TRADE BETWEEN CREATIVE REGIONS WHEN THE INPUT ELASTICITY OF SUBSTITUTION IS LESS THAN UNITY

Amitrajeet A. BATABYAL

Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USA.
aabgsh@rit.edu

Hamid BELADI

Department of Economics, University of Texas at San Antonio, One UTSA Circle, San Antonio, TX 78249-0631, USA.
Hamid.Beladi@utsa.edu

Abstract

We analyze a model of trade between J heterogeneous regions that are creative in the sense of Richard Florida. There are two non-traded final goods that are used for consumption and investment. There is a continuum of inputs that are freely traded between the creative regions. There is no borrowing or lending between the creative regions. Specifically, we study the impacts of free trade in inputs when the elasticity of substitution between the traded inputs that are used to produce the final consumption and investment goods is less than unity. We first show that creative regions that have lower discount rates will be relatively poor and hence worse off with trade when the above elasticity of substitution is less than one. Next, we explain in detail why this negative result obtains.

Keywords: Creative Capital, Creative Region, Elasticity of Substitution, Input, Trade

JEL classification: R11, F12

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THE POTENTIAL IMPACT OF REGIONAL BEYOND GDP INDICATORS ON ELECTIONS

Arzu TEKTAS

Bogazici University – Center for Innovation and Competition-Based Studies, Department of International Trade, Professor, Bogazici University – Department of International Trade Hisar Kampus, Etiler, Istanbul, Turkey, Tel. +90 212 359 66 83 / +90 533 372 58 58
tektas@boun.edu.tr
(corresponding author)

Asli Deniz HELVACIOGLU

Bogazici University – Center for Innovation and Competition-Based Studies, Department of International Trade, Associate Professor, Bogazici University – Department of International Trade Hisar Kampus, Etiler, Istanbul, Turkey, Tel. +90 212 359 45 10 / +90 531 921 50 05
asli.helvacioglu@boun.edu.tr

Abdulmecit KARATAS

Istanbul Development Agency, Associate Professor, Havaalanı Kavşağı EGS Business Park Blokları B2 Blok Kat: 16 34149 Yeşilköy Bakırköy / Istanbul, Turkey, Tel. +90 212 468 34 00
abdulmecit.karatas@istka.org.tr

Abstract

Beyond GDP approach has become a milestone for the efforts that try to integrate social indicators to the studies that were previously tracing traditional macro-economic indicators like GDP, inflation and unemployment. It not only paved the way for novel indicators but also stimulated the establishment of new multi-dimensional indexes. The recently published European Union Regional Social Progress Index defines itself within this scope and aims to measure the regional social progress as a complement to traditional measures of economic progress. Our study gets the inspiration from this new index. The construct of the study is built upon the question whether non-economic regional indicators, particularly social, are capable of explaining the support for the incumbent in elections. This is one of the first studies integrating Beyond GDP approach to election studies by using the social indicator sets. It analyzes the impact of the social indicators on incumbent party votes for all of the 81 cities in the 2011 Turkish general elections. Our findings depict that social indicators affect the votes for incumbent as powerful as economic ones.

Keywords: Beyond GDP, Regional Social Indicators, Regional Social Progress Indicators, Elections, Incumbent Party, Turkey

JEL classification: R5, R11
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MERGERS AND ACQUISITIONS STRATEGIES FOR MARKET PENETRATION IN NEW COUNTRIES: THE CASE OF ALSEA GROUP

José G. VARGAS-HERNÁNDEZ

University Center for Economic and Managerial Economics, University of Guadalajara
Periférico Norte 799 Edif. G.201-7, Núcleo Universitario Los Belenes.
Zapopan, Jalisco, 45100, México
Tel: +523337703340 ext. 25685, jgvh0811@yahoo.com,josevargas@cucea.udg.mx
jvargas2006@gmail.com

Michelle Ángeles PÉREZ MARTÍNEZ

University Center for Economic and Managerial Economics, University of Guadalajara
Periférico Norte 799 Edif. G.201-7, Núcleo Universitario Los Belenes.
Zapopan, Jalisco, 45100, México

Abstract

The principal subject matter of this document is to present the use of mergers and acquisitions as market entry modes, through the international strategy and global standardization. How practical part will be held strategic analysis of Grupo Alsea a Mexican company dedicated to the operation of restaurants in Mexico, Latin America and Spain, will show how it has managed to penetrate the Latin American market and beyond the European market, what were their strategies for penetrating markets in other countries? And how effective are these strategies? Thus, concluding that the use of mergers and acquisitions for Alsea group represented its main strategic key coupled with the synergy of corporate governance, social responsibility, sustainability and development of its employees.

Keywords: Acquisitions, Global Standardization, International Strategy, Mergers

JEL classification: D220, D430, D470, M160, M210
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