The Role of Education in Self–Employment Success in Finland

This paper analyzes the effect of self–employed persons’ education on the success of their firms during the economic downturn and upturn of the 1990's. It is found that the business cycle affects the relative closure rates of firms run by self–employed with any level of education. Exit probability is lower for the highly educated during bust, but higher in boom. This is accounted for by two facts. First, running a small firm is argued to be a less attractive choice to wage work, particularly for the highly educated, due to lower earning prospects, less stable stream of earnings, and the cultural tradition of working in large corporations. Second, the highly educated faced a higher outside demand for their labor than did the less educated during economic upturn. Finally, it was found that regardless of the state of aggregate economy, firms run by the highly educated have higher growth probabilities than those run by less educated persons.     

Technological Change and Environmental Policy: The Diffusion of Environmental Technology

As concern for environmental protection is growing within all sectors of society, industrial firms are being forced to become more accountable for their actions. Government policies, in the form of environmental standards, have been designed to reduce the level of toxic pollutants being discharged by firms. In order to comply with these standards, firms must either change the nature of their production processes or employ technologies that reduce the level of effluent being discharged. This paper investigates the role of environmental policy in driving firms to adopt pollution control technologies. The policy addressed is the Province of Ontario's Municipal Industrial Strategy for Abatement (MISA) which seeks to compel firms to reduce discharges of industrial effluent through the application of the “Best Available Technology Economically Achievable.” The impact of this policy instrument on the adoption of pollution control technology in the Ontario organic chemical industry is examined. The analysis is based on interviews with firms in the chemical industry which reveal that environmental policy has played a central role in inducing firms to adopt pollution control technologies. The paper draws on literature about technology diffusion, especially the relationship between suppliers and users of technology, and examines the process through which environmental technology is transferred to regulated firms. The relationship between the suppliers and users of technology is strong, especially between the large multinational users and smaller independent domestic technology suppliers.     

Competitive Characteristics of Small and Medium-sized Manufacturing Firms in the US. and Canada

ABSTRACT This paper examines the competitive characteristics of small and medium-sized manufacturing firms (SMFs) in a Canada-U.S. crossborder region (the Niagara Frontier). Particular attention is given to the innovation and business performance of comparably-sized firms on both sides of the border. The results of two firm-level surveys are presented. A comparative analysis of the two groups suggests that Canadian Sh4Fs exhibit significantly stronger export and innovation performance than their US. counterparts. The results also suggest that U.S. firms face tougher competitive difficulties arising fiom specific national and regional circumstances, including shortages of skilled labor, higher corporate tax rates, rising import competition, and a more complex regulatory environment. The implications of the empirical results are discussed in the context of policy options for regional economic development in crossborder zones such as the Niagara Frontier     

Agglomeration and firm performance in times of economic turmoil: Evidence from Tunisian firm-level data

The paper analyzes the relationship between agglomeration economies (urbanization, specialization, and diversity) and firm-level performance during a period of deep economic downturn (2011–2018). We use data from the National Survey of Economic Activities for eight Tunisian manufacturing industries to explore which agglomeration externalities matter most for firm performance after the revolution. The analysis considers, in addition, the role played by selected firm-specific characteristics. The empirical results, based on a multilevel analysis approach, sanction the importance of firm-specific determinants of productivity and exporting. They also indicate that only specialization externalities have a positive and significant effect on firms' performance. The replicate results during a period of economic stability (1998–2004) show, however, that specialization and urbanization economies are both relevant predictors of firms' productivity and that more productive firms, in particular the smaller ones, are better able to benefit from agglomeration. This finding has not been confirmed for the post-revolutionary period.     

Drivers of Regional Efficiency Differentials in Italy: Technical Inefficiency or Allocative Distortions?

This paper estimates regional economic efficiency differentials at the firm level for the Italian manufacturing sector in the period 1998–2003. We implement an input distance‐function approach providing measures of both technical inefficiency and allocative distortions in the choice of input mixes. Our results confirm the substantial technical efficiency gap suffered by firms located in Southern regions, thus providing empirical support for the “structural and technological gap” interpretation of Italian dualism. On the other hand, the allocative distortions in the use of inputs show less‐remarkable regional differences. In terms of policy, our results suggest the need for a reallocation of public resources for development policies from business incentives to public investment.     

‘Governed freedom’ in Oceania: AusAID,subjectivation and the practice of critique in studies of governmentality

Drawing predominantly on the work of Butler, Rose and Walters, this paper examines the governing rationalities and technologies that characterise one particular site of aid relations. Focusing on key policy documents, economic surveys and performance reports, the paper traces the fashioning of particular subjectivities as constitutive of AusAID's development objectives and the function of problematisation and responsibilisation as central to these practices of subjectivation. While I argue the freedom on offer as part of AusAID's development objectives is a highly governed one – where the ‘free’ economic‐rational subject adopts certain ‘civilised sensibilities’ (Rose, 1999: 78), I show how this process of subjectivation encompasses both ‘a power exerted on a subject’ and ‘a power assumed by the subject’ (Butler, 1997: 11). What becomes apparent through this analysis is the productive and tenuous characteristics of these practices of subject formation. This paper also foregrounds the practice of critique itself, and the very act of research; concepts adopted and explanations made, as far from innocent in their performativity in enacting some worlds and not others.     

The Influence of Agglomeration Externalities on Manufacturing Growth Within Indonesian Locations

Differences in agglomeration externalities and industrial regimes between locations generate performance differentials for their localized economic activities. For more than two decades, scholars have debated which externality is dominant for growth and under which regime. This study aims to resolve this debate by analyzing the influence of agglomeration economies on the growth of five‐digit manufacturing sectors and firms for Indonesian cities and regencies between 2000 and 2009. This is investigated employing the recent reconceptualization of variety based on sectoral linkages distinguishing related and unrelated varieties, which allow assessing their idiosyncratic economic roles. The findings support that economic relatedness is the dominant source for expansion of sectors and firms within Indonesian locations. Specialized clusters and competition are inversely related to manufacturing growth, although the latter fosters sectoral employment within Indonesian regencies. Population density and human capital show antithetic effects between cities and regencies due to their distinctive urbanization trajectories and industrial compositions.     

中国居民收入差距的成因、演进与分解

基于1978-2009年以来的省级面板数据,本文首先利用泰尔指数估计了中国居民收入差距演进趋势,然后按地区结构和城乡结构进行了分解。结果显示,城乡收入差距占据了整体收入差距的70%以上,三大地区间的收入差距虽较为明显,但并没有地区内的收入差距显著。究其原因,中国收入差距的演进除了内在的经济规律使然外,经济政策也有较为明显的影响。因此,加快经济发展、强化农村偏向型的经济政策是缩小收入差距的必然途径。     

Something New or More of the Same in the Bidding Wars for Big Business?

The economic downturn that began in 2007–2008 was blamed by some commentators on neoliberalism and pro‐business policies. So we might expect U.S. state and local governments to have responded with policy changes affecting their neoliberal economic development strategies. Based on this assumption, this paper is a theoretically informed examination of recent high‐profile bidding wars in Wisconsin. The highest profile example was in 2009 when General Motors chose a plant in Michigan over Wisconsin and Tennessee for a new small car line. Wisconsin's Commerce Secretary characterized Michigan's $1.2 billion incentive offer as “absolutely crazy” (compared with his state's $409 million offer!). My main research question is how have Wisconsin state and local governments adjusted their neoliberal economic development efforts in these bidding wars given the recent economic downturn and weak economy? This paper uses the largest incentive offers in Wisconsin during the tenure of the current and previous state governors within the context of ten themes drawn from the literature to problematize the neoliberal policy of bidding for big business. It concludes by considering the implications for economic development policies.     

Incubating an Illusion? Long‐Term Incubator Firm Performance after Graduation

Local economic development policies worldwide perceive business incubation as an effective measure to promote regional growth through the support of young and innovative ventures. The common assumption is that incubation promotes firm growth, in particular after these firms graduated from their incubator organisations. However, knowledge regarding the performance of incubated ventures after they have (successfully) completed their incubation is almost non‐existent. This article investigates the long‐term development of 324 graduate firms from five German business incubators (incubated between 1990 and 2006). The present study does not suffer from a survivor bias, meaning that performance data of non‐surviving firms is also included. Using employment and sales measures as performance indicators, this study contradicts existing results with regard to long‐term graduate performance. Findings of this paper do not support the presumption of sustainable and strong firm growth beyond incubation.     

Growth of Incumbent Firms and Entrepreneurship in Vietnam

This paper analyzes the relationship between the performance of incumbent firms and the net entry of new firms by combining various theoretical views of entrepreneurship. Different regression models to treat dynamics and endogeneity issues are applied to test the research hypothesis with regional micro‐data for 61 Vietnamese provinces from 2000 to 2008. The main finding is that net entry is associated with the performance of incumbent firms and the overall performance of the economy. Incumbents' growth and gross domestic product growth induce changes in the existing production system and stimulate the creation of an economic environment more favourable to new firm formation. Consistent with the hypotheses put forward within the “knowledge spillover,” the “error‐correction,” and other approaches, incumbents may generate new entrepreneurial opportunities not only for themselves but also for the whole society.     

Spatial Agglomeration,Technological Innovations,and Firm Productivity: Evidence from Italian Industrial Districts

ABSTRACT The aim of this paper is to analyse the impact on firms' productivity of innovative activities and agglomeration effects among firms belonging to Marshallian industrial districts and the possible joint effect of these two forces. We study a sample of 2,821 firms active in the Italian manufacturing industry in the period 1992–1995. Our analysis uses an original data set based on three different Istituto Nazionale di Statistica statistical sources—Community Innovation Survey, Archivio Statistico delle Imprese Attive (Italian Business Register), and Sistema dei Conti delle Imprese (Italian Structural Business Statistics)—to estimate an “augmented” Cobb‐Douglas production function to account for the impact of technological innovations and district‐specific agglomeration effects on a firm's productivity growth. Our data set allows us to distinguish between product and process innovations, thus, through econometric analysis, we hope to achieve a better understanding of which of these two types of innovative activities benefits most from participation in an industrial district. Our empirical results show that belonging to an industrial district and making product innovations are key factors in the productivity growth of firms and that product innovations appear to have a greater effect on the economic performance of district rather than non‐district firms.     

Towards post‐neoliberalism? The comparative politico‐economic transition of New Zealand and Chile

Abstract: This paper compares the evolution of the dominant politico‐economic paradigm over the past 80 years in two ‘resource periphery’ nation states that have become ‘models’ of economic reform, New Zealand and Chile. Analysing the forces that have driven change, it traces the shared transition from a neoclassical model, through structuralist/Keynesian principles, and on to neoliberalism. The paper discusses whether the contemporary convergence around neostructural policy represents a paradigm shift or an adaptation of the neoliberal model designed to sustain free‐market principles in a form that is acceptable to electorates. The paper concludes that the broad commonalities in the transitions are remarkable and come about as a result of shared external shocks as well as similar historical insertions into the global political economy. Notwithstanding the parallels, the comparative approach reminds us of the contingent unfolding of economic paradigms across space, a point that counters arguments that assert that neoliberalism, and the globalisation to which it gives rise, create a homogenous global political economy. This comparative study is timely, as the two countries have recently signed a bilateral strategic trade partnership. This agreement indicates continued pursuit of neoliberal agendas in both countries rather than, as respective governments have heralded it, a move to foster South–South cooperation.     

Indigenous wealth and development: micro–credit schemes in Tonga

‘Women in Development’ aid–funded credit schemes in the Kingdom of Tonga were designated as ‘failures’ by the funders because the recipient groups of textile producers, who were meant to be engaging in commercial handicraft production as development, were instead making and seemingly ‘retaining’ textile koloa (indigenous wealth). It is my contention that rather than making low–valued, low–priced textiles for tourist consumption the women made koloa textiles for the Tongan ceremonial economy where a greater range of ideological, spiritual and material gains including cash were available to them. Even though the default rate on the loans was low, and the women were engaged in a Tongan notion of development known as fakalakalaka, the funders and the critics of the schemes were either unable to or would not recognise development taking place, so driven by macroeconomic indices were their criteria and assessment. This paper looks at the implications of this disjuncture and the funders’ lack of understanding (and/or rejection) of indigenous global economic systems and hybrid notions of development inherent in the women textile producers’ actions. It explores a contemporary reality where indigenous wealth is thriving in the global economy, contributes to the literature on hybrid economic systems and challenges macroeconomically driven development policy in the Pacific.     

Trading places: Inclusive cities and market vending in the Pacific Islands

Rapid population growth in Pacific island cities far exceeds employment opportunities and is contributing to rising urban inequality and social exclusions. Livelihoods in the informal urban sector, such as market vending, provide much needed income, rural–urban connectivity and food security, but remain largely excluded from policy and planning frameworks. Spatial, economic and social exclusions limit vendors’ economic advancement, their influence over decision‐making, and their access to basic services. Local communities close to informal markets fill some of the gaps left by the policy neglect, but investment and strategic management remains inadequate when vendors do not have secure market places and recognised rights to work. This article reports on a study of three informal markets in Honiara, Solomon Islands. These markets lack legal status but make significant contributions to urban development and economic opportunities. Drawing on surveys and focus groups with vendors and urban decision‐makers we explore the impact of informal markets on urban economies, how social and institutional relationships hinder vendors’ economic advancement, and the opportunities to create more inclusive livelihoods that could contribute to equitable cities.     

Regional Differences in the Competitive Characteristics of U.S. Machine Tool Companies

The U.S. machine tool (MT) sector has undergone substantial restructuring over the past three decades. Despite signs of a commercial rebound in recent years, however, a number of critical issues remain for this industry. Not all firms share these concerns, in that differences exist between producers located in the core manufacturing belt and those located elsewhere. This paper examines the characteristics, competitive problems, and markets of firms located in these two regions. Survey data from a sample of 104 machine tool companies reveal that significant core–periphery differences exist with regard to firm–specific difficulties and markets served. The data also show that firms in the periphery have been growing significantly faster than firms in the core. The paper concludes with a discussion of the likely reasons for regional variability in the characteristics of firms in this industry. Directions for future research are also suggested, notably with regard to the interplay between national regulatory conditions and the competitive performance of MT firms.     

From free to forced adaptation: A political ecology of the ‘state‐society‐flood’ nexus in the Vietnamese Mekong Delta

This paper investigates the adaptation processes with reference to the narrative analysis of human–environment interactions in the Vietnamese Mekong Delta. From the political ecology perspective, it focuses on the discourses of the power relationships embedded within the ‘state‐society‐flood’ nexus over the course of its ‘opening‐up and closing‐off’ processes (e.g. excavating large‐scale canals for human settlements and agricultural expansion (opening‐up) and human interventions into natural systems through water control structures (closing‐off)). Drawing on empirical data gathered from 33 interviews and nine focus group discussions in three study areas and relevant literature, the paper argues that human interactions with the flood environments are intertwined with adjustments of adaptation patterns as evidenced through three periods: free adaptation (pre‐1975), transitional adaptation (1976–2010) and forced adaptation (after 2010). These processes have witnessed a gradual power shift in the ‘state‐society’ relations in manipulating floods, which moves from the top‐down towards a more collaborative fashion. By unravelling the political ecology of the ‘state‐society‐flood’ nexus, this paper exhibits the skewed development in the delta, which is largely bound to short‐term development planning to prioritise local socio‐economic and political objectives. The paper contributes important policy implications for achieving socially just and environmentally sustainable development in the delta.     

Life Sciences and Human Capital: Jobless Growth on Specialised and Local Labour Markets?

Policy makers and scholars often regard the life science industry in general, and bio‐technology in particular, as an engine of future economic growth. The expectation is that growth in the industry will ultimately provide a major boost to national employment numbers. However, in this paper, I find that the Swedish life science industry (encompassing pharmaceutical, bio‐technology, and medical technology firms) accounts for only a small proportion of total employment in Sweden. Given the recent discussion on jobless growth (i.e., economic growth without employment growth), it is here argued that focusing on employment is not necessarily the best policy approach to assessing the impacts of the life science industry on the overall economy. This paper maps and analyses the scope, structure, and geography of the life science industry and its workforce in Sweden using a unique set of data covering approximately 1,200 firms and 53,000 employees. The industry's workforce has education and income levels significantly higher than national averages, and is heavily concentrated in larger metropolitan areas and major university cities. Despite employing relatively few people and being more or less dependent on the existence and success of a few major pharmaceutical firms, the industry may still have a significant impact on the national economy by engendering high levels of education, income, and export revenues, particularly in specific regions.     

Threshold Firms: Innovation,Design and Collaboration in British Columbia's Forest Economy

This paper assesses the extent to which threshold firms have emerged within British Columbia's wood processing industries. Threshold firms comprise an innovative business segment and are growth oriented, larger than most small firms but not giant, locally owned, international in scope at least with respect to exporting, reliant on skilled, well paid employees, and that have developed knowledge‐based product market advantages. The analysis draws on an extended case study survey of 14 firms located in the lower mainland and Okanagan regions of British Columbia, and selected for their potential as threshold firms. The analysis examines six characteristics associated with threshold firms: size and ownership, internationalization, wood supply, labor relations, innovative design and collaboration, and local embeddedness. These firms reveal attributes of threshold firms, and the paper concludes by suggesting that an innovative forest policy for British Columbia could usefully focus on this type of firm.     

Import–export nexus and China's emerging trade in environmental goods

International trade in environmental goods (EG) provides a market-based solution to balance the development–environment relationship. How can developing economies gain new growth opportunities through trade liberalisation in the EGs? This study investigates the structural features of products and firms during the early development of China's EG trade. This study defines the import–export nexus as the product relatedness between imports and exports at the firm level, which may promote the technology spill overs and firm cooperation. This study combines two nationwide data sets and constructs a data panel covering 334 prefectures and 248 EGs during 2001–2012. The conditional logit model with fixed effects is used for coefficient estimation. Empirical results reveal that the import–export nexus promotes new EGs in domestic sectors and export baskets, primarily supported by domestic private firms. The import–export nexus allows state-owned firms, which only represent a small market share, to enrich export baskets. It also helps foreign firms to develop new EGs in domestic sectors. These findings suggest revisiting the role of state-owned firms in industrial policy and developing a broad list of EGs to make use of the product relatedness. These will make developing economies like China gain new growth opportunities from the EG trade.