Do Trust-Based Relations Improve Firm’s Performance? Evidence from Transition Economies

The purpose of this paper is to analyze the impact of trust-based relations on firm’s performance in transition economies. The trade credit variable is used as a proxy of trust-based relations and the propensity score matching method is employed to establish casual link between relational governance and business performance in the study. The research is conducted using data from a large survey of firms across 28 transition economies. The results of the study suggest that informal trust-based institutions of contract governance represent an important way for enhancing of business performance. To say distinctly, our findings indicate that in transition economies trade credits positively affect firms’ sales growth. They provide incentives for more intensive innovation activities and ensure higher labor productivity rates. The firms that trust their partners are characterized by larger proportions of reinvested profits as well. The main contribution of this paper is that it provides new empirical insights into the casual link between trust-based relations and business performance of firms in transition economies

Do Trust-Based Relations Improve Firm’s Performance? Evidence from Transition Economies

The purpose of this paper is to analyze the impact of trust-based relations on firm’s performance in transition economies. The trade credit variable is used as a proxy of trust-based relations and the propensity score matching method is employed to establish casual link between relational governance and business performance in the study. The research is conducted using data from a large survey of firms across 28 transition economies. The results of the study suggest that informal trust-based institutions of contract governance represent an important way for enhancing of business performance. To say distinctly, our findings indicate that in transition economies trade credits positively affect firms’ sales growth. They provide incentives for more intensive innovation activities and ensure higher labor productivity rates. The firms that trust their partners are characterized by larger proportions of reinvested profits as well. The main contribution of this paper is that it provides new empirical insights into the casual link between trust-based relations and business performance of firms in transition economies

Expression und Funktion des fettmasse- und adipositas-assoziierten Gens FTO

Expression und Funktion des fettmasse- und adipositas-assoziierten Gens FTO Genomweite Assoziationsstudien haben eine starke Assoziation zwischen einem Block von Einzelnukleotid Variationen (single nucleotide polymorphisms - SNPs) im Intron 1 des Fettmasse und Adipositas-assoziierten Gens (FTO), dem body mass index (BMI) und anderen, Adipositas bezogenen Erkrankungen bei Kindern und Erwachsenen vieler verschiedener Populationen gezeigt. Dennoch ist bisher nicht bekannt, wie stark der Effekt dieser Variationen auf die Expression von FTO und/oder anderen Genen ist. Darüber hinaus ist die biologische Funktion von FTO, insbesondere in Bezug auf die Regulation des Körpergewichts, noch immer Gegenstand intensiver Forschung. Das Ziel dieser Arbeit war die Untersuchung des Effekts des FTO Genotyps auf die Expression von FTO sowie die Aufklärung der Funktion des FTO Proteins durch Bestimmung der subzellularen Lokalisation und des Effekts der FTO Dosis auf RNA Expressionsprofile und RNA Modifizierungslevel. Daher wurden Expressionsstudien durchgeführt, um den Zusammenhang zwischen Adipositas-assoziierten SNPs und der Expression von FTO und/oder anderen Genen zu untersuchen sowie funktionelle Studien, um Einblick in die Biologie von FTO zu erlangen. Um die Frage zu klären, ob Adipositas-assoziierte Variationen die Transkription von FTO und/oder anderen Genen in cis beeinflussen, wurden Allel-spezifische Expressionsstudien mittels Primer-Extensions Assays genutzt. In verschiedenen Zelltypen konnte gezeigt werden, dass vom Risiko-Allel des FTO Gens ca. 40% mehr Transkript generiert wird als vom Nicht-Risiko-Allel. Die Charakterisierung einzelner SNPs im Hinblick auf ihre Lokalisation (in silico Ansatz) und Proteinbindeaktivität wies auf eine komplexe Regulation der FTO Expression hin. Dies wurde auch durch die Tatsache unterstützt, dass der zelluläre FTO mRNA Level durch eine Reihe von Transkriptionsfaktoren kontrolliert wird. Weiterhin konnte gezeigt werden, dass die Allel-spezifische Expression der benachbarten Gene RPGRIP1L und RBL2 unabhängig vom FTO Genotyp ist. Zur weiteren Klärung der Funktion des FTO Proteins, wurde der Effekt eines veränderten Protein Gehalts von FTO auf das Transkriptom und die RNA Methylierung untersucht. FTO Überexpression führte zu Veränderungen der steady-state Level von Genen, die bei der RNA Prozessierung und Metabolisierung eine Rolle spielen. Ein Mangel an FTO andererseits wirkte sich auf die Transkriptlevel von Genen aus, die bei der Zellantwort auf Nährstoffmangel beteiligt sind. Untersuchungen zur subzellularen Lokalisation zeigten, dass FTO vermehrt in nuclear speckles (punktförmigen Gebilden im Zellkern) vorkommt werden konnte, in denen RNA Spleißfaktoren gespeichert und modifiziert werden. Außerdem ist FTO in den Nucleoli vorhanden, wo ribosomale RNA transkribiert und prozessiert wird. In vitro Studien hatten Hinweise darauf geliefert, dass FTO als Nukleinsäure Demethylase agiert und dabei Einzelstrang RNA als Substrat bevorzugt. Daher wurden die Effekte von FTO auf RNA Methylierung untersucht. Durch den Vergleich des Gehalts von modifizierten und nicht-modifizierten Ribonukleosiden in RNA aus Gehirn von Fto-defizienten und Wildtyp Mäusen, konnte gezeigt werden, dass der FTO Gehalt das Verhältnis von 3-Methyluridin/Uridin and Pseudouridin/Uridin beeinflusst. In dieser Arbeit konnte ich zeigen, dass eine erhöhte Expression von FTO eine Prädisposition für Adipositas darstellt, möglicherweise durch Einfluss auf das Transkriptom und RNA Modifizierung. Weitere Untersuchungen werden dabei helfen, den Zusammenhang zwischen der Funktion von FTO, RNA Prozessierung und Adipositas weiter aufzuklären.Expression and Function of the Fat Mass and Obesity-Associated Gene FTO Genome-wide association studies have revealed a strong association between a block of single-nucleotide polymorphisms (SNPs) in intron 1 of the fat mass and obesity-associated (FTO) gene, body mass index (BMI) and other obesity-related traits in children and adults of many different populations. Yet, the impact of these variations on expression of FTO and/or other genes has remained unknown. Moreover, the biological function of FTO, in particular its contribution to body weight regulation, is still a subject of extensive investigations. The aim of this thesis was to investigate the impact of FTO genotype on FTO expression and elucidate the function of the FTO protein by determining its subcellular localization and the effect of FTO dosage on RNA expression profiles and RNA modification levels. Hence, expression studies were performed to evaluate the link between obesity-associated SNPs and expression of FTO and/or other genes, and functional studies were performed to gain insight into FTO biology. Allelic expression studies by primer extension assays were carried out to address the question whether obesity-associated variation affects transcription of the FTO and/or other genes in cis. It was demonstrated that the risk allele of FTO makes about 40% more transcripts than the non-risk allele in the different cell types. Characterization of single polymorphisms with regard to their location (in silico approach) and protein binding activity pointed to a complex regulation of the expression of FTO. This was strengthened by the fact that the cellular the level of FTO mRNA is controlled by a number of transcription factors. Allelic expression of the neighboring RPGRIP1L and RBL2 was shown to be independent of the FTO genotype. To elucidate the function of the FTO protein, effects of its altered levels on the transcriptome and RNA methylation were investigated. Overexpression of FTO resulted in changes of steady state levels of genes involved in RNA processing and metabolism, whereas deficiency of FTO led to alterations in transcripts levels of genes determining cellular response to starvation. Subcellular localization studies showed that FTO is enriched in nuclear speckles, where RNA splicing factors are stored and modified, and is present in nucleoli, where ribosomal RNA is transcribed and processed. In vitro studies have suggested that FTO acts as a nucleic acid demethylase and prefers single stranded RNA as a substrate. Therefore, the effects of FTO on RNA methylation were investigated. By comparison of content of modified and non-modified ribonucleosides in total brain RNA of Fto-deficient and wild type mice I could show that the level of FTO affects the 3-methyluridine/uridine and pseudouridine/uridine ratios. In summary, I could show that increased expression of FTO predisposes to obesity, possibly by affecting transcriptome and RNA modifications. Further investigations will help to elucidate the link between FTO function, RNA processing and obesity

Modes of Regional Cooperation and their Political Economy

FEUTURE Online Paper No. 29 With the accession talks at a virtual halt, economic cooperation presents itself as one of the few open areas of dialogue between the EU and Turkey. On the one hand, Turkey is trying to reposition itself as a regional and global player weighing its options outside of the EU in terms of economic cooperation. On the other hand, both parties agree to the need to upgrade the current limited Customs Union (CU) agreement. Outside of but highly relevant for the political tensions between the two long term partners, the world trading regime is on the verge of major changes through mega trade agreements such as the TPP and the TTIP. Although currently rising trade wars seem to shadow the multilateral trade regime, big deals are to come whether bilateral or otherwise. More than the EU, Turkey will need to shape its policy to prevent potential losses. This paper evaluates different modes of economic cooperation between the EU and Turkey as well as Turkey’s potential involvement in partnerships outside of the EU

Do Trust-Based Relations Improve Firm’s Performance? Evidence from Transition Economies

The purpose of this paper is to analyze the impact of trust-based relations on firm’s performance in transition economies. The trade credit variable is used as a proxy of trust-based relations and the propensity score matching method is employed to establish casual link between relational governance and business performance in the study. The research is conducted using data from a large survey of firms across 28 transition economies. The results of the study suggest that informal trust-based institutions of contract governance represent an important way for enhancing of business performance. To say distinctly, our findings indicate that in transition economies trade credits positively affect firms’ sales growth. They provide incentives for more intensive innovation activities and ensure higher labor productivity rates. The firms that trust their partners are characterized by larger proportions of reinvested profits as well. The main contribution of this paper is that it provides new empirical insights into the casual link between trust-based relations and business performance of firms in transition economies

Do Trust-Based Relations Improve Firm’s Performance? Evidence from Transition Economies

The purpose of this paper is to analyze the impact of trust-based relations on firm’s performance in transition economies. The trade credit variable is used as a proxy of trust-based relations and the propensity score matching method is employed to establish casual link between relational governance and business performance in the study. The research is conducted using data from a large survey of firms across 28 transition economies. The results of the study suggest that informal trust-based institutions of contract governance represent an important way for enhancing of business performance. To say distinctly, our findings indicate that in transition economies trade credits positively affect firms’ sales growth. They provide incentives for more intensive innovation activities and ensure higher labor productivity rates. The firms that trust their partners are characterized by larger proportions of reinvested profits as well. The main contribution of this paper is that it provides new empirical insights into the casual link between trust-based relations and business performance of firms in transition economies

Studying Complementarities between Modes of Innovation Strategies in Transition Economies

This paper explores the existing interrelationships between the firm’s innovation activities and productivity performance as well as studies complementarities among innovation strategies in transition economies. Specifically, on the basis of BEEPS V dataset and using extended CDM model, we have investigated the existence of possible complementarities between various types of innovation modes (product, process, marketing and organizational innovations) in their impact on the firm’s productivity. The traditional CDM framework was modified through accounting for the simultaneous occurrence of different types of innovation inputs - in-house and out-house knowledge generation activities - and through the estimation of their joint effects on various modes of innovation. In compliance with the results of previous studies, we find that CDM model properly describes the existing interrelations between the firm’s innovation activity and its productivity performance in transition economies. In particular, our results show that the firm’s decisions on in-house and out-house knowledge development processes are interdependent. The study results suggest that implementation of internal R&D strategy can stimulate not only technological innovations but non-technological innovative activity as well. However, we find that external knowledge acquisition strategy has positive and statistically significant effect on innovation output only when the firm’s innovation mix incorporates non-technological novelties. Our results show that only those modes of innovation output combinations that assume all the types of innovations and/or the combination of process and non-technological innovations have positive and statistically significant impact on the firm’s productivity. Another vital point of this analysis is that conducting either product or process innovation in isolation will result in a negative productivity performance. The important contribution of this paper is that it tests for complementarity between innovation strategies of firms in transition economies. Our tests reveal complementarity between the following two combinations of innovations: product/process and process/non-technological innovations. The key policy implication of our findings is that while performing all the three innovation modes jointly has a positive impact on firm’s performance, economically preferred options are: either to choose pure technological innovation strategy (product&process mode) or to perform strategy focused on organizational restructuring (process/non-technological mode)

The Impact of Business Environment Reforms on Firms’ Performance in Transition Economies

The study investigates the impact of business environment on export performance of individual firms in transition economies. For these goals, the study utilizes the firm-level data from the Business Environment and Enterprise Performance Survey (BEEPS V round) across 28 transition economies. Applying the modified CDM model the paper examines the structural link between the business environment reforms, firm R&D, innovation, labor productivity, and export performance. The model was estimated sequentially, step-by-step. The estimates of the structural model, generally, proved our hypothesis about the impact of business environment reforms on the relationships between R&D investments, innovation, labor productivity and export performance. This study also supports the early findings that R&D is an important determinant of innovation, that innovation is a driver of labor productivity and that labor productivity, in turn, substantially increases the probability of firm’s participation at export markets