Invisible Hand Research Articles

Missing links of knowledge spillover effects on firm intensity and regional development

This paper investigates the presence and extent of missing links that prevent the transmission and condition the flow of knowledge spillover effects (KSE) across space and time. Findings using a comprehensive database composed of 9242 innovative startups from Italy covering the period 2008–2018 and all 20 geographic regions as well as all economic sectors at the 2-digit level of aggregation indicate that missing links related to observed differences in industry structures and availability of pools of skilled human capital amount for large and persistent differences in terms of firm intensity differential across neighboring regions. More specifically, we observe that regions with initial existent high firm intensity are more likely to continue enhancing their labor pools by both endogenously increasing high-skilled human capital and by attracting high-skilled human capital from neighboring regions. Intra- and inter-industry spillovers are marked by high levels of heterogeneity. Consequently, we find that missing links related to KSE create directional effects, and these effects are neither symmetric nor reciprocal in adjacent geographical regions. Invisible barriers to KSE transmission, imposed by the presence of missing links, prevent the work of the invisible hand.

Disagreeing without tears

Abstract Disagreement, while generally seen as an act threatening interlocutors’ face, is indispensable in particular contexts. Based on an in-depth linguistic and paralinguistic analysis of 12 cases of disagreement from a Chinese venture capital reality TV show We Are the Hero, we found that in this special context disagreement was a ‘dispreferred’ moment, but also an informative, educational, and amusing occurrence with multiple functions. While disagreements were frequently initiated (particularly by the investors), they were mostly indirect, carefully mitigated by participants with linguistic devices such as explanations, private verbs, questions, humor, as well as paralinguistic devices such as friendly facial expressions and movements. Furthermore, disagreements, especially aggravated ones, were often interactively mitigated by both on-stage participants (particularly the host) and the post-production team in an interestingly cooperative way. The interactive process of mitigating disagreements not only saved the interlocutors’ face, but also contributed to the multiple purposes of the show. Our findings suggest that politeness, as an invisible hand behind communicative acts, is still present despite the ‘conflict’ that characterizes this form of TV show.

Who is responsible for fixing the food system? A framing analysis of media reactions to the UK's National Food Strategy

PurposeHigh levels of child obesity alongside rising stunting and the absence of a coherent food policy have deemed UK’s food system to be broken. The National Food Strategy (NFS) was debated intensely in media, with discussions on how and who should fix the food system.Design/methodology/approachUsing a mixed methods approach, the authors conduct framing analysis on traditional media and sentiment analysis of twitter reactions to the NFS to identify frames used to shape food system policy interventions.FindingsThe study finds evidence that the media coverage of the NFS often utilised the tropes of “culture wars” shaping the debate of who is responsible to fix the food system – the government, the public or the industry. NFS recommendations were portrayed as issues of free choice to shift the debate away from government action correcting for market failure. In contrast, the industry was showcased as equipped to intervene on its own accord. Dietary recommendations made by the NFS were depicted as hurting the poor, painting a picture of helplessness and loss of control, while their voices were omitted and not represented in traditional media.Social implicationsBritish media’s alignment with free market economic thinking has implications for food systems reform, as it deters the government from acting and relies on the invisible hand of the market to fix the system. Media firms should move beyond tropes of culture wars to discuss interventions that reform the structural causes of the UK’s broken food systems.Originality/valueAs traditional media coverage struggles to capture the diversity of public perception; the authors supplement framing analysis with sentiment analysis of Twitter data. To the best of our knowledge, no such media (and social media) analysis of the NFS has been conducted. The paper is also original as it extends our understanding of how media alignment with free market economic thinking has implications for food systems reform, as it deters the government from acting and relies on the invisible hand of the market to fix the system.

Free banking theory: literature review and relevance to the regulation of cryptocurrencies debate

PurposeFree banking theory, as developed in Adam Smith’s 1776 treatise, “The Wealth of Nations” is a useful tool in determining the extent to which the “invisible hand of the market” should prevail in regulatory policy. The purpose of this study is to provide a timely review of the literature, evaluating the theory’s relevance to regulation of financial technology generally and cryptocurrencies (cryptos) specifically.Design/methodology/approachThe methodology is qualitative, applying free banking theory as developed in the literature to technology-defined environments. Recent legislative developments in the regulation of cryptocurrencies in the UK, European Union and the USA, are drawn upon.FindingsParticipants in volatile cryptocurrency markets should bear the consequences of inadvisable investments in accordance with free banking theory. The decentralised nature of cryptocurrencies and the exchanges on which these are traded militate against coordinated oversight by central banks, supporting a qualified free banking approach. Differences regarding statutory definitions of cryptos as units of exchange, tokens or investment securities and the propensity of these to transition between categories across the business cycle render attempts at concerted classification at the international level problematic. Prevention of criminality through extension of Suspicious Activity Reporting to exchanges and intermediaries should be the principal objective of policymakers, rather than definitions of evolving products that risk stifling technological innovation.Originality/valueThe study proposes that instead of a traditional regulatory approach to cryptos, which emphasises holders’ safety and compensation, a free banking approach combined with a focus on criminality would be a more effective and pragmatic way forward.

The invisible hand of touch: Testing a tactile sensation‐choice satisfaction model in online shopping

AbstractThis study tests a model of the relationship between online store sensory environments and consumer responses using the stimulus‐organism‐response paradigm. The aim is to (a) examine the ability of three online product presentation formats (OPPFs) to induce tactile sensations, (b) identify the effect of tactile sensations upon choice satisfaction, and (c) examine the mediating role of cognitive effort and affective experience. Videos are found to induce the greatest tactile sensations followed by zoom image, whereas static image is found to induce the least. Furthermore, the more tactile sensations consumers experience while shopping online, the higher their emotional experience, resulting in lower cognitive effort and higher consumer choice satisfaction. Affective experience is found to mediate the tactile sensations and choice satisfaction relationship. The original contribution of the research is a newly validated model of OPPFs, tactile sensations, customer experience, and choice satisfaction that extends theoretical understanding of variables previously untested.Practical applicationsThe study offers practical results from which small to medium sized, or new start‐up, online clothing retailers can benefit. The study shows the advantages of using OPPFs such as videos and zoom images on retail websites to assist shoppers by enhancing the sensory buying experience. Such online retailers may not be able to afford the investment in more complex and costly advanced technologies such as the use of augmented reality in virtual mirroring. The study shows that when online retailers provide videos and/or zoom images on their websites, they allow shoppers to experience greater tactile sensations while evaluating and selecting a product compared to only being able to view it as a static image. Online clothing retailers can continue to rely on these technologies to compensate shoppers for the lack of touch in the online shopping context, which is so important when purchasing clothing.

Russian Orthodox Church: Kremlin’s ‘invisible hand’ in war against Ukraine | A Igreja Ortodoxa Russa: a ‘mão invisível’ do Kremlin na Guerra contra a Ucrânia

The article intends to demonstrate that the foreign policy of the Russian Orthodox Church (IOR) affects the implementation of Moscow’s policy in the war against Ukraine. The main goal is to determine how the Kremlin, through various hybrid capabilities and techniques, uses the IOR to implement its foreign policy vectors. The study is based on a historical analysis of the international activities of the IOR, focusing on the activities of the Department of Church External Relations (DREI) of the Patriarchate of Moscow, which was created, in 1946, by Stalin and taken over by Vladimir Putin. In this context, the DREI of the Patriarchate of Moscow was and continues to be “the invisible hand” of the Federal Security Service of the Russian Federation (FSB), which works under religious cover at the world level.

Teacher’s invisible hands—the association between teacher-student relationship and subjective happiness among left-behind children: the chain mediating roles of resilience and learning engagement

In this study, we employed the chain mediation model to examine the associations between teacher-student relationships, resilience, learning engagement, and subjective happiness among left-behind children (LBC). A sample of 431 LBC from southwestern China was assessed at three different time points at six-month intervals. The Subjective Happiness Scale, Teacher-Student Relationship Scale, Connor-Davidson Resilience Scale, and Learning Engagement Questionnaire were utilised for measurement purposes. The findings revealed that the subjective happiness of LBC was influenced by their teacher-student relationships through the separate pathways of resilience and learning engagement. Moreover, the teacher-student relationship could predict LBC’s subjective happiness either via a pathway from resilience to learning engagement or through a pathway from learning engagement to resilience. This study underscores the crucial role of teachers in facilitating positive development among LBC and highlights implications for policymakers to prioritise quality training for teachers in rural primary schools. By enhancing childhood teachers’ understanding of key factors influencing children’s positive development, appropriate strategies can be implemented effectively to support LBC.

International Trade and Environmental Protection: Revisiting David Hunter's "Invisible Elbow Destroying the Common Goods Created by an Invisible Hand"

International Trade and Environmental Protection: Revisiting David Hunter's "Invisible Elbow Destroying the Common Goods Created by an Invisible Hand"

The New Era of Globalism: Redefining Globalisation through International Initiatives, Alliances and Associations

Globalisation, as the world’s transformative phenomenon, is emblematic of the convergence of diverse nations under an encompassing network characterised by intricate economic structures, moral frameworks, and shared political foundations. The contemporary iteration of globalisation is undeniably intertwined with the interests and strategic motivations of nationstates. Nevertheless, this manifestation grapples with three fundamental challenges: it impedes the progress of unfettered global trade, thus hindering the global economic agenda; it propagates disparities and exerts detrimental effects on democratic governance; and it does not consistently align with democratic principles. The dynamic interplay and diplomatic engagements among nations have spawned a well-defined international trade and cooperation framework. Notably, a novel paradigm of “alliance or coalition globalisation” is materialising, eclipsing national interests in favour of regional prosperity and shared interests among diverse nations. This evolving concept introduces a new “invisible hand” in the global capitalist model, focusing on regional economic development and connectivity as top priorities for modern nation-states. Consequently, it safeguards and advances regional interests. This paper elucidates how these emerging coalitions serve as catalysts for a global paradigm shift, reconfiguring the landscape of economic and commercial interactions worldwide. The mandates include upholding territorial integrity, non-interference by international organisations in domestic affairs, balanced roles within the global order, reforming the United Nations Security Council, and ensuring that a limited number of countries no longer dictate international objectives. This new wave of globalisation promises to reshape global dynamics to reflect a more equitable and cooperative international landscape.

In the Shadow of Smith's Invisible Hand: Risks to Economic Stability and Social Wellbeing in the Age of Intelligence

In the Shadow of Smith's Invisible Hand: Risks to Economic Stability and Social Wellbeing in the Age of Intelligence

СОВЕРШЕНСТВОВАНИЕ ВЗАИМОДЕЙСТВИЯ ГОСУДАРСТВЕННОЙ ВЛАСТИ И БИЗНЕСА В РОССИИ НА СОВРЕМЕННОМ ЭТАПЕ РАЗВИТИЯ

Today, the interaction between government and business is becoming one of the key topics in economic policy. In a world saturated with globalization and digital transformations, effective interaction between government and business is an important factor for the development of the country’s economy. Over the past two decades, the Russian Federation has undergone significant changes in the functions of the state and its economic role. The government has gained great influence and strength. On the one hand, the “invisible hand of the market” is increasingly influencing internal processes and significantly changing them. On the other hand, the State is faced with increasing and more complex tasks.

A Reappraisal of Albert Aftalion’s Theory of Structural Transformation in an Era of Decarbonization

AbstractDecarbonization is a momentous challenge for capitalism and makes one to ask which changes in its morphology may be necessary to achieve that objective. The contribution by the French economist Albert Aftalion (1874–1956), with its emphasis on intermediate levels of aggregation (the “meso“ approach), the differentiated time profiles of economic actoivities, and their differential speeds of reaction to dynamic impulses, provides an invaluable heuristic for conceptualizing the structural transformations required by transition to a low energy regime. Aftalion’s analysis of industrial capitalism emphasizes that structural changes occur along multiple co-existing time horizons. This provides tools to analyze the time constraints on the sequencing of structural changes for different sectors on a decarbonization trajectory without neglecting the strict time requirements for implementing effective climate change mitigation. This interplay of time horizons is central to decarbonization, and it will require a new balance between the invisible hand of markets and the visible hand of states and other public bodies. Moreover, Aftalion’s emphasis on material constraints offers a novel approach to conceptualizing the importance of intermediate levels of aggregation in economic theory, thereby offering a new basis for sectoral policymaking and a fundamental challenge to institutionalist accounts of the morphology of capitalism.

International Trade and Environmental Protection: Revisiting Hardin’s “Tragedy of the Commons”

Twenty-eight years after the emergence of the World Trade Organisation (WTO) regime, the trade-environmental protection relationship seems to have achieved some harmonisation from an initial chequered one, though not without some forms of lopsided balancing of the variables. This work explores the relationship between international trade and the environment, revealing whether the competing values are balanced. The methodology adopted is doctrinal, with a comparative and analytical approach involving desk and library research. The work is bifurcated into six parts, commencing with an introduction in the first: the second flesh out international environmental agreements relevant to the trade-environment interaction. The third part examines principles of international environmental law. The paper reflects unilateral trade measures in the fourth part. The fifth part takes stock of WTO jurisprudence. While considerable efforts have been made to mainstream environmental protection into trade objectives through the WTO jurisprudence, there remain some forms of market failures, making the trade-environment relationship lopsided, with inadequate attention given to the environment, which brings to fore the need to revisit David Hunter’s metaphoric invisible elbow destroying the common goods created by an invisible hand.

1644-1646 yıllara ait Tuzla Siciline gör İzvornik Sancağındaki Tuzla / Memlehateyn vakıfları

This paper provides study of waqf records in Sidjil of Memleḥateyn kadı / judge in Sanjak of İzvornik. It is one of the rare archival sources of 17th century for Sanjak of Izvornik, at the time in Eyalet of Bosnia, and the whole north-eastern part of today’s Bosnia and Herzegovina, which was preserved until today. Documents regarding waqfs were recorded covering Hijri zears 1053-56, that is to say 1643-46 according to the contemporary Gregorian calendar. Today most of the Sidjil is hosted in Gazi Husrev Bey Library in Sarajevo as part of Osman Asaf-ef. Sokolović’ bequest. This study of waqf aims to provide better understanding of a role that waqf had as an institution in Ottoman provincial hinterland. This Ottoman hinterland seems to be in decline when compared with some frontier centres, like the Ottoman Buda. In this study we see how waqfs were equally important as a source of cash for economic, cultural social and other activities both in urban as well as in rural areas. Hence the focuses of economic activities were in bigger centres. Besides being source of cash the records from Sidjil show how being employed in a certain waqf also meant a prestige in society at the local level. Therefore, it can be concluded that waqfs were invisible hand or a medium of Ottoman State through which people of different background at various levels could achieve their aims or provide material source for economic and social activities.

Invisible Hand behind Female Reproductive Disorders: Bisphenols, Recent Evidence and Future Perspectives.

Reproductive disorders are considered a global health problem influenced by physiological, genetic, environmental, and lifestyle factors. The increased exposure to bisphenols, a chemical used in large quantities for the production of polycarbonate plastics, has raised concerns regarding health risks in humans, particularly their endocrine-disrupting effects on female reproductive health. To provide a basis for future research on environmental interference and reproductive health, we reviewed relevant studies on the exposure patterns and levels of bisphenols in environmental matrices and humans (including susceptible populations such as pregnant women and children). In addition, we focused on in vivo, in vitro, and epidemiological studies evaluating the effects of bisphenols on the female reproductive system (the uterus, ovaries, fallopian tubes, and vagina). The results indicate that bisphenols cause structural and functional damage to the female reproductive system by interfering with hormones; activating receptors; inducing oxidative stress, DNA damage, and carcinogenesis; and triggering epigenetic changes, with the damaging effects being intergenerational. Epidemiological studies support the association between bisphenols and diseases such as cancer of the female reproductive system, reproductive dysfunction, and miscarriage, which may negatively affect the establishment and maintenance of pregnancy. Altogether, this review provides a reference for assessing the adverse effects of bisphenols on female reproductive health.

Wrangling in the Marketplace or Bartering in the Bazaar? Adapting Metaphors for Public Relations’ Societal Role

ABSTRACT The marketplace of ideas metaphor has long influenced how scholars and practitioners understand public relations’ role in U.S. discourse and democratic society, yet it is rarely questioned. We argue that the unacknowledged aspirations and Western, capitalist values embedded in the marketplace of ideas could cloud understandings of public relations in society and absolve practitioners of certain consequences of the discourses they put forth due to the function of the invisible hand symbolism operating within it. This work draws mostly from rhetorical and marketplace theory in public relations, including fully functioning society, to present five central limitations of the marketplace metaphor. A case example of U.S. discourse about trans women in sports showcases the shortcomings of the marketplace metaphor in practice. We introduce the bazaar and other compatible metaphors to inspire alternative, figurative thinking about societal communication and address some of the limitations we present, though we also ask questions about the marketplace of ideas to improve its fit with contemporary public relations. This essay offers theoretical and practical contributions by extending metaphors to explain practitioner responsibility in societal discourse and outline the importance of suiting metaphors to particular public relations contexts.

Economics as Religion and Christianity as oikonomia: Giorgio Agamben and the Homo Sacer

Among the contemporary thinkers who try to think of economics not just as having a non-empty intersection with religion but as being intrinsically religious, Giorgio Agamben occupies a singular place. Indeed, one of the main theses of his major work, Homo Sacer, is that the modern rupture between “sovereignty” and “government”—which lies at the heart of his political diagnosis of our contemporary situation—can be traced back to classical Trinitarian theology. Since this rupture is allegedly responsible for today’s Western understanding of economics, this implies that, according to the Italian philosopher, our current crisis has Christian theological roots. In this paper, I first discuss the argument put forward by Agamben to assert that, at least since the Trinitarian controversies of the second century, Christianity has become intrinsically oikonomia, that is, it understands history as the unfolding of a providential dynamic which, he claims, anticipates today’s celebrated “invisible hand” of decentralized markets. Next, I offer critical reflections upon this argument by questioning whether contemporary mainstream economics can be reduced to the “market fundamentalism” with which it is often confused. The article concludes by questioning, in turn, whether all Christian traditions boil down to the historical trend that Agamben characterizes as leading to today’s problematic mainstream economics.

The Influence of Dominant Groups on Chinas Art Collectors and Contemporary Art Curatorial Practices

With the rapid development of Chinas economy, contemporary Chinese art has also achieved unprecedented breakthroughs. With the expansion of globalization and as a socialist country with the unique nature of Chinese characteristics, how do the curatorial practices of Chinese contemporary art develop in a complex social environment? This research explores the influence of dominant groups on Chinas art collectors and contemporary art curatorial practice based on the Frankfurt Schools critical theory. Furthermore, the research expands this theory to a broader context of China. The curatorial practices of Chinese contemporary art are deeply controlled by monopoly capital, which influences the aesthetic preferences of the public through the monopoly of popular culture. It borrows the hands of wealthy collectors to manipulate the art market. Political parties set boundaries for artistic creation through strict censorship. On the positive hand, censorship promotes the inheritance of traditional culture. By understanding that there is an invisible hand behind human cultural and artistic activities, to warn that the self-consciousness people believe is usually the result of being influenced by others language and behavior.

Multihanded Adam Smith (Part two)

The paper analyzes the metaphor of “an invisible hand”, which was introduced two and a half centuries ago by Adam Smith (1723—1790) and which eventually became the central concept of the modern economics. The second part examines the origin and history of the reception of Smith’s metaphor at various stages of the evolution of economic thought. Paradoxically, it gained wide popularity only since the middle of the 20th century due to its mention in the famous textbook by P. Samuelson “Economics”. In the interpretation of this metaphor by modern economists, two traditions exist — neoclassical and Austrian. In mainstream, Smith’s “invisible hand” is identified with the First Fundamental Theorem of welfare economics, which looks like an anachronism. There are more grounds for the convergence of the concepts of “an invisible hand” and “spontaneous order”, from which the Austrian school proceeds. Smith almost accidentally stumbled upon a figurative expression which turned out to be heuristically extremely productive and has become firmly embedded in the lexicon of many modern disciplines — from economics to the philosophy of science

Institutional investors and corporate green innovation: Evidence from China

AbstractUsing data for manufacturing firms listed on China A‐share markets between 2003 and 2018, this research explores the impact of institutional investors on corporate green innovation. The study finds that pressure‐resistant institutional investors (PR investors) positively contribute to green innovation, whereas pressure‐sensitive institutional investors (PS investors) hinder it. In addition, this study examines the moderating effect of political ties, distinguishing between ascribed and achieved ties. Ascribed ties weaken the positive relationship between PR investors and green innovation, whereas achieved ties strengthen it and weaken the negative association between PS investors and green innovation. Moreover, the study investigates the influence of institutional development on the relationship between institutional investors and green innovation, and finds that managerial myopia is the mechanism through which institutional investors influence green innovation. Furthermore, this study reveals that there are heterogeneity effects among small and large firms, polluting and non‐polluting firms, and firms facing different levels of market competition. Overall, the study sheds new light on how institutional investors, acting as ‘invisible hands’, interact with political ties, acting as ‘visible hands’, to impact green innovation in transition economies.