Traditional and small‐scale culture goods in international trade and employment

The literature in economics has relegated to an unimportant role the traditional and small‐scale industries in the process of development. Instead, manufacturing development is essentially seen as a transformation process from traditional to modern, from rural to urban and from agrarian to industrial. The main stress in development has been laid on industries with scale economies and positive externalities, and on the inducement of modern, capital‐intensive techniques. Small‐scale production has been taken to mean inefficient and backward; large‐scale production has become synonymous with the efficient and modern. Moreover, the consumer is characterized as preferring standardized products, while traditional goods are believed to be inferior and easily replaced by factory goods.     

Books received

Male Bias in the Development Process. Edited by Diane Elson. Manchester and New York: Manchester University Press, 1991. Pp.215‐ + viii. £29.95. ISBN 07190 2555 9.

Beyond the Family: The Social Organization of Human Reproduction. By A.F. Robertson. Cambridge: Polity Press, 1991. Pp.231. £35 and £10.95. ISBN 07456 0885 X and 6 0886 8.

Gender and Population in the Adjustment of African Economies: Planning for Change. By Ingrid Palmer. Geneva: International Labour Office, 1991. Pp.xiv +187. 27.50 Swiss francs (paperback). ISBN 92 2 107739 X.

Economic Theories of Development: An Analysis of Competing Paradigms. By Diana Hunt. Harvester Wheatsheaf, 1989. Pp.363. £10.95 (paperback). ISBN 0 7450 0237 4.

Economic Development and Environmental Protection in Latin America. Edited by Joseph S. Tulchin with Andrew I. Rudman. Boulder, CO: Lynne Rienner Publishers (Woodrow Wilson Center Current Studies on Latin America). Pp.vii + 143. $9.95 (paperback). ISBN 1 55587 288 3.

Nicaragua: The Land of Sandino. By Thomas W. Walker. Third Edition, Revised and Updated. Boulder, CO: Oxford: Westview Press, 1991. Pp.xvi + 202. $44 and $17.95. ISBN 0 8133 1089 X.

Dependence and Autonomy. By Hilary Standing. London: Routledge, 1990. Pp.x + 198. £10.99 (paperback). ISBN 0 415 04839.

Turtle Bogue: Afro‐Caribbean Life and Culture in a Costa Rican Village. By Harry G. Lefever. London and Toronto: Associated University Presses, 1992. Pp. 249. £29.95. ISBN 0 945636 23 7.     

The ownership advantage in Latin American FDI: A sectoral study of us direct investment in Mexico

This article develops a model which tests the hypothesis that sectoral FDI flows from the United States to Mexico over a four‐year period can be explained by the ownership advantages of US multinationals. Theoretical developments in the concept of ‘ownership advantage’ are used to guide the formulation of the research. The findings suggest that direct investment into US MNEs’ affiliates in Mexico is driven by benefits derived from embedded human knowledge, technology‐embodied advantages, and possibly from scale advantages. Local R&D is negatively associated with FDI.     

Political instability and savings in less developed countries: Evidence from Sub‐Saharan Africa

A four‐equation model is used to investigate the effects of political instability (PI) on the savings rate in Sub‐Saharan Africa. Utilising a comprehensive measure of PI, we find that political instability has a deleterious effect on the savings rate both directly and indirectly through a reduction in investment and economic growth. The negative effects of PI on savings rate occurs contemporaneously as well as with a lag. We also find that economic growth has a stabilising effect on the political system and that not accounting for these effects through a simultaneous equations model results in biased coefficient estimates. These relationships are robust with respect to model specification. The implication of our results is that ‘economic factors’ alone cannot explain the development process in Less Developed Countries.     

The dynamics of welfare gains and losses: An African case study

This article uses panel survey data for Côte d'Ivoire to investigate the determinants of welfare gains and losses of households over time. A first‐difference model is estimated which takes account of initial conditions. For urban areas, it was found that human capital is not only a key explanatory factor for levels of welfare, but also the most important endowment to explain welfare changes over time. In rural areas, physical capital, especially land and farm equipment, mattered most. Household size and composition and socioeconomic characteristics of the household also affected welfare changes. Policy implications are discussed.     

Third World multinationals revisited: A research critique and future agenda

ABSTRACT In this work we test the hypothesis that Israel has a strategic dependency on territorial labour. We also look at the situation of dependency on this commuting labour in both the occupied territories and Israel and, subsequently, examine the strategic impact of the growth in Israeli capital on the future of this labour market.