De facto capital mobility, equality, and tax policy in open economies

This paper attempts at giving theoretical and empirical answers to the remaining puzzles in the literature on tax competition: the persistently high tax rates on mobile capital and the large variation in domestic tax systems. I argue that governments face a political trilemma, in which they cannot maintain the politically optimal level of public good provision, reduce capital taxes to competitive levels and implement a political support-maximizing mix of tax rates on capital and labour simultaneously. In particular, while legal restriction on capital flows have been eliminated by virtually all OECD countries, de facto capital mobility falls short of being perfect. Limits to full capital mobility result from ownership structures: the higher the concentration of capital, the higher the de facto mobility of capital and the lower the equilibrium tax rate. Second, the demand for the provision of public goods further constraints governments’ choices of the capital tax rate. If revenue from taxation of mobile factors declines, politicians cannot necessarily cut back spending without losing political support. Policy makers, accordingly, do not face a simple optimization problem when deciding on capital taxation. Rather, they have to choose a tax system which allows them to supply an appropriate level of public goods. Policy makers finally face a trade-off resulting from the redistributive conflict between capital-owners and workers. This conflict does not resemble a mere zero-sum game, because lower levels of capital taxation are likely to improve aggregate welfare, but the decision on capital taxation also cannot be analyzed in isolation from the distributive effects of reducing taxes on mobile factors. This political logic of tax competition generates important predictions which are tested empirically for 23 OECD countries over 30 years within a spatial econometrics framework

The interplay of strategic and internal green marketing orientation on competitive advantage

This paper seeks to clarify and refine the relationship between strategic and internal green marketing and firm competitiveness. Despite the significance of corporate environmental strategy to firms adopting a triple-bottom line performance evaluation, there is insufficient focus on strategic green marketing and its impact on a firm’s competitiveness. This study fills the gap by providing a comprehensive view of strategic green marketing and its impact on competitive advantage. Findings also reveal the moderating role of internal green marketing actions towards the development of a sustained competitive advantage. Specifically, the findings build on contemporary green marketing literature suggesting that a significant interplay between strategy and people exists which enhances the creation of competitive advantage. This in turn increases financial performance. Finally, this research uses an updated approach to build on current literature concerning the drivers and outcomes of strategic green marketing. This provides managers with nuanced insights about environmentally-driven competitive advantage

The Effect of Competitive Advantage on the Economic Performance of Spanish Agro-Food Firms

The objective of this work is to analyse the relative importance of three groups of competitive advantage factors on firms’ results of the Spanish agro-food industry. Competitive advantage factors correspond to three aspects: agro-food firms internal sources called, in this study, Potential Resources (RP); agro-food firms relationships with other firms, which are called Specific Firms Relationships (RE); and, the market and industry characteristics plus the industrial localisation, which are included in the so called Market Structure and Industry Location (EMI). Seven hypotheses have been formulated to asses direct and indirect relationships between RP, RE, EMI and economic Results (R) specifying causality directions between explicative indicators for each competitive factor. The seven hypotheses have been combined in a hypothetical model with structural equations defining firms’ competitiveness. A sample of 294 firms has been used and 17 variables related to competitive advantages have been selected. Indicators related to Potential Resources refer to technological levels, development of new products as well as promotion and advertising activities. Agro-food firms’ relationships are taken into account introducing variables accounting for relationships with suppliers, distributors and other firms. The Market Structure and Industry are taken into account considering the concentration degree of the food distribution firms, entry of new firms into the market and product prices, among others. Results have been measured with indicators measuring investment over sales, added value and export intensity. Results indicate that Potential Resources and the Specific Firms Relationships explain better the variability of the Results with a strong relationship between those two groups of variables. Altogether this analysis supports 4 out of the 7 proposed hypotheses. The most important variables influencing results are product and process innovations as well as relationships with suppliers.agro-food industry, Spain, competitive advantages, confirmatory factorial analysis, structural equations model, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety,

Nonparametric Bayesian multiple testing for longitudinal performance stratification

This paper describes a framework for flexible multiple hypothesis testing of autoregressive time series. The modeling approach is Bayesian, though a blend of frequentist and Bayesian reasoning is used to evaluate procedures. Nonparametric characterizations of both the null and alternative hypotheses will be shown to be the key robustification step necessary to ensure reasonable Type-I error performance. The methodology is applied to part of a large database containing up to 50 years of corporate performance statistics on 24,157 publicly traded American companies, where the primary goal of the analysis is to flag companies whose historical performance is significantly different from that expected due to chance.Comment: Published in at http://dx.doi.org/10.1214/09-AOAS252 the Annals of Applied Statistics (http://www.imstat.org/aoas/) by the Institute of Mathematical Statistics (http://www.imstat.org

Resource determinants of strategy and performance: the case of British exporters

This study adopts the RBV of the firm in order to identify critical advantage-generating resources and capabilities with strong positive export strategy and performance implications. The proposed export performance model is tested using a structural equation modeling approach on a sample of 356 British exporters. We examine the individual as well as the concurrent (simultaneous) direct and indirect effects of five resource bundles on export performance. We find that four resources/capabilities: managerial, knowledge, planning, and technology, have a significant positive direct effect on export performance, while relational and physical resources exhibited no unique positive effect. We also find that the firm’s export strategy mediates the resource-performance nexus in the case of managerial and knowledge-based resources. The theoretical and methodological grounding of this study contributes to the advancement of export related research by providing better specification of the nature of the effects – direct or indirect – of particular resource factors on export performance

THE CONTRIBUTIONS OF FIRM'S PRODUCTIVE ASSETS TO ITS COMPETITIVE PERFORMANCE: A RESOURCE-BASED VIEW APPROACH IN THE SOFTWARE SECTOR

In accordance to Resource Based View (RBV), the main cause of the variety of firm's performance in the market lies on the specific nature of their resources and accumulated competences. Nevertheless, the majority of explicative variables are qualitative what makes it hard to quantify and identify the correlation degree between the competitive performance and the resources of the company. Through a research performed in 1999, the French economist Rodolphe Durand developed his own methodology, building latent variables (proxys) that permit a highly satisfactory evaluation of the relationship between firm's performance and their specific resources. Based on this methodology we evaluated, in the specific case of Brazilian software sector, the degree of influence of the firm's productive assets on its competitive performance The theory establishes that the higher the inimitability and immobility of assets, the higher their profitability, margin and market performance. In inimitability we have found a relevant positive association only with the market performance. In relation to immobility we found a positive association with profitability and a negative association with margin.