Search

Begin New Search Topic Economics Publication Year within 25 Years

5151. Class Formation or Fragmentation? Allegiances and Divisions Among Managers and Workers in State-Owned Enterprises

Author:
Kun-Chin Lin
Publication Date:
03-2005
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This essay argues that crosscutting allegiances between managers and workers, and between existing workers and ex-workers, have formed strong social and psychological bases for sustained collective action and inaction during a period of organizational transformation in contemporary China. This thesis challenges the conventional wisdom that implies either class formation during marketization or the failure of such as an explanation for the alleged limits of the working class in mobilizing to defend its social contract against the central state. Through in-depth case studies of Chinese oilfields and refineries, I identify patterns of fragmentation deriving from intergenerational differences among the workers, managerial incentive structures, and the continuing reworking of patron-client relations between subgroups of workers and managers. I conclude that managers' and workers' passive and active responses to the state's rapid dismantling of the socialist notion of “class” in a self-sufficient work unit have placed a tangible social limit on authoritarian institutional innovation.
Topic:
Economics, Emerging Markets, and Government
Political Geography:
China

5152. Development Aid and Economic Freedom: Are They Related?

Author:
Benjamin Powell and Matt Ryan
Publication Date:
05-2005
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
For more than 50 years individual countries and international agencies have given aid to third world countries to promote economic development, yet poverty still persists in many recipient nations. In recent years development economists and agencies have increasingly recognized the importance of institutions that support property rights and economic freedom in promoting development. Nevertheless, nations continue to provide aid to less developed countries. This raises two important questions. Does the receipt of aid lead to increases or decreases in economic freedom, and are increases in economic freedom rewarded with more aid or punished with reduced aid?
Topic:
Development, Economics, Government, and Poverty

5153. Government and the Economy: The World Wars

Author:
Robert Higgs
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
U.S participation in the world wars gave rise to massive increases in the extent of government involvement in economic life and brought about many important, enduring changes in the government\'s relations with private economic actors. In both wars, the federal government expanded enormously the amount of its expenditure, taxation, and regulation as well as its direct participation in productive activities, creating what contemporaries described during World War I as "war socialism." Each of these great experiences left a multitude of legacies—fiscal, institutional, and ideological—many of which continue to shape the country\'s political economy. As William Graham Sumner wisely observed, "it is not possible to experiment with a society and just drop the experiment whenever we choose. The experiment enters into the life of the society and never can be got out again" (Sumner 1934, II, 473). The world wars certainly are among the greatest "experiments" that American society ever endured.
Topic:
Economics, Government, and Industrial Policy
Political Geography:
United States

5154. Unequal Prospects: Disparities in the Quantity and Quality of Labour Supply in Sub-Saharan Africa

Author:
Christopher Cramer and John Sender
Publication Date:
03-2005
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
The issue of labour supply in Sub-Sahara n Africa, like so many other economic and social issues in the region, is often discussed as if the whole sub-continent faced essentially similar, overwhelming and intractable problem s. This pessimistic and over-generalised literature has been criticized elsewhere (Sender, 1999). By contrast, this paper stresses the importance of differences between and within Sub-Saharan African economies in the quantity and quality of labour supplies, and highlights the scope for policies to overcome constraints on employment prospects. The paper also points to the dangers of one-size-fits-all policy recommendations for the labour market, while at the same time identifying certain similarities in the characteristics of the most disadvantaged labour market entrants in many Sub-Saharan African economies. The aim is to begin to isolate the sub-set of policies that might be most relevant for these entrants, if donors and governments wish to re-allocate resources to improve prospects for the poorest Africans.
Topic:
International Relations, Development, Economics, and International Political Economy

5155. Housing, Land, Property and Conflict Management: Identifying Policy Options for Rule of Law Programming

Author:
Agnes Hurwitz, Kaysie Studdard, and Rhodri Williams
Publication Date:
10-2005
Content Type:
Working Paper
Institution:
International Peace Institute
Abstract:
Housing, land and property (HLP) policies should, as far as possible be addressed in conjunction to ensure that residential and land rights are dealt with more comprehensively by domestic and international actors.
Topic:
Conflict Prevention, Development, Economics, and Government

5156. Economic Reforms, Democracy and Growth in Eastern Europe and Eurasia

Author:
Robyn Murphy, Ron Sprout, and Paul Pleva
Publication Date:
11-2005
Content Type:
Working Paper
Institution:
United States Agency for International Development
Abstract:
This research analyses the interaction between economic reforms, reforms, and economic growth. One of the salient characteristics of the transition region has been two very distinct patterns between economic and democratic reforms: convergence of the two reform dimensions in the CEE countries and divergence Eurasia. Nevertheless, results from econometric tests (which attempt to control for possible intervening influences) suggest that economic and democratic reforms are mutually reinforcing throughout the region, even in Eurasia. We also found evidencthat: (1) economic reforms have a stronger impact on democratic reforms than the reverse; (2) economic reforms favorably affect economic growth; (3) democratic refavorably affect economic growth indirectly (via economic reforms) if not directly; and (4) while the feedback effects from economic growth to reforms are more ambiguous, there is some evidence that economic growth may actually stifle democratic reforms, and/or economic contraction may facilitate democratization.
Topic:
Democratization, Development, and Economics
Political Geography:
Eurasia and Eastern Europe

5157. Politics, Public Bads, and Private Information

Author:
Glenn Sheriff
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
Preferential treatment for politically influential sectors often has undesirable consequences such as increasing pollution or ecosystem degradation. Private information on firm productivity constrains the government's ability both to redistribute income and regulate public bad production. Given political economy and information constraints, this article characterizes a social-welfare maximizing policy. The optimal policy uses a single instrument to achieve both goals, making income-support subsidies contingent upon reduction of bad outputs. Output price uncertainty works to the advantage of the government, potentially eliminating some firms' information advantage.
Topic:
Civil Society, Economics, Government, and Human Rights

5158. Natural Resources and Contemporary Conflicts

Author:
Jean-François Gagné
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
The Raoul Dandurand Chair of Strategic and Diplomatic Studies, Université du Québec à Montréal
Abstract:
Natural resources are frequently associated with violence or at least with tensions: 85% of countries where wars (in most cases, civil wars) were under way in 2003 possessed abundant natural resources. While there are no precise figures on low-intensity conflicts, we do know that many ad hoc armed interventions, popular uprisings and other destabilizing events that have the potential to lead to larger flare-ups are also concentrated in resource-rich countries.
Topic:
Conflict Resolution, Development, Economics, and War

5159. Quantity Discounts from Risk Averse Sellers

Author:
Patrick J. DeGraba
Publication Date:
05-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
It is widely believed that larger customers in a market can secure lower prices than smaller customers. This paper presents conditions under which risk averse sellers, who can distinguish larger customers from smaller customers, but who cannot observe customers' valuations, have an incentive to offer lower prices to larger customers. The intuition is that a single customer that demands a specific quantity represents a riskier profit source than multiple customers with independent valuations whose demands sum to that same quantity. Sellers respond to the riskier profit source by offering a lower price to reduce some of the risk.
Topic:
Economics, Emerging Markets, Industrial Policy, and International Trade and Finance

5160. Order Flow and Exchange Rate Dynamics in Electronic Brokerage System Data

Author:
Jonathan H. Wright, David W. Berger, Alain P. Chaboud, Sergey V. Chernenko, Edward Howorka, Raj S. Iyer, and David Liu
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We study the association between order flow and exchange rate returns in five years of high-frequency intraday data from the leading interdealer electronic broking system, EBS. While the association between order flow and exchange rate returns has been studied in several previous papers, these have mostly used relatively short spans of daily data from older bilateral dealing systems and, usually, transaction counts instead of actual trading volume. Using a substantially longer span of recent high-frequency data and measuring order flow as actual signed trading volume, we find a strong positive association between order flow and exchange rate returns at frequencies ranging from one minute to one day, and a more modest but still sizeable association at the monthly frequency. We find, however, no evidence that order flow has predictive power for future exchange rate movements beyond, possibly, the next minute. Focusing on the behavior of order flow and exchange rates at the time of scheduled U.S. economic data releases, we find that the surprise components of these announcements are associated with order flow at high frequency immediately after the data releases. This finding seems inconsistent with a simple efficient markets view of how a public news announcement is incorporated into prices.
Topic:
Economics, International Trade and Finance, and Science and Technology
Political Geography:
United States

5161. Adjusting Chinese Bilateral Trade Data: How Big is China's Trade Surplus

Author:
John W. Schindler and Dustin H. Beckett
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Hong Kong plays a prominent role as a re-exporter of a large percentage of trade bound for or coming from China. Current reporting practices in China and its trading partners do not fully reflect this role and therefore provide a misleading picture of the origin or ultimate destination of Chinese exports and imports. We adjust bilateral trade data for both China and its trading partners to correct for this problem. We also correct for differences due to markups in Hong Kong and different standards for reporting trade (c.i.f. versus f.o.b.). For 2003, we estimate that China's overall trade surplus was between $53 billion and $126 billion, larger than that reported in official Chinese data, but smaller than that reported by China's trading partners. We also provide evidence that, in general, the actual origin of a good that is transshipped through Hong Kong is correctly reported by the importing country, but the final destination of such goods is not correctly reported by the exporting country.
Topic:
Economics and International Trade and Finance
Political Geography:
United States, China, and Hong Kong

5162. Exchange Rate Pass-through to U.S. Import Prices: Some New Evidence

Author:
Jaime Marquez, Mario Marazzi, Nathan Sheets, Joseph Gagnon, Robert J. Vigfusson, Jon Faust, Robert F. Martin, Trevor Reeve, and John Rogers
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper documents a sustained decline in exchange rate pass-through to U.S. import prices, from above 0.5 during the 1980s to somewhere in the neighborhood of 0.2 during the last decade. This decline in the pass-through coefficient is robust to the measure of foreign prices that is included in the regression (i.e., CPI versus PPI), whether the estimation is done in levels or differences, and whether U.S. prices are included as an explanatory variable. Notably, the largest estimates of pass-through are obtained when commodity prices are excluded from the regression. In this case, the pass-through coefficient captures both the direct effect of the exchange rate on import prices and an indirect effect operating through changes in commodity prices. Our work indicates that an increasing share of exchange rate pass-through has occurred through this commodity-price channel in recent years. While the source of the decline in passthrough is difficult to pin down with certainty, our work points to several factors, including the reduced share of (commodity-intensive) industrial supplies in U.S. imports and the increased presence of Chinese exporters in U.S. markets. We detect a particular step down in the passthrough coefficient around the time of the Asian financial crisis and document a shift in the export pricing behavior of emerging Asian firms around that time.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
United States and China

5163. A Variance Screen for Collusion

Author:
Rosa M. Abrantes-Metz, Luke M. Froeb, John F. Geweke, and Charles T. Taylor
Publication Date:
03-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
In this paper, we examine price movements over time around the collapse of a bid-rigging conspiracy. While the mean decreased by sixteen percent, the standard deviation increased by over two hundred percent. We hypothesize that conspiracies in other industries would exhibit similar characteristics and search for "pockets" of low price variation as indicators of collusion in the retail gasoline industry in Louisville. We observe no such areas around Louisville in 1996-2002.
Topic:
Economics, Emerging Markets, Industrial Policy, and International Trade and Finance

5164. Optimal Inflation Persistence: Ramsey Taxation with Capital and Habits

Author:
Sanjay Chugh
Publication Date:
03-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Ramsey models of fiscal and monetary policy with perfectly-competitive product markets and a fixed supply of capital predict highly volatile inflation with no serial correlation. In this paper, we show that an otherwise-standard Ramsey model that incorporates capital accumulation and habit persistence predicts highly persistent inflation. The result depends on increases in either the ability to smooth consumption or the preference for doing so. The effect operates through the Fisher relationship: a smoother profile of consumption implies a more persistent real interest rate, which in turn implies persistent optimal inflation. Our work complements a recent strand of the Ramsey literature based on models with nominal rigidities. In these models, inflation volatility is lower but continues to exhibit very little persistence. We quantify the effects of habit and capital on inflation persistence and also relate our findings to recent work on optimal fiscal policy with incomplete markets.
Topic:
Economics, Emerging Markets, Industrial Policy, and International Trade and Finance

5165. Investment-Specific and Multifactor Productivity in Multi-Sector Open Economies: Data and Analysis

Author:
Luca Guerrieri, Dale W. Henderson, and Jinill Kim
Publication Date:
02-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
In the last half of the 1990s, labor productivity growth rose in the U.S. and fell almost everywhere in Europe. We document changes in both capital deepening and multifactor productivity (MFP) growth in both the information and communication technology (ICT) and non-ICT sectors. We view MFP growth in the ICT sector as investment-specific productivity (ISP) growth. We perform simulations suggested by the data using a two-country DGE model with traded and nontraded goods. For ISP, we consider level increases and persistent growth rate increases that are symmetric across countries and allow for costs of adjusting capital-labor ratios that are higher in one country because of structural differences. ISP increases generate investment booms unless adjustment costs are too high. For MFP, we consider persistent growth rate shocks that are asymmetric. When such MFP shocks affect only traded goods (as often assumed), movements in 'international' variables are qualitatively similar to those in the data. However, when they also affect nontraded goods (as suggested by the data), movements in some of the variables are not. To obtain plausible results for the growth rate shocks, it is necessary to assume slow recognition.
Topic:
Economics, Emerging Markets, and International Trade and Finance
Political Geography:
United States and Europe

5166. Financial Market Developments and Economic Activity during Current Account Adjustments in Industrial Economies

Author:
Steven B. Kamin, Sylvain Leduc, and Hilary Croke
Publication Date:
02-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Much has been written about prospects for U.S. current account adjustment, including the possibility of what is sometimes referred to as a “disorderly correction”: a sharp fall in the exchange rate that boosts interest rates, depresses stock prices, and weakens economic activity. This paper assesses some of the empirical evidence bearing on the likelihood of the disorderly correction scenario, drawing on the experience of previous current account adjustments in industrial economies. We examined the paths of key economic performance indicators before, during, and after the onset of adjustment, building on the analysis of Freund (2000).
Topic:
Development, Economics, Industrial Policy, and International Trade and Finance
Political Geography:
United States

5167. International Risk-Sharing and the Transmission of Productivity Shocks

Author:
Sylvain Leduc, Giancarlo Corsetti, and Luca Dedola
Publication Date:
02-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
A central puzzle in international finance is that real exchange rates are volatile and, in stark contradiction to efficient risk-sharing, negatively correlated with cross-country consumption ratios. This paper shows that a standard international business cycle model with incomplete asset markets augmented with distribution services can account quantitatively for these properties of real exchange rates. Distribution services, intensive in local inputs, drive a wedge between producer and consumer prices, thus lowering the impact of terms-of-trade changes on optimal agents' decisions. This reduces the price elasticity of tradables separately from assumptions on preferences.
Topic:
Development, Economics, International Trade and Finance, and Science and Technology
Political Geography:
United States

5168. An Assessment of the Impact of Japanese Foreign Exchange Intervention: 1991-2004

Author:
Alain P. Chaboud and Owen Humpage
Publication Date:
01-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We analyze the short-term price impact of Japanese foreign exchange intervention operations between 1991 and 2004, using official data from Japan's Ministry of Finance. Over the period as a whole, we find some evidence of a modest "against the wind" effect, but interventions do not have value as a forecast that the exchange rate will move in a direction consistent with the operations. Interventions conducted between 1995 and 2002, which were large and infrequent, met with a much higher degree of success. For the most recent episode of intervention, in 2003 and 2004, despite the record size and frequency of the overall episode, it is difficult to statistically distinguish the pattern of exchange rate movements on intervention days from that of all the days in that particular subperiod, showing little effectiveness. Still, while the evidence of Japanese intervention effectiveness is modest overall, it appears to be stronger than that found using similar techniques for U.S. intervention operations conducted in the 1980s and 1990s.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Japan and Israel

5169. Going the Distance: The U.S. Tsunami Relief Effort

Publication Date:
01-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
On December 26, 2004, a magnitude 9.0 earthquake off the west coast of Northern Sumatra, Indonesia, triggered a tsunami—a series of giant waves—that inundated coastal areas of Indonesia, Thailand, Sri Lanka, India, and Malaysia, as well as Indian Ocean islands and parts of East Africa.
Topic:
International Relations, Development, Economics, and International Cooperation
Political Geography:
Indonesia, Malaysia, India, Sri Lanka, Thailand, and East Africa

5170. Expansionary Fiscal Shocks and the Trade Deficit

Author:
Luca Guerrieri, Christopher Gust, and Christopher Erceg
Publication Date:
01-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
In this paper, we use an open economy DGE model (SIGMA) to assess the quantitative effects of fiscal shocks on the trade balance in the United States. We examine the effects of two alternative fiscal shocks: a rise in government consumption, and a reduction in the labor income tax rate. Our salient finding is that a fiscal deficit has a relatively small effect on the U.S. trade balance, irrespective of whether the source is a spending increase or tax cut. In our benchmark calibration, we find that a rise in the fiscal deficit of one percentage point of GDP induces the trade balance to deteriorate by less than 0.2 percentage point of GDP. Noticeably larger effects are only likely to be elicited under implausibly high values of the short-run trade price elasticity.
Topic:
Conflict Resolution, Economics, and International Trade and Finance
Political Geography:
United States

5171. Challenges in Competitiveness: Infrastructure Development

Author:
Raul Rodriguez
Publication Date:
01-2005
Content Type:
Working Paper
Institution:
The Wilson Center
Abstract:
Cross-border cooperation between the U.S. and Mexico in infrastructure development has been the topic of a vast number of conferences, discussion groups and reports for quite some time. But actual cooperation pales in comparison to the dramatic strides achieved in economic and business links between both countries.
Topic:
International Relations, Economics, Poverty, and Regional Cooperation
Political Geography:
United States and Mexico

5172. The Aspect of Culture in Promoting Social Inclusion in the European Union: Is the Open Method of Co-ordination (OMC) Working for Ethnic Minorities?

Author:
Tove H. Malloy
Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
European Centre for Minority Issues
Abstract:
In the context of making the European economic area competitive while reaching certain social and economic goals, the 2000 European Council at Lisbon initiated an ambitious implementation scheme on its Social Agenda introducing the Open Method of Co-ordination (OMC) as an instrument to streamline and optimize Community and Member States’ policies. The OMC method is a ‘soft governance’ approach aimed at generating real political commitment and different types of norms, procedural as well as substantive, through a highly institutionalized process of information sharing, deliberation, monitoring and learning.1 The method was first introduced in the area of employment and has been followed by an OMC on Social Inclusion (OMC/Incl.). Other focus areas are social protection/pensions and health care. The OMC on employment has recently undergone a first evaluation, and the Commission is preparing to subject the OMC/Incl. to its first evaluation.2 No OMC focuses specifically on minority inclusion but the OMC/Incl. has developed into one of the key areas of European Union (EU) policy implementation that addresses the socioeconomic exclusion of members of ethnic and Roma/Sinti minorities.
Topic:
Economics, Regional Cooperation, Minorities, European Union, and Social Services
Political Geography:
Europe

5173. The Hidden Cost of Homeland Defense

Author:
Benjamin Friedman
Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
MIT Center for International Studies
Abstract:
Conventional wisdom says that none of us are safe from terrorism. The truth is that almost all of us are. The conventional belief is that in response to terrorism, the federal government has spent massive sums on homeland security. The fact is that the increased federal spending on homeland security since September 11 pales in comparison to increases in the U.S. defense budget. But homeland security has costs beyond spending, costs that conventional thinking rarely considers. U.S. homeland security policy conjures up a flawless enemy that could strike at any moment, in any place. That policy institutionalizes the fears terrorists created and harms liberal values.
Topic:
Security, Economics, and Terrorism
Political Geography:
United States and North America

5174. The United States as an Asian Power: Realism or Conceit?

Author:
M. Taylor Fravel and Richard J. Samuels
Publication Date:
04-2005
Content Type:
Policy Brief
Institution:
MIT Center for International Studies
Abstract:
The long history of U.S. foreign policy is punctuated by axiomatic truths that have bordered on conceit—e.g., the virtues of isolation, America's manifest destiny, and our benign, democratizing presence in world affairs. Strategists have lurched from truth to truth across the centuries, often without sufficient reflection and learning. Today the United States is operating with an axiomatic idea about its place in and of Asia. U.S. foreign policymakers—and U.S. foreign policy wonks—intone the mantra: “The United States is an Asian power.”
Topic:
Foreign Policy, Economics, and Politics
Political Geography:
United States, America, and Asia

5175. The Norwegian Import Regime for Agriculture

Author:
Arne Melchior
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Norway maintains one of the highest levels of protection for agriculture in the OECD, but the tariff structure is not so transparent due to the extensive use of specific tariffs, i.e. tariffs expressed in NOK/kg or the like. In this paper, we use world market prices and Norwegian import prices to calculate ad valorem equivalents of specific tariffs. This shows that 28% of the tariff lines in agriculture are above 100%, and 10% are above 300%. The average of MFN applied tariffs is in the range 73-103%, depending on the calculation method. Protection is somewhat lower (54-74%) for goods exported by developing countries. While the Least Developed Countries have zero tariffs, other developing countries obtain 10-15% tariff reductions under the GSP system of tariff preferences. Tariff rate quotas provide some increase in market access. Protection of grains and feedstuff raises the forage costs in agriculture, and especially feedstuffs are important in the exports of developing countries.
Topic:
Agriculture, Economics, and International Trade and Finance
Political Geography:
Europe and Norway

5176. Trade and development - a selective review

Author:
Per Botlof Maurseth
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper reviews parts of the recent literature on trade and growth. The relationships between trade and growth have been extensively studied in recent research. Many studies indicate that trade stimulates income and growth. The literature is controversial and many studies are criticised for weaknesses in methodology. Despite the methodological controversies, most evidence gives support for the view that trade stimulates growth. It is argued that major deficiency in the literature is that it does not discriminate between the impact of market access in other countries and the impact of liberal domestic trade policies.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Europe

5177. GSP in the 'spaghetti bowl' of trade preferences

Author:
Arne Melchior
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper examines the relative position of GSP (tariff preferences for developing countries) compared to ordinary tariffs and free trade agreements in Norway, the EU and the USA. On average, ordinary GSP gives a tariff rebate of less than 50% in all countries. “Extended” GSP, given to the Least Developed Countries (LDCs) and others, implies zero tariffs in Norway and the EU, but only partial liberalisation in the USA. EU provides extended GSP for 119 countries, while the USA does so for 76 and Norway for 52. Considering the shares of trade rather than the number of countries, extended GSP covers 5% or less of total trade in all cases, and ordinary GSP is much more important. Compared to tariffs in free trade agreements, ordinary GSP is inferior in the USA and the EU, but not too far behind in Norway. This is due to recent cuts in MFN tariffs as well as improvements in the GSP system of Norway. For manufacturing, Norway has low tariffs and a generous GSP system. This is however not the case for agriculture.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
United States, Europe, and Norway

5178. The German ICT industry: Spatial Employment and Innovation Patterns

Author:
Björn Frank and Per Botolf Maurseth
Publication Date:
02-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper documents recent developments in German ICT industries. In particular we report results on spatial patterns in innovation and employment in these industries. The paper is motivated by previous studies that have found that ICT industries seem to cluster geographically and having spatially clustered growth rates. In this study, we discriminate between production of ICT devices and production of ICT services. In Germany, production of ICT devices is concentrated in clusters of innovating regions (in terms of patents). ICT service production, on the other hand, is concentrated in larger urban areas. Growth rates in ICT-related employment show different spatial patterns. The data show that negative spatial effects are present for several sectors, which might give support for the so-called backwash effect described by Gunnar Myrdal (1957). For other sectors, positive spatial spillover effects may be present. For overall economic development (in terms of gross regional product per habitant) we find weak positive growth effects ICT, but these growth effects stem more from innovation than from production or use of ICT.
Topic:
Economics, Human Welfare, and Industrial Policy
Political Geography:
Europe and Germany

5179. North-South Trade and Wages with Complete Specialisation

Author:
Arne Melchior
Publication Date:
01-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
From the Stolper-Samuelson Theorem, it is expected that North-South trade reduces the real wage of unskilled labour in the North. This paper questions the underlying assumption that trading countries are diversified, and examines theoretically the trade-wage link when the South is completely specialised. While it remains true that trade with the South negatively affects wages in the North, it is no longer the case that the poorer the trade partner is, the more harmful is trade for Northern wages. The negative wage impact is largest when the South has an intermediate capital-labour ratio, since it is then a more efficient producer. This also gives the largest aggregate welfare gains from trade in the North. The specialised South also gains from trade, and these gains are relatively larger, the more extreme is its factor composition. But even if the poorest countries gain from trade, capital accumulation may be more important for their welfare.
Topic:
Economics, Government, Human Welfare, and International Trade and Finance

5180. Preserving Competition: Keeping Predators at Bay

Publication Date:
12-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Predatory pricing is the practice of offering goods or services at exceptionally low prices, thereby forfeiting some profit in order to drive competitors out of the market, discipline them, and/or deter entry. It is among the most frequently discussed topics in competition law and economics.
Topic:
Economics, Government, Industrial Policy, and Markets

5181. Subsidies: a Way Towards Sustainable Fisheries?

Publication Date:
12-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Governments pay out some USD 6 billion a year to support the fisheries sector in OECD countries. This money, variously called subsidies, support or financial transfers, is used to help manage fish stocks, to modernise fishing fleets, and to help communities and regions that can no longer make a living out of fishing to develop other economic activity. The money is also intended to assist in resolving problems of over-fishing and over-capacity that affect many parts of the OECD fishing industry.
Topic:
Development, Economics, Environment, and Government

5182. Agricultural Policy Reform in China

Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
China is the world's sixth largest economy and its most populous country, home to 1.3 billion people or 21% of the Earth's total population. But it faces a major challenge in providing its people with food – China has only 10% of the world's arable land and only one quarter of the average world water resources per person.
Topic:
Agriculture, Civil Society, and Economics
Political Geography:
China and Asia

5183. Public Sector Modernisation: The Way Forward

Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Governments have made major changes to the way they manage the public sector in the past two decades, privatising commercial activities such as telephone services, cutting red tape and making government more transparent and responsive to citizens.
Topic:
Civil Society, Economics, Government, and Science and Technology

5184. Economic Survey of Chile, 2005

Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Chile continues to be a strong performer and the economy has recovered in earnest from the 1998-2003 slowdown. Macroeconomic management has been exemplary and policies have been framed in rules-based, credible settings. Public finances are particularly robust, making the economy resilient to shocks. Structural reform is on-going, unleashing opportunities for growth. But Chile's income gap remains sizeable relative to the OECD area. Lifting the economy's growth potential is therefore Chile's overarching policy challenge.
Topic:
Development, Economics, and Markets
Political Geography:
South America

5185. Agricultural Policy Reform in Brazil

Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Brazil is a major player in the global economy, one of the world's 10 largest economies, with a population of 180 million and vast natural resources. Brazil's agricultural land is exceeded only by China, Australia and the United States, and agriculture plays an important role in the country's economy. Primary agriculture accounts for 8% of GDP, while agricultural products account for about 30% of exports.
Topic:
International Relations, Agriculture, and Economics
Political Geography:
United States, China, Brazil, South America, and Australia

5186. Economic Survey of the United States, 2005

Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Despite higher energy prices, the expansion has continued at a solid pace, driven by private domestic demand. With the output gap closing, stimulus is appropriately being withdrawn. However, monetary tightening since mid-2004 has not yet translated into higher long-term interest rates, and the incipient decline in the federal budget deficit owes much to the recent buoyancy of revenues. Over the next 18 months, the economy is projected to grow at an annual rate of 3¼ per cent, roughly in line with estimated potential output. Although such a soft landing is the most likely outcome, there are some risks. With little economic slack left, inflation could continue to pick up, in particular if oil prices keep rising. Insufficient public spending restraint or renewed dollar weakness associated with concerns about the external deficit might also add to inflationary pressures. On the other hand, an end to the house price boom, let alone a sharp correction, could entail a retrenchment of household expenditure that has been underpinned by rising household wealth.
Topic:
Development, Economics, and Markets
Political Geography:
United States

5187. Economic Survey of United Kingdom, 2005

Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The stability and resilience of the economy has been impressive and labour and product markets are among the most flexible in the OECD, but structural economic performance judged against a range of indicators can be further improved.
Topic:
Development, Economics, and Markets
Political Geography:
United Kingdom and Europe

5188. The Costs and Benefits of Trade Facilitation

Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Steady increases in trade volumes and complexity in recent years have significantly changed the operating environment for the international trading community. They have also highlighted the negative impact of inefficient border procedures on governments, businesses and ultimately on the customer and the economy as a whole. Governments may face smuggling, fraud and national security problems, which drain the public coffers, while businesses pay the price of slow and unpredictable goods delivery, costly customs procedures, and even lost business opportunities. And all these costs ultimately make goods more expensive for the consumer.
Topic:
Economics, Government, and International Trade and Finance

5189. Solutions in Space

Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Space, and man's relationship to it, has captured the human imagination for centuries. During the 20th century, dreams of space exploration became reality, and now dozens of countries, in particular in the OECD area, devote major resources to space programmes. But is this money well spent? Can we use space to find solutions to Earth's problems not available on the ground, or are we just pursuing high-priced star-filled dreams? Space technology may have brought us benefits from satellite telecommunications and their associated benefits such as telemedicine, but could we be doing more to exploit the link between space exploration and Earth application?
Topic:
Development, Economics, Environment, and Science and Technology

5190. Competition Law and Policy in Brazil

Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The modern era of competition policy in Brazil began in 1994 with the enactment of a new law as part of the “Real Plan”, a set of policies developed to deal with a period of hyperinflation. The law established a Brazilian Competition Policy System (BCPS) consisting of three agencies: a re-configured Administrative Council for Economic Defence (CADE), which had originally been created in 1962, the Economic Law Office (SDE) in the Ministry of Justice, and the Secretariat for Economic Monitoring (SEAE) in the Ministry of Finance. CADE has adjudicative authority in BCPS cases, while SDE has the principal investigative role, and SEAE is primarily responsible for providing economic analysis.
Topic:
Development, Economics, and Government
Political Geography:
Brazil and South America

5191. Opening Up Trade in Services: Crucial for Economic Growth

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Services, from health to banking, have become the single largest sector in many economies worldwide. They not only provide the bulk of employment and income in many countries, but they also serve as vital input, such as telecommunications, for producing other goods and services. So an efficient services sector is crucial for the overall economy. And because of this, agreement on opening up services markets is crucial to the success of the current global trade talks.
Topic:
Economics, Health, International Trade and Finance, and Markets

5192. Competition Law and Policy in Turkey

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The evolution of Turkey's economy from a government-controlled regime to market-based competition led to the enactment in 1994 of the Act on the Protection of Competition (“Competition Act”) and the creation of the Turkish Competition Authority (“TCA”). Final impetus for the legislation was Turkey's negotiation of a customs union agreement with the European Union, which obliged Turkey to enact the EU's standard competition provisions as its own law and to establish an agency to enforce them.
Topic:
Economics, Government, and Markets
Political Geography:
Turkey and Eastern Europe

5193. Economic Survey of Slovak Republic, 2005

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Sound macroeconomic policy, assertive product, capital and labour market liberalisation, and fundamental tax and welfare reform have transformed the Slovak business environment in recent years. Foreign direct investment (FDI) has responded particularly well, becoming the prime engine of capacity and productivity growth, and helping to put the economy on a strong and well-balanced growth path.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Europe

5194. China's Governance in Transition

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
China's economic reforms over the past two decades have brought remarkable growth, the development of a vibrant private sector and significant reform of the state-owned sector. Private businesses now represent some 57% of GDP, and productivity in the state-owned sector has improved significantly. However, a number of problems threaten to undermine prospects for sustainable growth. These notably include social tensions, partly due to increasing inequality within society and massive migration to the cities, but also linked to corruption, insufficient public services and rising unemployment as millions of workers have been laid off in the reform of the state-owned sector, while agriculture still displays huge structural under-employment.
Topic:
Development, Economics, and Government
Political Geography:
China and Asia

5195. Economic Survey of China, 2005

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
China's economic growth has averaged 9½% per cent over the past two decades. The rapid pace of economic change is likely to be sustained for some time. These gains have contributed not only to higher personal incomes, but also to a significant reduction in poverty. At the same time, the economy has become substantially integrated with the world economy. A large part of these gains have come through profound shifts in government policies. Reforms have allowed market prices and private investors to play a significant role in production and trade.
Topic:
Development, Economics, and Emerging Markets
Political Geography:
China and Asia

5196. Economic Survey of Mexico, 2005

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Fiscal management has been successful in recent years, and the backdrop of an inflation-targeting monetary policy has helped anchor expectations that macroeconomic stability is here to stay. In addition, the financial sector has gone through an important transformation and a broader and deeper domestic capital market has developed. This will enable the Mexican authorities to turn more of their attention to long-term priorities, which are where the important policy challenges increasingly lie. Faster growth of living standards will require reforms to the tax system so as to finance the appropriate level of current spending and long-term investment needs. Fiscal relations between the different levels of government need to be re-thought so as to ensure a more effective and more equitable use of revenues. Part of higher oil revenues should be earmarked for financing some important multi-year but finite programmes. Major reforms to education, the labour market, the electricity industry, other network sectors and ways of doing business are also desirable, and will help spur investment in Mexico's future by both domestic and foreign firms. It is important that reforms be assessed and judged by legislators on their intrinsic merits rather than through the prism of short-term political considerations.
Topic:
Development, Economics, and Emerging Markets
Political Geography:
Central America and Mexico

5197. OECD Territorial Review of Japan

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
In recent years Japan has been challenged by important socioeconomic changes. Low economic growth, population ageing and depopulation, and new trade relationships with the East Asia region have made it increasingly necessary to transform the system established during the period of economic and demographic expansion.
Topic:
Development, Economics, and Emerging Markets
Political Geography:
Japan, Israel, and East Asia

5198. Economic Survey of Norway, 2005

Publication Date:
08-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The Norwegian economy continues to recover strongly from its 2002-2003 slowdown. Low interest rates, competition induced productivity gains, high investments by the booming oil sector, terms-of-trade gains and supportive macroeconomic policies are the main drivers. Inflation is low and labour inputs in terms of hours worked are rising briskly. Strong growth is likely for the remainder of this year and possibly during 2006.
Topic:
Development, Economics, and Emerging Markets
Political Geography:
Europe and Norway

5199. Economic Survey of Hungary, 2005

Publication Date:
07-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The composition of growth of the Hungarian economy has become healthier and real convergence looks set to be on a sustainable path. While most reforms to establish a flourishing market economy have been carried out and the current government is launching a new reform initiative of "100 Steps", more needs to be done in two broad areas in order to maintain high growth: Achieving a smooth entry into the euro area: Frequently missed policy targets, tensions between the government and the Central Bank and stubbornly high twin deficits have established an unhealthy climate of financial volatility, which contrasts with and may even risk threatening the rather smooth process of real convergence. Increasing trend growth by both raising the employment potential and trend productivity growth: A large share of Hungarians with some work capacity is not working in part because of the way social benefits are designed. Low employment is aggravated by impediments to regional mobility of the labour force. Hungary needs to move further up the value added chain. This process for the time being rests very much on investments by foreign companies while innovative activities and commercial applications of own research remain limited.
Topic:
Development, Economics, and Government
Political Geography:
Eastern Europe and Hungary

5200. Economic Survey of euro area, 2005

Publication Date:
07-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Economic policy in the euro area pursues the objectives of achieving solid economic growth, a better performance of labour markets and restoring sound public finances in the context of a single monetary policy which aims at maintaining price stability. Although inflation has remained just above the ECB's definition of price stability, longer-term inflation expectations remain firmly anchored to price stability. However, progress towards the other goals has been disappointing thus far partly owing to adverse shocks such as higher oil prices or exchange rate shifts. On unchanged policies and with population ageing the euro area's potential output growth is set to decelerate over the next decades and eventually stabilises at around 1% per annum by about 2020, as illustrated in the following scenario:
Topic:
Development, Economics, and Government
Political Geography:
Europe