Showing papers in "International Advances in Economic Research in 2007"
TL;DR: In this paper, the specific influence of the new socioeconomic factor of social capital on the formation of entrepreneurial intentions was analyzed, and an empirical study was carried out using the Partial Least Squares (PLS) technique with data from a sample of young undergraduate students in the last year of their degree.
Abstract: Nowadays, the scientific community assigns both social context and entrepreneurs’ behavior as a central role in the growth and development of the world economy. However, the relationships between these two factors have not been sufficiently studied in business and economics. Therefore, in this paper, the specific influence of the new socioeconomic factor of social capital on the formation of entrepreneurial intentions will be analyzed. To test the theoretical hypotheses, an empirical study will be carried out using the Partial Least Squares (PLS) technique with data from a sample of young undergraduate students in the last year of their degree. This population has been selected because these individuals, according to different studies, show a higher propensity towards firm creation.
330 citations
TL;DR: In this paper, the authors investigate which of the two competing capital structure theories, the pecking order of financing choices or the traditional static trade-off model, better describes the financing decisions in Polish companies traded on the Warsaw Stock Exchange (WSE).
Abstract: The main objective of this paper is to investigate which of the two competing capital structure theories – the pecking order of financing choices or the traditional static trade-off model – better describes the financing decisions in Polish companies traded on the Warsaw Stock Exchange (WSE). The data come from financial statements of the companies and cover a 5-year period, 2000–2004. First, a correlation is run in order to separate a set of significant factors influencing the capital structure from the list of the following independent variables: assets structure, profitability, growth opportunities, liquidity, firm size, product uniqueness, earnings volatility, non-debt tax shields, dividend policy, and the effective tax rate. Next, in order to test the relationship between capital structure and its potential determinants, multiple regression is run. The evidence generally suggests the relevance of the pecking order hypothesis in explaining the financing choices of Polish firms.
202 citations
TL;DR: The European Commission defines CSR as the enterprises contribution to sustainable development as mentioned in this paper, and there are numerous examples of enterprises very closely engaged in sustainable development that apply very strict ethical codes to their regular operations.
Abstract: Lately, some questions relating to Corporate social responsibility (CSR) have become relevant. The European Commission defines CSR as the enterprises’ contribution to sustainable development. In the field of cooperation, there are numerous examples of enterprises very closely engaged in sustainable development that apply very strict ethical codes to their regular operations. This work tries to think about: (1) the necessity of taking upon, again, the moral teachings of some fathers of economics as Adam Smith or Robert Owen, most of which were scorned since the triumph of utilitarianism and rationalism; (2) the slide of society through post-modern values; and (3) the role of cooperative principles and values in the new cultural environments.
83 citations
TL;DR: In this article, the authors provide a comprehensive conceptual framework for assessing the effects of FDI on competitiveness to guide policy-makers as well as further research, in particular the role of clustering on the absorptive capacity of the host State.
Abstract: Despite the close relationship between the activities of multinational enterprises (MNEs) and the competitiveness of host countries, few studies have linked these two subjects from a global perspective. Combining Porter’s approach and the work accomplished by international business economists provides a powerful analytical tool with which to review the recent empirical and theoretical literature on the effects of foreign direct investment (FDI) on national competitiveness. The contention is that FDI can indeed be a source of competitiveness but that previous studies have neglected the role of location, in particular the role of clustering on the absorptive capacity of the host State. The aim of this paper is to provide a comprehensive conceptual framework for assessing the effects of FDI on competitiveness to guide policy-makers as well as further research.
70 citations
TL;DR: In this paper, the authors examined various types of factors previously considered by the literature (competitive environment, organizational characteristics, strategic orientation, innovative capacity, managers' characteristics, IT equipment possessed and the use made of it).
Abstract: This work aims to explain firms’ decisions to adopt Internet-based e-commerce, and the extent to which the adopters subsequently implement e-commerce to commercialize their products and services. We examine various types of factors previously considered by the literature (competitive environment, organizational characteristics, strategic orientation, innovative capacity, managers’ characteristics, IT equipment possessed and the use made of it). The analytical model developed here on the basis of a sample of 2,038 firms suggests that the factors influencing the adoption decision are different from those that eventually influence the results of firms’ commercial operations on the Internet. Likewise, we discuss the contribution of each type of determinant and the implications.
58 citations
TL;DR: In this paper, the authors analyze the determinants of the strategic environmental behavior of firms and, more specifically, the external and internal barriers that limit and sometimes even prevent the environmental adaptation.
Abstract: The aim of this paper is to analyze the determinants of the strategic environmental behavior of firms and, more specifically, the external and internal barriers that limit and sometimes even prevent the environmental adaptation The analysis focuses on a sample of industrial firms that have at least three workers and that are located in Aragon, a region situated in the northeast of Spain In order to achieve this objective, first the theoretical literature on the topic is reviewed Subsequently, from the firms which were sampled, the existence of an underlying structure among the totality of barriers is studied Finally, this structure is analyzed in order to determine if it has any influence on the degree of proactivity of the firm’s environmental strategy
56 citations
TL;DR: In this article, a time series of daily average prices in the Italian electricity market, which started to operate as a Pool in April 2004, was analyzed and it was shown that much of the variability in the price series is explained by the interactions between deterministic multiple seasonalities.
Abstract: In this paper we analyze a time series of daily average prices in the Italian electricity market, which started to operate as a Pool in April 2004. Our objective is to model the high degree of autocorrelation and the multiple seasonalities in electricity prices. We use periodic time series models with GARCH disturbances and leptokurtic distributions and compare their performance with more classical ARMA-GARCH processes. The within-year seasonal variation is modelled using the low-frequency components of physical quantities, which are very regular throughout the sample. Our results reveal that much of the variability in the price series is explained by the interactions between deterministic multiple seasonalities. Periodic AR-GARCH models seem to perform quite well in mimicking the features of the stochastic part of the price process.
54 citations
TL;DR: The Adaboost.M1 algorithm is applied to improve the accuracy of a classification tree in a multiclass corporate failure prediction problem using a set of European firms and novel discerning measures are introduced to rank independent variables in a generic classification task.
Abstract: Predicting corporate failure is an important management science problem. This is a typical classification question where the objective is to determine which indicators are involved in the failure or success of a corporation. Despite the complexity of the matter, a two-class problem has usually been considered to tackle this classification task. The objective of this paper is twofold. On the one hand, we apply the Adaboost.M1 algorithm to improve the accuracy of a classification tree in a multiclass corporate failure prediction problem using a set of European firms. On the other, we introduce novel discerning measures to rank independent variables in a generic classification task.
45 citations
TL;DR: In this paper, the authors examined the features and determinants of intra-industry trade (IIT), horizontal IIT (HIIT), and vertical IIT between Portugal and the European Union in the period 1996-2002, using a static and a dynamic panel data analysis.
Abstract: This study examines the features and determinants of intra-industry trade (IIT), horizontal IIT (HIIT) and vertical IIT (VIIT) between Portugal and the European Union in the period 1996–2002, using a static and a dynamic panel data analysis The findings indicate that Portuguese VIIT increased significantly during the period in accordance with the values expected for a developed country The regression results show that there is evidence supporting the explanation of VIIT by Heckscher–Ohlin’s (HO) theory and that Portugal has comparative advantages in low-quality differentiated products The findings support the theory that, in general, there is no positive statistical association between HIIT and HO variables The central theme of this paper is to show that it may be preferable to use the GMM approach in empirical studies of IIT rather than pooled OLS, fixed effects or random effects estimators The results also suggest that the GMM system estimator obtains more reasonable parameter estimates than the first-differenced GMM estimator
43 citations
TL;DR: In this paper, a gravity model is used to estimate potential trade flows for Greece through a panel of cross-country data, which cover bilateral trade flows concerning the EU member states, and these flows are then derived by applying the estimated parameters to the Greek economy.
Abstract: This paper attempts to access whether Greece’s low openness is a reflection of its low trade integration primarily as a result of the country’s relatively poor goods export performance. The analysis estimates potential trade flows for Greece through a gravity model using a panel of cross-country data, which cover bilateral trade flows concerning the EU member states. These flows are then derived by applying the estimated parameters to the Greek economy. The results show that actual Greek exports fall short of potential ones, while the opposite is true with respect to imports. This becomes more profound when the extent of intra-industry trade is included in the analysis. The findings for the Greek exports differ considerably from the corresponding ones for Portugal, a country with similar characteristics, manifesting the limited convergence of Greece’s trade patterns towards the EU average as well as its unique geographical location relatively to the other EU countries.
42 citations
TL;DR: In this article, independent single-equation models and structural equation models are used to analyze both direct and indirect impacts of education length, and of the match between education and employment, on job satisfaction after controlling for individual-specific and job-specific attributes, including health status and wages.
Abstract: Independent single-equation models and structural equation models are used to analyze both direct and indirect impacts of education length, and of the match between education and employment, on job satisfaction after controlling for individual-specific and job-specific attributes, including health status and wages The main results show that: (1) education/job mismatches, both in level and domain, reduce utility from work irrespective of schooling years and other individual/job characteristics; (2) the effects of education on job satisfaction are mainly indirect effects transmitted though the influence of schooling on workers’ health status, wages and other observable job characteristics; and (3) neglecting the structure of covariance among the determinants of job satisfaction results in upward bias in the estimation of the direct effect of schooling length, and in downward bias in the estimates for the effects of other personal circumstances
TL;DR: In this paper, the authors theoretically assess the consequences of information disclosure policies and identify the conditions under which such policies are likely to bring environmental improvements, based on a dynamic game framework, and show that both eco-labeling and more general full-information disclosure policies may not always result in pollution reduction.
Abstract: There has been a growing interest among policy makers on the use of information disclosure policies for pollution control. This paper theoretically assesses the consequences of information disclosure policies and identifies the conditions under which such policies are likely to bring environmental improvements. Based on a dynamic game framework, the paper shows that both eco-labeling and more general full information disclosure policies may not always result in pollution reduction. Full information disclosure policies are likely to be effective if the product is not heavily polluting and if the minimum quality standard is set quite low. The paper also identifies the conditions under which all consumers are strictly better off with information disclosure policies.
TL;DR: In this article, the authors analyzed the underpricing phenomenon in Portugal and found that the hot issue market of 1987, coinciding with a speculative bubble in the stock market, is well explained by investor sentiment theories and that the issuing firms seized a "window of opportunity" provided by excessive demand to offer and list their shares.
Abstract: This paper analyzes the initial public offering (IPO) underpricing phenomenon in Portugal. We show that the ‘hot issue’ market of 1987, coinciding with a speculative bubble in the stock market, is well explained by investor sentiment theories and that the issuing firms seized a ‘window of opportunity’ provided by excessive demand to offer and list their shares. In IPOs prior to the 1987 crash, underpricing is very high while there is a strong reversion to fundamentals in the long run. In the period 1988–2004, we find lower IPO underpricing and overall no evidence of long-run underperformance of IPO firms. Bookbuilding IPOs are more underpriced than other price setting systems IPOs, and firms with seasoned public offerings show abnormal returns in the long run.
TL;DR: This article examined household charitable donations to environmental organizations using data from the 2001 Giving and Volunteering in the United States survey and found that household income has a positive impact on environmental giving, while the tax price affects overall charitable contributions, it does not affect environmental giving.
Abstract: Using data from the 2001 Giving and Volunteering in the United States survey, I examine household charitable donations to environmental organizations. Household income has a positive impact on environmental giving. While the tax price affects overall charitable contributions, it does not affect environmental giving. More education, being female, homeownership, and voting are also associated with a greater likelihood of contributing to the environment. African-Americans and Latinos are less likely to contribute to the environment, although conditional on giving, Latinos give more. Retired persons and households with children are less likely to contribute to the environment. Larger households give less to the environment. Households from the Northeast are the most likely to make environmental contributions while households from the South are the least likely.
TL;DR: In this paper, the authors describe, analyze, and formalize the critical responsibility parameters, as well as the variables that shape them, and the advantages and limitations of corporate social responsibility in order to define a management model for achieving responsibility among organizations.
Abstract: Companies are, in a broad sense, a group of different agents that have a relationship with shareholders, citizens, providers, and customers. In other words, they are known as stakeholders. Corporate social responsibility may help to establish clear boundaries among the different interests of the groups described above. In this paper, the authors will describe, analyze, and formalize the critical responsibility parameters, as well as the variables that shape them. Corporate social responsibility is proposed as a new management tool and not as a fashionable concept. Furthermore, the advantages and limitations of corporate social responsibility will be analyzed in order to define a management model for achieving responsibility among organizations. Finally, the model limitations are presented, both in the verbal and the mathematical formalizations.
TL;DR: In this article, the authors examined the degree of variability of the quality of call center jobs in the information society and the new economy, taking as its focus the call center industry.
Abstract: This paper examines jobs in the information society and the new economy, taking as its focus the call center industry. More specifically, the study analyzes the degree of variability of the quality of call center jobs. In order to achieve this objective, an index of job quality is generated, and an empirical analysis of the characteristics of jobs in call centers is carried out. This allows us to determine the level and variability of quality of jobs in this sector and to establish whether the reality of these jobs is as good as the forecasts for work in the new economy.
TL;DR: In this paper, the authors presented an analysis of dividend-driven trading strategies based on dividend yield growth effects in the Polish stock market in the years 1994-2004, and they showed that the best performance was obtained during the final years.
Abstract: This study presents an analysis of dividend-driven trading strategies based on dividend yield growth effects in the Polish stock market in the years 1994–2004. Results indicate that the dividend yield growth portfolios were capable of beating the market in the entire sample period. Their performance, however, was not consistent over time and the highest returns were obtained during final years. Empirical findings based on the analysis of different types of portfolios demonstrate the importance of dividends as a source of significant fundamental information items from stock market companies. At the same time, they show that a dividend investment strategy for the Polish stock market is most successful when the selection of stocks for the dividend yield growth portfolios is subject to further restrictions, most notably concerning company size.
TL;DR: In this article, different measures of the real exchange rate, i.e., the exchange rate adapted for cost inflation, price inflation and labour costs, influence the equilibrium view and misalignment of the South African rand/US dollar exchange rate.
Abstract: This article indicates how different measures of the real exchange rate, i.e., the exchange rate adapted for cost inflation, price inflation and labour costs, influence the equilibrium view and misalignment of the South African rand/US dollar exchange rate. The approach followed is based on the behavioural equilibrium exchange rate approach by Clark and MacDonald (1998), where the exchange rate is influenced by a number of fundamental and transitory factors. The real equilibrium exchange is estimated by using a single equation regression and a number of key explanatory variables. To determine the long-run relationship a Vector Error Correction Mechanism is used.
TL;DR: In this paper, a study of the structural characteristics of agriculture activities in the LLS of Tuscany on the basis of the micro-data from the last General Agricultural Census is presented.
Abstract: The features of the Italian economy cannot be properly understood without taking into account the territorial organization, in particular, the so called local productive systems. The Italian National Statistical Institute provides a partition of the Italian territory into Local Labor Systems (LLS) on the basis of the Population Census data. LLS are a set of contiguous municipalities with a high degree of self-containment of daily commuter travel. This paper focuses on a study of the structural characteristics of agriculture activities in the LLS of Tuscany on the basis of the micro-data from the last General Agricultural Census. The main aim is to provide a picture of the economic activities of the LLS by using data from the Population and the Industrial censuses also.
TL;DR: In this paper, the authors investigated to what extent the observed nonlinearities in the unemployment rates of six major developed economies are the response to cyclical asymmetries and compared two classes of models: strict smooth transition autoregressions and models where the transition variable is GDP growth, which is considered a more direct indicator of the business cycle.
Abstract: This paper investigates to what extent the observed nonlinearities in the unemployment rates of six major developed economies are the response to cyclical asymmetries Two classes of models are compared: strict smooth transition autoregressions and models where the transition variable is GDP growth, which is considered a more direct indicator of the business cycle The empirical evidence points out that nonlinearities in unemployment rates are induced by cyclical asymmetries It is also found that in most countries the unemployment rate looks stationary and reverts to a long-run equilibrium rate in periods of normal growth, while in extreme cyclical situations it tends to become nonstationary as if each extreme cyclical episode had its own path of equilibrium
TL;DR: In this article, the authors analyzed the statistical relationship between business cycles correlation and trade intensity in the European Union, euro zone, and the Portuguese economy and concluded that there is a positive effect that supports the endogeneity argument proposed by Frankel and Rose (The Economic Journal 108(449):pp. 1009-1025, 1998).
Abstract: Observing the statistical relationship between business cycles correlation and trade intensity in the European Union, euro zone, and the Portuguese economy, we conclude that there is, in general, a positive effect that supports the endogeneity argument proposed by Frankel and Rose (The Economic Journal
108(449):pp. 1009–1025, 1998). However, if we analyse this relationship in sub-periods – 1967–1975, 1976–1985, 1986–1992, and 1993–2003 – we conclude that endogeneity hypothesis just hold in the first two, although the correlations are increasing. This could mean that, after the Single European Act in 1986, other forces beyond trade are contributing to business cycle synchronization. The Portuguese business cycle correlation with the European Union and the Euro zone had also increased in these four decades, despite the fact that endogeneity hypothesis is at a 90 percent confidence level. We also analyse the bilateral relationships between the Portuguese economy and the other European Union countries and find that the endogeneity is confirmed in just four cases: Spain, Ireland, Netherlands, and UK.
TL;DR: In this article, the authors investigated socio-economic gaps between countries of the European Union (EU) and grouped them into five sets to find out if the different groupings differ in means and variances.
Abstract: This research investigates socio-economic gaps between countries of the European Union (EU). The countries, for comparison purposes, are grouped into five sets to find out if the different groupings differ in means and variances. The overall conclusion is that the 15 core combinations outperform the rest when comparisons are made on the basis of 45 socio-economic variables. However, the newly added countries in the enlargement appear to be fairly homogeneous when compared in accordance with the 45 variables. Of special interest is whether the inclusion of Turkey among the newly admitted would have changed the pattern of homogeneity among them. The answer to this question is a guarded yes.
TL;DR: This paper examined the division of labor within households and marital matching patterns in the USA using both the Current Population Survey (CPS) and the National Longitudinal Survey of Youth (NLSY).
Abstract: We examine the division of labor within households and marital matching patterns in the USA using both the Current Population Survey (CPS) and the National Longitudinal Survey of Youth (NLSY). We use Becker’s theory of marriage markets by estimating household production functions and using the estimates to test for positive or negative assortive matching. We also construct match matrices, which are used to judge how well our model fits Becker’s theory. We find positive assortative matching on all traits in young marriages and couples without children, and negative assortment along some traits in marriages with children. This suggests that children induce specialization whereas couples without children exploit household public goods.
TL;DR: In this article, the relationship between social capital and economic growth is analyzed taking into account the role of fiscal policy from theoretical and empirical points of view, where human capital and public capital effects on economic growth are considered.
Abstract: The main goal of this paper is to analyse the relationship between social capital and economic growth taking into account the role of fiscal policy from theoretical and empirical points of view. To achieve this goal, “Human Capital and Public Capital Effects on Economic Growth” is focused on the effects of two traditional factors: human capital and public capital effects on economic growth. “Social Capital Effects on Economic Growth” considers qualitative variables introducing some socioeconomic effects on economic growth process analysis. In this case, social capital the main variable will be considered. “Empirical Analysis,” an empirical analysis is developed considering the case of European countries prior to the EU enlargement. Finally, in Conclusions,” the main conclusions will be resumed.
TL;DR: In this article, the authors examine the welfare costs of inflation within a monetary dynamic general equilibrium framework with human capital that incorporates endogenous, ex ante skill heterogeneity among workers, and empirically test this proposition using a panel of several countries.
Abstract: This paper examines the welfare costs of inflation within a monetary dynamic general equilibrium framework with human capital that incorporates endogenous, ex ante skill heterogeneity among workers. Numerical experiments indicate that, overall, welfare costs are more likely to decrease with increases in skill heterogeneity. An implication of this feature is that a greater degree of skill heterogeneity may be associated with a higher tolerance for inflation, consequently implying a positive correlation between agent heterogeneity and inflation. Using a panel of several countries we empirically test this proposition. Our evidence lends some support to this hypothesis. (This abstract was borrowed from another version of this item.)
TL;DR: This paper examined how total expenditure would develop under four policy rules on public expenditure growth and found that realistic gradual adjustment in non-age-related expenditures could go a long way towards maintaining fiscal sustainability under age-related spending pressures.
Abstract: Projections of age-related public expenditure growth have raised widespread concerns about fiscal sustainability. This paper examines how total expenditure would develop under four policy rules on public expenditure growth. Some simple arithmetic of expenditure, GDP, and population is reviewed and applied in simulations for 19 OECD countries over 2000–50. A general and a specific conclusion arise from the results. Generally, long-term expenditure projections could benefit from revisiting common assumptions on non-age-related expenditure growth. Specifically, realistic gradual adjustment in non-age-related expenditures could go a long way towards maintaining fiscal sustainability under age-related spending pressures.
TL;DR: In this paper, the authors identify important characteristics in the entrepreneurial structure, such as the structure of the size of firms, main activity sectors, or the degree of innovation, and empirically contrast the importance of these entrepreneurial characteristics and try to relate them with territorial economic growth.
Abstract: In the field of territorial economic growth, it is possible to identify important characteristics in the entrepreneurial structure, such as the structure of the size of firms, main activity sectors, or the degree of innovation. However, other lesser known characteristics are important also, such as functional dependency, which considers the relationship between small and medium enterprises (SMEs), and suppliers and clients belonging to any territorial field or productive dependency, which considers the level of concentration in terms of buying and selling in connection with the main suppliers and clients, respectively. In order to empirically contrast the importance of these entrepreneurial characteristics and try to relate them with territorial economic growth, a sample of 400 enterprises in the province of Seville (Spain) is used.
TL;DR: In this article, the responses of individuals to marginal tax rates in their reporting of income, using data from individual tax returns for the year 1995, were estimated using ordinary least squares regression and quantile regression.
Abstract: In this paper we present estimates of the responses of individuals to marginal tax rates in their reporting of income, using data from individual tax returns for the year 1995. One estimation method is ordinary least squares regression. A second method uses quantile regression, which provides evidence on behavioral responses at different points (or quantiles) in the distribution of income and so is relevant to the question of whether the responses of, say, the rich differ from those at other points in the income distribution. Our results clearly indicate that marginal tax rates affect the reporting decisions of individuals. However, there are significant differences in the marginal tax rate reporting responses for the various types of reported income, there are major differences across income classes, and there are notable differences in the estimated responses across estimation methods.