Do we need different frameworks to explain infant MNEs from developing countries?

I argue that the initial set of firm-specific assets (FSAs) act as an envelope for the early stages of internationalization of multinational enterprises (MNEs) (of whatever nationality) AND THAT there is a threshold LEVEL of FSAs that IT must possess for such international expansion to be SUCCESSFUL. I also argue that the initial FSAs of an MNE tend to be constrained by the location-specific (L) assets of the home country. However, beyond different initial conditions, there are few obvious reasons to insist that INFANT developing country MNEs are of unique character THAN ADVANCED ECONOMY MNEs, and I predict that as they evolve, the observable differences between the two groups will diminish. Successful firms will increasingly explore internationalization, but there is also no reason to believe that this is likely to happen disproportionately from the developing countries.

A new framework for understanding inequalities between expatriates and host country nationals

An interdisciplinary theoretical framework is proposed for analysing justice in global working conditions. In addition to gender and race as popular criteria to identify disadvantaged groups in organizations, in multinational corporations (MNCs) local employees (i.e. host country nationals (HCNs) working in foreign subsidiaries) deserve special attention. Their working conditions are often substantially worse than those of expatriates (i.e. parent country nationals temporarily assigned to a foreign subsidiary). Although a number of reasons have been put forward to justify such inequalities—usually with efficiency goals in mind—recent studies have used equity theory to question the extent to which they are perceived as fair by HCNs. However, since perceptual equity theory has limitations, this study develops an alternative and non-perceptual framework for analysing such inequalities. Employment discrimination theory and elements of Rawls’s ‘Theory of Justice’ are the theoretical pillars of this framework. This article discusses the advantages of this approach for MNCs and identifies some expatriation practices that are fair according to our non-perceptual justice standards, whilst also reasonably (if not highly) efficient.

A novel approach to national technological accumulation and absorptive capacity: aggregating Cohen and Levinthal

The paper develops a more precise specification and understanding of the process of national-level knowledge accumulation and absorptive capabilities by applying the reasoning and evidence from the firm-level analysis pioneered by Cohen and Levinthal (1989, 1990). In doing so, we acknowledge that significant cross-border effects due to the role of both inward and outward FDI exist and that assimilation of foreign knowledge is not only confined to catching-up economies but is also carried out by countries at the frontier-sharing phase. We postulate a non-linear relationship between national absorptive capacity and the technological gap, due to the effects of the cumulative nature of the learning process and the increase in complexity of external knowledge as the country approaches the technological frontier. We argue that national absorptive capacity and the accumulation of knowledge stock are simultaneously determined. This implies that different phases of technological development require different strategies. During the catching-up phase, knowledge accumulation occurs predominately through the absorption of trade and/or inward FDI-related R&D spillovers. At the pre-frontier-sharing phase onwards, increases in the knowledge base occur largely through independent knowledge creation and actively accessing foreign-located technological spillovers, inter alia through outward FDI-related R&D, joint ventures and strategic alliances.

Paths to development: Is there a Bangladesh surprise?

Using aggregate indices of education, health, demographic, and gender equality outcomes, we empirically investigate the hypothesis that Bangladesh achieved a higher level of social development compared with countries of similar level of per capita income. Stylized facts and cross-country regression results support this hypothesis for a broad range of dimensions. Further tests show that such achievements do not simply reflect income-mediated channels and social expenditure programs. We conclude by speculating on the role of Bangladesh’s development to sustain the process of growth and on the role of governance and institutional quality for the nexus between growth and development.

Back to the margins in search of the core: "Foreign Land"'s geography of exclusion

The crisis of the national project in the early 1990s, caused by a short-lived but disastrous government, led Brazilian art cinema, for the first time, to look at itself as periphery and re-approach the old colonial center, Portugal. Terra estrangeira/Foreign Land (Walter Salles & Daniela Thomas, Brazil/Portugal, 1995), a film about Brazilian exiles in Portugal, is the best illustration of this perspective shift which provides a new sense of Brazil’s scale and position within a global context. Shot mainly on location in São Paulo, Lisbon and Cape Verde, it promotes the encounter of Lusophone peoples who find a common ground in their marginal situation. Rather than as a former empire, Portugal is defined by its situation at the edge of Europe and by beliefs such as Sebastianism, whose origins go back to the time when the country was dominated by Spain. As a result, notions of “core” or “center” are devolved to the realm of myth. The film’s carefully crafted dialogue combines Brazilian, Portuguese and Creole linguistic peculiarities into a common dialect of exclusion, while language puns trigger visual rhymes which refer back to the Cinema Novo (the Brazilian New Wave) repertoire and restage the imaginary of the discovery turned into unfulfilled utopia. The main characters also acquire historical resonances, as they are depicted as descendants of Iberian conquistadors turned into smugglers of precious stones in the present. Their activities define a circuit of international exchange which resonates with that of globalized cinema, a realm in which Foreign Land, made up of citations and homage to other cinemas, tries to retrieve a sense of belonging.

The zero, the centre and the empty utopia: from Rossellini to Walter Salles

This article examines utopian gestures and inaugural desires in two films which became symbolic of the Brazilian Film Revival in the late 1990s: Central Station (1998) and Midnight (1999). Both evolve around the idea of an overcrowded or empty centre in a country trapped between past and future, in which the motif of the zero stands for both the announcement and the negation of utopia. The analysis draws parallels between them and new wave films which also elaborate on the idea of the zero, with examples picked from Italian neo-realism, the Brazilian Cinema Novo and the New German Cinema. In Central Station, the ‘point zero’, or the core of the homeland, is retrieved in the archaic backlands, where political issues are resolved in the private sphere and the social drama turns into family melodrama. Midnight, in its turn, recycles Glauber Rocha’s utopian prophecies in the new millennium’s hour zero, when the earthly paradise represented by the sea is re-encountered by the middle-class character, but not by the poor migrant. In both cases, public injustice is compensated by the heroes’ personal achievements, but those do not refer to the real nation, its history or society. Their utopian breadth, based on nostalgia, citation and genre techniques, is of a virtual kind, attune to cinema only.

A good enough approach to setting planning obligations

In this paper we propose an alternative model of, what is often called, land value capture in the planning system. Based on development viability models, negotiations and policy formation regarding the level of planning obligations have taken place at the local level with little clear guidance on technique, approach and method. It is argued that current approaches are regressive and fail to reflect how the ability of sites to generate planning gain can vary over time and between sites. The alternative approach suggested here attempts to rationalise rather than replace the existing practice of development viability appraisal. It is based upon the assumption that schemes with similar development values should produce similar levels of return to the landowner, developer and other stakeholders in the development as well as similar levels of planning obligations in all parts of the country. Given the high level of input uncertainty in viability modelling, a simple viability model is ‘good enough’ to quantify the maximum level of planning obligations for a given level of development value. We have argued that such an approach can deliver a more durable, equitable, simpler, consistent and cheaper method for policy formation regarding planning obligations.

Cross-country effects of regulatory capital arbitrage

One reason for the recent asset price bubbles in many developed countries could be regulatory capital arbitrage. Regulatory and legal changes can help traditional banks to move their assets off their balance sheets into the lightly regulated shadows and thus enable regulatory arbitrage through the securitized sector. This paper adopts a global vector autoregression (GVAR) methodology to assess the effects of regulatory capital arbitrage on equity prices, house prices and economic activity across 11 OECD countries/ regions. A counterfactual experiment disentangles the effects of regulatory arbitrage following a change in the net capital rule for investment banks in April 2004 and the adoption of the Basel II Accord in June 2004. The results provide evidence for the existence of an international finance multiplier, with about half of the countries overshooting U.S. impulse responses. The counterfactual shows that regulatory arbitrage via the U.S. securitized sector may enhance the cross-country reallocation of capital from housing markets towards equity markets.

Back to the margins in search of the core: foreign land's geography of exclusion

The crisis of the national project in the early 1990s, caused by a short-lived but disastrous government, led Brazilian art cinema, for the first time, to look at itself as periphery and re-approach the old colonial centre, Portugal. Terra estrangeira/Foreign Land (Walter Salles & Daniela Thomas, Brazil/Portugal, 1995), a film about Brazilian exiles in Portugal, is the best illustration of this perspective shift aimed at providing a new sense of Brazil’s scale and position within a global context. Shot mainly on location in São Paulo, Lisbon and Cape Verde, it promotes the encounter of Lusophone peoples who find a common ground in their marginal situation. Even Portugal is defined by its location at the edge of Europe and by beliefs such as Sebastianism, whose origins go back to the time when the country was dominated by Spain. As a result, notions of ‘core’ or ‘centre’ are devolved to the realm of myth. The film’s carefully crafted dialogues combine Brazilian, Portuguese and Creole linguistic peculiarities into a common dialect of exclusion, while language puns trigger visual rhymes which refer back to the Cinema Novo (the Brazilian New Wave) repertoire and restage the imaginary of the discovery turned into unfulfilled utopia. The main characters also acquire historical resonances, as they are depicted as descendants of Iberian conquistadors turned into smugglers of precious stones in the present. Their activities define a circuit of international exchange which resonates with that of globalized cinema, a realm in which Foreign Land, made up of citations and homage to other cinemas, tries to retrieve a sense of belonging.

Liability of country foreignness and liability of regional foreignness: their effects on geographic diversification and firm performance

The costs of inter- and intra-regional diversification have been widely discussed in the existing international business literature, but the findings are mixed. Explanations for the mixed findings have important managerial implications, because business managers have to estimate accurately the costs of doing business within and across regions before they make their internationalization decisions. To explain the existing mixed findings, this study differentiates between liabilities of foreignness at the country and regional levels, and explores the joint effects of liability of country foreignness (LCF) and liability of regional foreignness (LRF) on the performance of internationalizing firms. Using data from 167 Canadian firms, we find that LCF may not necessarily be negatively correlated with intra-regional diversification, but LRF is positively correlated with inter-regional diversification. LCF moderates the relationship between LRF and inter-regional diversification, and also mediates the relationship between intra-regional diversification and firm performance. LRF mediates the relationship between inter-regional diversification and firm performance. Missing one or more of these variables may result in different cost estimates. Identification of the relationships between these variables helps to improve the accuracy of estimating the costs of doing business aboard.

Global to city scale urban anthropogenic heat flux: model and variability

The large scale urban consumption of energy (LUCY) model simulates all components of anthropogenic heat flux (QF) from the global to individual city scale at 2.5 × 2.5 arc-minute resolution. This includes a database of different working patterns and public holidays, vehicle use and energy consumption in each country. The databases can be edited to include specific diurnal and seasonal vehicle and energy consumption patterns, local holidays and flows of people within a city. If better information about individual cities is available within this (open-source) database, then the accuracy of this model can only improve, to provide the community data from global-scale climate modelling or the individual city scale in the future. The results show that QF varied widely through the year, through the day, between countries and urban areas. An assessment of the heat emissions estimated revealed that they are reasonably close to those produced by a global model and a number of small-scale city models, so results from LUCY can be used with a degree of confidence. From LUCY, the global mean urban QF has a diurnal range of 0.7–3.6 W m−2, and is greater on weekdays than weekends. The heat release from building is the largest contributor (89–96%), to heat emissions globally. Differences between months are greatest in the middle of the day (up to 1 W m−2 at 1 pm). December to February, the coldest months in the Northern Hemisphere, have the highest heat emissions. July and August are at the higher end. The least QF is emitted in May. The highest individual grid cell heat fluxes in urban areas were located in New York (577), Paris (261.5), Tokyo (178), San Francisco (173.6), Vancouver (119) and London (106.7). Copyright © 2010 Royal Meteorological Society

Leader of the pack? German monetary dominance in Europe prior to EMU

In this paper, the monetary policy independence of European nations in the years before European Economic and Monetary Union (EMU) is investigated using cointegration techniques. Daily data is used to assess pairwise relationships between individual EMU nations and ‘lead’ nation Germany, to assess the hypothesis that Germany was the dominant European nation prior to EMU. By and large our econometric investigations support this hypothesis, and lead us to conclude that the only European nation to lose monetary policy independence in the light of monetary union was Germany. Our results have important policy implications. Given that the loss of monetary policy independence is generally viewed as the main cost of monetary unification, our findings suggest a reconsideration of the costs and benefits of monetary integration. A country can only lose what it has, and in Europe the countries that joined EMU — spare Germany — apparently did not have much to lose, at least not in terms of monetary independence. Instead, they actually gained monetary policy influence by getting a seat in the ECB's governing council which is responsible for setting interest policy in the euro area.

Combined use of satellite estimates and rain gauge observations to generate high-quality historical rainfall time series over Ethiopia

Climate data are used in a number of applications including climate risk management and adaptation to climate change. However, the availability of climate data, particularly throughout rural Africa, is very limited. Available weather stations are unevenly distributed and mainly located along main roads in cities and towns. This imposes severe limitations to the availability of climate information and services for the rural community where, arguably, these services are needed most. Weather station data also suffer from gaps in the time series. Satellite proxies, particularly satellite rainfall estimate, have been used as alternatives because of their availability even over remote parts of the world. However, satellite rainfall estimates also suffer from a number of critical shortcomings that include heterogeneous time series, short time period of observation, and poor accuracy particularly at higher temporal and spatial resolutions. An attempt is made here to alleviate these problems by combining station measurements with the complete spatial coverage of satellite rainfall estimates. Rain gauge observations are merged with a locally calibrated version of the TAMSAT satellite rainfall estimates to produce over 30-years (1983-todate) of rainfall estimates over Ethiopia at a spatial resolution of 10 km and a ten-daily time scale. This involves quality control of rain gauge data, generating locally calibrated version of the TAMSAT rainfall estimates, and combining these with rain gauge observations from national station network. The infrared-only satellite rainfall estimates produced using a relatively simple TAMSAT algorithm performed as good as or even better than other satellite rainfall products that use passive microwave inputs and more sophisticated algorithms. There is no substantial difference between the gridded-gauge and combined gauge-satellite products over the test area in Ethiopia having a dense station network; however, the combined product exhibits better quality over parts of the country where stations are sparsely distributed.

Qualified immigrants' success: exploring the motivation to migrate and to integrate

High-quality employees with international experience bring valuable advantages to internationally operating organizations. The growing number and importance of immigrants, and particularly qualified, university-educated immigrants, deserves more attention from international business practitioners and scholars. The market for highly qualified people within MNCs is increasingly becoming international, and ever more of them have migrated to a new country to advance their career. Such employees can be a source of competitive advantage for international firms. We use qualitative research with qualified immigrants (QIs) in France to argue that the success of QIs depends in large part on their motivation to integrate into their host country, which is largely explained by their motivation to migrate. From the qualitative data we derive four different types of qualified migrant, and suggest that the type will determine the success of the immigrant within, and outside, the organization. The relationship between the motivation to migrate and the motivation to integrate is moderated by “met expectations” and “organizational integration policies”, such that the effects of these, in turn, vary with type. Recognition of the types of QI and the moderating factors will be valuable for practitioners, as well as opening up research avenues for scholars.

Conceptualising public-private partnerships: a critical appraisal of approaches to meanings and forms

Purpose – The purpose of this article is to survey various meanings attached to a public-private partnership (PPP) and related aspects in Western literature, and identify commonalities and differences between them. Additionally, the article intends to critically assess conflicting and overlapping views on contractual and institutional PPPs, their forms and models, and draw insights for transitional economies. Design/methodology/approach – The article contrasts and compares views on PPP meanings, forms and models within Western PPP literature, and also draws comparisons with understanding of partnership aspects in the Russian language sources. The article examines theories underpinning PPPs, builds connections to PPP advantages and drawbacks, and provides critical assessment of net benefits that PPPs may bring along to the society. Findings – The article concludes that future PPP research in transitional countries such as Kazakhstan and Russia, particularly in the area of organisational and power arrangements in partnerships, may delineate new concepts such as government as a guarantor of a PPP project, social significance of a PPP project, and risk management in a country's contextual environment. Practical implications – In transitional countries, in which PPPs are in their infancy, clarification of theoretical positions, and identification of commonalities and differences between meanings attached to the PPP terminology may enable better decisions by researchers and practitioners in their selection and further development of partnerships and related concepts. Originality/value – Research in the field of PPPs in transitional countries such as Russia and Kazakhstan is in its infancy. The paper intends to contribute to the body of knowledge about PPPs by providing detailed account and categorisation of their principal meanings, forms, models, underpinning theories, and drawing insights for future research in transitional countries.