Agglomeration,foreign firms and firm exit in regions under transition: the increasing importance of related variety in Hungary

ABSTRACT

Related variety of economic activities is widely recognized to induce regional development; however, it is not clear how this mechanism takes place in regions that go through major structural and institutional transformation. Furthermore, foreign direct investment (FDI) is typically a major source of structural change in these areas; and we still need a better understanding on how foreign-owned (foreign) firms affect the dynamics of domestic-owned (domestic) companies. For these reasons we analyse firm-level exit in Hungarian city regions between 1996 and 2011, over the late post-socialist transition in manufacturing industries, focusing on the difference between foreign and domestic firms. Introducing ownership into the related variety calculation, we estimate the probability of firm exit with the region-level related variety calculated separately for foreign and domestic firms. Our results suggest that related variety of foreign firms decreases the probability of domestic firm exit earlier during the economic transition compared to the related variety of domestic firms. This finding supports the idea that FDI plays a formative role in regions under transition, and shows that domestic firms benefit from being in agglomerations where foreign firms are technologically related to each other.     

Supplier linkages of foreign-owned manufacturing firms in the UK: the influence of entry mode,subsidiary autonomy and nationality

This article tests the hypothesis that the supplier linkages which subsidiaries of foreign-owned companies make with indigenous firms in the UK are influenced by entry mode, the amount of autonomy which is granted to the subsidiary which is established and the nationality of the parent company. Data were collected from foreign-owned firms in the UK and an ordered probit model with the change in supplier linkages as the dependent variable was devised and tested. The results provide support for the hypothesis in terms of entry mode and subsidiary autonomy, but not in terms of parent nationality. This study represents a new approach to the study of supplier linkages and integrates concepts and studies from both regional science and international business. Foreign-owned firms which entered the UK by means of a greenfield entry tend to have a relatively positive effect on the creation and growth of supplier linkages, whereas those which entered by way of a merger or acquisition tended to have a relatively negative effect on the growth of such linkages. This finding has important implications for academics and policy-makers alike. Although the potential impact which the creation of supplier linkages can make upon the host country's economy has long been recognised, little research has been undertaken to identify the key factors which affect such growth. With increased levels of globalisation it is important that governments are able to maximise the impact which foreign direct investment makes upon the economy of their countries.     

The European Union in the media coverage of the 2019 European election campaign in Italy: towards the Europeanization of the Italian public sphere

ABSTRACT

This article investigates the patterns of Europeanization of the Italian public sphere during the 2019 European Elections campaign. Europeanization is meant as a multifaceted process. The visibility and salience of the European Union (E.U.) within the public debate is realized by dynamics involving different actors, in terms of interactions, connections and contaminations between different public spheres. The aim of the article is to clarify whether and to what extent the Italian media covered the E.U. during the European Parliament (E.P.) elections campaign and more precisely to assess through which dynamics of Europeanization the E.U. entered the domestic public debate. We relied on data from a human content analysis carried out on 10 Italian media outlets during the seven weeks before election day. Our findings suggest that, compared to 2014, the visibility of E.U. and E.U. related issues is increasing within Italian media coverage. Italian media still maintain a neutral approach to the issue, resisting to Eurosceptic claims from political parties and public opinion. With regard to the Europeanization, we found that media tend to focus on the vertical dimension especially, providing visibility to domestic actors addressing the E.U. and its political actors. Elements of horizontal Europeanization, instead, are mainly referred to events from other E.U. member states, with few connections among political actors. All in all, our results confirm the idea of a growing centrality of the E.U. within national public debate combined with signals of more structured and substantial Europeanization.     

Why context matters: the role of campaign context in the relationship between digital media use and political participation

Many questions remain about the effects of digital media use on citizens’ political engagement. This article argues that this is because such effects depend on the context in which digital media are used. Its findings are based on two cross-sectional sets from the 2010 and 2013 Australian Election Study and show that (1) political resources played different moderating roles in the association between digital media and offline participation, and (2) such a moderating role depended on different campaign contexts in the two elections, with context affecting political efficacy. The findings confirm that campaign context can function as leverage in motivating online news consumption and political participation, thereby emphasising the importance of political contexts in media use and political behaviour.     

Posted: the campaign sign landscape,race, and political participation in Mississippi

Cultural landscapes offer potential insights into cultural processes. As a cultural/political landscape element, the domestic campaign sign is linked to a variety of socio-cultural and political processes. Examination of the geographical distribution of 2004 presidential election campaign signs posted throughout the town of Hattiesburg, Mississippi, illustrates that race is a factor in understanding who chooses to post signs. Historically, limitations on political participation in the South would have included use of landscape for communication, imposing a sort of metacommunicative landscape hegemony. Further, patterns of sign postings and voter turnout indicate that both activities are forms of political participation that are embraced differently by different social groups.     

产业联系与外资溢出效应-对浙江省制造业的实证研究

本文探讨水平联系、前向联系和后向联系对外商直接投资溢出效应的影响。利用浙江省制造业数据,通过实证分析发现,浙江省制造业外资总体上具有水平负向溢出效应,同时通过后向联系产生正向溢出效应。水平负向溢出效应主要是外资企业带来的激烈竞争所导致的,产业后向联系产生的正向溢出效应主要通过外资企业的本地采购发生。浙江省内资制造业企业并没有从购买外资企业中间投入品而显著提升效率。     

The politics of privatisation: The case of the coffee industry corporation in Papua New Guinea

Since the 1970s there has been a continuing international drive to transform state institutions in a wide range of countries. The reforming drive continues to be associated with the idea of privatisation. The privatisation of the long‐established statutory corporation, the Coffee Industry Board (CIB), in Papua New Guinea (PNG), provides an opportunity to examine forces behind one expression of the demands for reform. The examination shows that while the demands were expressed as embodying a general interest, in this case that of ‘the coffee industry’, the campaign for privatisation was driven by the concerns of the largest exporting firms. While the effectiveness of the campaign depended upon capturing an international and domestic mood for reform, the specific target of the drive was the post‐independence changes in the practices of the Coffee Industry Board. In particular, the allocation of an increasing number of licences and export quota to new firms at the expense of long‐established trading firms threatened these enterprises’ revenues and profitability.     

国共第三次“围剿”与反“围剿”探微

1931年国共在中央苏区展开的第三次“围剿”与反“围剿”,开场和结局都颇具戏剧性,整个“围剿”、反“围剿”进程,直接受制于国内外形势的变化。在国共两大主角的角力过程中,宁粤冲突和九一八事变,某种程度上成为国共武力斗争的搅局者。事实上,1930年代前后,国共之间的许多故事,都可以看到如是因素的介入,国共两大力量之外的“第三者”,为历史的走向增添了更多的变数。     

Local politics and foreign ventures in China's transitional economy: the political economy of Singaporean investments in China

The re-articulation of China into the global economy since December 1978 has led to a tremendous influx of foreign capital during the past two decades. Constrained by the limited domestic market and encouraged by home-country government, transnational corporations from Singapore are regionalising increasingly into the Asia Pacific region. To date, a significant amount of Singaporean investments abroad has gone to China. Based on personal interviews with parent companies in Singapore and their subsidiaries and/or affiliates in China, this paper aims to examine the political economy of Singaporean investments in China. Specifically, I argue that successful cross-border operations of Singaporean firms are embedded in dense networks of social and political relationships. These relationships provide the political leverage and strategic resources to enable the establishment of Singaporean firms in China. This establishment, however, is contingent on blending with local politics in China through which foreign firms use leverage on the partnership advantage of local governments (difang zhengfu), their enterprises, and business activities. This rise of local corporatism is a key institutional consequence of the recent rescaling of China's political economy. Case studies of ventures by Singaporean firms in China are presented to support my arguments. Taken together, these empirical materials shed light on the importance of understanding the role of politics at different spatial scales in influencing transnational corporations and their international business operations.     

The political geography of campaign advertising in U.S. House elections

The extent to which elections are useful instruments of accountability is closely related to the ability of citizens to acquire and utilize information about candidates running in those contests. In this paper, I examine the visibility of campaigns for the United States House of Representatives by analyzing how candidates, political parties and interest groups strategically allocate campaign advertising in media markets and congressional districts across the United States. I show that this allocation is based not only on the competitiveness of the campaign, but also according to the cost and reach of the media markets that dominate congressional districts. Overall, the findings indicate the importance of political geographic considerations for understanding the substantial variation in advertising aired both across and within congressional districts during House campaigns.     

BUSINESS AND THE NORDIC WELFARE STATES, 1890-1970

Social scientists have, since the 1990s, shown an increasing interest in the role of business actors in welfare state development, and these debates provide many opportunities for historians of the Nordic countries to contribute with their insights and findings. This special issue brings together six historical studies on the role of business in the development of the welfare states in the Nordic countries, including the role of firms as providers of company welfare as well as the activities of firms and of business interest groups to influence policies and public opinion. Two observations stand out. First, the contributions draw a picture of a gradual shift in this period from that of fundamental opposition, which often dominated up to the mid-20th century, to a more pragmatic approach of cooperation. Cooperation in policy-making co-existed with confrontation in public debate, in which business interest groups promoted alternatives to ‘big government’. Second, these studies underline the value of paying attention to what Reinhart Koselleck called ‘horizons of expectations’. These historical studies show how the vocabulary of the actors changed in this period, and how business interest groups not only influenced political decisions but also adapted their expectations to changes in the political context.     

Twenty‐first Century Industrial Policy in a Small Developing Country: The Challenges of Reviving Manufacturing in Rwanda

The Rwandan government — widely lauded for its political commitment to development — has refocused its efforts on reviving growth in the manufacturing sector. This article examines how pressures from different levels — international, regional and domestic — have shaped the evolving political economy of two priority sectors (apparel and cement). To achieve its goals of manufacturing sector growth, the Rwandan government aims to access foreign markets (on preferential terms) and larger regional markets while developing effective state–business relationships with locally based firms. Despite the government's political commitment to reviving its manufacturing sector, its strategy has been both shaped and impeded by shifting pressures at the international level (through Rwanda's recent suspension from the African Growth and Opportunity Act), the regional level (through competition from regional firms) and the domestic level (through over‐reliance on single firms). Within the current industrial policy literature, there is limited reflection on how developing countries are dealing with the multi‐scalar challenges of enacting industrial policy in a much‐changed global trading environment. This article contributes to the industrial policy literature by addressing this lacuna.     

Beyond banality? Ethical responses to evil in post‐September 11 International Relations

In recent years, International Relations has witnessed a resurgent interest in the concept of 'evil' both in domestic and international political rhetoric, and in contemporary scholarship. This article examines three of the most recent contributions to what is a growing body of scholarship, all of which try to make sense of evil in the contemporary world and offer an ethical response to the problem of its prevalence. In particular, it highlights the extent to which Hannah Arendt's notion of the 'banality of evil' permeates contemporary conceptualizations of the term and questions whether this remains a useful and indeed appropriate conceptualization of evil in the post-September 11 world.     

Towards an understanding of local protest: hospital closure and community resistance

The aim of this paper is to suggest an analytical framework through which the complex question of hospital closure and local protest can be further explored. The significance of this area of study lies with the extraordinary events that surrounded a campaign to save the Kidderminster General Hospital from downsizing. Whilst the hospital was not saved, the local campaign committee organizing the protest took their fight into the political arena and were successful in gaining a parliamentary voice in the 2001 general elections. Such an achievement has had considerable political implications, however, the question asked here is how might we begin to interpret the events that took place. To this end, the paper draws on current geographical literature in an attempt to construct a framework that accounts for both national policy debates and the local context within which such campaigns emerge.     

A Review of “Decision Points”

Abstract

A large body scholarship demonstrates that the population size of an electoral district affects elections in important ways, yet little is known about the implications of population size for campaigning and fundraising. I posit that the challenges of running a campaign in a populous electorate require candidates to focus their fundraising efforts on the wealthy. I analyze campaign finance records published by the Federal Election Commission during the 2006–2014 Senate elections and find that Senate candidates running in large states receive fewer donations per capita from in-state donors, but they tend to receive larger donations on average and more money from contributions of $1,500 and above. In sum, candidates running in populous states appear to rely upon comparably smaller pools of wealthy constituents writing larger checks to finance their campaigns. In the context of rising campaign costs, these findings suggest that constituency population growth may exacerbate representational inequalities between citizens and contribute to the growing influence of the wealthy in U.S. politics.     

Freethinkers,anarchists and Francisco Ferrer: the making of a transnational solidarity campaign

This article examines the transnational solidarity campaign for Francisco Ferrer, the Catalan anarchist and educator who was sentenced to death for his alleged involvement in Barcelona's ‘Tragic Week’ of 1909. The international scale of the protests against Ferrer's execution was much remarked upon by his contemporaries. While historians have examined both the nature of demonstrations in support of Ferrer and the way in which he was commemorated, they have mostly focused on specific national contexts. This article takes a different approach: it investigates the transnational dimensions of the campaign. It places the protests within the framework of the ‘culture wars’ surrounding church–state relations. These cleavages were inherently transnational, and the structures developed by the international freethought movement, for example, played a significant role in sustaining the Ferrer campaign. The article also draws attention to other factors that shaped the protests and transcended national categories: from widespread images of Spanish ‘despotism’ to the way in which a foreign case could be adopted for domestic political mobilisation.     

Business,Politics and Money in Australia: Testing Economic,Political and Ideological Explanations

The flow of business money to political parties is a vital issue for Australian democracy. Nonetheless, there has been no systematic study of why Australian businesses contribute to political parties and why they contribute more to one party than to others. I exploit Australian Electoral Commission data on payments to parties by 450 large businesses over 7 years at the Commonwealth and State levels. Economic characteristics (income and sector) are important to understanding which businesses make political contributions. However, they are little help in understanding how businesses distribute their cash. This is best interpreted as an interaction of ideological bias and political pragmatism. If Labor has the political advantage businesses tend to split contributions evenly between the ALP and the Coalition. If the Coalition has the political advantage businesses overwhelmingly target their contributions on the Liberal and National parties.     

Social groups,sport and political engagement in New Zealand

Many prominent social theorists contend that memberships in voluntary associations make major contributions to making citizens more engaged with democracy. Although substantial attention has been directed at the potential role of sports groups, previous studies using survey data have not found membership in sports groups to be associated with political activity. New Zealand presents an important context for testing this theory, given its high levels of public participation in sports groups. We find that membership in sports and other social groups is associated with higher levels of political engagement. We discuss how these findings advance our understanding of the role that specific group memberships may have in democratic societies.     

Spot On: The Role of Political Advertising in Australia

During an election campaign, political advertising is not the only means by which the Australian political parties seek to persuade voters but it is 'the most expensive one, perhaps the most precise one and the only one over which the parties have complete control' (Mills 1986, 132). Over $30m is now spent on advertisements during federal elections, with up to 70% of the major parties' campaign budgets devoted to television advertising alone. When one considers that 90% of Australians are exposed to televised political advertising, the parties' control over these messages takes on particular significance. This article explores the apparently limited interest among academic analysts in political advertising in Australia, explains that advertising now has a central role in the political process and argues that this needs to be recognised in scholarly research.     

Business political activism and government relations in large companies in Australia

This paper reports on findings of recent empirical research which deals with the prevalence and role of government relations functions in large companies in Australia. It is argued that large firms have become more politically active in the last two decades and that many of the largest firms have established specialised government relations functions. The operation of such functions is discussed and the implications of such ‘in house’ corporate political activism for the role of business associations is explored.