TO WHAT EXTENT CAN THE INFORMAL ECONOMY CONCEPT ADEQUATELY EXPLAIN THE DYNAMISM OF THE NON-FORMAL SECTOR IN DEVELOPING COUNTRIES?
The informal economy exists in both developing and developed nations, though it is most often associated as an engine of economic dynamism in developing countries. The concept is generally defined as the sum of economic income generating activities outside of the formal economy, which are registered, tax paying and legal. Since the 1970s when the term first entered academic discourse, the informal economy conceptually evolved through several distinct phases starting with neoliberal, then to reformist and next structuralist ideology before the term outgrew its usefulness in the 1990s and turned into the „social network‟ concept to understand why and how people operate outside of the formal economy. This paper argues that the discourse of the informal economy remains inadequate and ill-defined to deal with developing countries‟ policy dilemma on mainstreaming the informal economy.
COGNITIVE REPRESENTATION OF EMPLOYEES CAREER POSSIBILITIES IN A BELGIAN PUBLIC COMPANY
Anne Goujon Belghit
In order to understand the tools used by the company employees to make a career, we opt for a method centered on the intellectual plans of the respondents concerning their perception of the career opportunities. The cognitive map, setup by the researcher, allows schematization of the interviewees’ representation of reality. Our study examines career opportunities as perceived by the public enterprise workers on the eve of a major restructuring. We wish to answer the following questions: How do executive and non-executive employees from a public enterprise, as seen through cognitive maps studies, see their chances for a career?
CUSTOMS UNIONS AMONG PRODUCING COUNTRIES WITH DIFFERENT COSTS
Jose Mendez-Naya and J. Tomas Gomez-Arias
The effects of production cost asymmetries on the sustainability of customs unions among producing countries are investigated using a homogeneous-product Cournot oligopoly model, in which three producing countries subsidize exports of an homogeneous good to a consumer country that imposes a tariff on imports. It is found that the only sustainable customs union is the one formed by the threemember customs union. However, although the said customs union will be in equilibrium if utility transferences among member countries are allowed, it could not be in equilibrium if such transferences are not allowed.
EXAMINING THE LONG RUN EFFECTS OF EXPORT, IMPORT AND FDI INFLOWS ON THE FDI OUTFLOWS FROM INDIA: A CAUSALITY ANALYSIS
The objective of this paper is to examine the effects of international trade and investment related macro economic variables, namely, exports, imports and FDI inflows on the outflows of FDI from India over 1970 through 2005. Using time series data analysis, the empirical part of the paper finds unidirectional Granger Causality from export and import to FDI outflows but no such causality exists from FDI inflows to the corresponding outflows from India. Results confirm the assumption that lagged imports and exports are a driving force of current FDI outflows and that India‟s capability of undertaking outbound FDI will be related to the country‟s performance in its trade front.
THE IMPACT OF REGULATORY STANDARDS, INTEREST RATES AND TRADING VOLUME ON VOLATILITY TRANSMISSION BETWEEN CROSS-LISTED EUROPEAN EQUITIES
Koulakiotis, Dasilas, Tolikas, and Molyneux
This paper investigates the relationship between volatility transmission and stock market regulatory structures, interest rates and trading volume for European securities which are cross-listed on stock exchanges of higher, lower or similar regulatory standards compared to their home stock markets. The empirical results suggested that the regulatory environment has a significant impact on volatility spillovers and the level of interest rates and trading volume have a positive impact on the magnitude and persistence of these volatility spillovers. These findings have potentially important implications for both regulators and investors who are concerned with the effectiveness of legislation aiming to harmonise the European stock markets and the effects of volatility transmission on investment positions across European stock markets.