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Begin New Search Topic International Relations Content Type Working Paper Publishing Institution Norwegian Institute of International Affairs

1. The reverse home market effect in exports: A cross-country study of the extensive margin of exports

Author:
Medin Hege
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper presents a simple new trade theory model with results that contradict those from standard model. A home market effect in domestic sales of manufactured goods is found to co-exist with a reversed home market effect in exports of manufactured goods. In consequence, for a small country the number of manufacturing firms that sell in the domestic market is lower than proportional whereas the number of exporters is higher than proportional to country size. The proportion of firms that export, decreases with relative size of the home market. Empirical support for the latter prediction is found in a cross-sectional dataset on firm level exports for 116 countries.
Topic:
International Relations, Economics, International Political Economy, and International Trade and Finance

2. Effects of the EU Enlargement on Income Convergence in the Eastern Border Regions

Author:
Fredrik Wilhelmsson
Publication Date:
06-2009
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper analyses the effect of the EU enlargement process on income convergence among regions in the EU and in the Eastern neighbourhood of the EU. The data used is NUTS II regions in the EU and Oblasts' of Russia over the period 1996-2004. The estimation techniques used take into account both regional and spatial heterogeneity. The main findings are that the regional income differences are reduced within EU15. The income convergence within the EU is mainly driven by reductions in the differences across countries rather than by a reduction in regional differences within countries. When differences in initial conditions in the regions are controlled for by fixed regional effects there are strong evidences of convergence among regions in all studied country groups.
Topic:
International Relations and Regional Cooperation
Political Geography:
Europe

3. How We Talk about the "War on Terrorism"

Author:
Daniel Heradstveit, G. Matthew Bonham, Michiko Nakano, and Victor M.Sergeev
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper focuses on how leaders in Western countries talk about the “war on terrorism.” The paper discusses the difficulties of defining “terrorism,” because, unlike Marxism or capitalism, “terrorism” is not an ideology. Instead the term may be used to designate actions that are used by members of non-governmental organizations against civilian targets. In the case of the “war on terrorism,” the signifier, “terrorism,” is used widely. However, the signified, the perpetrators and what they do, are quite different. Because the designation of the signified depends upon the speaker, the concept of terrorism seems to be subjective and fluid. The signified switches radically both by context and over time, while the only aspect that is stable is the signifier, “terrorism.” The paper goes on to analyze the “war on terrorism” as an ontological metaphor. The paper concludes by arguing that although figures of speech contribute to the cognitive dimension of meaning by helping us to recognize the equivalence to which we are committed and suggesting new equivalences, metaphors like the “war on terrorism” raise problems and do little to increase our understanding. Considering different cultural codes and world views, this type of metaphor is highly counterproductive for communication on the global level.
Topic:
Conflict Resolution, International Relations, International Cooperation, and Terrorism

4. Multidimensional and Integrated Peace Operations

Author:
Niels Nagelhus Schia and Ståle Ulriksen
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Despite major institutional differences regarding mandate, roles and membership, the UN, the EU and NATO all face common security challenges and operate together in several theatres throughout the world. There is now broad consensus that today's security challenges can be most effectively addressed through an integrated approach. This has led to a process where the organisations have acknowledged the necessity and efficiency of cooperation within and with each other. In turn, international and regional organisations such as the UN, NATO, the EU and the AU, all have developed integration approaches. These include models and concepts such as NATO's 'the comprehensive approach' and 'Effects-based Approach to Operations (EBAO)', 'whole-of-government' approaches, and the UN's 'integrated missions' concept.
Topic:
Conflict Prevention, International Relations, International Cooperation, and Non-Governmental Organization

5. Unfolding the international at late modernity: international society and the humanitarian space.

Author:
Paulo Esteves
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper discusses the emergence of the International as a regime of power at the end of the eighteenth century and the transformations this regime has been facing since the end of cold war. Two main questions were proposed to the paper. First, how these transformations can be understood and re-described. With this question, I do not want to establish a debate among different theoretical orientations, but to make an experiment that departing from a theoretical proposition, try to understand how a specific regime of power – in this case, the international – arise and transform itself. The second question is related to the very nature of these transformations: What has been changing in the last two decades and how these changes have been processed in terms of strategies and techniques of power.
Topic:
International Relations, Imperialism, Political Theory, and Power Politics

6. European Integration and Domestic Regions: A Numerical Simulation Analysis

Author:
Arne Melchior
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Does European economic integration create more inequality between domestic regions, or is the opposite true? While former research has asked for a general answer to this question, we argue that such a general answer does not exist and that the outcome depends on the liberalisation scenario. In order to examine this, we need models with higher dimensionality where the question is where and not whether there will be spatial agglomeration. For this purpose, the paper develops a numerical simulation model with nine countries and 90 regions in order to examine the impact of European and international integration on the regions. Eastward extension of European integration is beneficial for old as well as new members, but within countries the impact varies along the east-west axis. Reduction in distance-related trade costs is particularly good for the European peripheries. Each liberalisation scenario has a distinct impact on the spatial income distribution, and there is no general rule telling that integration causes more or less agglomeration.
Topic:
International Relations, International Trade and Finance, and Regional Cooperation
Political Geography:
Europe

7. 'Flipping the COIN' Unity of Effort and Special Operations Forces

Author:
Boye Lillerud
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper argues that unconventional methods and special operations should not be limited to military Special Operations Forces (SOF). It examines a potential role for SOF in a Counter Insurgency (COIN), with specific reference to Unity of Effort. It postulates that Special Forces are the sharpest instruments in the military toolbox available to policymakers, yet the great tactical success of these forces has not necessarily been translated into strategic success.
Topic:
International Relations, Security, War, and Weapons of Mass Destruction

8. Globalisation and Diplomacy

Author:
Iver B. Neumann
Publication Date:
12-2007
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Globalisation is shorthand for changes in space, time and the relationship between them. This paper, which will be forthcoming as a chapter in a book edited by Andrew Cooper and published by the United Nations University Press, argues that changes in deterritorialisation will not have thoroughgoing effects for diplomacy. A change in time, notably the change to zero lag-time in information flows, is, on the other hand, of key importance. So is the increase in the sheer mass and density of communication. If transcending boundaries is the essence of globalisation, then it stands to reason that state diplomats must sooner or later take cognizance of the other kinds of polities that exist within the system.
Topic:
International Relations, Diplomacy, Globalization, and Government

9. A Match made in Heaven? Strategic Convergence between China and Russia

Author:
Indra Øverland and Kyrre Braekhus
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper examines the strategic convergence between Russia and China. Strategic convergence is understood as the overlap of key objectives and interests with regard to long-term developments in world politics, which provides the basis for extensive tactical co-operation between two or more states. The paper focuses on the compatibility of Russia and China in terms of complementary economies, location and political outlook. The match between Russian natural resources and Chinese markets is examined in particular. The paper concludes that a closer relationship between the two countries in many ways would be of mutual advantage, but that it is far from certain that an alliance will develop.
Topic:
International Relations and Development
Political Geography:
Russia and China

10. International Engagement in Sudan after the CPA

Author:
Axel Borchgrevink and Anita Haslie
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The report analyses the international engagement in Sudan since the Comprehensive Peace Agreement (CPA) in relation to the Principles for Good International Engagement in Fragile States and Situations, which the OECD/DAC is currently developing. The report concludes that donor coordination has been quite advanced in Sudan, with a number of innovative mechanisms tried out. Furthermore, there has been a concerted effort towards contributing to the building of the South Sudan state. This effort, however, has focused on building institutions from the top down in Juba, without a complementary emphasis on building legitimacy and the relations between state apparatus and society. Moreover, strengthening the relationship between the Government of National Unity and the Government of South Sudan has been given relatively less attention. In terms of peacebuilding, there are also challenges for international engagement. More could have been done to contribute to a short-term peace dividend, and perhaps also to support the implementation of the CPA. On the basis of the experiences of the case of Sudan, the OECD/DAC Principles are found to be very relevant for guiding international engagement.
Topic:
International Relations, Development, and Government
Political Geography:
Africa, Sudan, and Juba

11. Words and Deeds. Russian Foreign Policy and Post-Soviet Secessionist Conflicts

Author:
Geir Flikke and Jakub M. Godzimirski
Publication Date:
12-2006
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The goal of this report is to examine Russia's policy towards secessionist conflicts in the post-Soviet space. In order to better understand Russia's policy choices in that sphere, the report addresses three key issues: the internal Russian debate on separatism as a security challenge in the post-Soviet space; Moscow's policies with regard to international institutions, regimes and frameworks; and the rising security agenda of international terrorism.
Topic:
Conflict Prevention, International Relations, and Foreign Policy
Political Geography:
Russia, Soviet Union, and Moscow

12. Observing or participating in regime change? Kyrgyz perspectives on the role of international election observation missions in 2005

Author:
Indra Øverland and Stina Torjesen
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This report offers an in-dept analysis of the role of international election observation missions in during the political upheavals in Kyrgyzstan in 2005. It presents the work of three leading, young academics from Kyrgyzstan. The report forms part of the 'NUPI Network for Election Observation and Exchange'. This is project that is supported by the Norwegian Ministry of Foreign Affairs. The starting point for the assessments presented here is the realisation that international election observer missions played a central part in the events that eventually lead to the toppling of President Askar Akaev's administration in march 2005. Kyrgyzstan is also a case that highlights the immense challenges that face election observation missions in non consolidated democracies of the former Soviet Union. Many of these countries, Kyrgyzstan included, have developed traditions of deep-seated and sophisticated manipulation of election procedures. Given these preconditions, the three articles aim to assess from differing perspectives how election observation was conducted in the country in 2005.
Topic:
International Relations and Government
Political Geography:
Central Asia, Kyrgyzstan, and Soviet Union

13. Geographical spread of corruption: Policies, institutions and cross-country economic interaction. Part I: Issues, theory

Author:
Jens Chr.1 Andvig
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The international aspects of corruption have received considerable attention in both research and policy: What determines whether a country is highly corrupt or not? Most research has sought to answer this question by considering each country as reflecting the same kind of mechanism explaining both the high and low outcomes. In this paper some of the theoretical explanations suggested in the literature are reviewed at the same time as it suggests how the question needs to be rephrased if each country's corruption rate is influenced by an internationally open economic system.
Topic:
International Relations, Corruption, Economics, and International Political Economy

14. From Internationalization of Terrorism to the Internationalization of Anti-terrorism: The Role of the Summer Olympic Games

Author:
Andreas Selliaas
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The academic literature on international relations and international sports studies has long ignored the linkages between sports and international relations. The present contribution seeks to remedy this shortcoming in the literature on international relations and international sports studies, focusing on the relationship between terrorism, anti-terrorism and the Summer Olympic Games, and examining the role of terrorism and anticipated terrorist actions in the organization of the Olympic Games. In this article we show that the anti-terrorism measures undertaken before, during and after the Olympic Games since 1972 have gone from failure to success. The development of anti-terrorism measures has resulted in Olympic Games that have been held without terrorist attacks aimed at political change. Failures in previous Games have been evaluated and have served to promote new developments in the fight against terrorism in later Games. The Munich disaster alerted everyone to the importance of Olympic security; since then, the Olympic Games have become the standard-setter for national organization and international cooperation on anti-terrorism in society in general.
Topic:
International Relations, Security, Globalization, and Terrorism

15. Sistani, the United States and Politics in Iraq: From Quietism to Machiavellianism?

Author:
Reidar Visser
Publication Date:
04-2006
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper discusses the two prevailing interpretations of the political attitudes of the Grand Ayatollah Ali al-Sistani, the leading Shiite cleric in Iraq today. It is argued that neither the traditional "quietist" paradigm nor more recent Machiavellian interpretations can satisfactorily explain Sistani's actions. An alternative interpretation is offered which highlights Sistani's historical oscillation between passive and activist positions. It is suggested that, after an activist intermezzo from June 2003 to December 2004, Sistani has reverted to a more secluded role, again showing an increasing reluctance to fulfil the wishes of his many wooers in Iraqi politics, and limiting his interference to matters directly connected with the Shiite faith and its institutions. It is concluded that Sistani's professional interests as a cleric – rather than any constant desire on his part to control and manipulate domestic politics – may be the key to understanding any future intervention in the political process in Iraq. Scepticism is also expressed toward the notion of Sistani as a guarantor for a "moderate" or "secular" Iraqi political system that would supposedly be fundamentally different from that of Iran – an idea that has featured prominently in policy-making circles in the United States and in other Western countries currently involved in Iraq.
Topic:
International Relations, Politics, and Religion
Political Geography:
United States, Iraq, and Middle East

16. The State, the People and the Armed Forces – a Genealogical Outline of the Legitimacy of the Armed Forces in Norway

Author:
Karsten Friis
Publication Date:
02-2006
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The Norwegian armed forces in the early 21st century is in a phase of rapid change and transition. International missions are about to become its main task, whereas traditional domestic territorial defence is becoming less and less relevant. Is this transition purely a technical adjustment to a new security environment, or does it also entail more fundamental changes in the relationship between the armed forces, the state and the population? Could the military risk to lose its popular legitimacy? To grasp the current changes, it is important to understand the foundations of the relationship between the military, the state and the people. As well as how these relations have evolved over time. This is certainly not the first time in history the armed forces are facing fundamental changes.
Topic:
International Relations, Security, and Defense Policy
Political Geography:
Europe and Norway

17. From Internationalization of Terrorism to the Internationalization of Anti-terrorism. The Role of the Summer Olympic Games

Author:
Andreas Selliaas
Publication Date:
02-2006
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The academic literature on international relations and international sports studies has long ignored the linkages between sports and international relations. The present contribution seeks to remedy this shortcoming in the literature on international relations and international sports studies, focusing on the relationship between terrorism, anti-terrorism and the Summer Olympic Games, and examining the role of terrorism and anticipated terrorist actions in the organization of the Olympic Games. In this article we show that the anti-terrorism measures undertaken before, during and after the Olympic Games since 1972 have gone from failure to success. The development of anti-terrorism measures has resulted in Olympic Games that have been held without terrorist attacks aimed at political change. Failures in previous Games have been evaluated and have served to promote new developments in the fight against terrorism in later Games. The Munich disaster alerted everyone to the importance of Olympic security; since then, the Olympic Games have become the standard-setter for national organization and international cooperation on anti-terrorism in society in general.
Topic:
International Relations, Civil Society, Development, and Terrorism

18. Definitions of strategic political communication

Author:
Anders G. Romarheim
Publication Date:
12-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Political communication comes in various forms. The first part of this paper presents some variants of political communication, and provides a set of definitions of such communication. A centre of gravity is along the borderline and overlap between rhetoric and propaganda. It is argued here that rhetoric unlike propaganda has a potential for deliberation. Propaganda is inherently hostile towards debate and discussion. This reluctance towards debate and discussion has at times been evident as regards the Bush administration's war on terrorism. The second part of the article deals with propaganda from the Bush administration aimed at quelling debate. All the principals from the first George W. Bush administration (2001-2005) took part in this strategy. Most of the material presented here is explained in more detail in Anders G. Romarheim (2005). “Crossfire of Fear: Propaganda in the US War on Terrorism” Hovedoppgave i Statsvitenskap, ISV, UIO.
Topic:
International Relations, Civil Society, and Politics
Political Geography:
United States

19. Crude Nukes on the Loose?

Author:
Morton Bremer Mærli
Publication Date:
06-2004
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This thesis assesses the threat of nuclear terrorism and identifies strategies for diminishing the risk of such incidents. Never before have the material, the technology, the know-how, and, perhaps, the motivations needed to perform acts of nuclear terrorism been more exploitable.
Topic:
International Relations, Nuclear Weapons, Politics, and Terrorism

20. EU Security Policy: Contrasting Rationalism and Social Constructivism

Author:
Pernille Rieker
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
There are two very different stories that can be told about EU security policy during 2003. On the one hand, some argue that the deep division among important EU countries in relation to the Iraq war is a final confirmation of the absence of an EU security policy. On the other hand, some argue that the last year has been a year of considerable intensity in relation to EU security policy–despite the fact that EU cannot yet be characterised as a unitary actor. One of the reasons for these very different stories is that they are based on fundamentally different ideas and theories about the basic mechanisms in international relations. In this paper Pernille Rieker will contrast how two different approaches, namely Rationalistism and Social constructivism would analyse EU security policy. The paper starts with a short presentation of the meta-theoretical foundation of these approaches. The second part discusses how each of them views the conditions for multilateral cooperation and security. In the third part these perspectives on EU security policy will be discussed and some empirical data that support each of them will be presented. Finally, the paper ends on a discussion concerning whether these approaches must be seen as being alternative or complementary approaches.
Topic:
International Relations and Security
Political Geography:
Iraq and Middle East

21. How the Axis of Evil Metaphor Changes Iranian Images of the USA

Author:
Daniel Heradstveit and G. Matthew Bonham
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The respondents feared an American attack, and regarded their membership in «the Axis of Evil» as a stab in the back after Iranian help in Afghanistan. This demonisation was seen overwhelmingly in terms of American geopolitical designs, ignorance and downright irrationality – an expansionist superpower that is dangerously out of control. The WTC attack initially caused a strengthening of Iranian national unity and a more coherent foreign policy, but most of the respondents regard «the Axis of Evil» as killing the nascent dialogue with the USA stone dead and coming as a godsend to the conservatives and the ultras.
Topic:
International Relations and Foreign Policy
Political Geography:
Afghanistan, United States, America, Iran, and Middle East

22. Economic Convergence through Savings, Trade and Technology Flows—Lessons from Recent Research

Author:
Per Botolf Maurseth
Publication Date:
10-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper reviews the theoretical and empirical literature on income disparity between countries and convergence in economic growth. New theoretical models modify and often reverse the prediction of convergence in the traditional neo-classical model of economic growth. A particular feature of the recent literature as compared to traditional studies of economic growth is that it acknowledges interdependence between countries. International capital flows, trade in goods and (maybe most important) international technology flows influence individual countries growth performance. The empirical literature on the dynamics of the international distribution of income per capita reveals massive unconditional divergence in income levels. For sub-samples of countries on the other hand, the data support the conditional convergence hypothesis: when other factors are accounted for, there is a tendency for income per capita to converge. For the OECD countries, as well as for some other countries, knowledge flows, either embodied in traded goods or disembodied seem to be important for whether poorer countries are able to catch up with richer ones.
Topic:
International Relations, Economics, International Trade and Finance, and Science and Technology

23. International R Spillovers and the Effect of Absorptive Capacity

Author:
Leo A. Grünfeld
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
We study the productivity effects of R spillovers through imports, foreign direct investment and domestic intermediates, using a highly disaggregated data set for Norwegian business sectors. As opposed to the large body of similar studies, we explicitly analyse the importance of absorptive capacity effects, claiming that the positive contribution from R spillovers is an increasing function of the R activities of the economic units that receive the spillovers. We find strong support for the existence of R spillovers through imports and domestic intermediates, but no sign of such spillovers through foreign ownership. Surprisingly, we identify absorptive capacity effects relating to spillovers from imports, but no such effects with respect to domestic intermediates. One possible explanation is that the cost of learning from international R sources is larger than from domestic R sources, implying that own R investments can counteract the negative effect of geographical and cultural distance on R spillovers.
Topic:
International Relations, Economics, Industrial Policy, and International Trade and Finance
Political Geography:
Norway

24. Multinationals Searching for R Spillovers

Author:
Leo A. Grünfeld
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper surveys the literature on R and technology spillovers as a motive for FDI. During the last years, a growing body of theoretical studies has generated formal arguments supporting the economic rationale for such behaviour. Yet, theoretical contributions are clustered within a few schools and a wider approach is necessary in order to understand the mechanisms that relate R spillovers to FDI. The empirical literature is more numerous, but provides ambiguous conclusions with respect to the strength of this motive. Micro studies provide less supportive results as compared to studies based on more aggregate data. Studies based on patent information are generally supportive to the existence of this motive.
Topic:
International Relations, Economics, International Trade and Finance, and Science and Technology

25. International R Spillovers and the Absorptive Capacity of Multinationals

Author:
Leo A. Grünfeld
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper studies R spillovers as a motive for firms to go multinational. The establishment of a foreign subsidiary may increase a firm's ability to learn from foreign R activity since R spillovers between firms are moderated by geographical distance. As opposed to earlier studies on this subject, we also model the concept of absorptive capacity where spillovers are endogenised as a function of the firms'own R investments. We employ a three-stage Cournot duopoly model to identify under what conditions a firm chooses to service a foreign market through exports or localised production (going multinational). With exogenous R investments, the absorptive capacity effect contributes to increase the gains from going multinational when the firm is a technology leader in terms of R If R investments are endogenous, only medium-sized absorptive capacity effects will result in firms going multinational. Also, higher spillover rates do not necessarily drive down R and profits for the multinational firm. This stands in contrast to models that ignore the aspect of absorptive capacity.
Topic:
International Relations, Economics, International Trade and Finance, and Science and Technology

26. From territorial defence to comprehensive security? European integration and the changing Norwegian and Swedish security identities

Author:
Pernille Rieker
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper analyses the relationship between the European integration process and the recent changes in the Norwegian and the Swedish national security identities. The aim of the paper is to compare developments in the Norwegian and the Swedish security identities in the 1990s and to evaluate the extent and scope of Europeanisation in the two cases. The fact that both Norway and Sweden had very traditional security discourses at the beginning of the 1990s and that it is possible to detect shifts away from this traditionalism in parallel with the development towards a European security dimension should prove that a Europeanisation has indeed occurred. While several researchers have studied the influence of the EU on national institutions and policies, less attention has been given to the Europeanisation of national security identities. This paper is therefore an attempt to fill this gap. The fact that Sweden has become a member of the EU while Norway has not also makes these two countries good cases for examining the extent and scope of their respective Europeanisation.
Topic:
International Relations, Security, and Nationalism
Political Geography:
Europe, Norway, and Sweden

27. Should one bargain over two issues simultaneously or separately?

Author:
Bård Harstad
Publication Date:
05-2001
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
International negotiations on trade (e.g. GATT and TRIPS) have typically been of the package-form, and different issues have therefore been linked to each other. Trade issues have not been linked to e.g. environmental agreements in negotiations, however. This paper studies the outcome of linked bargaining, where two issues are simultaneously negotiated over by two countries. We notice that there always exist gains from linkages in bargaining, and that such linking will always occur in equilibrium if there is a pre-stage where the countries are bargaining over the agenda. The outcome under linked bargaining is compared with the outcome under separate negotiations, and the circumstances where a country will gain or lose from linking are characterized. The results help us to understand different countries' preferences for linkages in bargaining.
Topic:
International Relations, Environment, and International Trade and Finance
Political Geography:
Europe

28. Patterns of Trade and Foreign Direct Investment in Africa—A simple test of the new trade theory with multinationals

Author:
Lars C. Svindal and Leo A. Grünfeld
Publication Date:
12-2000
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In this study, we present an empirical survey of the patterns of trade and FDI in Africa based on a sample of 28 countries and their transactions with the OECD countries. These patterns are used to test whether the predictions of the new trade theory with multinationals as described by Markusen and Venables (1995,1998) fit the development in Africa. The theory states that multinational production will gradually outgrow trade as countries converge in terms of income, yet our econometric study gives only week evidence supporting such a pattern. Alternative explanations are also investigated,and it is shown that trade barriers, geographical distance, income per capita and access to ocean explain much of the variation in trade and FDI in Africa.
Topic:
International Relations, Development, and Economics
Political Geography:
Africa