5,005 research outputs found
An Empirical Analysis of the Linder
No full textThis paper presents empirical evidence in support of the Linder theory of international trade for three of the South Asian countries, Bangladesh, India, and Pakistan. This finding implies that these countries trade more intensively with countries of other regions, which may have similar per capita income levels, as predicted by Linder in his hypothesis. The contribution of this research is threefold: first, there is new information on the Linder hypothesis by focusing on South Asian countries; second, this is one of very few analyses to capture both time-series and cross-section elements of the trade relationship by employing a panel data set; third, the empirical methodology used in this analysis corrects a major shortcoming in the existing literature by using a censored dependent variable in estimation.
Differentiated Agri-Food Product Trade and the Linder Effect
No full textUsing a generalized gravity equation, this study tests for the Linder effect in differentiated agrifood product trade, i.e. as the demand structures of two countries become more similar, their trade intensity increases. Two proxies of demand structure, the Balassa index and the absolute value of the difference in per capita GDPs of trading partners, are used to capture the Linder effect. In addition, two measures of bilateral trade, the Grubel and Lloyed index, and the value of bilateral trade are used as the dependent variable. The study investigates the role of the Linder effect in explaining the trade of 37 differentiated agri-food and beverage products categorized into eight product groups: cereals; fresh fish; frozen fish; vegetables; fresh fruit; processed fruit; tea and coffee; and alcoholic beverages. The data covers trade across 52 developed and developing countries from 1990 to 2000. The type of proxy used for the Linder effect and the way in which bilateral trade is measured influence the outcome of the statistical tests for the Linder effect. The Linder effect for cereals, frozen fish, vegetables, processed fruits, and tea and coffee, using the value of trade as the dependent variable, is often accepted but it is generally rejected when the GL index is used as the measure of trade intensity. In brief, the results do not provide strong support for the Linder effect in the trade of differentiated agri-food products.Agri-food, Generalized Gravity Equation, Grubel and Lloyed index, Linder Effect, trade, Agricultural and Food Policy, International Relations/Trade,
Product Quality, Linder, and the Direction of Trade
No full textA substantial amount of theoretical work predicts that quality plays an important role as a determinant of the global patterns of bilateral trade. This paper develops an empirical framework to estimate the empirical relevance of this prediction. In particular, it identifies the effect of quality operating on the demand side through the relationship between per capita income and aggregate demand for quality. The model yields predictions for bilateral flows at the sectoral level, and is estimated using cross-sectional data for bilateral trade among 60 countries in 1995. The empirical results confirm the theoretical prediction: rich countries tend to import relatively more from countries that produce high quality goods. The paper also shows that a severe aggregation bias explains the failure of the literature so far to find consistent empirical support for the "Linder hypothesis", the conjectured corollary to the first theory relating product quality and the direction of trade.
Beyond Lesson Studies and Design Experiments: Using theoretical tools in practice and finding out how they work
No full textThis paper aims to illustrate how fruitful insights into the link between school teaching practice and student learning outcomes can be theoretically grounded by the variation theory from the field of phenomenography; and from this framework demonstrate how a 'pedagogy of awareness' can be implemented in the classroom. In this study, five teachers and 162 students at Primary Four level of school education in Hong Kong participated and the practice of the 'learning study' was adopted. By comparing the results of pre- and posttests, a significant gain was observed in the students learning outcomes.
Make it work - The challenge to diversity in entrepreneurial teams: A configurational perspective
No full textTeams and timing are considered decisive for firm survival. We investigate the impact on firm survival of entrepreneurial team composition, in terms of diversity, and the speed of entering markets. Unlike research analysing the effects of low or high diversity, our research understands new venture teams as configurations of multiple, concurrent dimensions of diversity by untangling it in variety, separation, and disparity. By identifying distinct survival and failure configurations, we demonstrate that team va- riety is functional for firm survival if challenged by separation or disparity
Necessary Conditions and Theory-Method Compatibility in Quantitative Entrepreneurship Research
No full textAll-or-nothing necessary conditions are critical for the unfolding of subsequent entrepreneurial outcomes. A condition is necessary when an entrepreneurial outcome emerges only in the presence or absence of that condition. While a necessary condition does not guarantee the outcome, it makes the outcome possible by virtue of its theoretical necessity. We discuss the philosophical roots and importance of necessary conditions in entrepreneurship. We offer an empirical illustration of necessary condition analysis using founder's experience, a critical concept in entrepreneurship. We argue that theory-method compatibility in entrepreneurship research can be enhanced by explicitly accounting for necessary conditions
Bilateral trade flows and income-distribution similarity
No full textThis paper accounts for non-homothetic preferences by specifically investigating the role of income per capita and income-distribution differences in the context of the gravity model of trade. A theoretically justified gravity model is estimated for disaggregated trade data using a sample of 104 exporters and 108 importers for 1980-2003 to achieve two main goals. First we are able to empirically test some of the theoretical predictions of Markusen (2010), namely that there is a positive dependence of trade on per capita income and that higher inequality increase trade of more sophisticated goods. Second, and in line with the Linder hypothesis, we hypothesized that a higher demands’ overlap implies a more similar demand structure and therefore more trade. We test this hypothesis with new measures of income-distribution similarity. National income distributions are used to calculate income similarity indices that measure how much each country pair overlaps in terms of income distribution and population. We find that per capita income is positively related to bilateral trade and that on average, a 10 percent increase in incomedistribution similarities increases exports by almost 4 percent being this effect stronger for more sophisticated goods in comparison with more homogenous ones.Exports, Income distribution, Gravity equation, Density estimation, Non-homothetic prefereces.
How do non-innovative firms start innovation and build legitimacy? The case of professional service firms
No full textAs clients’ needs change, firms need to adapt and innovate, but how do firms innovate if they have not done it before? We study law firms as novice innovators. Law firms are generally conservative and averse to exploration-based innovation. We show that law firms face two challenges in starting innovation: developing innovation capacity and gaining legitimacy for innovative behavior. Employing a qualitative comparative analysis approach, we used 50 in-depth interviews with innovating multinational law firms headquartered in the United Kingdom to present six configurations of factors leading to service innovation in law firms. Clients and competitors play a key role both as innovation stimuli and legitimizing actors. We demonstrate that knowledge-based networks are important for service innovation, but legitimizing strategies are important for novice innovators to ensure innovation is recognized, approved, and diffused
Entrepreneurial Team Composition and Strategic Choice: A Configurational Analysis
No full textThe composition of entrepreneurial teams has a significant impact on the success and development of new ventures. We enrich the discussion on the benefits of homogeneity or diversity in entrepreneurial teams. Using data from PSED II, we investigate the relationship between new venture team (NVT) composition and performance. By identifying six distinct team configurations, we demonstrate that teams need a certain degree of homogeneity, but if a certain threshold is satisfied, heterogeneity can be an advantage. The combination of high team cohesion and a deep and broad stock of experience is a superior configuration, as well as homogeneous teams that are highly educated. We further contribute to a better understanding of start-up strategies and time-to-market by developing new insights in the trade-off between homogeneity and heterogeneity
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