bluuebunny/crossref_metadata_2025 huggingface dataset:
Board and Monitoring Committee Independence
Authors: Cotter Julie , Silvester Mark
Published: September 2003

This study focuses on the composition of boards of directors and their monitoring committees (audit and compensation) for large Australian companies. For firms whose boards use a committee structure, much of the monitoring responsibility of the board is expected to rest with the independent committee members. We document a positive association between the proportion of independent directors on the full board and its monitoring committees, and a greater proportion of independent directors on both audit and compensation committees than the full board. Our hypotheses tests involve an examination of the impact of other mechanisms used to control agency conflicts on full board and committee independence, and the association between this independence and firm value. We find that full board independence is associated with low management ownership and an absence of substantial shareholders. Audit committee independence is associated with reduced monitoring by debtholders when leverage is low. While we predict a positive relationship between board and monitoring committee independence and firm value, our results do not support this conjecture.
Presenting Discounted Future Cash Receipts and Payments in Financial Statements
Authors: Rosenfield Paul
Published: September 2003

This article is about the commonly asserted view that present value, the discounted amount of future cash receipts and payments, is an attribute of assets and that it ideally should replace acquisition cost as the attribute of assets to present in financial statements. The view is based on faulty extrapolation from economics and the study of finance. Use of present value in connection with the preparation of financial statements does not contribute to performing their basic function, which is to report relevant real world conditions as they exist and existed and relevant financial effects of relevant real world events as they occurred. The view turns discounting into a magical process, it reverses the chronological order of cause and effect, and it unjustifiably substitutes the financial effects of supposed future events for the financial effects of historical events as the raw material of financial statements. The future does not yet exist and such financial events have not yet occurred; the present condition therefore can in no way depend on them. The discounted amount of future cash receipts and payments is not an attribute of assets and it should therefore not replace acquisition cost as the attribute of assets to present in financial statements.
Earnings Management Around Share Repurchases: A Note
Authors: Vafeas Nikos , Vlittis Adamos , Katranis Philippos , Ockree Kanalis
Published: September 2003

This work examines a subset of the important area of earnings management. Specifically, it seeks to identify the extent of earnings management preceding self‐tender offers for a sample of U.S. firms. Pre‐repurchase total accruals and discretionary current accruals were found to be somewhat lower for a sample of self‐tendering firms compared to a sample of industry‐ and performance‐matched control firms. Weak evidence of post‐buyback accruals reversal is also presented. The evidence is weakly consistent with the notion that share repurchases are employed by managers to exploit shareholders through earnings management.
Research Note: Revisiting Fair Value Accounting––Measuring Commercial Banks’ Liabilities
Authors: Gray Robert P.
Published: September 2003

IAS 39, Financial Instruments: Recognition and Measurement (IASB, 2000), requires assets to be marked to fair value if held‐for‐trading, available‐for‐sale purposes, or if they are derivatives; held‐to‐maturity securities, originated loans and originated securities are measured at amortized cost, providing they are not held‐for‐trading. Financial liabilities are measured at amortized cost except those that are held‐for‐trading or derivatives. A proposed amendment would accommodate improved fair value measurement of financial instruments. Commercial banks are greatly affected by any accounting standard concerning the recognition and measurement of financial instruments, whether related to assets or liabilities. This article demonstrates that the existing and proposed standards perpetuate the mismeasurement of interest rate risk for commercial banks. Under IAS 39 banks that have a balanced position, that is, no interest rate risk, counterfactually could show large changes in income through interest rate changes. An alternative accounting treatment, full fair value reporting of financial assets and liabilities, including all loans and deposits, is offered. Presently fair value data are mandated as footnote disclosure.
Keeping Watch! Recounting Twenty‐Five Years of the Office of Chief Accountant, U.S. Securities and Exchange Commission, 1976–2001
Authors: Previts Gary J. , Roybark Helen M. , Coffman Edward N.
Published: September 2003

This article adds to the literature of accounting regulation by providing background, including facts and circumstances relating to a quarter century of SEC activity preceding the events identified with the reshaping of the capital markets following the dot.com collapse and the attack on the World Trade Center, 11 September 2001. The subsequent collapse of Enron, the bankruptcy of Worldcom, the dissolution of Andersen, one of the Big Five accounting firms, and the passage in the United States of the Sarbanes‐Oxley Act, collectively have ushered in a new era of public–private capital market relationships. This study provides guidance and outlines topics useful to future researchers undertaking assessments of regulatory policies and the individuals involved in their administration.

From 1976 to 2001 five individuals played a significant role in the development of the U.S. Securities and Exchange Commission's disclosure and reporting practices by virtue of their office and the collective influence of their views. A. Clarence Sampson (1976–87), Edmund Coulson (1988–91), Walter P. Schuetze (1992–95), Michael H. Sutton (1995–98) and Lynn E. Turner (1998–2001) directed accounting policy activities at the SEC during these years.
Understanding nurturing practices — a comparison of the use of strategies likely to enhance self‐esteem in nurture groups and normal classrooms
Authors: Colwell John , O'Connor Tina
Published: September 2003

Nurture groups are now being established in many parts of the UK, as research evidence continues to confirm both their effectiveness and cost‐efficiency in helping children with emotional and behavioural difficulties to remain within mainstream schools. Their conceptual framework is based on Bowlby's attachment theory, in which impaired early care is seen to have led to low self‐esteem, mistrust of others and behaviour that impedes success in school. The nurture group provides the opportunity to re‐experience early nurturing in a warm and accepting environment, which fosters positive self‐regard and the development of secure relationships with the nurture group staff. The study reported in this article sought to determine a reason for the effectiveness of this early intervention by focusing on the enhancement of self‐esteem. John Colwell, Senior Lecturer in Psychology at De Montfort University, and Tina O'Connor, a teacher at Oakthorpe Primary School in the London Borough of Enfield, conducted an observational study of nurture groups and normal classrooms in order to compare climates in terms of self‐esteem enhancement strategies. Results confirmed that teachers' verbal and non‐verbal communications in the nurture group were much more positive and more likely to enhance the self‐esteem of pupils. In contrast, the communications of normal classroom teachers were found to be less likely to create an environment conducive to fostering positive self‐esteem. The authors conclude that their evidence supports conceptual explanations of the effectiveness of nurture groups and propose that mainstream schools could become more inclusive if whole‐school nurturing approaches were adopted.
Towards an inclusive school culture — but what happened to Elton's ‘affective curriculum’?
Authors: Hanko Gerda
Published: September 2003

The inclusion debate is no longer concerned merely with the extent to which mainstream schools are able to accommodate all children regardless of need but increasingly focuses on institutional improvement in understanding the range of their needs. In spite of our better understanding of how children learn and of how their emotional and social realities can be used as a source of learning that is relevant to the needs of all, ‘difficult’ children continue to be seen by many as impeding their teachers' pedagogical effectiveness and as damaging the educational chances of others. In this article, Gerda Hanko, an education consultant and staff development tutor who has substantial experience in teaching and teacher training, offers an overview of the development of practical approaches to professional development which, by deepening teachers' insight into emotional and social factors in children's learning, have been shown to supersede the need to exclude the disaffected — as already suggested in the Elton Report. Gerda Hanko's own publications, initially developed under the auspices of a London Institute of Education associateship when she was Head of Education at a teacher training institution, promote collaborative problem‐solving approaches among staff — ideas that she takes forward in this paper.
Proposing an instructional framework for children with HIV/AIDS
Authors: Naudé Drienie (H) , Pretorius Resia (E)
Published: September 2003

HIV and AIDS infections are becoming an increasing problem all over the world. The education systems of developing countries are particularly burdened with the increased occurrence of the disease among children. The central nervous system is one of the major are as of the body that HIV/AIDS affects. Because scholastic performance is linked closely to the functioning of the brain, it is important to know which areas of the brain are affected by the virus and how the illness manifests, in order to provide an appropriate educational programme for these children. By understanding the weaknesses of HIV/AIDS children within the educational system, educators can focus on their strengths in order to provide these children with a well‐structured and effective education. In this article, two researchers from the University of Pretoria, Dr Drienie (H) Naudé, Professor of Educational Psychology, and Dr Resia (E) Pretorius, senior lecturer in the Department of Anatomy, suggest that the receptive language abilities of children with AIDS and HIV infection might be less affected than their expressive and non‐verbal skills. From this information, the authors propose an instructional delivery framework for children with HIV/AIDS. Specific recommendations focus on reading, arithmetic/mathematics, handwriting instruction and the use of computers. The aims of this programme are to assist teachers who might be confronted with the learning needs of children with HIV/AIDS and to promote a multidisciplinary approach to understanding the educational needs of this growing population of children.
The expectations of parents of disabled children
Authors: Russell Fran
Published: September 2003

Following the diagnosis of a child's disability, parents have to develop new expectations concerning the child, their role as parents and the support services that are designed to meet their needs. Research shows, however, that these needs frequently remain unmet. In this article, Fran Russell, who writes as a parent of a son with a learning disability and as a professional with experience of practice in early years support services, explores parents' perspectives from a different direction. She argues that an investigation into parents' expectations could lead to a greater understanding of how parents of disabled children respond to their new‐found situation. Fran Russell's own research, undertaken as part of her Education Doctorate programme at Leeds University, reveals that little is currently known about parents' expectations and indicates a pressing need for parents to be better informed, at an early stage in their experience of parenthood, in order to interact more effectively with professionals at a range of levels.
Grappling with collaboration: would opening up the research ‘base’ help?
Authors: Forbes Joan
Published: September 2003

Richard Rose, writing in this journal in his role as Research Section Editor (BJSE, Volume 29, Number 1), argued that teachers should learn to do research in collaboration with other professionals, as part of a drive to make teaching a ‘research‐based profession’. In this article, Joan Forbes, Senior Lecturer in Educational Studies in the Faculty of Education at the University of Aberdeen, explores this idea in greater depth from her perspective as course leader for an MEd module on inter‐agency collaboration. She proposes that recommendations for collaboration to support children with language and communication disorders do not attend to the difficulties involved between professionals from different backgrounds who use different discourses and draw upon different research evidence as a basis for practice. Her paper draws on ‘postmodern’ research approaches and Michael Foucault's views of ‘discourse’ to examine a variety of theoretical perspectives previously applied to collaboration. It argues for the value of further theoretical diversity and methodological plurality and introduces discourse analysis as a tool for helping to understand the notion of collaboration. At the end of her challenging and intriguing paper, Joan Forbes offers some suggestions concerning the value of ‘new’ questioning kinds of analysis.
A home visiting project for Reception children predicted to experience literacy difficulties
Authors: Feiler Anthony
Published: September 2003

The importance of early success in literacy learning and of engaging parents in this process has long been recognised by those involved in early years education. However, key factors that underpin effective strategies for helping families who might be described as ‘difficult to reach’ have yet to be identified. The study reported here was designed to support two children judged to be most at risk of struggling with literacy, primarily through the provision of weekly home visits during their first year at school. Anthony Feiler, a lecturer in special educational needs at the Graduate School of Education, University of Bristol and previously a teacher and educational psychologist, describes the work of the teaching assistant who carried out these visits and presents data on the outcomes for the children involved. There is evidence that the additional support was effective. Anthony Feiler uses both test scores and the views of participants, taken from a series of interviews, to draw tentative conclusions from this research and to highlight a need for further development work and enquiry in this crucial area.
Agency Relations within the Family Business System: an exploratory approach
Authors: Van den Berghe L.A.A. , Carchon Steven
Published: September 2003

Researchers use various definitions to describe the family firm. The characteristics of family firms that are stressed in each of these definitions are somehow related to family control. All characteristics together reflect a spectrum of family firm types along one core dimension: family involvement in the firm. However, it is more helpful to distinguish among family firms by using their precise type. Each particular family firm type is characterised by a set of agency relations within and between the family system, ownership system and the business system. This paper is a first attempt to apply the insights from agency theory on a highly simplified (reference) family firm situation where the father is full owner and the daughter manager of the family firm. Agency theory establishes the foundation for the optimal contract conditions between father and daughter. While real life is often characterised by bounded rationality and incomplete information, future research should help identify the “optimal contract” be‐tween the family/shareholders and management in various family firm types under these circumstances.
Audit Committees: begging the question?
Authors: Spira Laura F.
Published: September 2003

Audit committees have become a standard feature of corporate governance in UK listed companies since the publication of the Cadbury Committee's report in 1992. Despite some initial sceptical comment, their widespread adoption has apparently been uncontroversial. However, a decade later, remarkably little is known about how they operate and whether they are effective in providing the benefits anticipated by Cadbury. In the aftermath of Enron, expectations of the audit committee role in supporting auditor independence are likely to intensify. A key feature of audit committee activity – indeed, of the role of the non‐executive director – appears to be the asking of questions, but the practical link between the questioning process and the achievement of the benefits outlined by the proponents of audit committees remains obscure. This paper argues that both the content and context of the questioning process deserve further examination if audit committee activity is to be seen as anything more than a ceremonial performance.
Board Composition and Corporate Performance: how the Australian experience informs contrasting theories of corporate governance
Authors: Kiel Geoffrey C. , Nicholson Gavin J.
Published: September 2003

In many respects, Australian boards more closely approach normative “best practice” guidelines for corporate governance than boards in other Western countries. Do Australian firms then demonstrate a board demographic‐organisational performance link that has not been found in other economies? We examine the relationships between board demographics and corporate performance in 348 of Australia's largest publicly listed companies and describe the attributes of these firms and their boards. We find that, after controlling for firm size, board size is positively correlated with firm value. We also find a positive relationship between the proportion of inside directors and the market‐based measure of firm performance. We discuss the implications of these findings and compare our findings to prevailing research in the US and the UK.
How Executive Directors’ Remuneration is Determined in Two FTSE 350 Utilities
Authors: Bender Ruth
Published: September 2003

This paper contributes to the literature on directors’ remuneration by reporting the results of interview‐based research carried out with executive and non executive directors at two listed UK utilities, and their advisors. The findings on how directors’ pay is set reflect aspects of both economic and social‐psychological theories. They show that the level and structure of remuneration were clearly influenced by the market, and highlight the problems of determining a suitable comparator market. Institutional theory influences were identified in the level and structure of the pay, and the way in which trends in practices influenced the protagonists. Furthermore, the way in which the companies’ policies were tailored to their corporate strategies was consistent with contingency theory.
Board Dynamics and the Influence of Professional Background, Gender and Ethnic Diversity of Directors
Authors: van der Walt Nicholas , Ingley Coral
Published: September 2003

Exploring the appointment of directors of different professional backgrounds, levels of independence, age, gender and ethnicity, this paper develops a taxonomy describing what is meant by diversity on the board and its implications for decision‐making. Board configuration is considered in terms of empirical evidence highlighting the criteria used in appointing directors and the associated implications of social capital for board dynamics. Issues raised include the influence of these on board performance and the ability of individual directors to make an effective contribution as board members. The conclusions highlight the various mythologies associated with the value of board diversity.
Corporate Governance in Taiwan: empirical evidence from Taiwanese company directors
Authors: Solomon Jill F. , Lin Shih Wei , Norton Simon D. , Solomon Aris
Published: September 2003

In this paper we present empirical evidence on the attitudes of Taiwanese company directors on the role and function of the board of directors in Taiwanese corporate governance. Our findings arise from a questionnaire survey distributed to the directors of a sample of companies listed on the Taiwanese Securities Exchange (TSE). Our findings provide a picture of the current state of corporate governance in Taiwan. The respondents indicate that the board of directors constitutes the most important instrument in Taiwanese corporate governance and our findings endorse the important role played by outside directors in the corporate governance system in Taiwan. Furthermore, the respondents endorsed the agency theory perspective on corporate governance as they considered the presence of outside directors improved corporate accountability to shareholders. There is, however, evidence that few companies have created remuneration and audit committees. We also found that Taiwanese directors are dissatisfied with the influence of families on the corporate governance of listed companies and do not consider that outside directors on boards should be related to founding families. Overall, the directors displayed an awareness of accountability issues and a desire to improve accountability and transparency. They clearly want international harmonisation of corporate governance standards and view corporate governance reform as a means of attracting foreign funds into Taiwan. This is an important finding as it endorses the work of the OECD and other international bodies in harmonising corporate governance at a global level.
The Dynamics of Corporate Governance in Bahrain: structure, responsibilities and operation of corporate boards
Authors: Hussain Saleh H. , Mallin Chris
Published: September 2003

There has been an increasing emphasis on corporate governance in recent years in a global context. The board of any company is key to the adoption and implementation of corporate governance best practice. In this paper we examine the dynamics of corporate governance in Bahrain, a Middle‐Eastern country, by analysing the board structures of companies in Bahrain. We employ a survey methodology with a questionnaire being sent to all of the companies listed on the Bahrain Stock Exchange Market. The aim of the questionnaire is to elicit information regarding the structure, responsibilities and operation of corporate boards in companies in Bahrain. We find that non‐executive directors dominate the board composition, key factors influencing appointment of these directors being relevant skills and business experience and reputation. However, none of the companies has a Nominations Committee and so NEDs are generally nominated by the board as a whole or by major shareholders, Chairmen/CEOs. Nonetheless, the non‐executive directors would appear to be relatively independent, as in the majority of cases the NEDs are not former executive board members or major shareholders. Whilst Bahrain does not have a corporate governance code per se, the company law reforms contain some interesting provisions that will contribute to the corporate governance framework in Bahrain. Amongst these provisions is one that excludes directors from being on more than three boards. There are therefore some encouraging features and developments in corporate governance in Bahrain.
Corporate Governance and Gatekeeper Liability: the lessons from public authorities
Authors: Kirkbride James , Letza Steve
Published: September 2003

(1) Under the requirements of the Local Government Act 1900, a system of promoting and regulating good governance in public authorities was introduced. The system involved the establishment of a Standards Board with agreed codes of conduct and enforcement mechanism through monitoring officers. All authority codes of conduct had to be approved by May 1902. The system was introduced under the headline of: “Reconnecting with the people – promoting good governance and ethical behaviour”. (2) In the mid‐1980s, the concept of “gatekeeper liability” was beginning to be promoted as a method of enhancing the regulation of boards of directors. The most influential work was that of Kraakman. Kraakman was concerned that a system of regulation was brought forward to respond to enforcement insufficiency in the area of corporate control. A notion of “gatekeeper” liability is one response.

This paper explores the system of controlling governance in public authorities (1 above) and its relationship to the gatekeeper response advocated for private corporations (in 2 above). Through this analysis, a series of reflections and signposts are presented as lessons for the private sector and for the enhancement of good governance in that sector.
Public Saving and Policy Coordination in Aging Economies
Authors: Flodén Martin
Published: September 2003

In the coming decades, the share of people of working age will fall significantly in most developed countries. According to optimal taxation theory, public debts should be reduced before the baby‐boom generation retires. I find that if debts are instead maintained at current levels, welfare may be reduced substantially in countries with a large public sector and/or a large demographic change. Since population aging will be less dramatic in the United States than in Europe and Japan, capital will move from Europe and Japan to the United States. These capital movements will facilitate the US demographic transition but aggravate the transition in most European countries.
Early Mortality Declines at the Dawn of Modern Growth*
Authors: Boucekkine Raouf , Croix David de la , Licandro Omar
Published: September 2003

We explore the hypothesis that demographic changes which began in the seventeenth and eighteenth centuries are at the root of the acceleration in growth rates at the dawn of the modern age. During this period, life tables for Geneva and Venice show a decline in adult mortality; French marriage registers reveal an important increase in literacy; historians measure an acceleration of economic growth. We develop an endogenous growth model with a realistic survival law in which rising longevity increases individual incentives to invest in education and fosters growth. We quantitatively estimate that the observed improvements in adult mortality account for 70% of the growth acceleration in the pre‐industrial age.
Recent Technological and Economic Change among Industrialized Countries: Insights from Population Growth*
Authors: Beaudry Paul , Collard Fabrice
Published: September 2003

Cross‐country observations on the effects of population growth are used to show why differences in rates of growth in working‐age population may be a key to understanding differences in economic performance across industrialized countries over the period 1975–1997 versus 1960–1974. In particular, we argue that countries with lower rates of adult population growth adopted new capital‐intensive technologies more quickly than their high population growth counterparts, therefore allowing them to reduce their work time without deterioration of growth in output‐per‐adult.
Demographic and Economic Pressure on Emigration out of Africa*
Authors: Hatton Timothy J. , Williamson Jeffrey G.
Published: September 2003

Two of the main forces driving European emigration in the late nineteenth century were real wage gaps between sending and receiving regions and demographic booms in the low‐wage sending regions. Our new estimates of net migration for the countries of sub‐Saharan Africa show that exactly the same forces driving African across‐border migration are at work today. The results suggest that rapid growth in the cohort of potential young emigrants, population pressure on the resource base, and slow economic growth are likely to intensify the pressure for migration out of Africa and into high‐wage OECD countries over the next two decades.
Fiscal Implications of Immigration—A Net Present Value Calculation
Authors: Storesletten Kjetil
Published: September 2003

Focusing on the net fiscal effects, the gain from admitting immigrants is computed for a welfare state with large expenditures and a large tax burden (Sweden). Prices and behavior are held constant, which allows a detailed analysis of the effects of immigration. The present value of future tax revenues minus outlays is potentially large; USD 23,500 per young working‐age immigrant, but an average new immigrant represents a net government loss of USD 20,500. The dominant factors are employment rates and age. For young working‐age immigrants, the “break‐even” participation rate for which the gain would be zero is 60%, well below the empirical rate for this group.
‘Tie, tied and tight’: The expansion of /ai/ monophthongization in African‐American and European‐American speech in Memphis, Tennessee
Authors: Fridland Valerie
Published: September 2003

This paper explores the distribution of /ai/ monophthongization in African‐American and European‐American speakers in Memphis, Tennessee. While often considered a feature characteristic of White Southern speech, /ai/ monophthongization has also been recorded in Black speech, both within and outside the South. However, expansion of glide‐weakening to the less common pre‐voiceless contexts has been considered unique to European‐American dialects. Evidence of extensive glide‐weakening in the African‐American community in Memphis will be presented and compared to the degree and contexts of glide‐weakening in the European‐American community. The results will show that not only is /ai/ monophthongization a feature of Memphis speech generally, regardless of ethnicity, but that African‐Americans in fact lead in glide‐weakening in all contexts. The role of Southern identity in the expansion of /ai/ monophthongization is discussed as a critical component in the selection of features in both Black and White speech in the Memphis area.
Negotiating conflict within the constraints of social hierarchies in Korean American discourse
Authors: Kang M. Agnes
Published: September 2003

This paper provides an interactional account of conflict negotiation strategies in Korean American discourse. With specific attention to the sociolinguistic phenomenon of codeswitching among Korean Americans, I argue that speaking Korean at particular moments evokes ideologies of social hierarchy that serve to mitigate potential conflicts. The Korean social ideology of relative status has a major influence on how bilingual Korean Americans interact with one another, regardless of whether they are using Korean or English. The use of codeswitching, among other mitigating strategies in discourse, serves to instantiate these hierarchical relationships and introduces particular social norms that guide the observable actions used in navigating meaning and social relations. The data analyzed here show how the evocation of Korean social ideologies may serve as an identifiable characteristic of Korean American discourse.
Broadcasting standardisation: An analysis of the linguistic normalisation process in Murcian Spanish
Authors: Hernández‐Campoy Juan Manuel , Jiménez‐Cano José María
Published: September 2003

The samples used from radio programme recordings have been demonstrated to be very useful sources for the study of styles and the analysis of linguistic variation and change. The aim of this paper is to show the results of a longitudinal study of Murcian speech carried out following a real‐time approach with a retrospective trend design in order to detect and measure the apparent increasing diffusion of standard Castilian features from northern Peninsular Spanish over Murcian Spanish, a traditionally non‐standard region. For this purpose, following the methodology used in similar studies, we focussed on the quantification of the level of standardisation of people interviewed in radio broadcasts in the last twenty‐six years. In this way, the correlation of linguistic variables with social variables (groups) and time intervals, allowed us to compare and analyse the sociolinguistic behaviour of the different social groups in terms of standardisation (adoption of Castilian Spanish features) or non‐standardisation (maintenance of local Murcian features) and trends.
Sociolinguistics and language as cultural practice
Authors: Train Robert
Published: September 2003

Book reviewed in this article:

Sandra R. Schecter and Robert Bayley, Language as Cultural Practice: Mexicanos en al Norte
FDI in the UK Car Component Industry: Recent Causes and Consequences
Authors: Pickernell David
Published: September 2003

This paper examines the 1985–93 influx of foreign direct investment (FDI) into the UK automotive component industry from European and Japanese companies. The study of 27 investors found that the market and growth potential of the Japanese car transplants Honda (Swindon), Nissan (Sunderland) and Toyota (Burnaston) was by far the most important reason for their location decision overall, regardless of whether the firm was European or Japanese owned. The Single Market programme was not directly important to the component firms' location decisions overall, though indirectly it could have been influential in the decisions of the Japanese car assemblers to locate in the UK. Interviews revealed the effects that FDI was having on the UK industry in closing product gaps and on research and development. These results may have important policy implications for government agencies concerning the attraction of FDI, where it should be attracted, and the effects of such FDI.
Locational Response of German Manufacturers to Environmental Standards
Authors: Braun Boris
Published: September 2003

This paper discusses the relevance of environmental regulations with respect to plant closures and cross‐border relocations by small and medium‐sized manufacturers. Analyses show that tightening environmental standards have not yet resulted in the relocation of production capacities out of Germany to any alarming degree. Although empirical results support the assumption that environmental protection is not a general threat to manufacturing jobs, they do indicate differences between firms. The spatial and organisational adaptation to environmental regulations depends on the structural characteristics of a firm. Small enterprises and manufacturers of customised machinery are less likely to close production facilities due to environmental regulations than other firms. In these cases, policy‐makers and local planners still have considerable room to negotiate environmental restrictions. Their position is weaker when dealing with larger manufacturers of standardised products because these firms are able to shift production capacities to other locations more easily.
The Survival of Commercial Hierarchies: Rural Service Centres in Western Victoria, Australia
Authors: Davies W.K.D. , Townshend I. , Ng L.
Published: September 2003

A case study of rural service centres in Western Victoria, Australia, is used to determine whether the pattern of commercial activity produces hierarchical centres or dispersed cities composed of groups of specialised towns. Cluster analysis techniques applied to a 216 place × 83 matrix of functional types identified seven major grades of place that could be generalised as a hierarchical distribution, a finding confirmed by discriminant analysis techniques. Differences in the distribution of these grades across Western Victoria revealed the influence of population density and distance from the Melbourne metropolitan area. Population changes for these centres between 1971 and 1991 revealed a continuation of the decline or stagnation of the lower order centres, rather than any small town revival associated with counter‐urbanisation forces.
Modelling Networks: A Long Way to Go
Authors: Kamann Dirk‐Jan F.
Published: September 2003

This paper focuses on the way networks of actors can be visualised and modelled. After an introduction of the scientific streams involved in network analysis, various network concepts are discussed, combining the economic, geographic and social spatial dimensions with the time element. The ways of visualising, analysing and modelling networks are discussed after which a methodology is described, combining various techniques in a ‘layered' model: the Triple Plus methodology. This methodology should only be seen as just a first step in describing and analysing networks in various spatial dimensions.
A ‘Reverse Network Engineering’ Framework to Develop Tourism Using a Lifestyle Approach
Authors: Kamann Dirk‐Jan F. , Strijker Dirk , Sijtsma Frans J.
Published: September 2003

This paper uses the network approach in the design of policies for regional development focusing on tourism in rural and peripheral areas. The methodology applied –‘reverse network engineering’– is a combination of a top‐down and a bottom‐up approach. The top‐down approach starts with the demand side: from lifestyles and consumer profiles certain ‘concepts’ are derived. For each concept the products and activities required to produce these concepts are listed. This step is initially performed at an aggregate level in ‘economic space’. The next step is the translation into ‘geographical space’, including the locational restrictions and preferences of activities. Next, for particular concepts is inventoried for an area those activities already there, those activities required but not yet there, and those that are there but not wanted because of their negative effects. Various concepts can be provided by the same area, creating economies of scope and scale. Telecommunications and transport facilities have to facilitate the correct materials management required for a proper functioning of the networks. In the last part of the methodology the bottom‐up aspect is highlighted and incorporated. It starts from the actual situation in an area with the existing actors and activities and includes the immaterial relations and the cognitive aspects. In a final step, top‐down and bottom‐up results are matched and screened.
The NAFTA Preference and US‐Mexico Trade: Aggregate‐Level Analysis
Authors: McDaniel Christine A. , Agama Laurie‐Ann
Published: September 2003

This paper focuses on the US tariff preference afforded to Mexico relative to non‐NAFTA trading partners and evaluates the trade effects of NAFTA in a manner consistent with the idea behind a preferential trading agreement. The estimation technique exploits the time‐varying dimension of the tariff preference over 1989 to 2001. This is important because the tariff preference for Mexico into the United States market existed prior to NAFTA. Further, the NAFTA preference was phased in over time. We find that a higher US tariff preference for Mexico corresponds to increased US import demand for Mexican goods, and that a higher Mexican tariff preference for the United States corresponds to increased Mexican demand for US exports. Interestingly, import demand was more responsive to changes in the tariff preference once NAFTA was in place than it was on average.
Compositional Effects of Capital Controls – Theory and Evidence
Authors: Campion Mary Kathryn , Neumann Rebecca M.
Published: September 2003

This paper examines the effects of capital controls on the composition of inter‐national capital flows, paying particular attention to debt inflows versus equity inflows. A two‐period small open economy model with stochastic second‐period output and asymmetric information between domestic agents and international financiers is utilised to generate predictions regarding the effects of capital controls on the relative use of debt versus equity for financing first‐period investment. These capital control implications are then investigated with quarterly frequency panel data for Latin America. Capital controls are found to significantly affect the composition of the capital account.
Trade Costs and Changes in Canada's Trade Pattern
Authors: Curtis John M. , Chen Shenjie
Published: September 2003

This paper measures the size and composition of non‐tariff trade costs such as transport, wholesale, and network costs incurred in Canada's merchandise trade using Statistics Canada's latest ‘trade margins’ statistics. It examines how changes in these trade costs have influenced Canada's merchandise trade pattern and the course of economic integration. Our results show that as tariffs have been substantially reduced and largely abolished, costs associated with transport and distribution services now appear much larger than remaining customs duties; therefore, liberalisation in services might be the next key step in promoting greater merchandise trade. Further, reducing transport and other trade‐related costs has helped ‘reverse’ the ‘home market effect’, expanding Canada's domestic demand and production for exports of differentiated products.
Child Labour Use and Economic Growth: An Econometric Analysis
Authors: Hussain Mahmood , Maskus Keith E.
Published: September 2003

We present a simple dynamic theory of child labour, human capital formation, and economic growth that is consistent with some of the main features of child labour and economic development. The model supports a number of testable hypotheses, which we investigate econometrically in a systems approach. Using panel data from 64 countries in the period 1960–1980, the econometric results match the theory well. The incidence of child labour is negatively related to parental human capital and education quality, but is positively correlated with education cost. Further, countries with higher amounts of child labour tend to have lower stocks of human capital in the future. There is also a convergence phenomenon between the level and growth of human capital. The lower the current stock of human capital, the higher is current child‐labour use and the faster is the growth rate of human capital.
The Political Economy of United States’ Free Trade Arrangements
Authors: Feinberg Richard E.
Published: September 2003

Far from being the leader, the US has been a ‘domino’ belatedly falling into line in the global rush toward bilateral and regional free trade arrangements. Often the initiative for negotiations has come from seemingly weaker trading partners. Once in the game, however, and aware of the asymmetries of market power and issue salience that enhance US bargaining leverage, the US has been aggressively pursuing a variety of commercial and diplomatic interests, both tactical and strategic, that include bolstering local democratic institutions and processes of economic reform, strengthening US security ties, accelerating region‐wide commercial liberalisation by allying with a regional leader, establishing new precedents to use as bench markers in future trade negotiations, and otherwise using free trade accords to advance its comprehensive global trade policy agenda. Bilateralism and regionalism have opened the door to an explicit introduction of political criteria, in contradiction to GATT/WTO apolitical universalism. While often reactive to the initiatives of other nations, the US has not been indiscriminate, deflecting the entreaties of suitors where US international political economy interests are not served.
Trade Remedy Actions in NAFTA: Agriculture and Agri‐Food Industries
Authors: Wainio John , Young Linda M. , Meilke Karl
Published: September 2003

The economic rationale for trade remedy law, while always weak, is undermined by the formation of free trade areas. However, due to political pressure, first CUSFTA and then NAFTA have continued the use of domestic antidumping and countervailing duty laws. With the lowering of border protection, it was feared that there would be an explosion of trade remedy law as NAFTA was implemented. This article examines data on the use of anti‐dumping and countervailing duty investigations in agriculture, and analyses the incidence between NAFTA partners before and after the implementation of free trade, and compared to the incidence with other countries. Given the cost of current AD and CVD suits, options are explored for alternative methods to resolve AD and CVD suits. Evaluation of options hinges on goals held for dispute resolution within NAFTA. Given continued political opposition to eliminating AD and CVD processes, increasing the options for resolving these suits may reduce their overall costs.
Benefits and Costs of International Financial Integration: Theory and Facts
Authors: Agénor Pierre‐Richard
Published: September 2003

This paper provides a selective review of the recent analytical and empirical literature on the benefits and costs of international financial integration. It discusses the impact of financial openness and capital flows on consumption, investment and growth, as well as the impact of foreign bank entry on the domestic financial system. It argues that, for small open developing countries, the benefits of financial integration are mostly long term in nature, whereas risks can be significant in the short run. Careful preparation and management are therefore essential to ensure that short‐run costs do not lead to policy reversals. It also stresses that the empirical evidence on the impact of foreign direct investment on domestic capital formation and growth, as well as on the effects of foreign bank entry, should be viewed with caution. In particular, the possibility that foreign bank penetration may lead to adverse changes in the allocation of credit cannot be dismissed on the basis of the existing evidence.
Liberalising Temporary Movement of Natural Persons: An Agenda for the Development Round
Authors: Winters L. Alan , Walmsley Terrie L. , Wang Zhen Kun , Grynberg Roman
Published: September 2003

We discuss liberalising the temporary mobility of workers under Mode 4 of the GATS, particularly the movement of medium and low skilled service providers between developing and developed countries. Such mobility potentially offers huge returns: a flow equivalent to three per cent of developed countries’ skilled and unskilled work forces would generate an estimated increase in world welfare of over US$150 billion, shared fairly equally between developing and developed countries. The larger part of this emanates from the less‐skilled, essentially because losing higher‐skilled workers cuts output in developing countries severely. The mass migration of less skilled workers raises fears in developed countries for cultural identity, problems of assimilation and the drain on the public purse. These fears are hardly relevant to temporary movement, however. The biggest economic concern from temporary mobility is its competitive challenge to local less skilled workers. But as populations age and the average levels of training and education rise, developed countries will face an increasing scarcity of less skilled labour. Temporary mobility thus actually offers a strong communality of interest between developing and developed countries.

The remainder of the paper looks at the GATS provisions on Mode 4 and the commitments that have been made under it. The paper reviews several official proposals for the Doha talks, including the very detailed one from India, and considers several countries’ existing schemes for the temporary movement of foreign workers. Many countries have long had bilateral foreign worker programmes, and some regional agreements provide for liberal and flexible movement. These show what is feasible and how concerns can be overcome. We caution that, to be useful, any WTO agreement must increase mobility, not just bureaucratise it.

The paper concludes with some modest and practical proposals. We suggest, inter alia, that licensing firms to arrange the movement of labour is the most promising short‐term approach to increasing temporary mobility.