All Academic, Inc. Research Logo

Info/CitationFAQResearchAll Academic Inc.
Document

Gambling on Conflict: Profiling Investments in Conflict Countries
Unformatted Document Text:  Andreea Mihalache Updated: March 20, 2008 these reasons, I limit the subsequent discussion and the empirical analysis to investments in the primary and tertiary sectors. Within these two sectors, I identify three categories of investments: knowledge capital tertiary (KCT), physical capital tertiary (PCT), and primary (P). The first category, knowledge capital tertiary, includes financial intermediation, professional services, computer and related activities, and education. The second category, physical capital tertiary, includes construction, wholesale and retail trade, transportation, and telecommunications. The third category, primary, includes energy and natural resources. Table 1 describes how each of these categories ranks on each of the three dimensions relevant to threat perceptions. Table 1 here Investments in the industries categorized as knowledge capital tertiary use the fewest physical assets. Conversely, investments in industries categorized as physical capital tertiary and primary involve large amounts of physical assets. The juxtaposition of a consulting firm with an automobile producer illustrates this point. On the exit costs dimension, I rank investments in knowledge capital tertiary the lowest, because they can easily liquidate their assets, can relocate to another host without much difficulty, and have relatively low start-up costs. Physical capital tertiary investments face moderate exit costs, while primary sector investments face high exit costs. While both PCT and primary investments are characterized by relatively high exit and start-up costs, primary sector firms have higher relocation costs because the natural resources they exploit are scarce. This costliness of locating in another host translates in considerably higher exit costs for firms with primary sector investments relative to firms with PCT investments. 28

Authors: Mihalache, Andreea.
first   previous   Page 28 of 62   next   last



background image
Andreea Mihalache
Updated: March 20, 2008
these reasons, I limit the subsequent discussion and the empirical analysis to investments
in the primary and tertiary sectors.
Within these two sectors, I identify three categories of investments: knowledge
capital tertiary (KCT), physical capital tertiary (PCT), and primary (P). The first
category, knowledge capital tertiary, includes financial intermediation, professional
services, computer and related activities, and education. The second category, physical
capital tertiary, includes construction, wholesale and retail trade, transportation, and
telecommunications. The third category, primary, includes energy and natural resources.
Table 1 describes how each of these categories ranks on each of the three dimensions
relevant to threat perceptions.
Table 1 here
Investments in the industries categorized as knowledge capital tertiary use the
fewest physical assets. Conversely, investments in industries categorized as physical
capital tertiary and primary involve large amounts of physical assets. The juxtaposition
of a consulting firm with an automobile producer illustrates this point. On the exit costs
dimension, I rank investments in knowledge capital tertiary the lowest, because they can
easily liquidate their assets, can relocate to another host without much difficulty, and
have relatively low start-up costs. Physical capital tertiary investments face moderate
exit costs, while primary sector investments face high exit costs. While both PCT and
primary investments are characterized by relatively high exit and start-up costs, primary
sector firms have higher relocation costs because the natural resources they exploit are
scarce. This costliness of locating in another host translates in considerably higher exit
costs for firms with primary sector investments relative to firms with PCT investments.
28


Convention
All Academic Convention makes running your annual conference simple and cost effective. It is your online solution for abstract management, peer review, and scheduling for your annual meeting or convention.
Submission - Custom fields, multiple submission types, tracks, audio visual, multiple upload formats, automatic conversion to pdf.
Review - Peer Review, Bulk reviewer assignment, bulk emails, ranking, z-score statistics, and multiple worksheets!
Reports - Many standard and custom reports generated while you wait. Print programs with participant indexes, event grids, and more!
Scheduling - Flexible and convenient grid scheduling within rooms and buildings. Conflict checking and advanced filtering.
Communication - Bulk email tools to help your administrators send reminders and responses. Use form letters, a message center, and much more!
Management - Search tools, duplicate people management, editing tools, submission transfers, many tools to manage a variety of conference management headaches!
Click here for more information.

first   previous   Page 28 of 62   next   last

©2012 All Academic, Inc.