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231. A Tale of Two Countries: Poverty among Immigrants in Denmark and Sweden since 1984

Author:
Kræn Blume, Björn Gustafsson, Peder Pedersen, and Mette Verner
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The paper focuses on the problems of low income among immigrants, analysed by using comparable panel datasets for two Scandinavian welfare states. After a brief survey of a few earlier studies on immigrant poverty, we present Denmark and Sweden as interesting cases for comparative research. Cyclical profiles have been very different since the 1980s and both countries have experienced considerable differences with regard to the number and composition of immigrants from the less developed countries. Poverty rates, analysed relative to different background factors, are fairly high, in particular when considering the welfare state background of Denmark and Sweden. A number of differences are found in spite of the institutional similarities between the two countries.
Topic:
Economics, Migration, Political Economy, and Poverty
Political Geography:
Denmark and Sweden

232. Economic Integration and Migration: The Mexico-US Case

Author:
Philip Martin
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper explains the evolution and effects of Mexico-US migration, and highlights the NAFTA approach to economic integration, viz., free up trade and investment while stepping up efforts to prevent unauthorized migration. The European Union approach is different: provide aid first, and later free up trade and migration in the expectation that moves toward convergence will ensure minimal migration because trade has become a substitute for migration. The paper concludes that NAFTA will reduce unwanted Mexico-US migration in the medium to long term, and that different initial conditions in Europe mean that there will be relatively little east-west migration when nationals of new entrant EU members achieve freedom of movement.
Topic:
Economics and Migration
Political Geography:
United States, Europe, and Mexico

233. Aid, Debt Burden and Government Fiscal Behaviour: A New Model Applied to Côte d'Ivoire

Author:
Mark McGillivray and Bazoumana Ouattara
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines the impact of foreign aid on public sector fiscal behaviour in Côte d'Ivoire. A special interest is the relationship between aid, debt servicing and debt, given that Côte d'Ivoire is a highly indebted country. The theoretical model employed differs from those of previous studies by highlighting the interaction between debt servicing and the other fiscal variables. This model is estimated using 1975–99 time series data. Key findings are that the bulk of aid is allocated to debt servicing and that aid is associated with increases in the level of public debt.
Topic:
Debt, Development, Economics, and International Trade and Finance
Political Geography:
Africa

234. OECD Domestic Support and Developing Countries

Author:
Betina Dimaranan, Thomas Hertel, and Roman Keeney
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
An AGE model with detailed farm supply and substitution relationships is used to analyze impacts of OECD domestic support reform on developing economy welfare. Stylized simulations indicate reforms best suited for reducing trade distortions with least impact on farm incomes. Comprehensive reforms result in welfare losses for LDCs and large declines in OECD farm incomes. Shifting from market price support to land-based payments designed to maintain farm incomes results in increased welfare for most developing countries. LDCs should focus on improved market access to OECD economies while permitting said economies to continue domestic support payments not linked to output/variable inputs.
Topic:
Agriculture, Development, Economics, and International Trade and Finance

235. The Causal Relationship between Information and Communication Technology and Foreign Direct Investment

Author:
Almas Heshmati, Rohieh Gholami, and Sang-Yong Tom Lee
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper investigates the simultaneous causal relationship between investments in information and communication technology (ICT) and foreign direct investment (FDI), with reference to its implications on economic growth. For the empirical analysis we use data from 23 major countries with heterogeneous economics development for the period 1976–99. The results of unit roots and Johansen co-integration tests indicate variations in degrees of integration among the sample countries. Our causality test results suggest that there is a causal relationship from ICT to FDI interpreted as the higher level of ICT investment leads to increased inflow of FDI. ICT contributes to economic growth indirectly by attracting more foreign direct investment. In developed countries there already exist a build up ICT capacity which causes inflow of FDI, while in developing countries ICT capacity must be build up to attract FDI. The inflow of FDI causes further increases in ICT investment and capacity.
Topic:
Development, Economics, Emerging Markets, and International Political Economy

236. Efficiency Gains from the Elimination of Global Restrictions on Labour Mobility: An Analysis using a Multiregional CGE Model

Author:
Ana María Iregui
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper computes the worldwide efficiency gains from the elimination of global restrictions on labour mobility using a multiregional CGE model. A distinctive feature of our analysis is the introduction of a segmented labour market, as two types of labour are considered: skilled and unskilled. According to our results, the elimination of global restrictions on the mobility of skilled and unskilled labour generates worldwide efficiency gains that could be of considerable magnitude. When only skilled labour migrates, the worldwide efficiency gains are smaller, as this type of labour represents a small fraction of the labour force in developing regions.
Topic:
Economics, Emerging Markets, International Political Economy, Migration, and Regional Cooperation

237. Income Distribution Changes and their Impact in the Post-World War II Period

Author:
Tony Addison, Giovanni Andrea Cornia, and Sampsa Kiiski
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper analyses the trends in within-country inequality during the post- World War II period, with particular attention to the last 20 years, on the basis of a review of the relevant literature and of an econometric analysis of inequality trends in 73 countries accounting for 80 per cent of the world's population and 91 per cent of world GDP-PPP. The paper suggests that the last two decades have been characterized by a surge in within-country inequality in about two-thirds of the developing, developed and transitional nations analysed. It also suggests that in those countries where the upsurge in inequality was sizeable or where inequality rose from already high levels, growth and poverty alleviation slowed down perceptibly. While this trend towards higher inequality differs substantially across countries in its extent, timing and specific causes, it marks a clear departure from that observed during the first 30 years of the post-World War II period during which, with the exception of Latin America and parts of Sub-Saharan Africa, a widespread move towards greater egalitarianism was noted in the majority of the socialist, developing and industrialized economies.
Topic:
Development, Economics, Emerging Markets, International Political Economy, and Poverty
Political Geography:
Latin America

238. Analysis of Deviations and Delays in Aid Disbursements

Author:
Matthew Odedokun
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The study seeks to identify donor-specific factors that cause donors to delay aid disbursement, and to apply a double standard in dealing with the non-compliance of a recipient with regard to aid conditionalities, a practice that promotes uncertainty in the receipt of aid. Annual panel data over 1970-2000 for the 22 members of OECD's DAC donor group are employed in the empirical study. Our findings suggest that the proportion of pledged aid being disbursed, which shows an increasing trend, is positively affected by the extent to which aid is procurement-tied and by the size of the donor government's expenditure in relation to GDP. On the other hand, the proportion of aid commitments being disbursed, which appears lower for the G7 countries, is negatively influenced by factors such as abundant donor generosity, the predominance of grants in total aid, the specific targeting of aid to lower-income recipients, high growth in donor economy, as well as high level of checks and balances, and polarization between the executive and legislative branches of government in the donor country.
Topic:
Development, Economics, Emerging Markets, International Trade and Finance, and Non-Governmental Organization

239. Trade Liberalization, Agriculture, and Poverty in Low-income Countries

Author:
Kym Anderson
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper offers an economic assessment of the opportunities and challenges provided by the WTO's Doha Development Agenda, particularly through agricultural trade liberalization, for low-income countries seeking to trade their way out of poverty. After discussing links between poverty, economic growth and trade, it reports modelling results showing that farm product markets remain the most costly of all goods market distortions in world trade. It focuses on what such reform might mean for countries of South Asia and sub-Saharan Africa in particular, both without and with their involvement in the MTN reform process. What becomes clear is that if those countries want to maximize their benefits from the Doha round, they need also to free up their own domestic product and factor markets so their farmers are better able to take advantage of new market-opening opportunities abroad. Other concerns of low-income countries about farm trade reform also are addressed: whether there would be losses associated with tariff preference erosion, whether food-importing countries would suffer from higher food prices in international markets, whether China's WTO accession will provide an example of trade reform aggravating poverty via cuts to prices received by Chinese farmers, and the impact on food security and poverty alleviation. The paper concludes with lessons of relevance for low-income countries for their own domestic and trade policies.
Topic:
Agriculture, Economics, Emerging Markets, International Trade and Finance, and Poverty
Political Geography:
Africa and China

240. Impact of Asylum on Receiving Countries

Author:
Susan Martin, Andrew Schoenholtz, and David Fisher
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Whereas asylum seekers and the systems for adjudicating their claims to refugee status in developed countries have garnished considerable attention and, often, have been at the centre of political controversy, there has been relatively little research on their actual impact on receiving countries. This article discusses the factors that determine the impact of asylum, as distinct from other forms of migration, concluding that the number of asylum seekers, government policies and socioeconomic characteristics all determine the impact of asylum. Hence, the impacts of asylum can differ significantly from country to country. Even within the same country, one could expect to see varied impacts depending on the age, education and skill level of individual asylum seekers. The paper then examines the fiscal, economic, and social impacts of asylum, as well as its impact on foreign policy and national security. It concludes with an examination of the impact of developed countries' asylum policies on the protection of refugees in developing countries. When refugee protection has been weakened in economically strong states and asylum restrictions are perceived as burden shifting, international protection in the developing world where most refugees try to survive has been undercut.
Topic:
Economics, International Political Economy, Migration, and National Security