European-American Trade and Financial Alliances

263 Pages·2005·3.19 MB·English

by  Gavin Boyd

European–American Trade and Financial
Alliances
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NEW HORIZONS IN INTERNATIONAL BUSINESS
Series Editor: Peter J. Buckley
Centre for International Business,
University of Leeds (CIBUL), UK
The New Horizons in International Business series has established itself as the world’s
leading forum for the presentation of new ideas in international business research. It offers
pre-eminent contributions in the areas of multinational enterprise – including foreign direct
investment, business strategy and corporate alliances, global competitive strategies, and
entrepreneurship. In short, this series constitutes essential reading for academics, business
strategists and policy makers alike.
Titles in the series include:
Multinational Enterprises, Innovative Strategies and Systems of Innovation
Edited by John Cantwell and José Molero
Multinational Firms’ Location and the New Economic Geography
Edited by Jean-Louis Mucchielli and Thierry Mayer
Free Trade in the Americas
Economic and Political Issues for Governments and Firms
Edited by Sidney Weintraub, Alan M. Rugman and Gavin Boyd
Economic Integration and Multinational Investment Behaviour
European and East Asian Experiences
Edited by Pierre-Bruno Ruffi ni
Strategic Business Alliances
An Examination of the Core Dimensions
Keith W. Glaister, Rumy Husan and Peter J. Buckley
Investment Strategies in Emerging Markets
Edited by Saul Estrin and Klaus E. Meyer
Multinationals and Industrial Competitiveness
A New Agenda
John H. Dunning and Rajneesh Narula
Foreign Direct Investment
Six Country Case Studies
Edited by Yingqi Annie Wei and V.N. Balasubramanyam
Japanese Multinationals in Europe
A Comparison of the Automobile and Pharmaceutical Industries
Ken-ichi Ando
International Joint Venture Performance in South East Asia
Craig C. Julian
Governance, Multinationals and Growth
Edited by Lorraine Eden and Wendy Dobson
European–American Trade and Financial Alliances
Edited by Gavin Boyd, Alan M. Rugman and Pier Carlo Padoan
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European–American
Trade and Financial
Alliances
Edited by
Gavin Boyd
Formerly Honorary Professor, Political Science Department,
Rutgers University, USA and Adjunct Professor in
Management, Saint Mary’s University, Canada
Alan M. Rugman
L. Leslie Waters Chair of International Business and Director,
IU CIBER, Kelley School of Business, Indiana University, USA
Pier Carlo Padoan
Executive Director, International Monetary Fund, USA and
Department of Economics, University of Rome ‘La Sapienza’,
Italy
NEW HORIZONS IN INTERNATIONAL BUSINESS
Edward Elgar
Cheltenham, UK (cid:127) Northampton, MA, USA
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© Gavin Boyd, Alan M. Rugman and Pier Carlo Padoan 2005
All rights reserved. No part of this publication may be reproduced, stored in
a retrieval system or transmitted in any form or by any means, electronic,
mechanical or photocopying, recording, or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
Glensanda House
Montpellier Parade
Cheltenham
Glos GL50 1UA
UK
Edward Elgar Publishing, Inc.
136 West Street
Suite 202
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
ISBN 1 84376 907 7
Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall
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Contents
List of contributors vi
Foreword vii
Preface ix
1 The role of fi nancial markets in economic performance:
the EU and the USA 1
Stefano Manzocchi and Pier Carlo Padoan
2 Atlantic interdependent knowledge-based economies 24
Simona Iammarino and Daniele Archibugi
3 Atlantic commerce 52
John Kirton
4 Structural potentials in Atlantic trade: measuring the impact
of a US–Europe free trade agreement 76
Walid Hejazi
5 The regional dimension of multinational enterprises and
antitrust policy 109
Alan M. Rugman and Alain Verbeke
6 Interregional integration: collective management tasks 134
Gavin Boyd
7 Concerting entrepreneurship: an international public good 165
Peter J. Boettke and Christopher J. Coyne
8 Institutionalizing Atlantic structural partnering 193
Gavin Boyd
9 The development and structure of fi nancial markets in the
European–American economy 215
George G. Kaufman
Index 243
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Contributors
Daniele Archibugi, Center for European Studies, Harvard University, USA
and Italian National Research Council, Italy.
Peter J. Boettke, Department of Economics, George Mason University,
USA.
Gavin Boyd, Political Science Department, Rutgers University, USA
(deceased).
Christopher J. Coyne, Department of Economics, George Mason University,
USA.
Walid Hejazi, Rotman School of Management, University of Toronto,
Canada.
Simona Iammarino, Science and Technology Policy Research, University
of Sussex, UK, and University of Rome La Sapienza.
George G. Kaufman, Loyola University, Chicago and Federal Reserve Bank
of Chicago, USA.
John Kirton, G8 Research Group, University of Toronto, Canada.
Stefano Manzocchi, Department of Economics, University of Perugia,
Italy.
Pier Carlo Padoan, Executive Director, International Monetary Fund, USA
and Department of Economics, University of Rome ‘La Sapienza’, Italy.
Alan Rugman, Kelley School of Business, Indiana University, USA.
Alain Verbeke, Haskayne School of Business, University of Calgary,
Canada.
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Foreword
This volume is the result of a conference held at Saint Mary’s University
in September 2003. Shortly after this event, Gavin Boyd died, so this book
is dedicated to his memory and contribution to the fi nancial/political
economy literature.
Gavin was born in Australia, and, although a political scientist by training,
it was more political economy that captured his interest, particularly
international trade and investment issues. I fi rst met Gavin in the early
1980s, when I joined the Business School at Saint Mary’s University from
the UK. We shared similar interests, and we very much complemented each
other in our approach, and, although we never published papers together,
we spent many productive hours together discussing and debating. I also
contributed to several of his edited volumes.
Gavin could always be relied upon to know of a pertinent book or article.
To some at conferences it might have been seen as an irritant to have him
say ‘Have you seen the latest paper by ...’, but to those that knew Gavin, his
knowledge of the literature and willingness to share, as well as his network
of colleagues, are legendary. Although Gavin retired in 1989, he was always
active with conference presentations and seminal papers and remained
faithful to his use of a typewriter!
The year 1995 marks a signifi cant date in Gavin’s productivity. Halifax,
Nova Scotia was host to the G7. Gavin thought that it was imperative
that an academic conference be held as a precursor. The papers from that
conference and the others that followed at Saint Mary’s University marked a
fruitful partnership with Edward Elgar. The fi rst book was edited by Gavin
Boyd and Alan Rugman, and was called Euro-Pacifi c Investment and Trade
(Elgar, 1997). Gavin worked on many other projects over the last ten years,
all under the Edward Elgar imprint.
Apart from his command of the literature, Gavin’s standards for
publication were extremely high. He would not tolerate slipshod work, and
he took great care at editing, often with many suggestions for rewrites.
He enjoyed many successful partnerships with scholars in the fi eld,
held an Adjunct Professor position at the Business School at Saint Mary’s
University, and at Rutgers he was an Honorary Professor. He leaves a rich
legacy to the academic world, not only from his own writings, but through
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viii European–American trade and financial alliances
his ability to bring together a wide range of scholars for symposiums or
conferences. Many of these are icons in the literature and others newly
emerging scholars that Gavin saw as future leaders.
This present volume addresses the policy issues that were very dear to
Gavin’s heart – a vision of greater transatlantic integration, cooperation
and alliances.
J. Colin Dodds, President, Saint Mary’s University
and Professor of Finance, Sobey School of Business
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Preface
Our co-editor and the organizer of the September 2003 conference on which
this book is based was Gavin Boyd. Gavin died in November 2003, and he is
greatly missed by all of us who attended the series of excellent conferences
on various aspects of international political economy that he organized
over the last ten years at Halifax, Nova Scotia, with the sustained support
of President Colin Dodds of Saint Mary’s University.
In this, his fi nal book, Gavin has brought together a distinguished group
of experts on the nature and extent of transatlantic policy coordination and
its implication for corporate strategy. The economic and fi nancial linkage
between Europe and North America, along with the trade and investment
rules governing this interaction, are discussed in the remarkably relevant
set of papers presented at that conference and edited for publication in
this volume.
The complexities of the transatlantic relationship are analysed in chapters
dealing with fi nancial integration (Manzocchi and Padoan); transfer of
knowledge and technology (Iammarino and Archibugi); transatlantic trade
and corporate partnership (Kirton); transatlantic trade and investment links
(Hejazi); the simultaneous intraregional as well as transatlantic trade and the
implications for antitrust policy of the activities of multinational enterprises
(Rugman and Verbeke); structural positioning and macroeconomic policy
coordination (Boyd); international interdependence and the role of
entrepreneurship (Boettke and Coyne); and the reform of international
fi nancial markets (Kaufman).
We hope that this book will be useful for policy makers, managers and
students of international political economy, not only in Europe and North
America, but also in other parts of the global system governed by similar
challenges of international integration and policy coordination.
Alan M. Rugman
Pier Carlo Padoan
October 2004
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