TNC Strategies and Variations in Intra-firm Trade: The Case of Foreign Manufacturing Affiliates in Sweden

The aim of this paper is to contribute to the understanding of the forms and determinants of intra-firm trade, i.e. international trade between different units under common TNC ownership, this being a major indication of 'deep economic integration' between developed countries in the 1990s. Theoretically, intra-firm trade can be explained by the existence of economies of common governance and are often found to be associated with R&D-intensive industries and economies of scale. In empirical studies, intra-firm trade is often found to consist of intermediate inputs goods, resulting in vertically integrated production chains. The study is based on detailed firm-level data from around 300 foreign majority-owned affiliates (MOFAs) in manufacturing, in Sweden in 1993. The results show that intra-firm sales by MOFAs in Sweden are as high as those found in studies of manufacturing affiliates of US TNCs. Almost all of MOFAs' intra-firm exports are finished products, while intra-firm imports consist of material inputs and finished products for resale. This suggests that these MOFAs are only marginal involved in vertically integrated production chains, especially in terms of exports. The results of a regression analysis complement earlier studies by showing that the level and composition of intra-firm trade is significantly affected by the international strategy applied by TNCs when operating foreign manufacturing affiliates. Intra-firm exports of finished products and material inputs are positively associated with efficiency-seeking FDI, e.g. affiliates engaged in rationalised production. Market-seeking FDI is associated with intra-firm imports of complementary finished products for resale. By contrast, resource-seeking and strategic asset-seeking FDI was negatively associated with intra-firm trade.     

The urbanisation of Java, 2000–2010: towards ‘the island of mega-urban regions’

The mega-urbanisation process in Java is reflected in the spatial patterns of urban population growth between 2000 and 2010, although there has been a small deceleration in the rate of growth recently. This process is also clearly indicated in the significant increase in the number of urban localities, which reflects in situ urbanisation and rural–urban transformation in Java. Most districts and cities located adjacent to large cities experienced much higher population growth rates, compared to the core areas in cities. The formation of urban belts with a mix of economic activities connecting large cities is greatly expanding, while the small and medium cities, those with population sizes between 100,000 to one million, have tended to stagnate as their role and functions as centres of socio-economic activities are taken over by the large cities. Java’s mega-urbanisation appears unstoppable, and is largely uncontrolled at the present time. It is a daunting challenge for the central and local governments to manage the spatial urban growth in Java in the near future.     

Quantifying the Family Frailty Effect in Infant and Child Mortality by Using Median Hazard Ratio (MHR)

Abstract

Most microlevel studies in the social sciences have focused on the impact of different measured variables. While some studies have also dealt with unobserved variation, it has usually only been controlled for to perfect the estimates of the observables. In this article, the authors applied a modified version of a recently developed method designed to quantify the effect of unobserved variation in continuous time multilevel models, called a median hazard ratio. It allows a direct comparison of the effect of unobserved heterogeneity with standard relative risks. The method is used in an analysis of infant and child mortality in southern Sweden during the period 1766–1895. The empirical findings indicate that unmeasured differences between families were more important than either socioeconomic status or gender throughout this period.