Foreign Direct Investment and economic transition: Panacea or pain killer?

This article sets out to make an assessment of the relationship between Foreign Direct Investment (FDI) and economic growth in transition countries through a review of the empirical record to date. The first part reviews the phases of transition in combination with policy efforts to attract FDI. In the second part, different growth studies across levels of analysis are juxtaposed to better understand the overall growth impact of FDI in transition countries. Since foreign firms have a large direct effect on performance at the level of the firm it is often assumed that they automatically contribute to the economic growth of host countries. The missing link in this discussion is the concept of ‘trickle down’. Superior direct effects in terms of productivity and profitability are hypothesised to trickle down to the host country both as spillovers, or catalysing effects on local firms, and through the expected increase in income that such direct and indirect effects in combination will generate through labour income and taxes. The review shows that such trickle down effects are quite fragile in terms of being demonstrated to exist in transition countries. Combined with widespread usage of tax holidays, subsidies and acquisition discounts, it is not certain that positive direct effects equate with economic growth in these countries.     

Fiscal Federalism and International Capital: The Effects of Fiscal Federalism on Foreign Direct Investment and Sovereign Dept Ratings

Although the study of federalism has become one of the most intensely studied areas in economics and political science, no consensus has emerged on the impact of fiscal federalism on macroeconomic performance. I focus on one specific element of the debate‐ the role of fiscally federal institutions in allowing a country access to international capital markets. In an empirical analysis of 60 countries from 1975‐1995 I find fiscal federalism has no clear impact on inflows of foreign direct investment. In an examination of the impact of federalism on sovereign debt ratings for 40 countries from 1980‐1998, I find that fiscal federalism is associated with lower levels of sovereign debt risk.     

Food Price Transmission and Economic Development

In this paper we challenge the conventional wisdom that the world’s poorest countries are also the most vulnerable to spikes in international food prices. We derive an inverted U-shaped relationship between food price transmission and the development level of a country from a theoretical model. This prediction is subsequently tested in two sets of regressions where economic development is approximated by per capita income and where we control for a number of other potential determinants of food price transmission. The first set of regressions is based on estimated transmission elasticities and the second on actual domestic food price changes during spikes in international food prices. In both sets of regressions we find strong evidence of the existence of an inverted U-shaped relation between food price transmission and income. Thus, food prices in middle income (rather than in low income) countries respond the strongest to changes in international food prices, implying that the poor in these countries are the most exposed to spikes in food prices. We also show that the factors explaining the variation in the estimated transmission elasticities can explain the variation in domestic food price changes during spikes in international food prices equally well.     

‘Perceived social citizenship’: a comparative study between two different hukous

In China, there are immense barriers to inclusive social citizenship because of the failure to overcome the institutional fragmentation of social security across the hukou division. The hukou system continues to be important in determining how social citizenship is granted in China; not only does it facilitate dual social citizenship, it imposes perceptions of deservingness that bolster these divisions. The aim of this paper is to build a social-citizenship-based framework, drawing upon the strengths of the capability approach, which is applicable to the complexity of the rural–urban divide in China. Referring to several data sources, the paper examines social citizenship as a subjective phenomenon. The paper highlights the social exclusion mechanisms embedded in the hukou system that might have an effect on social citizenship as a state of self-awareness.     

Drug testing and social control: Implications for state theory

A new War on Drugs became the rallying cry during the 1986 Congressional elections. One of the major components of this war was the call for mandatory drug testing of workers. We argue that drug testing has more to do with power than with genuine efforts at reducing the consumption of illicit drugs and then proceed to analyze this expansion of power by capitalists and state managers. Contrary to Block's version of state theory, the power of capitalists and state managers expanded simultaneously. We thus conclude by calling for a partial modification of his model.     

The (Un)Acceptability of Betrayal: A Study of College Students' Evaluations of Sexual Betrayal by a Romantic Partner and Betrayal of a Friend's Confidence

Because loyalty and trust are viewed as key requirements for relationships with friends as well as with romantic partners, acts of betrayal, which violate the trust on which these relationships are based, are viewed as serious transgressions. This study focused on 2 commonly occurring kinds of betrayal—betrayal of a friend's confidence despite a promise not to do so and sexual betrayal by a romantic partner despite an agreement to be monogamous. Approximately 261 college students, aged 18 to 23, answered questions concerning the acceptability of betrayal under a variety of different conditions and described their self-restraint, tolerance of deviation, and betrayal behavior. Despite pervasive disapproval of betrayal, the extent of disapproval was a function of the type of betrayal (whether of a romantic partner or a same-sex friend), the justification for the betrayal, the sex of the transgressor, and the characteristics of the respondent. There was greater acceptance of sexual betrayal than betrayal of a friend's confidence, of male than female transgression, and by male than female respondents. These results are largely accounted for by the finding that male respondents gave high ratings of acceptance of sexual betrayal by male transgressors. Acceptance of both forms of betrayal was correlated with lack of self-restraint, tolerance of deviation, and behavioral betrayal.     

Implementing Title III: Assessing Opportunities for State Activism

A complementary dichotomy has evolved in federal-state relations because of Reagan's "New Federalism." States have become "activists" as they adopt national policies to state objectives. Simultaneously, new constraints on spending have made them "captives" to national priorities.