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1641. Global value chains and the removal of trade protection

Author:
Chad P. Bown, Aksel Erbahar, and Maurizio Zanardi
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper examines how trade protection is affected by changes in the value-added content of production arising through global value chains (GVCs). Exploiting a new set of World Trade Organization (WTO) rules adopted in 1995 that impose an exogenously timed requirement for countries to reevaluate their previously imposed trade protection, the authors adopt an instrumental variables strategy and identify the causal effect of GVC integration on the likelihood that a trade barrier is removed. Using a newly constructed dataset of protection removal decisions involving 10 countries, 41 trading partners, and 18 industries over 1995–2013, they find that bilateral industry-specific domestic value-added growth in foreign production significantly raises the probability of removing a duty. The results are not limited to imports from China but are only found for the protection decisions of high-income countries. Back-of-the-envelope calculations indicate that rapid GVC growth in the 2000s freed almost a third of the trade flows subject to the most common temporary restrictions (i.e., antidumping) applied by high-income countries in 2006.
Topic:
Economics, International Trade and Finance, Global Markets, Finance, and Trade
Political Geography:
Global Focus

1642. A program for strengthening the Federal Reserve's ability to fight the next recession

Author:
David Reifschneider and David Wilcox
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
If the Federal Reserve does not decisively change the way it conducts monetary policy, it will probably not be capable of fighting recessions in the future as effectively as it fought them in the past. This reality helped motivate the Fed to undertake the policy framework review in which it is currently engaged. Researchers have suggested many steps the Fed could take to improve its recession-fighting ability; however, no consensus has emerged as to which of these steps would be both practical and maximally effective. This paper aims to fill that gap. It recommends that the Fed commit as soon as possible to a new approach for fighting recessions, involving two key elements. First, the Fed should commit that whenever it runs out of room to cut the federal funds rate further, it will leave the rate at its minimum level until the labor market recovers and inflation returns to 2 percent. Second, the Fed should commit that under the same circumstances, it will begin to purchase longer-term assets in volume and will continue such purchases until the labor market recovers. If the forces driving the next recession are not unusually severe, this framework might allow the Fed to be as effective at fighting that recession as it was in the past. If the next recession is more severe, however, the Fed will probably run out of ammunition even if it takes the two steps recommended here. Therefore, both monetary and fiscal policymakers should consider yet other steps they could take to enhance their ability to fight future recessions.
Topic:
Economics, Monetary Policy, and Federal Reserve
Political Geography:
North America, Global Focus, and United States of America

1643. The Great Lockdown: Impact of the COVID-19 Pandemic on the Global Economy

Author:
Damian Wnukowski and Marek Wasinski
Publication Date:
04-2020
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The coronavirus pandemic and efforts to suppress it (the Great Lockdown) will lead to the collapse of the global economy. In the short term, the reduction in production and consumption in the countries most affected by the pandemic will lead to a global recession. In the long run, the crisis may result in a partial retreat from globalisation, higher indebtedness, and narrowing the differences in economic potential between the EU and the U.S., and China. A positive side effect may be the acceleration of the development of the digital economy, including the services market.
Topic:
European Union, Economy, Global Financial Crisis, Coronavirus, and Pandemic
Political Geography:
China, Europe, North America, Global Focus, and United States of America

1644. New Productivity Drivers: Revisiting the Role of Digital Capital, FDI and Integration at Aggregate and Sectoral Levels

Author:
Amat Adarov and Robert Stehrer
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The paper studies the drivers of productivity at country and sectoral levels over the period 2000-2017 with the focus on the impact of capital accumulation and structure. The analysis confirms an especially important role of ICT and intangible digital capital for productivity growth, particularly in the manufacturing sectors. While backward global value chain participation and EU integration are also found to be instrumental for accelerating productivity growth, the impact of inward foreign direct investment is not robustly detected when the data is purged from the effects of special purpose entities and outlier countries.
Topic:
Economics, Foreign Direct Investment, European Union, Digital Economy, Capital Flows, and Trade
Political Geography:
Europe and Global Focus

1645. Robotisation, Employment and Industrial Growth Intertwined Across Global Value Chains

Author:
Mahdi Ghodsi, Oliver Reiter, Robert Stehrer, and Roman Stöllinger
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The global economy is currently experiencing a new wave of technological change involving new technologies, especially in the realm of artificial intelligence and robotics, but not limited to it. One key concern in this context is the consequences of these new technologies on the labour market. This paper provides a comprehensive analysis of the direct and indirect effects of the rise of industrial robots and productivity via international value chains on various industrial indicators, including employment and real value added. The paper thereby adds to the existing empirical work on the relationship between technological change, employment and industrial growth by adding data on industrial robots while controlling for other technological advancements measured by total factor productivity (TFP). The results indicate that the overall impact of the installation of new robots did not statistically affect the growth of industrial employment during the period 2000–2014 significantly, while the overall impact on the real value added growth of industries in the world was positive and significant. The methodology also allows for a differentiation between the impact of robots across various industries and countries based on two different perspectives of source and destination industries across global value chains.
Topic:
Economics, Science and Technology, Digital Economy, Economic Growth, Industry, and Robotics
Political Geography:
Global Focus

1646. Does Employment Protection Affect Unemployment? A Meta-analysis

Author:
Philipp Heimberger
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Despite extensive research efforts, the magnitude of the effect of employment protection legislation (EPL) on unemployment remains unclear. Existing econometric estimates exhibit substantial variation, and it is therefore difficult to draw valid conclusions. This paper applies meta-analysis and meta-regression methods to a unique data set consisting of 881 observations on the effect of EPL on unemployment from 75 studies. Once we control for publication selection bias, we cannot reject the hypothesis that the average effect of EPL on unemployment is zero. The meta-regression analysis, which investigates sources of heterogeneity in the reported effect sizes, reveals the following main results. First, the choice of the EPL variable matters: estimates that build on survey-based EPL variables report a significantly stronger unemployment-increasing impact of EPL than estimates developed using EPL indices based on the OECD’s methodology, where the latter relies on coding information from legal provisions. Second, we find that employment protection has a small unemployment-increasing effect on female unemployment, compared with a zero impact on total unemployment. Third, using multi-year averages of the underlying data tends to dampen the unemployment effects of EPL. Fourth, product market regulation is found to moderate the effect of EPL on unemployment.
Topic:
Labor Issues, European Union, Employment, Unemployment, and Organisation for Economic Co-operation and Development
Political Geography:
Europe and Global Focus

1647. Tracking and Assessing Governance and Management Reform in the Nuclear Security Enterprise

Author:
Jill Dahlburg and Robert Shea
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
The National Academy of Public Administration
Abstract:
The Act directs NNSA’s Administrator to enter into an agreement with the National Academy of Sciences, Engineering and Medicine and the National Academy of Public Administration to create an Implementation Assessment Panel to: Provide guidance to the Secretary and Administrator on the implementation plan content; Track implementation plan progress; and Assess implementation plan effectiveness. NAPA and NAS have formed a joint Implementation Assessment Panel. The Panel will oversee the work of the joint NAPA/NAS study team, providing strategic guidance on study approach and focus, and issuing key findings and recommendations. The 14 Panel members bring a wealth of experience from DOE Science Laboratories, Federally Funded Research & Development Centers, the Intelligence Community, Academia, and the Office of Management and Budget.
Topic:
Security, Diplomacy, National Security, and Military Affairs
Political Geography:
Global Focus

1648. The Significant Political Declaration and the Forthcoming 10th NPT Review Conference

Author:
Miroslav Tuma
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Institute of International Relations Prague
Abstract:
The political declaration with an annex entitled Advancing Nuclear Disarmament, Securing Our Future was adopted on 25 February 2020 in Berlin by the Foreign Ministers of the fifteen countries associated in the prestigious Stockholm Initiative for Nuclear Disarmament. They call on all NPT participating countries to discuss and adopt the proposed stepping stones. According to the authors of the declaration, the implementation could contribute to averting the dangerous development of the security situation and to the gradual realization of the generally supported vision of creating a world without nuclear weapons. Due to the global pandemic caused by COVID-19, the 10th NPT Review Conference was postponed indefinitely.
Topic:
Arms Control and Proliferation, Nuclear Weapons, and Nonproliferation
Political Geography:
Global Focus

1649. Finding the UN Way on Peacekeeping-Intelligence

Author:
Sarah-Myriam Martin-Brûlé
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
The growing number of UN personnel deployed to missions in violent, volatile, and complex settings has pushed the UN to take all means necessary to improve the safety and security of its staff and of civilians under its protection. The UN’s Peacekeeping-Intelligence Policy, which was first developed in 2017 and later revised in 2019, has been a central part of these efforts. This paper outlines the difficulties of creating and implementing this policy. It addresses the origin and evolution of UN peacekeeping-intelligence as a concept and explains the need for this policy. It then discusses how peacekeeping-intelligence was and is being developed, including the challenge of creating guidelines and trainings that are both general enough to apply across the UN and flexible enough to adapt to different missions. Finally, it analyzes challenges the UN has faced in implementing this policy, from difficulties with coordination and data management to the lack of a sufficient gender lens. The paper recommends a number of actions for UN headquarters, peace operations, and member states in order to address these challenges: Optimize tasking and information sharing within missions by focusing on senior leaders’ information needs; Harmonize the content of peacekeeping-intelligence handbooks with standard operating procedures while ensuring they are flexible enough to account for differences among and between missions; Refine criteria for recruiting civilian and uniformed personnel with intelligence expertise and better assign personnel once they are deployed; Improve retention of peacekeeping-intelligence personnel and encourage member states to agree to longer-term deployments; Tailor peacekeeping-intelligence training to the needs of missions while clarifying a standard set of UN norms; Apply a gender lens to UN peacekeeping-intelligence; Improve coordination between headquarters and field sites within missions by adapting the tempo and timing of tasking and creating integrated information-sharing cells; and Establish common sharing platforms within missions.
Topic:
Intelligence, United Nations, Peacekeeping, and Civilians
Political Geography:
Global Focus

1650. Integrating Human Rights into the Operational Readiness of UN Peacekeepers

Author:
Namie Di Razza and Jake Sherman
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
The effectiveness of UN peace operations depends on the “operational readiness” of their personnel, which refers to the knowledge, expertise, training, equipment, and mindset needed to carry out mandated tasks. While the need to improve the operational readiness of peacekeepers has been increasingly recognized over the past few years, the concept of “human rights readiness”—the extent to which consideration of human rights is integrated into the generation, operational configuration, and evaluation of uniformed personnel—has received less attention. This policy paper analyzes opportunities and gaps in human rights readiness and explores ways to improve the human rights readiness of peacekeepers. A comprehensive human rights readiness framework would include mechanisms to integrate human rights considerations into the operational configuration and modus operandi of uniformed personnel before, during, and after their deployment. This paper starts the process of developing this framework by focusing on the steps required to prepare and deploy uniformed personnel. The paper concludes with concrete recommendations for how troop- and police-contributing countries can prioritize human rights in the force generation process and strengthen human rights training for uniformed peacekeepers. These actions would prepare units to uphold human rights standards and better integrate human rights considerations into their work while ensuring that they deliver on this commitment. Ultimately, improved human rights readiness is a key determinant of the performance of UN peacekeepers, as well as of the UN’s credibility and reputation.
Topic:
Security, Human Rights, United Nations, and Peacekeeping
Political Geography:
Global Focus