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Begin New Search Author Arne Melchior Publication Year within 25 Years

1. World Trade 1970-2010: Globalisation, Regionalisation and Reallocation

Author:
Arne Melchior
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Using data for more than 200 countries, split into nine regions, we study world trade in goods during 1970-2010. The largest changes are the declining relative importance of Western Europe, and the increasing role for Asia. The intra-regional trade of Asia grew particularly fast; from 4 to 16% of world trade. Due to growing intra-regional trade in Europe and Asia, world trade became more intra-regional until 1995. Manufacturing trade is more regionalised, whereas commodity trade is more globalised. After 1995, extra-regional trade flows grew faster so there was “globalisation” with trade travelling longer distances and a rising share for commodities. From 2000, smaller trade regions such as Africa and Latin America have increased their shares of world trade; reversing the trend over the 30 preceding years.
Topic:
Globalization, International Political Economy, International Trade and Finance, Markets, Regional Cooperation, and International Affairs
Political Geography:
Europe, Asia, and Western Europe

2. A case study of Norway's beef trade from developing countries

Author:
Arne Melchior, Karl M. Rich, and 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, and Markets
Political Geography:
Norway

3. Globalisation, Domestic Market Integration, and the Regional Disparities of India

Author:
Arne Melchior
Publication Date:
10-2010
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Using a world trade model with India subdivided into states, the paper examines how regional disparities are affected by domestic inter-state trade as well as international trade. According to the analysis, international liberalisation promotes decentralisation and convergence, not divergence, so trade is not to blame for India's growing regional disparities. High economic growth within India makes domestic markets more important and the geographical effect of this is opposite to that of globalisation. This may counterbalance the geographical impact of international liberalisation and explain why recent changes in geographical clustering in India are limited. The empirical results are consistent with this. They also indicate that Indian services expansion is largely driven by increases in domestic demand due to growth, and that domestic market integration is essential for India's manufacturing sector. We argue that for larger nations, the domestic inter-regional trade is important and India should have a trade policy that addresses domestic as well as international market integration.
Topic:
Development, Globalization, and International Trade and Finance
Political Geography:
South Asia, India, and Asia

4. Regional Inequality and Convergence in Europe, 1995 – 2005

Author:
Arne Melchior
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper presents new results on within-country regional inequality in per capita income for 36 countries during 1995-2005; focusing on Europe but with some non-European countries included for comparison. In 23 of the 36 countries there was a significant increase in regional inequality during the period, and in only three cases there was a reduction. Regional inequality increased in all countries of Central and Eastern Europe, while for most Western European countries there was little change. For the EU-27 as a whole, there was a modest increase in within-country regional inequality, but convergence across countries. The latter effect was quantitatively more important, so on the whole there was income convergence in the EU-27, especially after 2000. Regional inequality is particularly important for some large middle-income countries such as China, Russia and Mexico. In such countries there may however be considerable price differences across regions, and the use of common price deflators for the whole country may lead to a biased assessment of regional inequality.
Topic:
Economics, Political Economy, Social Stratification, and Sociology
Political Geography:
Russia, China, Europe, and Mexico

5. 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

6. East-West Integration and the Economic Geography of Europe

Author:
Arne Melchior
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Implementation of the European internal market and East-West integration has been accompanied by a dramatic change in the spatial distribution of economic activity, with higher growth west and east of a longitude degree through Germany and Italy. In the east, income growth has been accompanied by increasing regional disparities within countries. We examine theoretically and empirically whether European integration as such can explain these developments. Using a numerical simulation model with 9 countries and 90 regions, theoretical predictions are derived about how various patterns of integration may affect the income distribution. Comparing with reality, we find that a reduction in distance-related trade costs combined with east-west integration is best able to explain the actual changes in Europe's economic geography. This suggests that the implementation of the European internal market or the Euro has “made Europe smaller”. In Central Europe, the dominance of capital regions tends to eliminate east-west growth differences inside countries. There is no convincing support for the hypothesis that European integration had adverse effects on non-members.
Topic:
Economics, Markets, and Political Economy
Political Geography:
Europe

7. Aid for Trade and the Post-Washington Confusion

Author:
Arne Melchior
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper examines the rationale for”aid for trade” (AfT), starting with a review of developments in the field and institutions involved. A statistical analysis attempts to trace for which countries there has not been a positive relationship between trade and development. The results indicate that for 40 countries, representing 2/3 of the world population, there has been a positive relationship between trade openness and growth. The relationship has however been negative for 15 countries representing 3% of the world population, and not so clear for the rest (around 100 countries, covering 30% of the world population). For the negative cases, the” problems with trade” are the same as the” problems with growth”, so AfT should be granted in conjunction with help for economic development in general. AfT related to supply-side limitations should be given not only to the LDCs (Least Developed Countries); other classifications in fact serve better in order to trace those with the greatest need for AfT.
Topic:
Development, Economics, Humanitarian Aid, and International Trade and Finance
Political Geography:
Washington

8. 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, International Trade and Finance, and Third World
Political Geography:
United States, Europe, and Norway

9. 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

10. Trade policy differentiation between developing countries under GSP schemes

Author:
Arne Melchior
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper reviews options with respect to differentiation between beneficiaries of GSP (tariff preferences for developing countries). It has for a long time been accepted that the Least Developed Countries (LDCs) may be treated better than other developing countries, but a recent WTO dispute indicates that discrimination beyond this is possible if it is based on objective criteria related to development. The paper discusses GSP differentiation in the light of this, and argues that the most generous preferences are given to a wider group of countries than the LDCs. A main reason is that LDCs constitute a small part of the developing world, and 4/5 of the world's poor live outside the LDCs. Preferences for the poorest should not become an obstacle for improved market access for the “second poorest”. The paper discusses possible reforms in Norway's GSP systems in this light. According to objective criteria, the special position of Botswana and Namibia in Norway's current GSP system could be questioned, since e.g. Botswana is now an upper middle income country.
Topic:
Development, International Cooperation, International Trade and Finance, and Third World
Political Geography:
Botswana