the proper role for mathematics to play in economic theorizing by spelling out its limits. Specifically, has the mathematization of economics contributed to its narrowing of scope since the anti‐classical reaction of the 1870s? If so, is mathematics inherently narrow? Or does the modern, and often other‐worldly, treatment follow from the particular way in which mathematics has been applied? To describe “bad” mathematical economics, one must state what kinds of problems its formulations tend to exclude. This paper focuses on “equilibrium” analysis that rules out such real‐world phenomena as instability and economic polarization, thereby diverting attention from the actual structural problems at work.
Inflation, government expenditure and real income in the long‐run
Authors: Mallik Girijasankar , Chowdhury Anis
Published: July 2002

This paper examines the relationship between inflation and real income in Australia, Canada, Finland, New Zealand, Spain, Sweden and the UK which have adopted a “formal” policy of low or zero inflation target. Using cointegration analysis and a vector error correction model (VECM)), we find that the long‐run relationship between inflation and real income is positive in most cases. We further find that contrary to the belief of new‐classical economics, government expenditure too is positively related to real income in the long‐run.
Falsification, Deductivism, Physics and Time Reversibility and
Irreversibility in Economic Systems
Authors: Cross Rod
Published: July 2002

Considers two main strands of literature. The first deals with the
tension between the falsificationist view of how economic know‐ledge
could or should be acquired, and the view that economics is a separate,
deductive science. The second concerns the metaphors used in economic
analysis, the main contrast being between metaphors which involve
homeostasis and time reversibility, and those that involve hysteresis
and time irreversibility.
Eucken on Capital and Interest
Authors: Yeager Leland B.
Published: July 2002

Addresses the theory of capital and interest of Eucken. Explains how
Eucken works out the temporal aspects of the economic process in
different monetary systems, market structures and economic systems. The
theory is critically evaluated. Eucken made essential contributions to
the theory of capital and interest (ranking alongside the works of
Böhm‐Bawerk, Wicksell, Cassel, Fisher, Allais, Hirschleifer and a few
other economists). The profession would benefit from closer acquaintance
with his ideas.
A competitive model of the growth of government
Authors: Quang Dao Minh , Esfahani Hadi S.
Published: July 2002

Develops a general equilibrium model of the growth of government
based on the attempts of various socio‐economic groups to redistribute
income in their own favour. In the non‐cooperative equilibrium of our
model under free political competition, every group in the economy pays
taxes at rates which maximize the net contribution of each to their
government′s budget. On the basis of this model, argues that the recent
growth of government can be explained by the increased role of human
capital as a factor of production; the rise in the population share of
the elderly; and the reductions in the relative value of non‐market uses
of labour caused by increased specialization and population pressure.
Human capital, which has been both an important source of growth in
income and the main factor behind the expansion of the middle class,
seems to be a relatively easy‐to‐tax asset. This finding may resolve the
puzzle of simultaneous growth of government and increase in income
equality in developed countries that has challenged recent models of
redistributive taxation.
Testing the rational expectations hypothesis using survey data from
vegetable growers in the USA
Authors: Beach E. Douglas , Fernandez‐Cornej Jorge , Uri Noel D.
Published: July 2002

Survey data on expected and actual prices received by individual
vegetable growers in Florida, Michigan and Texas in 1990 are used to
test the rational expectations hypothesis. The use of individual grower
data overcomes many of the issues that have limited previous tests of
this hypothesis in agriculture. Overall, finds that price expectations
of vegetable growers are inconsistent with the rational expectations
hypothesis for the majority of vegetable/state combinations studied.
Exports and industrial growth: a new framework and evidence
Authors: Charos Evangelos N. , Otto Simos Evangelos , Thompson Allen R.
Published: July 2002

Surveys the literature on the role of exports in economic growth and provides additional qualifications concerning the measurement of the different channels through which exports may contribute to economic growth. Our framework shows that the most commonly used supply‐side approaches have typically underestimated the contribution of exports to economic growth. Using the proposed generalized version of the sources‐of‐growth approach, measures the contribution of exports to the growth of output in the US manufacturing sector and the 20 two‐digit industries. Separates growth of total output into growth attributable to changes in both export‐related and non‐export‐related factor inputs as well as the “residual” or otherwise unexplained growth. For the nation as a whole, over the period of the study, 1971‐1987, finds that export‐related inputs contributed 45.5 per cent to the growth of US output of manufactures, while technology and non‐export‐related inputs contributed 45.4 per cent and 9.1 per cent respectively, significant disparities existing among the industries.
Heinrich von Stackelberg’s textbook Grundlagen der theoretischen Volkswirtschaftslehre revisited
Authors: Maks J.A.H. , Haan M.
Published: July 2002

Compares Stackelberg’s Grundlagen der theoretischen Volkswirtschaftslehre with a standard modern micro‐economic textbook. Reveals some confusing shortcomings in the English translation. Focuses on unique peculiarities of Stackelberg’s analysis of the price formation on imperfect markets. Suggests that it might be an effective approach in a course on micro‐economics to combine a modern textbook with Grundlagen since they would complement each other in a number of aspects: at least, but very important, in the different emphasis of the time aspect. Finds that in general the English translation of Grundlagen by A.T. Peacock is of an outstanding quality. Mistakes are rare and hardly ever confusing, with the exceptions related to the perfect market and pure competition concepts. So, if one uses the English translation of Grundlagen as a supplement in a course on micro‐economics one may devote some attention to these concepts. It is quite possible that Stackelberg, at least in Grundlagen, is not convinced of the potential compatibility of Chamberlin’s theory of monopolistic competition and the Edgeworth‐Bertrand oligopoly theory with the method he proposes to derive at “peculiarities of price formation in the imperfect market”. Hence the absence of any reference in Grundlagen to these theories may not be at all accidental.
New evidence from an alternative methodological approach to the defence spending‐economic growth causality issue in the case of mainland China
Authors: Masih Abdul M.M. , Masih Rumi , Hasan Mohammad S.
Published: July 2002

Proposes to re‐examine empirically the causal relationship between defence spending and economic growth in mainland China. First, using a VAR modelling technique with suitable diagnostics, e.g. Akaike’s FPE statistics and a likelihood ratio test for over‐ and under‐fitting the causal model, the results indicate a positive unidirectional causality flowing from defence spending to economic growth. Second, by evaluating a dynamic vector error‐correction model, variance decomposition and impulse response functions, then analyses the direction, duration and strength of Granger‐causality between defence spending and economic growth. The results broadly indicate that defence spending and economic growth did share a common trend over the sample period under analysis, but it was the former which stimulated the latter. Moreover, it is defence spending that has a much more perceptible and prolonged effect on economic growth, giving rise to implications that although expenditure on defence may have been politically motivated, over the long‐run this spending did play a significant indirect role in enhancing the growth potential of this, for many years, closed‐door economy.
Intra‐industry trade: an Australian panel study
Authors: Matthews Kathryn
Published: July 2002

Intra‐industry trade (IIT) is the simultaneous import and export of goods within the same industry. This paper updates previous work on Australian intra‐industry trade and explores the determinants of IIT. It is the first Australian study to pool time series and cross‐sectional data for this purpose. The empirical work also explores whether the determinants of IIT vary between different groups of trading partners; a distinction is made between Australia’s traditional trading partners and newly emerging trading partners in the Asia Pacific region. The paper finds that Australian IIT has been growing as a proportion of total trade over the past 15 years. The empirical evidence presented suggests that average and relative per capita incomes, distance and trade orientation are all important factors explaining trends of IIT for Australia.
Does money cause prices, or the other way around?
Authors: Masih Abul M.M. , Masih Rumi
Published: July 2002

Attempts to look into the question of causality between money and prices in the context of international comparison in four South‐east Asian developing countries, based on an improved methodology. Thailand, Malaysia, Singapore, and the Philippines were used as case studies. Regarding the money‐price causality direction, the study based on both bivariate and multivariate tests, tends to suggest strongly that in those four countries during much of the three decades since 1960, it was money supply that was the leading variable as the monetarists maintain and not the other way around as the structuralists maintain.
The “stylised facts” of the UK business cycle: a reappraisal
Authors: McMillan David G. , Speight Alan E.H.
Published: July 2002

Reappraises the stylised facts of the contemporary UK business cycle and the robustness of associated sample moments to detrending under the Hodrick‐Prescott (HP) filter and an unobserved components (UC) model based on the structural time series mode of Harvey and advocated in this context by Harvey and Jaeger. For the majority of series considered, findings broadly confirm the earlier HP‐based results of Blackburn and Ravn, but important differences with previous results are reported for labour productivity, the real wage and the real interest rate. However, under neither detrending method are the anticipated cross‐correlations between output and the pivotal variables in standard real business cycle (RBC) models (labour productivity, real wages, the real interest rate and nominal variables) simultaneously confirmed. Indeed, on balance, these results may be interpreted as more suggestive of an orthodox demand‐led or policy‐induced cycle.
Total factor productivity growth in Singapore’s service industries
Authors: Tan Lin‐Yeok , Virabhak Suchin
Published: July 2002

This paper examines and analyses the TFPG performance of individual service industries in Singapore. TFPG of services were highly cyclical, indicating the overwhelming vagaries of external demand in this small and open economy. Although the TFPG of most services were dismal during 1976‐93, the rates were higher for the post‐1985 recession period, compared with those in the pre‐1985 recession years. This trend reflects the Government’s concerted efforts to upgrade the workforce and promote higher technology services. Besides, the service industries which did not conform to this trend had in common massive infrastructural investments which were primarily undertaken by government‐linked enterprises with a longer‐term interest of the economy at large. Thus it seems that the paternal role of government has a vital influence on Singapore’s TFPG performance. The study implies that the role of government could constitute an important factor in the estimation of TFPG, and in comparing TFPG among economies where government roles differ significantly.
Is trade liberalization harmful to the environment? An alternative view
Authors: Tsai Pan‐Long
Published: July 2002

The standard definition of ecological dumping, the marginal cost of abatement is less than the marginal damage from the pollution, does not catch well the concern of the environmentalists. Comparing environmental quality before and after trade liberalization, this paper uses a partial equilibrium strategic trade framework to show that trade liberalization can improve environmental quality. This result holds under both Cournot and Bertrand competition, and for both partial and complete trade liberalization.
Transaction costs versus resource value?
Authors: Pitelis Christos N. , Pseiridis Anastasia N.
Published: July 2002

Two major advances in the theory of the firm and (micro)economics more generally are arguably transaction costs economics (TCE) and the theory of firm resources. TCE has originally been applied to the theory of the firm, but found applications in virtually all fields of economic inquiry. The theory of firm resources currently spans much of the industrial organisation (IO) and strategic management literature. In some fields, e.g. diversification, it has already acquired dominant status. Despite significant progress in TCE there still seem to remain significant unresolved issues. Indeed we claim that transaction cost economics fail to supply convincing answers to the issues of the nature of the firm (why do firms exist?), and their essence (running a business). It offers a partial explanation of the “nature” and little on the “essence”. The resource value view complements the nature side and goes far beyond on the essence issue. It provides a fruitful starting point for an integrative framework. This, we suggest, should be based on the resource value perspective story and craft (dynamic) transaction costs in the ensuing evolutionary tale.