State Characteristics and the Locational Choice of Foreign Direct Investment: Evidence from Regional FDI in Mexico 1989–2006

ABSTRACT Despite the growing importance of foreign direct investment (FDI) in the Mexican economy, statistical evidence on the determinants of the regional distribution of foreign‐owned firms is seriously limited. In this paper, empirical findings are presented from a variety of econometric models that identify several regional characteristics influencing the locational choice of FDI. The main findings are threefold. First, several locational factors appear to be potentially important; these include regional demand, wages, schooling, infrastructure, and agglomeration economies. Second, the effect of agglomeration economies stems from several sources. In particular, the regional presence of agglomerations of manufacturing activity and of foreign‐owned manufacturing firms both have an independent positive effect on the locational decision of new FDI. Third, the locational process of maquiladora firms differs from the locational process of overall FDI. The actual findings suggest that regional demand and infrastructure, as suggested above, are not important locational factors for export‐oriented firms. Furthermore, whereas agglomeration economies from manufacturing and the presence of existing FDI attract new maquiladora investment, the presence of a regional agglomeration of services deters the location of new maquiladora firms. Finally, agglomeration economies appear to be more important in the locational process of maquiladora firms.     

Redefining “Offshore” in Latin America

Offshoring and outsourcing are two terms—often used interchangeably—that comprise an essential element of the modern post‐industrial global economy. Analysis of this phenomenon in the United States is often framed in the light of job loss and economic decline relating to the manufacturing or low‐end services sectors, but this paper will revisit the traditional offshore industry—that of offshore finance and offshore financial centers (OFCs) and compare OFC offshoring with traditional offshoring in Latin America. This paper argues that some similarities are evident when comparing OFC offshoring with traditional offshoring but many differences exist. Using the framework or “lens” of politics certain OFC offshoring issues and tensions with the onshore world relating to unfair tax competition, money laundering, sovereignty, secrecy, regulation, trust, and reputation are analyzed and are shown to be more onerous, tense and different from those occurring in the mainstream offshoring/outsourcing world. In addition, using the “lens” of cyberspace and e‐commerce, and a case study of the Cayman Islands and the Bahamas, this paper argues that the creation of an electronic infrastructure in the OFC offshoring world is as necessary as in the onshore world, but the actors and institutions creating and promoting such infrastructures are different. Future work could pursue more reputable and comparative data gathering to further more rigorous statistical modeling of the relationships both between OFCs as they compete for offshore capital, and between offshore and onshore as the onshore world seeks to further lift the veil of offshore financial opacity, particularly related to issues of money laundering.     

“Weakness” as “Strength” in the Scottish Life Sciences: The Institutional Grounding of Knowledge‐based Commodity Chains in a Less‐favoured Region

Despite all the talk of knowledge‐driven, knowledge‐based, and learning economies, it is not always clear or self‐evident whether all countries, let alone regions, will share the spoils of emerging technological trends and changes. In particular, less‐favoured regions (LFRs) like Scotland face a number of difficulties as a consequence of this emerging knowledge‐based economy (KBE) and the strategies necessary to overcome their existing uneven position in order to adapt to new global economic imperatives. More specifically, the KBE agenda invokes strategies that do not adequately address the existing uneven development of LFRs in relation to “growth” regions that have the institutional infrastructure and arrangements necessary to attract and embed new forms of employment, new knowledge capacities, and new industrial sectors. However, this article will explore the institutional grounding of the life sciences sector in Scotland in order to consider how particular institutional arrangements that may appear disadvantageous can also lead to new, potentially advantageous arrangements that can help LFRs to avoid continuing economic stagnation or decline.     

Regional Growth Dynamics in the Service Sector: The Determinants of Employment Change in UK Regions, 1971–2005

There is a need to better understand the dynamics relating to the evolving economic structure of regions, in particular factors concerning deindustrialisation and the growth of services. In order to unpick the dynamics relating to contemporary regional evolution, this paper examines regional employment in the UK's services sectors from 1971 to 2005. The analysis utilises the statistical technique of multi‐factor partitioning to examine the evolutionary dynamics of employment change in the UK service sector. Overall, differing growth trajectories in services employment across regions appear to be the result of the different underlying industrial structures observed within the regions themselves. The findings indicate that the industrial structure of a region has a significant influence on employment change in services, with related variety being of greater consequence than specialisation. This suggests that diversity, or urbanisation, effects have a greater influence than specialisation effects on “lighter” industries than “heavier” industries. Spatio‐temporal variations within the development of services are evident in the analysis, and there is evidence of convergence across the regions for all sub‐sectors examined. It concludes that in an increasingly services‐dominated economy, diversity and related variety have some weight in explaining regional development paths.     

The Agglomeration Dilemma: “Should I Stay or Should I Go?”

This paper presents a critical survey of some recent developments in the theory of international trade. Particular emphasis is given to the role of increasing returns to scale and labor mobility in shaping the pattern of industrial location across integrating countries. The goal is to review and discuss the novel insights and predictions of the so‐called “new” theories in order to pose and stimulate avenues for future research.     

Accessibility,Diversity, Environmental Quality and the Dynamics of Intra‐Urban Population and Employment Location

This paper investigates intra‐urban population and employment shifts over 1980–2000, using the Cincinnati Metropolitan Area as a case study. Population and employment are disaggregated by ethnicity (White, Black, Others) and industry (10 sectors) to better capture different location behaviors. Inter‐industry relationships are considered when constructing accessibility variables. Additional diversity, locational and socio‐economic variables are included. A location‐specific index of air quality is also considered, as a proxy for environmental quality. A structural equation model is specified to account for the dynamic interactions between populations, activities, and air quality. The results reveal strong interactions between ethnic groups, confirm the existence of agglomeration effects, and suggest that diversity has positive effects on both firms and households in both periods (1980–1990 and 1990–2000). For firms, better access to their potential customers and employees is more important than better access to their input–output sectors. Better air quality attracts population, which in turn worsens it. The results reveal changing dynamics, from 1980–1990 to 1990–2000, for different population and activity groups, and suggest that overall, firm location behaviors are more stable than household behaviors.     

Evaluating the Importance of Business Location Factors: The Influence of Facility Type

This study examines two important issues concerning the evaluation of business location factors. First, in contrast to many analyses that seek to determine the influence of a single factor or set of factors on site selection, this study aims to measure the relative importance of a wide range of factors. Second, it investigates the extent to which the perceived importance of a given location factor varies based on the type of facility in question. While there is a substantial amount of research devoted to identifying industry‐specific location factors, little is known about the influence that facility type has on the assessment of location criteria. Drawing on original survey data collected from real estate professionals in the U.S., we found significant differences in the mean ratings for more than half of the 39 location factors on the basis of facility type. In particular, “corporate/office” respondents were significantly more likely than “manufacturing” or “retail” respondents to assign higher ratings to “quality‐of‐life” location factors, such as crime rates, amenities, housing, and schools. We discuss the implications of these findings for future research on location theory.     

An “Orphan” Creative Industry: Exploring the Institutional Factors Constraining the Canadian Fashion Industry

In recent years, tier‐two fashion countries have been making gains in the global fashion industry, with hip young brands, buzz‐worthy fashion weeks and export‐oriented designers. The Canadian fashion industry, on the other hand, continues to fall behind and instead has experienced recent high‐profile closures of leading domestic fashion names. This paper explores why this is the case by considering a wide range of factors from a historical and institutional perspective. We argue that Canadian fashion is facing a number of systemic problems relating to wider institutional and policy weaknesses, rather than a lack of talent and know‐how within the entrepreneurs and businesses in the sector. While the fashion industry is indeed global, we argue that it is in fact national and local level factors—political, economic, and cultural—that structure and constrain the Canadian fashion industry for independent designers. Through exploring the experiences of this group of actors—entrepreneurial fashion designers—in this particular context, we not only learn about Canada as an economy but also what is needed in order to develop the fashion industry more broadly. We provide a framework for analysing the range of socio‐economic, historical, and political factors at the national level which affect the performance of the fashion sector and the operation of fashion designers as the entrepreneurial actors at the heart of the industry.     

Space of Flows,Uneven Regional Development,and the Geography of Financial Services in Ireland

ABSTRACT This paper is concerned with the geography of finance in the globalising knowledge‐based economy, characterised by the proliferation of information and communication technology. More specifically, the paper aims to examine the “locational structure” of financial services in such an economy and its implications for uneven regional development in Europe. In doing so, the paper engages with the concept of “space of flows” and several other theoretical approaches concerned with the geography of advanced producer services and finance. It argues that while such approaches provide a useful starting point, they need be developed further in order to inform an understanding of both the nature and the dynamics of the “locational structure” of financial services and its implications for regional economic development. This point is illustrated in the case of Ireland, focusing on “domestic” banking institutions and “international” financial services operating there. The paper concludes that while “space of flows” provides a useful metaphor for approaching the geography of financial services and other knowledge intensive business services, the conceptual and analytical emphasis should shift towards the “flows of value” that ultimately impinge upon the fortunes of cities and regions.     

Fluctuations and Downturns in a “Company Town”

ABSTRACT A semi-structural VAR time-series model was used to examine movements in Flint Metropolitan Statistical Area (MSA) employment levels and determine how area employment was affected by movements in different sectors of the U.S. economy. Flint was chosen because in 1958 over 50 percent of the area's population was employed by the transportation industry, the majority in automobile production, and therefore Flint should be considered as a company town prototype for this modeling technique. Due to the dependency of this area's employment base on the automotive industry and the highly volatile nature of area employment levels, the Choleski decomposition was used instead of the structural Bernanke method. It was found that the effects of movements in the automotive industry were a major impact on aggregate area employment as well as on virtually all manufacturing sectors. These results are more robust than those for the Detroit Metropolitan Statistical Area (PSA) ¹ 1 As found in Rushen (1993).
. This is due primarily to Flint's greater degree of area dependency on the automotive-industry.     

Beyond “Global Production Networks”: Australian Fashion Week's Trans‐Sectoral Synergies

ABSTRACT When studies of industrial organisation are informed by commodity chain, actor network, or global production network theories and focus on tracing commodity flows, social networks, or a combination of the two, they can easily overlook the less routine trans‐sectoral associations that are crucial to the creation and realisation of value. This paper shifts attention to identifying the sites at which diverse specialisations meet to concentrate and amplify mutually reinforcing circuits of value. These valorisation processes are demonstrated in the case of Australian Fashion Week, an event in which multiple interests converge to synchronize different expressions of fashion ideas, actively construct fashion markets and enhance the value of a diverse range of fashionable commodities. Conceptualising these interconnected industries as components of a trans‐sectoral fashion complex has implications for understanding regional development, world cities, production location, and the manner in which production systems “touch down” in different places.     

Genetic analysis of prolificacy in “Sikkim Primitive”—A prolific maize (Zea mays) landrace of North‐Eastern Himalaya

Prolificacy assumes significance for development of high‐yielding baby corn hybrids. “Sikkim Primitive” is a native landrace of North‐Eastern Himalaya, and is the highest prolific maize germplasm. So far, the genetics of prolificacy in “Sikkim Primitive” has not been deciphered. Here, a prolific inbred (MGU‐SP‐101) developed from “Sikkim Primitive” was crossed with four non‐prolific inbreds viz., LM13, BML7, HKI161 and HKI1128. Six generations (P₁, P₂, F₁, F₂, BC₁P₁ and BC₁P₂) of the crosses were evaluated at two locations during rainy season 2018. MGU‐SP‐101 possessed 2.50–3.78 ears per plant compared to 1.06–1.86 among non‐prolific inbreds. The variation for ears was the highest in F₂s (1–8), followed by BC₁P₁ (1–7) and BC₁P₂ (1–5). The quantitative inheritance pattern of prolificacy with prevalence of non‐allelic interactions of duplicate epistasis type has been observed. Dominance × dominance effect was predominant over additive × additive and additive × dominance effects. Total number of major gene blocks ranged from 0.41 to 2.86, thereby suggesting the involvement of at least one major gene/QTL governing the prolificacy. This is the first report of genetic dissection of prolificacy in “Sikkim Primitive”.     

Heritability of spotted wilt resistance in a Florida‐EP™ “113”‐derived peanut (Arachis hypogaea) population

Spotted wilt, caused by tomato spotted wilt virus (TSWV), is a major disease of peanut (Arachis hypogaea ) in the south‐eastern United States. Cultivar resistance is the most important factor in disease control. However, spotted wilt resistance in current cultivars still carries risk in the absence of other practices when disease is severe. In contrast, a newly developed cultivar, Florida‐EP? “113,” has demonstrated excellent resistance even when spotted wilt is severe. Information on heritability of this resistance can help breeders better utilize it in breeding. F₂‐derived populations from the cross Florida‐EP? “113”/Georgia Valencia were developed and tested in field experiments in Florida from 2012 to 2014. Disease symptoms were evaluated visually, and the frequency of TSWV infection was measured by ImmunoStrip^®. Heritability estimated from ImmunoStrip^® was higher (0.66) compared to visual ratings (0.48). Genetic correlations among evaluation methods (r _A = 0.92–0.99) and environments (r _B = 0.86–0.99) were high. These results indicate that resistance in Florida‐EP? “113” is highly heritable and that selection in a high disease risk environment is feasible without significant erosion of genetic gain.     

Ireland's Foreign‐Owned Technology Sector: Evolving Towards Sustainability?

ABSTRACT For some, Ireland's pursuit of an exogenous‐led development model has proved to be the cornerstone of recent economic success. Others point to recent high‐profile closures and argue that foreign‐owned operations are attracted to Ireland solely because of the advantageous tax breaks and lucrative grants scheme offered by the Irish government. We pay tribute to both arguments by pushing the level of enquiry beyond that of supply and backward linkages to try and gauge the actual performance of affiliates themselves. This brings some interesting facets of the Irish foreign direct investment scene to light. We highlight complexity of process, attainment of broader investment remits, and the emergence of a managerial class as integral to the ability of affiliates to adapt to and exploit organisational change. By examining 10 case studies and making use of media searches and company interviews, we highlight evidence of Ireland's largest technology transnational corporation affiliates showing positive performance advances. With these movements come, what we term, increased nodal significance of Irish operations within the global production network of their corporations. We argue against policy and theories that see these movements as linear and provide evidence of how some Irish operations have leveraged control and gained significant regional and global remits that have resulted in their growing significance, both in the corporation and in the country in which they are based. In the same line we argue that embeddedness in terms of supply linkages does not fit the Irish case and instead employ the term “network anchoring” of affiliates as they increase their nodal weighting through increased mandates.     

The Export Decision of Selected Services-Producing and Manufacturing Industries

This article provides a comparative analysis of factors influencing the out-of-state export decisions of establishments within selected groups of services-producing and manufacturing industries. Data were gathered through a mail survey of establishments located in both rural and urban areas of five Midwestern states. The proportion of sales exported was specified as a function of establishment and location characteristics and estimated using Tobit analysis. Results of the study indicate that both establishment and location characteristics are important predictors of the export decision and confirm that establishments in some services-producing industries are able to enter and compete in out-of-state export markets. Similar factors were found to influence the export decisions of services-producing and manufacturing establishments. Results suggest that services-producing establishments in the group of industries may not be footloose with respect to locational choices.     

Alleles on the two dwarfing loci on 4B and 4D are main drivers of FHB‐related traits in the Canadian winter wheat population “Vienna” × “25R47”

Fusarium head blight (FHB), leaf rust and stem rust are among the most destructive wheat diseases. High‐yielding, native disease resistance sources are available in North America. The objective of this study was to map loci associated with FHB traits, leaf rust, stem rust and plant height in a “Vienna”/”25R47” population. DArT markers were used to generate a genetic map, and quantitative trait loci (QTL) analysis was performed by evaluating 113 doubled haploid lines across three environments in Ontario, Canada. FHB resistance QTL were identified on chromosomes 4D, 4B, 2D and 7A, while a QTL for leaf and stem rust resistance was identified on chromosome 1B. The dwarfing alleles of both Rht‐B1 and Rht‐D1 were associated with increased FHB index and DON content.     

Local Embeddedness,Market Focus,and Productivity: Evidence of Taiwanese Manufacturing MNE Subsidiaries in China

There has been considerable literature discussing the characteristics and importance of location‐specific factors in the context of Foreign Direct Investment (FDI), but very little literature linking location‐specific factors to productivity. This study explores, for each location‐specific factor, the relationship between the degree of local embeddedness and the labor productivity. We contribute to the body of literature on location‐specific factors by arguing that market focuses play a pivotal role in determining the impact of local embeddedness on productivity. Based on their strategic choices, we categorize Taiwanese manufacturing multinational enterprise (MNE) subsidiaries in China into two groups: the local‐market‐focus group and the export‐market‐focus group. The paper fits the Ordinary Least Squares (OLS) regression models to the export‐market‐focus group and the local‐market‐focus group separately. For these two groups, each local‐embeddedness variable exerts different effect on labor productivity. Results also suggest that local‐market‐focus FDI is more affected by the host country's local business environment than is export‐market‐focus FDI. Although this study cannot represent all foreign companies in China, its dynamism offers a rich context in which to explore a deeper understanding of foreign companies' business activities in China.     

“玉米生产管理智能决策系统”推广应用制约因素分析

信息技术农业应用是党的十五届三中全做出的一项重大决策。本论文通过对吉林省农安县、榆树市推广应用“玉米生产管理智能决策系统”的实证研究及定性分析的基础上,利用SPSS软件借助Logit模型进行定量分析,研究得出影响农户采用“玉米生产管理智能决策系统”的决定因素,以期为农业信息技术的大规模推广应用提供理论和实践依据。     

Creative Industries and Regional Productivity Growth in the Developing Economy: Evidence from Indonesia

This paper examines the degree to which creative industries stimulate regional productivity growth in a developing country, Indonesia. The Indonesian government promotes long‐established “traditional” craft businesses as creative industries, but they pay less attention to new knowledge creation and focus on highlighting heritage values as selling points. Our findings show that the “real” creative industries are still scarce and found mostly in fairly advanced urban regions. These industries are more likely to be an indicator than a driver of regional economic development. Meanwhile, those traditional businesses are much larger than creative industries and potentially contribute to regional productivity through consumption activities, thereby requiring different policy strategies.