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You searched for: Content Type Working Paper Remove constraint Content Type: Working Paper Publishing Institution Norwegian Institute of International Affairs Remove constraint Publishing Institution: Norwegian Institute of International Affairs Topic International Trade and Finance Remove constraint Topic: International Trade and Finance
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  • 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, International Trade and Finance
  • Author: Innwon Park
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: Both intra - and inter-regional trade agreements are proliferating in East Asia. Deepening regional interdependence through trade and investment, and the necessity for stability and revitalization of the regional economy since the East Asian financial crisis in the late 1990s led the East Asian countries to adopt discriminatory RTAs. Accordingly, East Asian commercial policy stance has shifted from unilateral to bilateral to mega-lateral liberalization. This report attempts to assess the East Asian countries' efforts to liberalize the regional market by cooperating with each other. We investigate (i) why RTAs have been proliferating in East Asia, (ii) what the main characteristics of East Asian RTAs are, (iii) whether the East Asian countries are natural trading partners for each other to enhance welfare gains from RTAs, and (iv) whither East Asian RTAs. From our analysis, we recommend following policy options. First, East Asian RTAs should follow an expansionary RTA path (for example, AFTA and five ASEAN+1 FTAs → RCEP and/or TPP → FTAAP). Second, as we consider the high dependence on external economies through global trade and investment, East Asia needs to cooperate with major external trading partners by forming cross-regional RTAs with the EU and US. Third, in order to enable East Asian economies to take the more desirable expansionary RTA path, harmonizing or simplifying ROO, the cumulation of value contents among the RTA members in East Asia, and enhancing trade facilitation should be a prerequisite considering the complicated web of RTAs, regional production networks, and the consolidation of the FTAAP.
  • Topic: Economics, International Trade and Finance, Regional Cooperation
  • Political Geography: East Asia, Asia
  • Author: Rich Karl, Magda Rich, P.G. Chengappa
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: Despite estimates that the global butterfly trade generates over US$100 million annually in sales of pupae for exhibitions and deadstock for a range of collector and artisanal uses, almost no research has been conducted that unpacks the dynamics of these value chains. This paper remedies this gap by highlighting the governance structure of the value chain, with important implications on the benefits for chain participants, upgrading strategies, sectoral sustainability, and the potential for new market entrants. This research on live butterfly chains reveals the fragility of current modes of economic organization that promote overproduction as threatening the long-term viability for the industry as a whole. The authors propose an alternative governance model based on the use of individually transferrable quotas, or ITQs, as a means of improving the performance of certain butterfly value chains.
  • Topic: Economics, Government, International Trade and Finance, Governance
  • Author: Rich Karl, Magda Rich, P.G. Chengappa, Arun Muniyappa, Yadava C.G, Ganashruthi M.K., Pradeepa Babu B.N., Shubha Y.C.
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: Certification programs has been employed in many agricultural products as a means to encourage and communicate compliance with standards associated with various attributes, such as organic, fair-trade, GMO free, and eco-friendly, among others. Such programs further seek to provide added value, through a price premium, to producers and supply chain actors associated with the label. In this paper, we review a number of global labeling and certification programs that could add value for coffee farms in India through the promotion of conservation and environmental protection. We provide results from a survey conducted on a sample of coffee farms in Coorg district, India to assess their awareness and perceptions related towards certified coffee and environmental conservation in general. Survey results illustrate strong positive associations with the environment by coffee planters, particularly among certified and organic producers. However, price premiums for certified and organic coffee are relatively small. While the potential of conservation-oriented certification for coffee in Coorg could be relatively limited outside of a few individual-level niches, branding Coorg more generally as a conservation-oriented region could hold promise, leveraging and personalizing the uniqueness of the natural offerings from Coorg and tapping into burgeoning associations with place and region in India.
  • Topic: Agriculture, Economics, Environment, International Trade and Finance
  • Political Geography: India
  • Author: Medin Hege
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: The new trade theory, which emerged in the early 1980s, emphasised economies of scale and market failures as driving forces behind international trade. As opposed to the earlier theory, which mainly assumed perfect competition, the new trade theory provided a rationale for industrial policy. This article shows how industrial policy targeting specific firms or industries may be socially desirable within the new trade theory framework. Models from new economic geography and the more recent 'new' new trade theory with heterogeneous firms are also discussed. The main focus is put on models with pecuniary externalities.
  • Topic: Economics, International Cooperation, International Trade and Finance, Political Economy, Politics
  • Author: Fulvio Castellacci, Christine Mee Lie
  • Publication Date: 07-2013
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: This paper presents a survey of the micro-econometric literature on the effects of R tax credits on firms' innovation activities. The authors focus on one specific aspect that has not received sufficient attention in previous research: the sectoral dimension. Our meta-regression analysis (MRA) sets up a new database collecting a large number of firm-level studies on the effects of R tax credits and investigates the factors that may explain differences in the estimated effects that are reported in the literature. The main result of the MRA analysis is indeed that sectors matter. Micro-econometric studies that have focused on a sub-sample of high-tech industries have on average obtained a smaller estimated effect of R tax credits. The paper proposes a simple framework to investigate why the effects of R tax credits vary across sectors and points out new directions and hypotheses for future research.
  • Topic: Development, Economics, International Trade and Finance, Markets
  • Author: Jens Chr.1 Andvig
  • Publication Date: 08-2013
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: This is a conceptual paper that seeks to dig out some of the distinct understandings of corporate social responsibility (CSR) and relate them to basic economic and ethical choices and theories. Most of the discussion is focused on enterprise choice of tax payment in a context where both enterprise production activities as well as their tax payment may be allocated between constituencies where the state of public governance and poverty levels may differ widely. The presentation is non-formal, but mostly stylized and empirical information is mostly presented in the footnotes.
  • Topic: Economics, International Trade and Finance, Markets, Poverty, Political Theory, Governance
  • Author: Brian D. Perry
  • Publication Date: 02-2012
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: This report is part of a broad study of trade preferences and market conditions between various developing countries and Norway, conducted under the auspices of the Norwegian Institute of International Affairs and funded by the Norwegian Ministry of Foreign Affairs. Norway's Generalized System of Preferences (GSP) was established in 1971. From 2002 Norway has provided duty and quota free market access (DQF-MA) for all goods from all the 50 least developed countries (LDCs3). In 2005 the results of a review of Norway's GSP were published (Melchior, 20054), which showed that agricultural products from developing countries other than LDCs were still subject to substantial tariffs, and this contrasted dramatically with advantages given to European trading partners. As a result, from 1 January 2008 changes were made to Norway's GSP5. An important adjustment was that 14 low income countries that were not part of the LDC group were included in the provision for duty and quota-free market access (DQFMA). Consequently, 64 low income countries now benefit from DQFMA to Norway for all their goods.
  • Topic: Agriculture, Development, Economics, International Trade and Finance, Markets
  • Political Geography: Kenya, Africa, Norway, Ethiopia
  • Author: Arne Melchior, Karl M. Rich, Brian D. Perry
  • Publication Date: 02-2012
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: Norway has traditionally operated a rather closed, managed market for beef importsnder WTO-auspices, Norway operates a tariff-rate quota (TRQ) for beef that allows the entry of a small amount of product at a relatively low tariff rate, with higher rates of duty imposed on imports over the quota. There are several different TRQs of relevance to boneless beef. The main quota is the WTO quota, which allows for the annual import of 1,084 tons of frozen beef at an in-quota duty rate of NOK 33,60/kg for boneless cuts. Countries with ordinary GSP access receive a 30 percent discount on this duty, so that the in-quota GSP tariff is NOK 23,52/kg. The WTO quota is administered once per year by an auction system – table 6 provides a list of the prices and volumes for the 2011 WTO quota. For imports outside the WTO quota, the duty is 119,01 NOK/kg, with GSP countries paying 10 percent less at NOK 107,11/kg.
  • Topic: Development, International Trade and Finance, Markets
  • Political Geography: Norway
  • Author: Fulvio Castellacci, Martin Blom, Arne Martin Fevolden
  • Publication Date: 05-2012
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: The paper investigates the trade-off between innovation and defence industrial policy. It presents an agent-based simulation model calibrated for the Norwegian defence industry that compares different policy scenarios and examines the effects of a pending EU market liberalization process. The paper points to two main results. (1) It finds that a pure scenario where national authorities focus on, and provide support exclusively for, either a) international competitiveness or b) national defence and security objectives, is more Pareto efficient than a corresponding mixed strategy where policy makers simultaneously pursue both international competitiveness and defence and security objectives. (2) Under the conditions of the new EU liberalization regime, it finds that a stronger and more visible trade-off will emerge between international competitiveness and national defence and security objectives. Policy makers will have to choose which to prioritise, and set a clear agenda focusing on one of the two objectives.international competitiveness or b) national defence and security objectives, is more Pareto efficient than a corresponding mixed strategy where policy makers simultaneously pursue both international competitiveness and defence and security objectives. (2) Under the conditions of the new EU liberalization regime, it finds that a stronger and more visible trade-off will emerge between international competitiveness and national defence and security objectives. Policy makers will have to choose which to prioritise, and set a clear agenda focusing on one of the two objectives.
  • Topic: Security, Defense Policy, International Trade and Finance, Markets
  • Political Geography: Europe