Cambridge Journal of Economics - current issue

Explaining modern economics (as a microcosm of society)

Bigo, V. — 2008-07-02

The persistence of mainstream economists with methods of mathematical-deductive modelling that, most agree, do not perform well is something of a puzzle. Here I show this phenomenon to be a special case of (gendered) tendencies in play in society at large, and I offer a psychological explanation.

Newton's real influence on Adam Smith and its context

Montes, L. — 2008-07-02

While Newton's influence on Adam Smith has been widely acknowledged, there is scant research on the actual nature of this influence. This paper sums up a line of investigation delving into this issue. After a short introduction, it is argued that Newton's methodology is more complex than a merely positivistic interpretation. Then the context of Newton's influence during the turn of the seventeenth century and the eighteenth century is assessed. It will be suggested that a British (and particularly Scottish) interpretation of Newton diverges from the French reading of his legacy. The final section analyses Smith's understanding of Newton, arguing that the father of economics was a sophisticated interpreter. The intellectual context of what the Scottish Enlightenment made of Newton, and how he was interpreted, may have played a major role in explaining how Smith understood Newton's legacy.

The organisational morphology of rural industries and its dynamics in liberalised India: a study of West Bengal

Maiti, D. — 2008-07-02

The paper presents an empirical investigation into alternative forms of organisation of rural industries and their dynamics in the post-reform period of India by means of a field survey carried out in the state of West Bengal in 2001–02. The selected industries (handloom, brassware, hornware, clay works, conchshell and lac works) all belong to traditional crafts. The major organisational forms are ‘independent units’ and ‘tied units’, the latter being tied to traders and/or master enterprises for raw materials and work-orders, each of which account for more than 40% of our sample units. The third form, ‘cooperative units’, is clearly in the decline. Tied units appear to define the upcoming trend bringing the forces released by ‘liberalisation’, e.g., the growth of exports, drawn to the level of village-artisans. In particular, the system appears to be a vehicle for product-differentiation and innovation, both of which are very much evident in our study area.

The great divide: 'ruralisation' of poverty in Russia

Gerry, C. J., Nivorozhkin, E., Rigg, J. A. — 2008-07-02

Using data from the Russian Longitudinal Monitoring Survey for the period 2000–2004 we investigate poverty trends in Russia. We find that urban poverty declines at twice the rate of rural poverty so that by 2004 poverty in Russia had become a largely rural phenomenon for the first time since transition began. This finding does not stem from changing population characteristics or shares, is not dependent on the use of a particular poverty line nor is it driven by the rapid expansions that have occurred in Moscow, St Petersburg or other urban areas. Our findings flesh out those of Ravallion and colleagues, who, in contrast to other regions, ‘find signs’ of a ruralisation of poverty in Eastern Europe and the former Soviet Union. We attribute some of the differential to the labour market.

Mutual productivity spillovers between foreign and local firms in China

Wei, Y., Liu, X., Wang, C. — 2008-07-02

The existing literature treats advanced technology sourcing as the only cause of reverse productivity spillovers from local to foreign firms and implies that mutual spillovers between foreign and local firms can only happen in the developed world. This paper argues that the diffusion of indigenous technology and local knowledge helps the productivity enhancement of multinationals, so that there can be mutual spillovers even in a developing country. The results from a large-sample firm-level econometric analysis and a comparative case study of seven companies in Chinese manufacturing support this new argument, as mutual spillovers are identified between local Chinese firms and overseas Chinese or OECD-invested firms.

Trust, institutions and the 'generally speaking question': a reply to Uslaner

Beugelsdijk, S. — 2008-07-02

In his critical reply on my article, Uslaner points to several issues, amongst others the lack of observations in the principal components analysis, and the fundamental relationship between micro and macro trust on the one hand and institutions on the other hand. Of these two I hold the second one to be most important and I will therefore focus on this issue. I will also use this opportunity to position our trust discussion in the broader context of contemporary economic research on culture.

A foxy hedgehog: Wynne Godley and macroeconomic modelling

Taylor, L. — 2008-07-02

Wynne Godley has made enormous contributions to macroeconomic modelling. They are reviewed here in connection with his recent book with Marc Lavoie, Monetary Economics: An Integrated Approach to Credit, Money, Income, Production, and Wealth.