Zagreb International Review of Economics and Business
Special Conference Issue
International Conference:
“An Enterprise Odyssey: Economics and Business in the New Millennium” 2002 held at the Graduate School of Economics and Business Zagreb, Croatia June 27-29, 2002
ABSTRACTS
Opening Address
Josef Mugler
The Role of Embeddedness in Marketing Channel Relationships
Enrique Bigne
Andreu Blesa
Maria Ripolles
Abstract: Drawing on research into social networks, the authors propose that the dimensions of competency embeddedness can be considered as an antecedent of both the distributors’ competitive performance and its effects on the relationship between distributors and manufacturers. In addition, satisfaction, as a general evaluation of all the variables involved in the relationship, could be influenced. This study sets out to analyse whether or not the effects of competency embeddedness on the satisfaction with the relationship are positive or negative, and whether they are direct or indirect.
JEL Classification: L22, M31
Key words: network, dynamic interaction, embeddedness, satisfaction
The Index of Economic Freedom and Economic Growth in Transition Economies
John Broussard
Peter Koveos
Allan Young
Abstract: In this article authors first look at the relationship between market-based economic institutions and economic growth for transition economies. Though prior studies have found that those transition economies with a greater development of their financial infrastructure and other market-based conditions in the period prior to the transition era as well as during the transition period appear to achieve a greater growth in their GDP. However, some conflicting evidence remains if we look at the extensiveness and effectiveness of market-based economic institutions as these terms are defined by the European Bank for Reconstruction and Development. Accordingly, in this article, the authors study the relationship between GDP and the Index of Economic Freedom (IEF) as defined by the Heritage Foundation.
JEL Classification: O52
Key words: institutions, growth, financial infrastructure, index of economic freedom
East European Challenges for FDI: A View from the Celtic Periphery
Michael Danson
Ewa Helinska-Hughes
Michael Hughes
Abstract: The transition economies of Central and Eastern Europe (CEE) are engaged in fierce competition for foreign direct investment (FDI). This paper examines FDI trends in CEE, FDI competition, the policy framework, and institutions such as inward investment agencies. It identifies patterns in FDI flows, economic policy, and FDI incentive regimes in response to competitive pressures and the EU accession process. The Celtic ‘tiger’ economies of Scotland, Wales and Ireland have been restructuring their economies through inward investment for several decades. They evolved successful strategies for regional and inward investment agencies that may provide lessons for Central and Eastern Europe.
JEL Classification: F2, 018, P2, R58
Key words: FDI, Competition, Celtic periphery, Central and Eastern Europe.
Rapeseed Politics: Views of Sweden and Poland on the EU CAP
Georgine M. Kryda
Amanda Svensson
Abstract: Should candidate countries for membership in the European Union (EU) concentrate on supranational policies or on national interests in accession negotiations? We contrast Sweden’s focus on the EU’s Common Agricultural Policy with Poland’s protection of its domestic farmers against the backdrop of the burgeoning, global market for rapeseed. Our findings suggest that candidate countries should follow the road of liberal intergovernmentalism by considering the structure of strategic international markets and the power (both market and political) of existent EU member states in addition to the perceived benefits of EU-level policies.
JEL Classification: F15, Q18
Key words: Common Agricultural Policy (CAP), European Union (EU), Poland, Rapeseed, Sweden
WTO, Business and Governments: Elements for an Analysis of the Croatian Case
Mia Mikic
Ljubo Jurcic
Abstract: Croatia as a Central European transition economy has acceded to the WTO relatively late (2000). Joining the WTO has been seen as a prerequisite for gaining access to the European regional markets (the EU and CEFTA). More importantly however a membership in the WTO was supposed to provide a framework for restructuring of a wide spectrum of policies and regulation and for changing the role of the state. While WTO allows state-trading, its core philosophy is based on the MFN rules and the national treatment principles. This requires adaptation of different ways of doing business both at the level of enterprises and governments. This is particularly true in the area of government procurement. This paper deals with the different aspects of government procurement.
JEL Classification: F13, H57
Key words: Government procurement, Discrimination, Trade liberalization, regulation, WTO, Transition
Gravity Approach for Analysing Bilateral Trade Flows of the Baltic Rim Countries
Tiiu Paas
Abstract: The gravity equation for analysing the trade flows between the Baltic Rim countries have been elaborated in order to test the hypothesis that the knowledge resulting from universal law of nature is also applicable for exploring bilateral trade flows of the countries. The results of the study support the statement that the size of economy, which is expressed by the size of population, has statistically significant and positive influence on the bilateral trade flows. Distance has a negative impact on trade flows expressing most significantly cultural proximity and historical relationship between the countries of the region. The Baltic rim regional integration effect in trade is inherently larger for small countries.
JEL Classification: C5, F4, R1
Key words: gravity models, international trade flows, regional integration, the Baltic rim
Reforming the Bretton Woods Institutions
Kunibert Raffer
Abstract: There is an urgent need of fundamental reforms of IBRD and IMF. Both institutions have repeatedly violated their own Articles of Agreement, creating damage to their members. Thwarting its founders’ intentions the IBRD has refrained from shouldering risks appropriately. This paper shows how financial accountability and professional standards comparable to private consultants can be introduced for both projects and programmes. The grave systemic moral hazard that these Institutions gain financially and institutionally from damages negligently done to their clients must be removed. One solution recommended for programmes was first proposed at the University of Zagreb in 1987.
JEL Classification: O19, F33, F34, M14
Key words: Bretton Woods Institutions, multilateral lending, financial accountability
Organisation Development: From Beliefs to Practice Christopher
J. Rees
Sudi Sharifi
Abstract: The aim of the paper is to explore the extent to which Organisation Development (OD) represents an attempt to determine the very nature of organisations, as opposed to offering non-directive management techniques that can be used to design heterogeneous organisations with heteroclite value systems. Thus, the paper seeks to question whether OD is a tool designed to enable managers to ‘read’ or understand their organisations before embarking on an uncertain odyssey or whether OD is intended to provide a prescribed ‘script’ for organisations.
JEL Classification: J24, M54
Key words: organisation development, philosophy, HR, agenda, globalisation
Technology Spillovers between EU MNCs and Mexico: Steps Towards Local Sustainable Development?
Laura E. Martinez-Solano
N. A. Phelps
Abstract: The paper revises, based on recent literature, whether EU MNCs develop technology spillover that have a positive impact on Mexican economy. Surveyed and interviewed authorities from relevant governmental and private institutions confirmed Dunning’s findings (1997), pointing to the fact that MNCs have unique advantages over local firms, which could have a desirable influence to the local economic development. Nevertheless, and again similar to Dunning’s findings, EU subsidiaries were found to still retain a modest number of direct links, mainly with suppliers rather than with other local entities in order to obtain generally low-technology products rather than innovative technology, taking advantage of low production costs.
JEL Classification: O14, O1
Key words: MNCs embeddedness, technology spillover, LDCs’ development
Is There Relationship between Firm Size and Profitability?
Darko Tipuric
Abstract: This paper presents author’s research findings into the relationship between firm size and profitability, without an industry effect analysis. The findings have indicated the following: (1) marginally, profit is related to firm size i.e. the larger the firm the larger its profits (the reverse is also true); (2) small Croatian firms have profits per employee that are multiples of those earned by medium-sized and large firms, (3) there is a correlation between the increase in firm size (measured by total revenues) and increase in profits, and (4) there is a weak correlation between increase in size (measured by the number of employees) and decrease in profits
JEL Classification: L11, M31
Key words: firm size, revenue, profits, ANOVA |
