Contesting the State: Discourses of the Asian Economic Crisis and Mediating Strategies of Electronics Firms in Singapore

2003 ◽  
Vol 35 (3) ◽  
pp. 463-488 ◽  
Author(s):  
Karen P Y Lai ◽  
Henry Wai-chung Yeung

In the last decade or so, human geographers have paid greater attention to the significance of discourses. We acknowledge the importance of discursive constructions and metaphorical representations of economic space, and extend the argument by examining the practices that may follow from such discourses. With use of empirical data from a firm-level survey and interviews with representatives of electronics firms in Singapore, we focus on contested interpretations of the Asian economic crisis at the firm level: how they might differ from state-driven discourses, and the extent to which state discourses (embodied in ministerial speeches and policy initiatives) were accepted, contested, and negotiated through firm-specific practices. The different counterdiscourses and responses of local and foreign firms are also compared. Results show that discourses at the national (state) scale were challenged and contested by firms within the same national space economy because of such material conditions as firm-specific circumstances, spatial extensiveness of their intrafirm and interfirm networks, and their access to various formal and informal information channels. The sampled firms offerered their own readings of the crisis that often contradicted the effectiveness and usefulness of certain policy responses orchestrated at the national scale. Their abilities to weather the crisis were also differentiated significantly between local and foreign firms. The study therefore highlights the importance of understanding the complex interrelationships between discourses and practices at different spatial scales and their capacity to produce (un)intended geographical outcomes.

Author(s):  
Jacques-François Thisse

Despite the drop in transport and commuting costs since the mid-19th century, sizable and lasting differences across locations at very different spatial scales remain the most striking feature of the space-economy. The main challenges of the economics of agglomeration are therefore (a) to explain why people and economic activities are agglomerated in a few places and (b) to understand why some places fare better than others. To meet these challenges, the usual route is to appeal to the fundamental trade-off between (internal and external) increasing returns and various mobility costs. This trade-off has a major implication for the organization of the space-economy: High transport and commuting costs foster the dispersion of economic activities, while strong increasing returns act as a strong agglomeration force. The first issue is to explain the existence of large and persistent regional disparities within nations or continents. At that spatial scale, the mobility of commodities and production factors is critical. By combining new trade theories with the mobility of firms and workers, economic geography shows that a core periphery structure can emerge as a stable market outcome. Second, at the urban scale, cities stem from the interplay between agglomeration and dispersion forces: The former explain why firms and consumers want to be close to each other whereas the latter put an upper limit on city sizes. Housing and commuting costs, which increase with population size, are the most natural candidates for the dispersion force. What generates agglomeration forces is less obvious. The literature on urban economics has highlighted the fact that urban size is the source of various benefits, which increase firm productivity and consumer welfare. Within cities, agglomeration also occurs in the form of shopping districts where firms selling differentiated products congregate. Strategic location considerations and product differentiation play a central role in the emergence of commercial districts because firms compete with a small number of close retailers.


Author(s):  
Zhiyuan Chen ◽  
Xin Jin ◽  
Xu Xu

Abstract We study the impact of anticorruption efforts on firm performance, exploiting an unanticipated corruption crackdown in China’s Heilongjiang province in 2004. We compare firms in the affected regions with those in other inland regions before and after the crackdown. Our main finding is an overall negative impact of the crackdown on firm productivity and entry rates. Furthermore, these negative impacts are mainly experienced by private and foreign firms, while state-owned firms are mostly unaffected. We present evidence concerning two potential explanations for our findings. First, the corruption crackdown may have limited bribery opportunities that helped private firms operate. Second, the corruption crackdown may have interfered with personal connections between private firms and government officials to a greater extent than institutional connections between state-owned firms and the government. Overall, our findings suggest that corruption crackdowns may not restore efficiency in the economy, but instead lead to worse economic outcomes, at least in the short run (JEL L2, M1, O1).


2019 ◽  
Vol 64 (5) ◽  
pp. 987-1006
Author(s):  
Vincent Arel-Bundock ◽  
Clint Peinhardt ◽  
Amy Pond

When do governments impose costs on foreign firms? Many studies of foreign direct investment focus on incentives for government expropriation, but scholars are often forced to rely on indirect measures of expropriation to conduct empirical analyses. This article introduces a data set which includes information on over 5,000 political risk insurance contracts issued by the US Overseas Private Investment Corporation since 1961, and on all the claims filed by investors under these contracts. These detailed insurance data allow us to study the determinants of foreign investors’ losses from a variety of sources, including expropriation, inconvertibility, and violent conflict. To illustrate the benefits of these data for hypothesis testing, we adopt a comprehensive empirical approach and explore both shared and distinct causes across risk categories.


2014 ◽  
Vol 22 (3) ◽  
pp. 294-323 ◽  
Author(s):  
Thomas Hutzschenreuter ◽  
Ingo Kleindienst ◽  
Florian Groene ◽  
Alain Verbeke

Purpose – The purpose of this paper is to address how firms adapt their product and geographic diversification as a response to foreign rivals penetrating their domestic market by adopting a behavioral perspective to understand firm-level strategic responses to foreign entry. Design/methodology/approach – The study proposes that strategic responses to foreign entry selected by domestic incumbents have both a framing component and a related, strategic choice component, with the latter including changes in product and geographic market diversification (though other more business strategy-related responses are also possible, e.g. in product pricing and marketing). This study tests a set of hypotheses building on panel data of large US firms. Findings – The study finds, in accordance with our predictions, that domestic incumbents reduce their product and geographic diversification when facing an increase in import penetration. However, when increased market penetration by foreign firms takes the form of FDI rather than imports, the corporate response appears to be an increase in product and geographic diversification, again in line with our predictions. Originality/value – The study develops a new conceptual framework that is grounded in prospect theory, but builds on recent insights from mainstream international strategic management studies (Bowen and Wiersema, 2005; Wiersema and Bowen, 2008).


10.1068/d56j ◽  
2005 ◽  
Vol 23 (4) ◽  
pp. 555-580 ◽  
Author(s):  
Nick Megoran

Drawing on critical security studies and critical geopolitics, I examine how geopolitical discourses of danger circulate in Kyrgyzstan and Uzbekistan. Whereas some work in this field risks reinscribing the discursive articulation of danger as an inevitable condition of political formation, in this paper I emphasise the need to disaggregate the concept of danger carefully to highlight its operation in specific contexts. I explore these processes across a range of discursive sites from official media to popular music, contrasting findings with material from focus groups composed of socially marginalised populations. I demonstrate the role of discursive constructions of danger or safety in the production and maintenance of the political identity of the new states, and how this is inseparable from material conditions of elite power struggle. I conclude by echoing Hewitt's call for a critical geography that confronts and challenges the domestic exercise of state terror.


2015 ◽  
Vol 39 (1) ◽  
pp. 131-150 ◽  
Author(s):  
Nadja Doerflinger ◽  
Valeria Pulignano

This article investigates the effects of crisis-related collective bargaining on different contractual groups of workers. Comparing four workplaces of two multinationals in Germany and Belgium in the recent economic crisis, the authors observe that Belgian unions could protect some temporary workers’ jobs and when the crisis endured, the jobs and working conditions of the permanent workforces. In contrast, temporary jobs in the German workplaces were not protected and later on, the works councils had to concede on the permanent workers’ working conditions to safeguard their jobs. This is explained by the intersection of institutional and firm-level differences which interacted to offer (or not) resources to unions to enforce protection.


2011 ◽  
Vol 55 (1-2) ◽  
Author(s):  
Bernd Belina

Capitalist productions of space and economic crisis. David Harvey’s notion of the spatial fix. David Harvey’s contribution to an understanding of the space-economy of capitalism is largely absent from German economic geography. In engaging with his work in this article, the focus lies with a reconstruction of the precise meaning of the notions spatial fix and spatio-temporal fix as deployed by Harvey. It also discusses his concepts of structured coherence, the secondary circuit of capital and the circulation of fixed capital through the built environment. Central spatial aspects of the financial and economic crisis of 2008/09, and the neoliberal answers to the crisis of Fordism that preceded it, are used to illustrate how these notions are able to illuminate complex economic and political relations and their spatiality.


2020 ◽  
Vol 5 (1) ◽  
pp. 6
Author(s):  
Ahmad Oktabri Widyananda ◽  
Dyah Wulan Sari

Foreign Direct Investment (FDI) takes an important role in the development process, especially in developing countries. The purpose of this study is to examine and analyze FDI spillover on the level of technical efficiency in the large and medium manufacturing industry in East Java. This study uses a time-varying stochastic frontier approach for firm-level panel data of the East Java manufacturing industry. The results show that all factors in this study affect the level of technical efficiency of large and medium industries in East Java. Variable foreign share, FDI horizontal spillover, and firm size have a positive influence on the technical efficiency of the industry. Whereas the variable FDI backward spillover, FDI forward spillover and the level of market concentration negatively affect the level of technical efficiency of the industry. Finally, it’s needed to build synergies and sustainable relationships between products produced by domestic and foreign firms. Thus, the presence of foreign firms in East Java could have a positive impact on improving the technical efficiency of the domestic industry both at the upstream and downstream levels. Keywords: Foreign Direct Investment Spillover, Technical Efficiency, East Java IndustryJEL Classification: F21, L60, D24


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