Empirical work has refuted the prediction of new or endogenous growth theory that growth exhibits a scale effect: the rate of growth has not accelerated and larger countries do not grow faster than smaller countries do. The theoretical dimensions of this ‘scale effects problem' have been...

This chapter investigates the theoretical support for the distance metaphor that is widely used to capture the effects of institutional diversity in international business (IB) and management studies. It argues that neither new institutional economics (NIE) nor in neo-institutional sociology...