Drivers of China's foreign direct investment into Africa

We assess the determinants of Chinese direct investment in Africa compared with those of global FDI. We find that economic size and macroeconomic stability are positively correlated with Chinese and global FDI in Africa. Institutional variables, such as accountability and rule of law, are not significant in either case and the same can be said about FDI-aid complementarities. The presence of oil is a determinant of Chinese FDI but not of global FDI into Africa. Conversely, the openness of the economy is a determinant for global FDI but not of Chinese FDI, which appears to favour closed economies possibly due to industrial organizational concerns. While these differences accord with intuition, we find no evidence for the claim that Chinese FDI in Africa is related to non-economic governance in a specific way that differs from global practice. More refined governance indicators should be used to verify whether Chinese and global FDI into Africa remain indistinguishable on this score: we plan to do this in future research.

The institutions of archaic post-modernity and their organizational and managerial consequences: The case of Portugal

The long march of modernization of the Western societies tends to be presented as following a regular sequence: societies and institutions were pre-modern, and then they were modernized, eventually becoming post-modern. Such teleology may provide an incomplete or distorted narrative of societal evolution in many parts of the world, even in the ‘post-modern heartland’ of Western Europe, with Portugal being a case in point. The concept of archaic post-modernity has been developed by a philosopher, José Gil, to show how Portuguese institutions and organizations combine elements of pre-modernity and post-modernity. The notion of an archaic post-modernity is advanced in order to provide an alternative account of the modernization process, which enriches discussion of the varieties of capitalism. Differences in historical experiences create singularities that may be considered in the analysis of culture, management and organization.

Oil price shocks and the Portuguese economy since the 1970s

This paper assesses empirically the effect of oil price shocks on Portuguese aggregate economic activity, industrial production and price level. We take the usual multivariate VAR methodology to investigate the magnitude and stability of this relationship. In doing so, we follow the approach presented in the recent literature and adopt different oil price specifications. We conclude that, as for most industrialized countries, the nature of this relationship changed in the mid-1980s. Furthermore, we show that the main Portuguese macroeconomic variables have become progressively less responsive to oil shocks and the adjustment towards equilibrium has become increasingly faster.

An existence result for discontinuous games

We introduce a notion of upper semicontinuity, weak upper semicontinuity, and show that it, together with a weak form of payoff security, is enough to guarantee the existence of Nash equilibria in compact, quasiconcave normal form games. We show that our result generalizes the pure strategy existence theorem of Dasgupta and Maskin (1986) and that it is neither implied nor does it imply the existence theorems of Baye, Tian, and Zhou (1993) and Reny (1999). Furthermore, we show that an equilibrium may fail to exist when, while maintaining weak payoff security, weak upper semicontinuity is weakened to reciprocal upper semicontinuity.

On the existence of pure-strategy equilibria in large games

Over the years, several formalizations and existence results for games with a continuum of players have been given. These include those of Schmeidler (1973), Rashid (1983), Mas-Colell (1984), Khan and Sun (1999) and Podczeck (2007a). The level of generality of each of these existence results is typically regarded as a criterion to evaluate how appropriate is the corresponding formalization of large games. In contrast, we argue that such evaluation is pointless. In fact, we show that, in a precise sense, all the above existence results are equivalent. Thus, all of them are equally strong and therefore cannot rank the different formalizations of large games.

R&D spillovers in an endogenous growth model with physical capital, human capital and varieties

There is a family of models with Physical, Human capital and R&D for which convergence properties have been discussed (Arnold, 2000a; Gómez, 2005). However, spillovers in R&D have been ignored in this context. We introduce spillovers in this model and derive its steady-state and stability properties. This new feature implies that the model is characterized by a system of four differential equations. A unique Balanced Growth Path along with a two dimensional stable manifold are obtained under simple and reasonable conditions. Transition is oscillatory toward the steady-state for plausible values of parameters.

Baumol revisitado: Que futuro para o peso do sector da saúde em portugal?

A “Doença de Baumol” refere que o baixo crescimento da produtividade no sector da saúde e a uniformidade dos salários da economia como um todo, fazem com que os custos neste sector, dito “estagnado”, sejam inevitavelmente crescentes o longo do tempo. Este facto coloca uma pressão real acrescida na sustentabilidade dos Orçamentos de Estado na generalidade dos países desenvolvidos, que é difícil de resolver e para o qual se torna urgente desenvolver métodos de análise e solução eficazes. Concretamente, partindo de hipóteses cruciais, a fracção de despesa pública em saúde em Portugal, poderá atingir 9,5% do PIB já em 2010 e 20,9% do mesmo em 2030. Dado que não se põe a hipótese de conter custos baixando a qualidade dos cuidados médicos proporcionados pelo sector público, os dois caminhos mais plausíveis no curto prazo, são aumentar a eficiência ou incrementar o financiamento e provisão pelo sector privado e outras instituições de cariz social.

Complexity Simplicity Simplexity

“In the midst of order, there is chaos; but in the midst of chaos, there is order”, John Gribbin wrote in his book Deep Simplicity (p.76). In this dialectical spirit, we discuss the generative tension between complexity and simplicity in the theory and practice of management and organization. Complexity theory suggests that the relationship between complex environments and complex organizations advanced by the well-known Ashby’s law, may be reconsidered: only simple organization provides enough space for individual agency to match environmental turbulence in the form of complex organizational responses. We suggest that complex organizing may be paradoxically facilitated by a simple infrastructure, and that the theory of organizations may be viewed as resulting from the interplay between simplicity and complexity.

The ethical dilemma of expatriates in emerging economies: A liminal perspective

Adjustment to emerging economies is benefited if Western expatriates recognise they are experiencing a liminal situation, which can lead to the instrumental utilisation of coping strategies as equivalent to rites of passage between distinct ethical frameworks. Given the characteristics ascribed to rites, the ethical dilemma resulting from the simultaneous demand to abide by local rules and to respect Western ethical principles is more easily solved. Consequently, effective and sustainable adjustment is favoured. Implications for organisations and individuals are discussed.

Structuring for glocalization

Globalization and localization seem to be opposite concepts – a thesis and its antithesis. Nonetheless, managers seem to be able to handle the paradox posed by these two contradicting tensions by enacting, via action, a synthesis that allows for the co-presence of a high level of global integration and local adaptation (instead of a compromise between both), which has been labeled glocalization. We discuss how the concept of improvisation allows this synthesis by developing the two poles that ground it, namely ‘glocal’ strategy and ‘glocal’ organization. Global advantage requires a dialectical capability that organizations rarely achieve, and the importance of which orthodox management theory rarely recognizes.

Improvisation in tightly controlled work environments: The case of medical practice

We present a qualitative analysis of organizational improvisation and provide a preliminary insight into the following question: how is improvisation present in tightly controlled work environments? We conducted in situ observations of, and interviews with, several emergency medical teams and complemented this information with statistical and media data. Using grounded theory, we developed four propositions that were arranged into a model that allowed the identification of two use levels of established routines: (1) the visible side that accommodates contextual requirements, and (2) the improvisational side that provides a response to activity characteristics. This dual process is related to the existence of pressures that operate at the institutional level with practical needs emerging from the operational domain. In contrast with most of the literature, this study reveals that the presence of a broad procedural organizational memory does not restrict improvisation but enables a bureaucratic system to produce flexible improvised performance.

Endogenous spillovers in the trade-off between centralization and decentralization

In this paper, we revisit the classical trade-off between centralized and decentralized provision of local public goods, in a setting where interregional spillovers depend on the level of a national public good. We compare the standard benevolent planner approach with a political economy in which decisions, in a centralized system, are undertaken by a non-cooperative legislature with no separation of powers. We observe that the policy-maker in a centralized system is able to play both with local public goods and spillovers, a mechanism that is not available under a decentralized system. When compared to the traditional exogenous spillovers assumption, this improves the case for centralization under the standard benevolent planner approach. However, the same is not necessarily true in the non-cooperative legislature, as in this case the interests of the legislator do not need to be aligned with those of the society. Finally, we extend the traditional political economy analysis by considering a legislature in which decisions are undertaken by different committees (separation of powers), and show that it performs better than the original non-cooperative legislature, greatly improving the case for centralization.

Share the fame or share the blame? The reputational implications of partnerships

We use an adverse selection model to study the dynamics of firms' reputations when firms implement joint projects. We show that in contrast with projects implemented by a single firm, in the case of joint projects a firm's reputation does not necessarily increase following a success and does not necessarily decrease following a failure. We also study how reputation considerations affect firms ' decisions to participate in joint projects. We show that a high quality partner may not be preferable to a low quality partner, and that a high reputation partner is not necessarily preferable to a low reputation partner.

The impact of national and international observers in democratic elections: A randomized control trial from the Mozambican elections of 2009

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Economics from the NOVA – School of Business and Economics

The Nova SBE University merchandising venture

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics