Bank and sovereign debt risk connection : [draft december 2012]

Euro area data show a positive connection between sovereign and bank risk, which increases with banks’ and sovereign long run fragility. We build a macro model with banks subject to incentive problems and liquidity risk (in the form of liquidity based banks’ runs) which provides a link between endogenous bank capital and macro and policy risk. Our banks also invest in risky government bonds used as capital buffer to self-insure against liquidity risk. The model can replicate the positive connection between sovereign and bank risk observed in the data. Central bank liquidity policy, through full allotment policy, is successful in stabilizing the spiraling feedback loops between bank and sovereign risk

Policy Issues of e-Commerce Technology Diffusion in Southeast Nigeria: The Case of Small Scale Agribusiness

The benefits brought about by the emergence of e-commerce, e-business and other Information Communication Technologies (ICTs) applications have not been fully explored in the developing economies of the world. The less developed economies are still struggling to catch up with ICT application as opposed to its heavy deployment in the developed economies. Empirical evidence suggests that ICTs and other related technologies are increasingly emerging in the communities of the developing economies such as Nigeria. Rural actors engaged in the Agricultural industries (Agribusiness) feel that the implementation of ICTs can influence the development of new business processes and the way existing processes are organised. In the Southeast of Nigeria, which is a typical example of a less developed community, the impact of e-business technologies has yet to be determined. This paper identifies two classical traditional agribusiness supply chains and hence reports on the impact of e-commerce technology diffusion along the equilibrium of the supply chains, focusing on the elimination of intermediary actors from the chain. It provides an assessment of the Governments’ policies and strategies on e-commerce adoption for the sustainability of small-scale agricultural businesses. The paper examines the politics surrounding ICT implementations by actors engaged in the agribusiness sector. This research has motivated The South East State Government, in collaboration with the Federal Government, to give closer attention to their earlier policy of making Nigeria an ICT-enabled country

Private vs. Public Technological Incubator Program - The lesson from Israel

The Public Technological Incubator Program (PTIP) was initiated by the Office of the Chief Scientist (OCS) in the Ministry of Industry and Trade in Israel in the wake of a large influx of immigrants from the former USSR, many of whom were scientists and engineers. This massive immigration of highly skilled labor bolstered the Israeli high-tech industry which in the early 1990’s blossomed in an unprecedented manner. Between 1990 and 1993, 28 incubators were established. Today there are 24 incubators that are still in operation and they can be found near metropolitan areas and in peripheral areas, as well. Since the year 2000, private technological incubators began operating in Israel. This development owes its activity to the rapidly growing private (venture) capital (VC) that traditionally did not funded such projects. This study examines the differences and similarities between these two types of technological incubators – public vs. private. It addresses the question weather there is still a need for PTIP. The study points to the unique role played by VC funds and private investment companies in sponsoring projects in the private and the public technological incubators. VC funds tend to invest more in projects within private incubators than in projects in public incubators. However, they are only of secondary in importance compare to the financial support rendered by the (CSO) to public incubators and to the owner/sponsor in the private incubators. Thus, these sources of funds serve as complementary rather than as a substitute of funding for projects. Based on our empirical analysis and our findings, the main conclusion is that private incubators cannot substitute public incubators program; even after the entrance of the private sector into the area of technological incubator activity, there is still justification for the continuation of the TPIP. Private incubators tend to concentrate in selected fields while public incubators sponsor a large variety of fields. The PTIP is found to be the only answer to advance national objectives such as the geographical distribution of economic activities and providing special incentives to some selected population groups (such as new immigrants) for whom such activities would otherwise be out of reach.

Geographical co-location, social networks and inter-firm marketing co-operation : the case of the salmon industry

This study looks at the factors that influence the development of marketing co-operation among cluster-based firms. It examines data from SMEs operating within the salmon farming industry in two different regions: Scotland and Chile. Analyses indicate that informal social networks help explain the observed relationship between geographical proximity and inter-firm marketing co-operation, especially for firms located in peripheral rural communities. A theoretical model is proposed for further research in the field that, until recently, has been traditionally analysed only by economists. Practical implications are suggested for practitioners and policymaker

The Level of Promotion of Entrepreneurship in Technical Colleges in Palestine

The study aimed to identify the level of promotion of entrepreneurship in the technical colleges in Palestine. The analytical descriptive method was used in the study. A questionnaire of 41 items was randomly distributed to the technical colleges in the Gaza Strip. The random sample consisted of (275) employees from the mentioned colleges, and the response rate were (74.5%). The results of the study showed that the technical colleges achieved a high level of promotion of entrepreneurship with a relative weight of 73.45%. The results of the study showed that there is a high level of promotion of entrepreneurship (risk, preparedness, proactive competition, innovation orientation) in the technical colleges in Gaza Strip. The field of competition came in first place with a relative weight of 76.65%. In the second place came the field (the trend towards innovation) and relative weight (74.96%). In the third place came the field of pre-emptive preparedness with a relative weight of 74.07%. In the fourth and last place came the field of risk and a relative weight of 68.39%. The results confirmed that there are statistically significant differences in the promotion of entrepreneurship in the technical colleges in Gaza Strip due to the college variable in favor of UCAS. The results confirmed that there is no statistically significant relationship in the promotion of entrepreneurship in technical colleges in Gaza Strip due to the variable level of employment. The researchers suggest a set of recommendations, the most important of which is to draw the attention of the technical colleges to the importance of promoting entrepreneurship, because of their role in reducing the problem of unemployment, the importance of linking technical education and promoting entrepreneurship to the Palestinian society in general and Gaza Strip in particular. The importance of urging decision-makers in technical colleges to promote interest in leadership and to put their own courses in all technical education programs in these colleges, as well as enhancing the technical, technological and technical capabilities of technical education and keeping pace with the latest international standards by providing the necessary material resources. There is a need to urge researchers to conduct further studies of the future which deal with the same variables of the current study in the field of entrepreneurship and applied to other sectors

Public sector reforms and the notion of 'public value': implications for egovernment deployment

Governments are increasingly investing in information and communication technologies (ICT) as tool to foster the rationalization of public administration. This paper discusses e-government within the context of governmental reforms heavily influenced by the New Public Management (NPM), which suggests that the use of ICT within the public sector will enhance efficiency, effectiveness and accountability. Based on the concept of ‘public value’ developed by Moore (1995), we propose to question the overall impact e-government initiatives may have on governments’ ability to deliver social and economic outcomes that correspond to citizens’ expectations. Our central argument is presented as follows: while ICT can help to achieve the main NPM values, e-government initiatives do not guarantee to have a positive effect on broader public values. Even when this argument is not new, in this paper we aim to strengthen the need for a deeper discussion of the implications of e-government programs in the context of public values. To do so, we propose a framework that distinguishes between clusters of public values: those that are related to managerial practices and those related to democratic values. We draw on descriptive examples to illustrate our main arguments

POLICIES FOR THE LOCATION OF INDUSTRIAL DISTRICTS IN ITALY AND

Recent global trends have affected significantly territorial and economic policies, especially in advanced-economy democracies, weakening frequently their national sovereignty. This paper, through published data, documentary sources, and interviews, offers a comparative perspective of industrial localisation’s policies in Israel and Italy, focusing on the dualism national decision-making/local practice. Although they have two different political structures, both countries have shifted to greater decentralisation, increased deregulation, and more privatisation. Since the beginning of the State, Israel industrial localisation policy used tools as national and regional planning and fiscal incentives, with the objective of the industrial dispersal. But last years’ profound economic, political, and social changes have led to a transformation of Israeli industrial geography, shifting changes in the government policies, and reinforcing the local-government assertiveness. Developing industrial parks has become a top priority even for rural regional council, with the risk of over-investment in too many industrial parks of too small a size. Similarly, since post-war years Italy concentrated on regenerating the economic periphery, the southern regions, through the “Cassa per il Mezzogiorno”, helping finance and developing irrigation, agriculture and industrial development in the most disadvantaged areas with a policy of investments in infrastructures and financial supports to the localisation of large firms. The change of industrial models, now based on more flexible structures, has brought, almost spontaneously, the “Third Italy” phenomenon, a proliferation of ‘local production systems’ (LPS) where SMEs represent an high share of total employment. Based on an endogenous development model, the success of LPS is not guaranteed unless change and innovation take place among local SMEs and institutions and between the local production system and the external environment, competing areas and other spatial system. For both countries is necessary a comprehensive, strategic and flexible planning and a stable, efficient and no-bureaucratic decision-making process, at an intermediate scale between regional and local.

Contrasting approaches to preparedness: a reflection on two case studies

This chapter reflects on ongoing research in SMEs in the manufacturing and service sectors. It contrasts different approaches to the issue of preparedness from an organisational and social perspective, in two cases where new enterprise-wide business processes were implemented and integrated in different settings. In both cases, the emergence of new systems presented a huge challenge to companies hard-pressed to marshal the resources to mount effective change and implementation projects on this scale. The cases presented enable a comparison of different strategies used, one firm responding to organic growth, and the other to rapid industry-driven change. The chapter focuses not on the implementations per se, but instead on the issue of preparedness for change. The chapter concludes by drawing out general lessons concerning how to support and maintain organisational preparedness for enterprise wide change in different industry setting