Does human capital endowment of foreign direct investment recipient countries really matter? evidence from cross-country firm level data

The stylized literature on foreign direct investment (FDI) suggests that developing countries should invest in the human capital of their labor force in order to attract FDI. However, if educational quality in developing country is uncertain such that formal education is a noisy signal of human capital, it might be rational for multinational enterprises to focus more on job-specific training than on formal education of the labor force. Using cross-country data from the textiles and garments industry, we demonstrate that training indeed has a greater impact on firm efficiency in developing countries than formal education of the workforce. © 2013 John Wiley & Sons Ltd.

The impact of the Eurozone sovereign debt crisis on bond fund performance persistence: Evidence from a small market

We evaluate the impact of the Eurozone sovereign debt crisis on the performance and performance persistence of a survivorship bias-free sample of bond funds from a small market, identified as one of the most affected by this event, during the 2001–2012 period. Besides avoiding data mining, we also introduce a methodological innovation in assessing bond fund performance persistence. Our results show that bond funds underperform significantly both during crisis and non-crisis periods. Besides, we find strong evidence of performance persistence, for both short- and longer-term horizons, during non-crisis periods but not during the debt crisis. In this way, the persistence phenomenon in small markets seems to occur only during non-crisis periods and this is valuable information for bond fund investors to exploit.

Combinative Aspects of Leadership Style and Emotional Intelligence

Purpose – The purpose of this paper is to examine whether the leader’s emotional intelligence influences the leader’s preferences for different ways of combining leadership behaviors (i.e. combinative aspects of leadership style). Design/methodology/approach – The authors used a hybrid design to collect the data to avoid common-method biases. The authors described a high-stress workplace in a vignette and asked participants to rank four styles of combining a task-oriented leadership (i.e. Pressure) statement and a socio-emotional leadership (i.e. Support) statement. The authors then asked participants to complete a Likert-scale based questionnaire on emotional intelligence. Findings – The authors found that leaders who prefer to provide Support immediately before Pressure have higher levels of emotional intelligence than do leaders who prefer the three other combinative styles. Leaders who prefer to provide Pressure and Support separately (i.e. provide Pressure 30 minutes after Support) have the lowest levels of emotional intelligence. Research limitations/implications – A key implicit assumption in the work is that leaders do not want to evoke negative emotions in followers. The authors did not take into account factors that influence leadership style which participating managers would be likely to encounter on a daily basis such as the relationship with the follower, the follower’s level of performance and work experience, the gender of the leader and the gender of the follower, the hierarchical levels of the leader and follower, and the followers’ preferred combinative style. The nature of the sample and the use of a hypothetical scenario are other limitations of the study. Practical implications – Providing leadership behaviors that are regarded as effective is necessary but not enough because the emotional impact of leadership behaviors appears to also depend on how the behaviors are configured. Originality/value – This is the first study to show that the emotional intelligence of leaders is related to their preferences for the manner in which they combine task and social leadership statements. Furthermore, two-factor theories of leadership propose that the effects of task and social leadership are additive. However, the findings show that the effects are interactive.

Foreign direct investment determinants revisited in the context of global value chains

In this paper, we aim at contributing to the new field of research that intends to bring up-to-date the tools and statistics currently used to look to the current reality given by Global Value Chains (GVC) in international trade and Foreign Direct Investment (FDI). Namely, we make use of the most recent data published by the World Input-Output Database to suggest indicators to measure the participation and net gains of countries by being a part of GVC; and use those indicators in a pooled-regression model to estimate determinants of FDI stocks in Organization for Economic Co-operation and Development (OECD)-member countries. We conclude that one of the measures proposed proves to be statistically significant in explaining the bilateral stock of FDI in OECD countries, meaning that the higher the transnational income generated between two given countries by GVC, taken as a proxy to the participation of those countries in GVC, the higher one could expect the FDI entering those countries to be. The regression also shows the negative impact of the global financial crisis that started in 2009 in the world’s bilateral FDI stocks and, additionally, the particular and significant role played by the People’s Republic of China in determining these stocks.

Proposal to minimize the difficulty of recording abortion data in sheep

Background: The most frequent viral diseases which can cause abortion in sheep are Blue tongue, Border disease virus, Cache Valley fever and Schmallenberg virus. The diagnosis of abortion, namely virus-induced represents a challenge to field clinicians, since clinical signs presented by the dam are discrete, non-specific and variable (Agerhom et al., 2015). On the other hand, while some foetuses reveal characteristic and visible malformations, others do not reveal any lesions. In face of it, definitive diagnosis requires an appropriate history collection, as well as sending fresh samples, namely abortion material, foetus, placenta and umbilical cord, to a specialty laboratory, to obtain a precise diagnosis. Objectives: The authors suggest a registration method of all mandatory data, in order to further assist the diagnosis of viral diseases at the laboratories, including the most frequent congenital malformations reported in sheep abortions. Methods: Abortion samples of suspected viral origin were collected and all data were registered, in worktables optimized for this purpose. Results: The authors document, using macroscopic figures lesions of malformations in abortions, emphasizing the frequency and the importance of documenting each case, proposing practical and effective worktables to assist the fieldwork. Conclusions: Field clinician’s awareness of the importance of early detection of viral diseases causing abortion outbreaks stimulates a proper data collection for each case of abortion, in order to contribute to a precise diagnosis and posterior consistent epidemiological studies, which may allow diminishing of economic losses.

Incorporating demand-side aspects into regional policy: variations in the importance of private investment decision factors across regions

Most regional programs focus on the supply side of regions, emphasizing the attraction conditions offered, such as infrastructure, labor skills, tax incentives, etc. This study analyzes one aspect of the demand side, that is, how investment decisions of private firms are made by asking the question: ""Do corporations decide the same way on investments in different parts of the territory?"" The paper analyzes the investments of 373 large Brazilian firms during 1996-2004. Based on the investment decisions of these firms, the role of sales, cash-flow, external financing, and working capital is investigated through regression analysis. The regional influence is captured by explanatory variables representing regional and firm characteristics, and by interaction dummies between the region and the main investment determinants. The results indicate significant differences across regions in the importance of investment determinants. This information is important for regional development policy, because different mechanisms should be used in different regions to foster private investments.

Multicollinearity and financial constraint in investment decisions: a Bayesian generalized ridge regression

This paper addresses the investment decisions considering the presence of financial constraints of 373 large Brazilian firms from 1997 to 2004, using panel data. A Bayesian econometric model was used considering ridge regression for multicollinearity problems among the variables in the model. Prior distributions are assumed for the parameters, classifying the model into random or fixed effects. We used a Bayesian approach to estimate the parameters, considering normal and Student t distributions for the error and assumed that the initial values for the lagged dependent variable are not fixed, but generated by a random process. The recursive predictive density criterion was used for model comparisons. Twenty models were tested and the results indicated that multicollinearity does influence the value of the estimated parameters. Controlling for capital intensity, financial constraints are found to be more important for capital-intensive firms, probably due to their lower profitability indexes, higher fixed costs and higher degree of property diversification.

A model of migrants' remittances with human capital investment and intrafamilial transfers

This study analyzes data on migrants' remittances using a two-period theory of intergenerational transfers based on an informal, intrafamilial loan arrangement using weak altruism, a behavior between strong altruism and pure self-interest. The model provides an integrated theory of migrants' remittances, human capital investment decisions, and intrafamilial transfers applicable to low-income countries with no official pension schemes and imperfect capital markets. Propositions, derived from the theory, are tested, re-analyzing original survey data on remittances of Pacific island migrants in Sydney. When weak altruism and strong altruism yield opposite predictions, the econometric results tend to confirm the former hypothesis and invalidate the latter.

Analysis of the Nicotiana tabacum Stigma/Style Transcriptome Reveals Gene Expression Differences between Wet and Dry Stigma Species

The success of plant reproduction depends on pollen-pistil interactions occurring at the stigma/style. These interactions vary depending on the stigma type: wet or dry. Tobacco (Nicotiana tabacum) represents a model of wet stigma, and its stigmas/styles express genes to accomplish the appropriate functions. For a large-scale study of gene expression during tobacco pistil development and preparation for pollination, we generated 11,216 high-quality expressed sequence tags (ESTs) from stigmas/styles and created the TOBEST database. These ESTs were assembled in 6,177 clusters, from which 52.1% are pistil transcripts/genes of unknown function. The 21 clusters with the highest number of ESTs (putative higher expression levels) correspond to genes associated with defense mechanisms or pollen-pistil interactions. The database analysis unraveled tobacco sequences homologous to the Arabidopsis (Arabidopsis thaliana) genes involved in specifying pistil identity or determining normal pistil morphology and function. Additionally, 782 independent clusters were examined by macroarray, revealing 46 stigma/style preferentially expressed genes. Real-time reverse transcription-polymerase chain reaction experiments validated the pistil-preferential expression for nine out of 10 genes tested. A search for these 46 genes in the Arabidopsis pistil data sets demonstrated that only 11 sequences, with putative equivalent molecular functions, are expressed in this dry stigma species. The reverse search for the Arabidopsis pistil genes in the TOBEST exposed a partial overlap between these dry and wet stigma transcriptomes. The TOBEST represents the most extensive survey of gene expression in the stigmas/styles of wet stigma plants, and our results indicate that wet and dry stigmas/styles express common as well as distinct genes in preparation for the pollination process.

Improved case management and continued government investment are needed for malaria eradication in Henan Province, China

A two-year study of malaria control began in Henan Province following cuts in government malaria spending in 1993. Cost data were collected from all government levels and on treatment-seeking (diagnosis, treatment) from 12,325 suspected malaria cases in two endemic counties. The cost burden was found to fall mainly on patients, but using government infrastructure. Good stewardship requires continuing government investment, to at least current levels, along with improved case management. In mainland China, vivax malaria is a significant factor in poverty and economic underdevelopment.

An Economic Analysis of the Legal Concept of Trustees' Power of Investment

Authorised trustee status is a legal concept which has economic implications; one of the major implications is that it assists in the direction of investment funds into particular securities and areas of the economy. The concept of authorised trustee status, while attempting to achieve specific outcomes for the beneficiaries of trusts cannot be relied upon to secure these results. Economic analysis of the role of the trustee maintains that this role is one of portfolio manager; a role which is complex but which is explicable in terms of definable procedures and practices. The role of trustee as portfolio manager is one which requires greater financial knowledge than can be assumed is possessed by all trustees. The trustee as portfolio manager is required to maintain a review of decisions make under powers to invest trust assets. A solution to the problem of authorised trustee status is proposed. The solution takes two parts: the first is the adoption of the prudent person approach but with the codification of duties of the trustee and the explicit listing of the factors that a trustee should consider in using the investment powers. The second part of the proposed solution is to link the investment powers of trustees to the best practice features of securities advisers who are now licensed by a regulatory body, the Australian Securities and Investment Commission.

Developments in the understanding of South African style SAG mills

The South African style SAG (RoM) mills operate in a window that is almost exclusive from the operation of the Australian and North American mills that have been used for the development of SAG mill models. Combining good quality, test data from the RoM mills is extending and improving these models, and assisting in a practical manner in improving our understanding of SAG/AG milling. Data from high mill loads, both in absolute filling and ball loading, have been used to extend and improve the JK SAG mill model. This improved understanding has been successfully applied to increasing the throughput of a mill by 8%. Data is presented on relationships between power and load for high mill loading. Slurry pooling is common in closed-circuit RoM mills, and the detrimental effect of this has been dramatically demonstrated at ALCOA with a mill throughput increase of over 20%. Techniques for calculating the effects of slurry pooling have been developed and a new pulp lifter system designed to give optimal slurry discharge. The influence of mill speed in shifting the product size distribution has also been measured. (C) 2001 Elsevier Science Ltd. All rights reserved.

Estimating Two-Stage Models for Genetic Influences on Alcohol, Tobacco or Drug Use Initiation and Dependence Vulnerability in Twin and Family Data

Genetic research on risk of alcohol, tobacco or drug dependence must make allowance for the partial overlap of risk-factors for initiation of use, and risk-factors for dependence or other outcomes in users. Except in the extreme cases where genetic and environmental risk-factors for initiation and dependence overlap completely or are uncorrelated, there is no consensus about how best to estimate the magnitude of genetic or environmental correlations between Initiation and Dependence in twin and family data. We explore by computer simulation the biases to estimates of genetic and environmental parameters caused by model misspecification when Initiation can only be defined as a binary variable. For plausible simulated parameter values, the two-stage genetic models that we consider yield estimates of genetic and environmental variances for Dependence that, although biased, are not very discrepant from the true values. However, estimates of genetic (or environmental) correlations between Initiation and Dependence may be seriously biased, and may differ markedly under different two-stage models. Such estimates may have little credibility unless external data favor selection of one particular model. These problems can be avoided if Initiation can be assessed as a multiple-category variable (e.g. never versus early-onset versus later onset user), with at least two categories measurable in users at risk for dependence. Under these conditions, under certain distributional assumptions., recovery of simulated genetic and environmental correlations becomes possible, Illustrative application of the model to Australian twin data on smoking confirmed substantial heritability of smoking persistence (42%) with minimal overlap with genetic influences on initiation.