Establishing the applicability of multi-item measures is important for making valid inferences when testing theories cross-nationally. Typically, researchers have relied upon the tenets of classical measurement theory (CT) using confirmatory factor model invariance testing to conclude that a unidimensional measure is applicable across countries. However, two important issues remain unresolved via CT techniques: (1) if the measure is found not to be invariant, CT tells us little as to why the measure varies across countries; and (2) if the measure is multi-dimensional, what factors affect its cross-national applicability? Our research seeks to address these issues and the cross-national measurement applicability of multi-dimensional scales via generalizability theory (GT). In this paper, we use a cross-national data set and simulated data sets to demonstrate the usefulness of GT to cross-national multi-dimensional measurement.

Ireland has been very successful in attracting foreign MNEs in high-technology sectors. Although these sectors exhibit faster growth than the traditional low-technology sectors populated primarily by indigenous firms, the high-technology sectors are also more volatile. We use portfolio theory to show that Ireland's FDI strategy has led to a more diversified manufacturing sector that exhibits higher growth without a commensurate increase in volatility and risk.

Countries differ in the way their financial activities are organized. In Anglo-Saxon countries such as the US and the UK financial systems are dominated by stock markets, whereas in continental Europe and Japan banks play a predominant role. Why do countries differ in the configuration of their financial systems? We argue that national culture plays a significant role. We find that countries characterized by higher uncertainty avoidance are more likely to have a bank-based system.

Most empirical research examines how the institutional environment of corruption shapes the behavior of multinational corporations (MNCs). In this study, we would like to highlight the other side of the picture: how the presence of MNCs may shape the institutional environment of corruption over time. We propose three avenues through which the MNCs may have an impact on its host institutions: regulatory pressure effect, demonstration effect, and professionalization effect. Based on extensive data on foreign direct investment and corruption for a large sample of countries over the last 30 years, the empirical results are generally consistent with our hypothesis. Such findings provide a glimmer of hope for the future of the host country where corruption is prevalent.