FALL 2005
VOLUME 6, NUMBER 1

ECONOMIC INTEGRATION AND MANUFACTURING LOCATION IN EU ACCESSION COUNTRIES

Simonetta Longhi, Peter Nijkamp, and Iulia Traistaru

This paper investigates patterns of manufacturing location in the context of increased economic integration in European Union accession countries. Using regional data for the period 1990-1999, we identify and compare patterns and determinants of manufacturing location in five countries: Bulgaria, Estonia, Hungary, Romania and Slovenia. Our research results indicate that factor endowments and geographic proximity to large markets determine the location of manufacturing in these countries.


https://doi.org/10.51240/jibe.2005.1.1          PDF

THE DYNAMIC RELATIONSHIP BETWEEN FDI AND WAGES: EVIDENCE FROM THE PEOPLE'S REPUBLIC OF CHINA

Bala Ramasamy and Matthew C.H. Yeung

The objective of this paper is to evaluate the relationship between FDI and wage rates using the wellestablished Granger causality method but with a panel data setting. The paper considers the dynamic relationship between these two variables for 27 provinces over the 1985 – 2000 period. We also distinguish between the coastal and inland provinces. Results indicate that Granger causality runs from FDI to wages for the coastal provinces but no significant relationships are found for the inland provinces. These results imply that FDI is a contributing factor for increasing wage rates in China. In particular, our findings show that the “cheap labour” hypothesis does not apply for China. It furtherindicates that increasing inflow of FDI into the coastal provinces relative to the inland provinces exacerbate the unequal distribution of wealth between the regions.


https://doi.org/10.51240/jibe.2005.1.2          PDF

CEO COMPETITIVENESS: CEO TYPE VS. ECONOMIC DEVELOPMENT OF NATIONS

Irene Il-Yun Suh, Dong-Sung Cho, and Kwang-Soo Yi

This study reconsiders CEO (Chief Executive Officer) types by country in terms of competitiveness and also inquires CEO types and levels on each country group under categories regarding economic development stages, namely, Subject Dependent (SD), Environment Dependent (ED), Resource Dependent (RD), Mechanism Dependent (MD) and Creative Destruction (CD). To form variables for CEO types, s, e, r, M factors were utilized for competitive factors in the ‘Nine-factor’ model, and the variables needed for the development stages in CEO types were formulated with these s, e, r, and M factors. Most of previous studies regarding the categorization of CEO types used qualitative methods, with their types being categorized under subjective standards. By contrast, this study is unique in the sense that it covers the overall CEO competitiveness of each country which inquires the demanded issues for CEOs reflected in each development stage, and thus, enlightens us on the efforts needed for the future.


https://doi.org/10.51240/jibe.2005.1.3          PDF

A COMPARISON OF THE FINANCIAL CHARACTERISTICS OF U.S., U.K., GERMAN, AND FRENCH MANUFACTURING FIRMS

Ilhan Meric, Larry Prober, Joe Kim, and Gulser Meric

This article compares the financial characteristics of U.S. firms with the financial characteristics of U.K., German, and French firms in four major manufacturing industries by using the MANOVA (Multivariate Analysis of Variance) method with data for the January 1997-December 2001 period. The findings indicate that the financial characteristics of U.S. and European manufacturing firms are significantly different. The most significant differences are between U.S. firms and German firms. U.S. firms are generally more profitable and they have lower return-on-equity volatility risk in comparison with European firms.


https://doi.org/10.51240/jibe.2005.1.4          PDF

DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN LESS DEVELOPED COUNTRIES: A FACTOR ANALYSIS APPROACH

Cranmer Rutihinda

Using factor analysis this study explores factors influencing the choice of foreign direct investment in less developed countries. Results show significant relationships between foreign direct investment and institutional quality, infrastructure development, market size, availability of natural resources, and quality of human capital. However, the study found no significant relationship between foreign direct investment inflows and economic stability.


https://doi.org/10.51240/jibe.2005.1.5          PDF

DETERMINANTS OF CORPORATE RESTRUCTURING IN KOREA AFTER THE 1997 ECONOMIC CRISIS: AN EMPIRICAL INVESTIGATION

Chinmay Pattnaik

This study examines the impact of corporate governance and firm characteristics on corporate

restructuring in Korea after the economic crisis. We specifically analyze factors that had a bearing on corporate restructuring following the sudden economic downturn. In particular, we examine the impact of firm characteristics such as leverage levels and prior performance, together with ownership structure like insider block-holding ownership, foreign investor ownership, and institutional investor ownership on the extent of asset sales. The empirical results show that firm characteristics such as high prior performance have a negative impact on asset sales while high leverage has a positive impact. In the ownership structure, insider block holding and foreign investor ownership have negative impacts on asset sales.


https://doi.org/10.51240/jibe.2005.1.6          PDF

EVALUATING A JOINT VENTURE: NUMMI AT AGE 20

Edwin C. Duerr, Mitsuko S. Duerr, Gerardo R. Ungson, and Yim-Yu Wong

In 2004, General Motors and Toyota celebrated the 20th anniversary of the formation of their 50-50 joint venture, New United Motor Manufacturing, Inc.(NUMMI). The success of this joint venture is set in sharp contrast to the pattern of failures of strategic alliances documented in empirical research. To explain this, we recast NUMMI in terms of an alliance learning model, and organize in three sections. First, we discuss the case of NUMMI derived from published sources and our own interviews with Toyota at different stages of the joint venture; second, we develop a conceptual model depicting learning dynamics and possible extensions of extant theories; and third, as a prelude to future endeavors by both firms, this paper explores the evidence regarding what was learned, the differences in benefits derived, and the probable causes of these differences based on field interviews.


https://doi.org/10.51240/jibe.2005.1.7          PDF