The brokerage role of small states and territories in global corporate networks

Global economic activity is networked through cross‐national linkages between firm headquarters, branches, and subsidiaries. Brokerage emerges as a key territorial function of this network, with some places acting as gateways or intermediaries for flows of global knowledge, information, or trade. This function is particularly salient for small states and territories leveraging the benefits of borrowed size by offering global professional services, warehousing, logistics, shipping, and finance to wealthy nations or high net individuals. Nonetheless, to date our understanding of how small states and territories facilitate wealth accumulation is limited to broad concepts of their role as “gateways” or “brokers.” Drawing on a typology of brokerage and a network analysis applied to the ties between approximately 700,000 firm headquarter and subsidiary locations of 13 of the world's largest stock exchanges, we explore the brokerage role of small states and territories through case studies of Luxembourg, Singapore, Hong Kong, and Panama. Brokerage is found to play an important role in the economy of all four. We argue that each of these small states and territories is uniquely positioned as a broker in global corporate networks, but that this role differs according to geo‐economic and political positionality.     

Islands and beers: Toasting a discriminatory approach to small island manufacturing

This paper explores the relationship between beers and island development, using a global sweep but with a special reference to the insular Pacific. It adopts a discriminatory approach, touching upon the role and impact that niche and bouquet beer manufacturing can have on the socioeconomic development of small islands. It departs from a personal observation: many small island jurisdictions have their own brewery. Indeed, the brewery could also be the island territory's largest indigenous manufacturing concern. While small islands are associated with low manufacturing capacity and diseconomies of scale, nevertheless ‘a local brewery’ comes across, in many cases, as a profitable and glaring exception that speaks to the attractions and virtues of locality branding.     

Managing the hinterland beyond: Two ideal‐type strategies of economic development for small island territories

Abstract: Rarely does one come across critical analysis which looks at islands as the strategic and candid promoters of a role as political and economic usufructuaries over external resources. This paper is premised on the proposition that a small territory is especially obliged to use extra‐territorial resources as its hinterland for economic success. Such resources extend over a whole range of goods and services and include access to investment, welfare, security, stable currency, international relations, specialised labour power, transfers, markets and higher education. The MIRAB syndrome is one way of articulating this condition. This paper proposes a second cluster of features that are, or can be, deployed by small territories in a manner somewhat different from MIRAB; this second cluster has a more proactive policy orientation and a disposition towards carving out procedural and jurisdictional powers. It is thus proposed to consider a small territory's engagement with the external hinterland as a position on a sliding scale, a strategic mix of options located between two distinct development trajectories, of which MIRAB is one and the PROFIT model the other.     

Trading in waste: Integrating sustainable development goals and environmental policies in trade negotiations toward enhanced solid waste management in Pacific Islands countries and territories

This paper provides a broad survey of existing literature on contemporary solid waste management (SWM) in the Pacific region to underscore an urgent and compelling need for improved SWM. Despite advances in waste management systems and funding for technical support and capacity building from a range of sources, waste continues to threaten public and ecological health and the economy in Pacific Islands Countries and Territories (PICTs). SWM in the Pacific requires innovative thinking in a challenging environment of remoteness, limited available land, fragile ecosystems, vulnerability to natural hazards and subsequent climate sensitivity. Many PICTs are under considerable pressure to open their markets up to trade liberalisation. Increasing links to the global economy through trade liberalisation could either further exacerbate waste management challenges in the Pacific or contribute to environmental protection and sustainable development goals. The authors argue that if the PICTs' urgent waste management challenges are to be meaningfully addressed, the region's leaders must ensure trading partners conform to local environmental protection policies and that trade agreements align with sustainable development goals.     

Living in Two Worlds: A Review of Home‐to‐Work Decisions

ABSTRACT This paper discusses various aspects of the economic analysis of commuting behavior. It starts with a review of two difficulties associated with urban economics models: the empirically falsified prediction of the relation between commuting time and income, and the presence of substantial excess commuting. Notwithstanding these anomalies, research that focuses directly on the value of travel time provides evidence that there is substantial resistance against commuting among large groups of workers. However, commuting costs are just one among many other explanatory variables for actual commuting behavior, and commuting itself has become much less onerous over time. This suggests that commuting costs play a much more limited role than has been assumed in the past. On the other hand, empirical evidence suggests that space is more important than one would be inclined to think on the basis of the considerations just given. These empirical regularities suggest that other space‐related aspects of the functioning of urban labor and housing markets are more important than was previously thought.     

Researching Pacific island livelihoods: mobility, natural resource management and nissology

Small island literature is vast in focus and aim, and is rooted in many different disciplines. The challenge is to find common grounds for researching small islands conceptually and theoretically. The aim of this article is to comment on how to research small islands, including a discussion on contemporary theories of nissology and conceptual analytical frameworks for island research. Through a review of selected case-study-based island literature on changing livelihoods coming out of the South Pacific, we wish to illustrate and discuss advantages of finding common grounds for small island studies. The focus is on two dimensions of island livelihood, migration and natural resource management, both of which are significant contributors in making island livelihoods and shaping Pacific seascapes. We argue that there is still a substantial lack of studies targeting small island dynamics that are empirical and interdisciplinary in focus and link socio-economic and ecological processes of small island societies at temporal and analytical scales.     

Development on the periphery: A case study of the sub‐national island jurisdiction of Pitcairn Island

This research reports on empirical findings of remote Pitcairn Island, the last remaining British Overseas Territory in the Pacific. It uses a qualitative methodology to discuss the island's potential for tourism development while recognising the issues and challenges faced by many small island developing states. However, as a sub‐national island jurisdiction Pitcairn presents a number of issues unique to its temporal socio‐political development and its centre periphery relationship with the metropole. The concept ‘decolonising without disengaging’ is posited to argue sub‐national island jurisdictions are places/spaces of innovative, creative and differentiated development processes that offer interesting departures from the conventional realms of sustainable discourse and island development. This concept is posited as a strategy of empowerment whereby autonomy without sovereignty does not necessarily hinder the development of tourism industries.     

Showcasing the sovereignty of non‐self‐governing islands: New Caledonia

Since 1983, no non‐self‐governing island connected to a (neo‐) colonial European or American metropole has acquired full Westphalian sovereignty and these islands continue to operate within constitutional frameworks that connect them to these metropoles. Large majorities in referendums on several of these islands have rejected full sovereignty. This paper opens with a review of the essential elements of the concept of sovereignty in a historical and global context, before studying how sovereignty is unfolding in new forms in non‐self‐governing islands in the Pacific and the Caribbean. As a case study, an analysis is presented of how pro‐France (loyaliste) and pro‐independence (indépendantiste) parties in New Caledonia are negotiating sovereignty with France. Evidence is given of how these New Caledonian parties are creatively using classic Westphalian signifiers of sovereignty normally reserved for sovereign states such as flags, diplomatic representations and international treaties, while still negotiating New Caledonia's sovereignty with France. This suggests that in contrast to Westphalian sovereignty, a unique ‘Islandian’ concept of sovereignty is emerging. Islands that are not sovereign in a Westphalian sense can creatively disassemble and reassemble signifiers of Westphalian sovereignty to strengthen their continuous negotiations with their metropoles and their neighbours.     

Who benefits from international tourism in small Pacific islands? Value capture in the hotel industry in Hawaii

There is a consensus among small Pacific islands that the extent to which they benefit from international tourism largely depends on how much of the value created by tourism remains in the local economy. This study examines how the value created in the hotel industry is distributed among the key stakeholders in a small Pacific island context. We used aggregated income statements of full-service and limited-service hotels from the STR Inc., a hotel industry data company, to calculate the value distribution among the key stakeholders in the hotel industry of a small Pacific island. We found that labour and owners captured most of the value created, whereas hotel management companies and franchisors captured a small share of the value. Our results suggest that tourism workers' ability to take united action and hence to negotiate higher wages will result in higher value capture by local labour and less value leaking out of the local economy. Our results also reveal that foreign ownership in the hotel industry is the single largest cause of economic leakages. The study has several implications for the tourism-based growth policies in small Pacific islands.     

A sea of islands — a myriad of indicators: on the interface between demography and planning in the Pacific Islands

While in recent years much has been written, and even more spoken, about the interrelationships between population and development, and particularly the importance of acknowledging population parameters in development planning and policy formulation, reality in most Pacific island countries and territories falls short of this rhetoric. Long-term development plans and strategic development frameworks are still compiled without due consideration of demographic circumstances, and economic and public sector reform proceeds in many countries seemingly oblivious of contemporary population dynamics. It is not always lack of basic and timely data that accounts for this malaise, as is evident from a myriad of demographic indicators reported by a variety of government agencies and regional and international organisations. However, these often manage to portray quite different demographic scenarios using identical data sources. This paper examines the institutional and methodological context within which Pacific island population data are collected and demographic information is produced. It concludes by discussing ways in which demography and demographers can contribute towards more realistic planning and policymaking in the Pacific.     

Global Markets and the Role of Geographical Proximity in Mexico's Employment Growth

In the context of greater economic integration with global markets and structural economic reforms, this paper analyses regional and sectoral employment growth dynamics in Mexican states between 2004 and 2014. The methodology is based on spatial shift‐share analysis that explicitly considers interregional interactions in employment while assessing potential spillover effects arising from spatial interactions among states and industrial sectors. The results suggest a competitive effect from some industries—such as those related to science and specialized suppliers, intensive scale industries and dominated providers—which led to the formation of industrial corridors of neighboring states that connect the central region with the northeast region of the country. It was also found that proximity to states such as Nuevo Leon, Queretaro, Guanajuato, San Luis Potosi, and Puebla has positively influenced neighboring states in terms of employment growth rates. The results also support the argument of some sort of de‐concentration of economic activity in the capital, Mexico City, toward neighboring states.     

Hierarchical Tendencies of Capital Markets Among International Financial Centers

Abstract The dramatic evolution of global finance in the last three decades has seen intensified competition among the world's major cities to become prominent control centers of global financial flows. This paper examines the spatial organization and evolution of capital markets in forty‐three world cities from 1980 to 1998. It finds evidence of the strengthening of hierarchical tendencies among world financial and capital cities as they search for ways to differentiate between themselves through financial concentration and productivity. The results also indicate a trend towards the dominance of London and New York in this financial hierarchy, and that top tier cities tend to be characterized by significantly lower levels of market and share concentrations, share trading value, and risks. Finally, important differences in ownership patterns between the capital markets are detected for the top cities of the hierarchy.     

Introduction: That most remarkable of outside men – Harold Brookfield's intellectual legacy

Abstract: Harold Brookfield's academic career spans more than half a century, traversing small tropical and subtropical islands and mountainous uplands, focusing on people–environment relations and linking to a diversity of institutions and disciplines. His unwavering commitment to fieldwork at the local level and to comparative study is paralleled by a healthy scepticism with respect to academic trends and orthodoxy of any kind, whether intellectual or physical. It is the farmers of the developing world who are the source of much of his inspiration. His theoretical contributions are based essentially on his observations of their practices and his learning from their experiences. His academic insights into the processes of change in rural areas of Melanesia, East and South‐East Asia, Africa and South America, where small‐scale ecological studies are linked to global forces, are of lasting significance.     

Struggling or in transition: Small household growers and the coffee industry in Papua New Guinea

The challenge of ensuring economic opportunities are made available to a country's population is a key function of any government. It is particularly acute in many developing countries where the subsistence economy is dominant and where limited formal employment opportunities exist. For such countries, reliance on cash cropping provides a central plank in earning foreign exchange. More importantly, it provides an important source of cash incomes for the largely subsistence‐based population. Papua New Guinea (PNG) is one such example with a significant rural population dependent on cash crops for their economic livelihood. This paper discusses the country's coffee industry in the context of its producers, most importantly the contribution made by small household growers, and the issues and challenges they face. The paper traces the emergence of coffee as a cash crop in the PNG highlands and discusses, among other things, recent developments in extension and points out possibilities for government intervention to ensure the continued viability of the highlands coffee industry. Conceptually, the discussion acknowledges the significance of relational economics and its underpinnings, particularly reflections of duality of labour, perceptions of coffee as cash crop and markets in the context of Indigenous growers.     

Mexican states' business cycles co‐movement over the period 2000–2014. A panel data model estimation

This paper examines the business cycle co‐movement in Mexican states over the period 2000–2014 by estimating an extended gravitational panel data model. Two different de‐trending filters are used to check the robustness of our results. The estimates suggest that the co‐movement increases as the size of the states’ economies does so as well as with the productive structure similarities and the relative level of development; however, the co‐movement decreases at a diminishing rate with geographical distance. There is also evidence of time‐dependent effects. In addition, the existence of moderate co‐movements among the states’ cycles suggests that common economic policies may not be suitable for all states, which implies there is a need for specific countercyclical policies to mitigate idiosyncratic shocks.     

Technological Diversity and Jacobs’ Externality Hypothesis Revisited

ABSTRACT Recent empirical evidence strongly supports Jacobs's (1969 ) externality hypothesis that urban diversity provides a more favorable environment for economic development than urban specialization. In order to correctly gauge Jacobs's hypothesis, economic development should be understood as a result of innovations. Furthermore, a relevant diversity measure should take into account the degree of diversity of the inherent classes (e.g. pharmaceuticals are closer to chemicals than to forestry). These ideas are tested using regionally classified Swedish patent application data as a measure of innovativeness. Patent data are also used to reflect technological diversity. The results show that the number of patent applications in Swedish regions is highly and positively dependent on regional technological specialization, quite the opposite of Jacobs's prediction. This paper raises general questions about earlier empirical results. It is concluded that the size of regions is an important factor to consider, since this in itself may affect patenting intensity and technological diversity.     

Openings in the body of ‘capitalism’: Capital flows and diverse economic possibilities in Kiribati

Much of the post‐development agenda is concerned with decoupling Eurocentric imaginings of development from development practices in ‘remote’ regions and exploring new forms of economy that can enhance local well‐being. In the South Pacific (and elsewhere), small peripheral economies have confronted globalisation in varying ways. Some places, such as the Micronesian island state of Kiribati, have engaged directly with the global economy by investing capital generated locally in international financial markets rather than in domestic industries. Kiribati's trust fund, the Revenue Equalisation Reserve Fund, maintains a balanced portfolio of international equity and fixed income assets that produces a financial return, helping to augment Kiribati's other national income sources. In this paper we explore the results of capital flowing from Kiribati to global financial markets, noting that this alternative development practice can enhance local well‐being.     

Global‐local initiatives in FDI: The experience of Shenzhen,China

Abstract: In 2002, China surpassed the USA to become the world's largest foreign investment destination. Many Chinese cities, especially those along the coast, have become hot spots for Foreign Direct Investment (FDI). The urban development of these Chinese cities, as in most market societies, has increasingly depended upon their global connections. However, it is unclear to what degree the governments of these cities are able to influence the decisions of foreign investors. This paper uses Shenzhen city as a case study to examine how multi‐nationals’ spatial and sectoral patterns have been changed over time and to what degree the local government has been able to influence multinationals’ locational and sectoral selection. It is concluded that Shenzhen has managed to create a strategy to maximise its ability to benefit from global economic forces and to attract multinational manufacturers in the locality, and particularly in increasing its target sector of technology‐intensive industry. This case study demonstrates the importance of a strong city government in managing growth and reacting decisively to globalisation.     

Smallholders and the spread of capitalism in rural Southeast Asia

Abstract: Although capitalism is now widely seen to be the world's only remaining form of political economy, most discussion of capitalism is vague regarding what it is and gives it little analytical importance. In this paper, I attempt to determine whether two more explicit conceptions of capitalism – those of Ellen Meiksins Wood and Hernando de Soto – can shed any light on the literature on rural smallholder commodity production in the Asia Pacific, and vice versa. I use the papers collected in this volume to analyse the relevance of ‘market dependence’ (Wood) and the various ‘mysteries of capital’ (de Soto) for agrarian relations in the Asia Pacific. The paper tries to point towards a definition of capitalism that distinguishes it from such related terms as commercialisation, markets, and globalisation.