International outsourcing of information technology services : review and future directions

Purpose – The purpose of this paper is to review the development of the empirical literature on international outsourcing of information technology services (ITS) over the 1992-2007 period and to identify future research areas.

Design/methodology/approach – A sample of 78 empirical academic publications on international outsourcing of ITS conducted between 1992 and 2007 across 46 scholarly journals constitutes the main data for analytical purposes. The sample is compiled following extensive electronic searches of the main academic databases. After clustering the studies in the sample according to their main research areas, a narrative approach is used to review developments in each cluster and to identify emerging research areas.

Findings – Four main areas of research are identified, namely outsourcing decision, outsourcing management (OSM), outsourcing outcome and the role of offshore service providers (OSPs). The review suggests that research efforts to date have been predominantly on outsourcing decision and OSM, mostly from the perspective of clients. Future research opportunities exist in the areas of outsourcing strategy and performance, the behaviour and performance of OSPs particularly within the context of firms from less-developed countries competing globally, and the nature of competition among OSPs both within and among countries.

Originality/value – This is the first review which focuses on empirical studies of outsourcing for ITS. This paper identifies several gaps in the literature and points to the need for more research on outsourcing from the perspective of OSPs.

The cost-effectiveness of universal newborn screening for bilateral permanent congenital hearing impairment : systematic review

Objective - Universal newborn hearing screening for bilateral permanent congenital hearing impairment is standard practice in many developed economies, but until there is clear evidence of cost-effectiveness, it remains a controversial use of limited health care resources. We conducted a formal systematic review of studies of newborn hearing screening that considered both costs and outcomes to produce a summary of the available evidence and to determine whether there was a need for further research.

Methods - A search was conducted of medical and nursing databases and gray literature websites by the use of multiple keywords. The titles and abstracts of studies were examined for preliminary inclusion if reference was made to newborn hearing screening, and to both costs and outcomes. Studies of potential relevance were independently assessed by 2 health economists for final inclusion in the review. Studies that met inclusion criteria were appraised by the use of existing guidelines for observational studies, economic evaluations and decision analytic models, and reported in a narrative literature review.

Results - There were 22 distinct observational or modeled evaluations of which only 2 clearly compared universal newborn hearing screening to risk factor screening for bilateral permanent congenital hearing impairment. Of these, the single evaluation that examined long-term costs and outcomes found that universal newborn hearing screening could be cost-saving if early intervention led to a substantial reduction in future treatment costs and productivity losses.

Conclusions - There are only a small number of economic evaluations that have examined the long-term cost-effectiveness of universal newborn hearing screening. This is partly attributable to ongoing uncertainty about the benefits gained from the early detection and treatment of bilateral permanent congenital hearing impairment. There is a clear need for further research on long-term costs and outcomes to establish the cost-effectiveness of universal newborn hearing screening in relation to other approaches to screening, and to establish whether it is a good long term investment.

Dynamic currency hedging for international stock portfolios

The paper studies dynamic currency risk hedging of international stock portfolios using a currency overlay. A dynamic conditional correlation (DCC) multivariate GARCH model is employed to estimate time-varying covariance among stock market returns and currency returns. The conditional covariance is then used in the estimation of risk-minimizing conditional hedge ratios. The study considers seven developed economies over the period January 2002 to April 2010 and estimates daily conditional hedge ratios for portfolios of various stock market combinations. Conditional hedging is shown to dominate traditional static hedging and unconditional hedging in terms of risk reduction both in-sample and out-of-sample, especially during the recent global financial crisis. Conditional hedging also proves to consistently reduce portfolio risk for various levels of foreign investments.

Opportunities or obstacles? understanding the challenges faced by migrant women entrepreneurs

Purpose - Applying theories of entrepreneurship, the paper aims to identify the factors - with theoretical explanations - that act as barriers to migrant women entrepreneurs (MWEs), particularly women from developing countries starting businesses in developed economies. The paper further explores which barriers also have the potential to act as enablers.

Design/methodology/approach - The relationship between immigration, ethnicity, gender and entrepreneurship has received little theoretical attention. Linking these discourses, the paper theoretically develops a framework of the possible barriers or enablers faced by MWEs.

Findings - The paper reinforces earlier research that MWEs are not a homogenous group; the problems they face are multifaceted, and MWEs from developing countries are the most disadvantaged of entrepreneurs. It identifies multiple factors - human capital, culture, family, institutional factors, gender and social capital- as possible barriers for MWEs. Findings further indicate, that among those barriers, culture, family, social capital and gender have the potential to play a dual role for MWEs, by acting either as a barrier or an enabler. Findings also highlight the overarching and predominant influence of culture – as explained by cultural theory -acting as a barrier for MWEs from developing countries.

Research limitations/implications - Given the increasing potential of MWEs, the paper provides implications for not only addressing the barriers but also viewing the barriers as ways to promote entrepreneurship among such minority groups. It further stresses a needs-based approach to customizing policies to benefit the diverse group of MWEs. Limitations: This is a theoretical paper. Empirical research is needed to test the framework and its different dimensions. Given the diversity of MWEs and the factors that shape their entrepreneurial endeavours, it is difficult to develop a single framework to encompass the complexity of the situation. Nevertheless, the proposed framework provides useful insights into the barriers or enablers that MWEs face, along with theoretical explanations and, thus, acts as a springboard for future research.

Originality/value - By providing a theory-based framework of the barriers or enablers faced by MWEs, along with policy implications, the paper contributes to a better understanding of the phenomenon of migrant women entrepreneurship.

Offshoring of IT services : survey of literature and research agenda

Although international outsourcing or offshoring of information technology services by advanced industrialised countries from less developed countries is a relatively new phenomenon, a plethora of research exists on the subject. And, given the multidisciplinary nature of the subject, the literature on offshoring is often disparate and subject to confusion. This paper surveys the developments in the empirical literature on offshoring over the 1992-2007 period and identifies potential areas for future research. The main findings are that while the intensity of research on the subject has increased rapidly over a short period of time, research efforts to date have focussed mostly on offshoring decision and offshoring management particularly from the perspective of the offshorer. Future research opportunities exist in the area of offshoring strategy and performance relationship, the behaviour and performance of offshore service providers particularly within the context of firms from less developed countries competing globally, and the nature of competition among offshore service providers both within and among countries.

Does globalization weaken labor unions in developing countries?

For a developing economy with a given urban wage rate, globalization in capital markets strengthens labor unions. This result hinges on the fixed urban wage rate, which leads to a constant capital–labor ratio in the urban sector. Globalization via capital inflows not only enhances the employment effect of unionization but also reduces the rent-shifting related loss in production inefficiency to domestic capital, lending a support to labor unions for developing economies. This result is contrary to the common belief that labor unions tend to be weakened during the globalization process observed after 1980s in many developed economies.

A modified LLC panel unit root test of the PPP hypothesis

In a recent study, Westerlund (Empir Econ 37:517–531, 2009) shows that the performance of the popular LLC (Levin et al., J Econ 108:1–24, 2002) panel unit root test depends critically on the choice of lag truncation used when correcting for serial correlation, and that it is only when this parameter is set as a function of time that the power raises above size. The purpose of the current paper is to propose a modified test that does not suffer from this drawback. The new test is not only simpler to compute but also superior in terms of small-sample performance, which is illustrated using an example purchasing power parity for less developed countries.

China's "South-South" trade with Southeast Asia: unequal exchange and combined and uneven development

China’s unprecedented emergence as an economic and political power has created a new geopolitical economy for semi-industrialised and developing economies in Southeast Asia. This paper examines China’s trade relationships with Thailand and Indonesia using the concepts of uneven and combined development (UCD) and unequal exchange. The mass of surplus value obtained through China’s trade with the developed economies has flowed into the considerable expansion in China’s imports from developing countries since 2000. China has maintained a consistent trade deficit with the latter. While the developing countries concerned have benefitted from this set of relationships, the extent to which they have done so has been determined by national strategies. In countries like Thailand – where manufacturing capital and a significant working class has emerged – exports expanded on the basis of mutually advantageous technologically and skills intensive goods. These are produced with a similar organic composition of capital as in China. The result has been a further consolidation of the hegemony of manufacturing capital. Indonesia, however, has a political system and economy long dominated by resource exploitation linked fractions of capital. The result has been a surge in primary goods exports. The current commodity price cycle has meant these goods exchange at prices above their value. The current looming price correction, however, may have negative repercussions. In the meantime, the concentration in raw materials exports is helping to prevent the emergence of a circuit of productive capital in manufacturing. The evidence from these contrasting cases suggests that the degree to which developing economies can benefit from China’s own historically unparalleled combined development remains highly contingent on the strength of the combined development possibilities and efforts within these other national social formations. Above all, there is the degree to which manufacturing sectors of capital can obtain hegemony.

Gambling advocacy: lessons from tobacco, alcohol and junk food

OBJECTIVE: To explore the attitudes and opinions of public health experts in gambling and related unhealthy commodity industries towards the tactics used by the gambling industry to prevent reform and the advocacy responses to these tactics. METHODS: In-depth interviews (30-60 minutes) with a convenience sample of 15 public health experts and stakeholders with a public health approach to gambling (n=10), or other unhealthy commodity industries (food, alcohol, tobacco, n=5). RESULTS: Participants described the influences of political lobbying and donations on public policy, and industry framing of problem gambling as an issue of personal responsibility. Industry funding of, and influence over, academic research was considered to be one of the most effective industry tactics to resist reform. Participants felt there was a need to build stronger coalitions and collaborations between independent academics, and to improve the utilisation of media to more effectively shift perceptions of gambling harm away from the individual and towards the product. CONCLUSIONS AND IMPLICATIONS: Gambling industry tactics are similar to the tactics of other unhealthy commodity industries. However, advocacy initiatives to counter these tactics in gambling are less developed than in other areas. The formation of national public health coalitions, as well as a strong evidence base regarding industry tactics, will help to strengthen advocacy initiatives.

Has China displaced its competitors in high tech trade?

This paper empirically investigated the extent to which China displaced its competitors in high-tech exports using disaggregated data for the period 1992–2013. To address the endogeneity problem, we used a comprehensive set of instruments for Chinese high-tech exports in relevant markets, including China's GDP and distances to those markets. Results of our IV regressions revealed that in most of the high-tech sectors, Chinese exports had displaced the exports of its developing competitors such as India, South American exporters like Brazil and Mexico, and South-East Asian countries like Malaysia, Singapore, Thailand and Vietnam, especially in the period prior to the 2007–08 global financial crisis. Yet, Chinese exports had been associated with more high-tech exports of developed exporters like OECD countries, South Korea and Japan. Our findings suggest that while China became the world's top high-tech exporter, its high-tech exported products had been substitutes to those of other developing and emerging economies but complementary to that of developed economies.

A Light, investimento estrangeiro no Brasil: uma luz sobre o ciclo privado-público-privado em 80 anos pela análise de taxa de retorno

A Brazilian Traction, Light and Power Company ("Light"), formada por empreendedores canadenses em 1899, operou por 80 anos praticamente toda a infraestrutura (bondes, luz, telefones, gás) do eixo Rio-São Paulo. A empresa passou por vários ciclos políticos, desde sua fundação até sua estatização em 1979. Durante este período de 80 anos, a infra-estrutura nacional, inicialmente privada, foi gradativamente passando para as mãos do Estado. O setor voltaria a ser privado a partir dos anos 90, configurando o ciclo privado-público-privado, similar ao ocorrido nos países mais desenvolvidos. A Light, símbolo maior do capital estrangeiro até os anos 50, foi inicialmente bem recebida no país, posto que seu desenvolvimento era simbiótico, causa e conseqüência, ao desenvolvimento industrial. Dos anos 20 em diante, crescem os debates econômicos ou ideológicos quanto ao papel do capital privado estrangeiro no desenvolvimento nacional, vis-a-vis a opção do setor público como ator principal. Sempre permaneceu sob névoa quais teriam sido os lucros da Light no Brasil, e se esses seriam excessivos, acima do razoável. Outra questão recorrente se refere até que ponto os congelamentos de tarifas teriam contribuido para a crise de oferta de infra-estrutura. Através de um trabalho de pesquisa em fontes primárias, esta dissertação procura reconstituir a história da Light, sob um foco de Taxa de Retorno sob o capital investido. Foi reconstruída a história financeira da Light no Brasil, a partir da qual calculou-se, para vários períodos e para os seus 80 anos de vida, os retornos obtidos pelos acionistas da empresa. A partir dos resultados obtidos, e utilizando-se de benchmarks comparativos, foi possível mostrar que: i) ao contrário da crença vigente à época, o retorno obtido pelo maior investidor estrangeiro no setor de infra-estrutura do Brasil do Séc. XX, se mostrou bem abaixo do mínimo aceitável, e ii) o represamento de tarifas, por várias décadas, foi de fato determinante para o subdesenvolvimento do setor de infra-estrutura no Brasil.

Atração de investimentos como instrumento de política industrial: o caso do ceará no período 1985-2002

This paper aims to assess the performance of credit and fiscal mechanisms in attracting industrial investment to the state of Ceará during 1985-2002, a period characterized by the political and administrative continuity which begun with the implementation of the so-called "Plan of Changes", during the term in office of former state governor Tasso Jereissati. In order to accomplish that, a survey was conducted of the state's credit, fiscal and infrastructure incentive mechanisms, industrial policy and the period's political context, as well as data from the Department of Industry and Commerce and on the economic performance of the state of Ceará. Over 700 industrial businesses were found to have been attracted into the state by means of the Industrial Investment Attraction Program, which amounted to a process of industry expansion while the country as a whole was going through a period of deindustrialization. The analysis points out that, if on one hand, the industrialization model then adopted was able to generate economic growth, on the other hand, it increased income concentration and could not drive industry into the less developed areas across the state's interior, as expected by Ceará's state government officials.

Condições brasileiras que impactam a implementação de modelos de gestão importados

Este trabalho discorre sobre a competitividade na Sociedade do Conhecimento, também considerada uma Sociedade Pós-Capitalista, Pós-Moderna. Nessa perspectiva o conhecimento é o bem de maior valor, que entretanto, está subordinado à vontade do indivíduo em acumulá-lo e aplicá-lo. As organizações de países avançados, em busca de maior competitividade, criam modelos de gestão, que são importados pelas sociedades menos desenvolvidas como forma de ampliar seus níveis de produtividade, mas o fato de copiar, apenas, não garante sucesso da aplicação em função da cultura e condições sócio-econômicas locais. No Brasil, tais características favorecem importação desses modelos porém, eles não trazem os resultados esperados. São essas as condições brasileiras que procuramos demonstrar, nos níveis teórico aplicado; este último, mediante um estudo de caso representativo de uma importação que deu certo, favorecido por essas mesmas condições brasileiras.

Desenvolvimento econômico e mercado de trabalho urbano no nordeste brasileiro

A história recente do Nordeste caracteriza-se por uma primeira fase de isolamento e outra de articulação. Nessa segunda fase, o dinamismo que se instala a partir da década de sessenta provocou profundas transformações na economia da região. Essas transformações implicaram em elevadas taxas de expansão do produto regional, alterações na estrutura produtiva através da adoção de novos processos de trabalho que implicou de um lado, na redução da demanda por trabalho e de outro, na sua expansão. Registrou-se, também, mudanças bastante significativas nos gêneros industriais reduzindo a participação na produção das indústrias de bens de consumo não-duráveis e aumentando de modo importante a participação das indústrias de bens intermediários voltadas para o mercado nacional e internacional, o que contribui para aumentar a dependência do Nordeste em relação as regiões mais ricas. As mudanças iniciadas no setor industrial se propagam para os setores primários, secundários e terciários. No setor agrícola, as transformações dificultaram a sobrevivência do trabalhador, ampliaram as relações capitalistas no setor manifestas na maior proletarização da mão-de-obra rural; estimularam as emigrações para. as cidades e elevaram consideravelmente a participação da população ocupada em atividades predominantemente urbanas. No setor terciário, as mudanças provocaram o incremento do subemprego, grande diferenciação nos 11 níveis de produtividade e rendimentos, gerando um quadro de aprofundamento da heterogeneidadeda estrutura produtiva e do mercado de trabalho. Adicionalmente, houve uma excessiva urbanização, aumento da concentração da renda, incremento do grau de informalidade, crescimento do número de empregados clandestinos e maior participação dos menores e adultos no mercado de trabalho. Tudo isso, ocorreu,associado ao quadro de dinamismo das atividades produtivas, sem paralelo na história recente das regiões atrasadas do pais. A análise dos dados também mostrou que o nível do desemprego aberto, é relativamente baixo tanto para os homens como para as mulheres. Isto ocorre porque na expansão ou na retração econômica as flutuações no nível de ocupação são acampanhadas por modificações da taxa de participação da PIA no mercado de trabalho. Portanto, a recente infonnalidade, fonnalidade e submersão da mão-de-obra no Nordeste estão associadas a um contexto de crescimento da economia e, por conseguinte, resultam do estilo ou padrão de acumulação de capital que, mesmo se realizando com altas taxas de expansão, não repercute positivamente no mercado de trabalho, nos tennos requeridos pela oferta de mão-de-obra. Assim, o aparecimento de um excedente relativo de população é resultado do padrão de acumulação da capital da economia regional, que está associado ao modo como o Nordeste se inseriu no contexto nacional e, nesse sentido, é o padrão de industrialização o principal fator responsável por parte importante do insucesso da economia local em absorver produtivamente a população que se apresenta no mercado de trabalho urbano

Inflação no Brasil e preços internacionais

No início dos anos 90, começou a ser observada uma queda e uma maior estabilização da inflação mundial, principalmente em economias desenvolvidas. Esse fenômeno também foi observado em economias em desenvolvimento como a brasileira, protagonistas de momentos de hiperinflação em um passado recente. Com a queda substancial da inflação mundial, alguns economistas sugerem que se incorporem os efeitos dos fatores globais na dinâmica da inflação doméstica. Este presente estudo tem por objetivo verificar se fatores externos têm reduzido a sensibilidade dos preços domésticos às condições econômicas exclusivamente domésticas. É feita uma análise do papel dos preços internacionais na dinâmica da taxa de inflação no Brasil através de estudos da dinâmica da curva de Phillips, a partir da metodologia VAR. Através dos resultados obtidos, concluiu-se que apesar de boa parte da estabilidade da inflação ser conseqüência da credibilidade da política monetária adotada pelo Banco Central, da maneira como ele consegue ancorar essas expectativas e da adoção de boas práticas monetárias e fiscais, não se pode negar o importante papel dos fatores globais na dinâmica da inflação brasileira.