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Begin New Search Topic International Trade and Finance Publication Year within 10 Years

351. Testing the Modigliani-Miller Theorem of Capital Structure Irrelevance for Banks

Author:
William R. Cline
Publication Date:
04-2015
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Some advocates of far higher capital requirements for banks invoke the Modigliani-Miller theorem as grounds for judging that associated costs would be minimal. The M&M theorem holds that the average cost of capital to the firm does not depend on its capital structure (ratio of equity finance to debt finance), because any reduction in capital cost from switching to higher leverage using lower-cost debt is exactly offset by an induced increase in the unit cost of higher-cost equity capital as a consequence of the associated rise in risk. Statistical tests for large US banks in 2002–13 find that less than half of this M&M offset attains in practice. Higher capital requirements would thus impose increases in lending costs, with associated output costs from lower capital formation. These costs to the economy would need to be compared with benefits from lower risk of banking crises to arrive at optimal levels of capital requirements.
Topic:
Economics, International Trade and Finance, Markets, Politics, and Budget
Political Geography:
Global Focus

352. Financing Productivity- and Innovation-Led Growth in Developing Asia: International Lessons and Policy Issues

Author:
Ajai Chopra
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Growth in developing Asia will need to rely more on improvements in productivity growth and less on capital deepening. Although there is no single reform path to spur productivity growth, financial system deepening is central to a more efficient allocation of capital across sectors and can facilitate innovation and technology transfer. But malfunctioning financial systems can also result in the misallocation of resources, making it important that policymakers focus less on increasing the size of the financial sector and more on improving its intermediation function. Chopra discusses the steps to mobilize Asia's ample private savings for long-term financing, especially to tackle the region's infrastructure deficit and improve access to financing for small and medium enterprises, which can help raise productivity. As many countries in Asia shift from a development model based on technology absorption to one that promotes innovation, specialized finance and investors can play a critical role in allowing innovative firms to conduct research, adopt technologies necessary for inventions, and ultimately commercialize innovations.
Topic:
Economics, International Trade and Finance, Markets, and Science and Technology
Political Geography:
Asia

353. China's New Silk Road Initiative

Author:
Zhao Minghao
Publication Date:
10-2015
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The European Council has mandated the High Representative of the Union for Foreign Affairs and Security Policy, Federica Mogherini, to draft a Global Strategy by June 2016. Given Europe’s status as a global power, such a strategy must respond to Europe’s own challenges as well as to the new grand strategies of other major players in world politics, like China. To better understand the central tenets of the Chinese leadership’s strategic thinking, two keywords are most important – the “Four Comprehensives” and the “One Belt and One Road” (OBOR). As an initiative mainly focusing on promoting Eurasian integration and reshaping Chinese geo-economic advantages, the OBOR is highly consequential to China’s interactions with Europe and the rest of the world at large in the decades to come. How to take advantage of the OBOR, create new EU-China synergies, and tackle relevant challenges are questions the EU leaders should be attentive to.
Topic:
Economics, International Cooperation, International Trade and Finance, Markets, and Bilateral Relations
Political Geography:
Europe and Asia
Publication Identifier:
978-88-98650-61-3
Publication Identifier Type:
DOI

354. Nordstream 2: Too Many Obstacles, Legal, Economic, and Political to be Delivered?

Author:
Alan Riley
Publication Date:
11-2015
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Germany may be seeking to expedite the construction of Russia's Nordstream 2 pipeline by shielding the controversial project from tough the laws of the European Union (EU), according to a transcript of talks between Russian President Vladimir Putin and German Energy Minster Sigmar Gabriel, Atlantic Council Senior Fellow Alan Riley writes in "Nordstream 2: Too Many Obstacles, Legal, Economic, and Political to Be Delivered?".
Topic:
Energy Policy, International Law, International Trade and Finance, Natural Resources, and European Union
Political Geography:
Russia and Europe

355. Ukraine and the IMF's Evolving Debt Crisis Narrative

Author:
Susan Schadler
Publication Date:
11-2015
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
This policy brief examines a number of poses key challenges in the evolution of a coherent role for the IMF in future crises.
Topic:
Economics, International Trade and Finance, and International Monetary Fund
Political Geography:
Ukraine

356. Growth, Innovation and Trade in Environmental Goods

Author:
Céline Bak
Publication Date:
10-2015
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
Reporting on global trade in environmental goods would provide a comprehensive lens into diversification that will be needed for the transition to low-carbon economies, help countries benchmark the shorter- and longer-term impact of policies such as regulation and fiscal stimulus targeted at green growth, as well as innovation, and strengthen the G20 leaders’ commitment to inclusive and sustainable growth by providing visibility into the pace of investments to address climate change.
Topic:
Climate Change, Economics, International Trade and Finance, and G20
Political Geography:
Global Focus

357. Global Sustainability, Climate Change and Finance Policy: A South African Perspective

Author:
Penelope Hawkins and Olaf Weber
Publication Date:
09-2015
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
One of the most important and topical discussions within the global multilateral arena is the challenge of meeting the world’s climate finance needs in order to reduce carbon emissions to sustainable levels and support adaptation strategies. The mobilization of finance is key in supporting the transition away from traditional high-carbon or business-as-usual economic pathways toward low-carbon, climate-resilient economic systems. A conference, Global Sustainability, Climate Change and Finance Policy, organized by the Centre for International Governance Innovation and the South African Institute for International Affairs and held in Johannesburg from July 1 to July 3, considered aspects of the debate.
Topic:
Climate Change, Economics, Environment, and International Trade and Finance
Political Geography:
Global Focus

358. Where Does the Biggest Gorilla in the Room Sit? Milk, the United States and International Trade Negotiations

Author:
Bruce Muirhead
Publication Date:
12-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
As Robert Reich, a former labor secretary under Bill Clinton, once asked, with reference to the United States, “Where does the biggest gorilla sit? Anywhere it likes.” Dairy has long been a protected sector in the United States, which has a history of constructing its own reality with respect to freeing up international trade in agricultural products, milk included, and of ignoring or renegotiating commitments when they did not suit the government of the day. This background paper explores the historical evolution of US trade and agricultural policy as seen through its position on the dairy file in international trade regulations.
Topic:
Agriculture, International Trade and Finance, Food, and Food Security
Political Geography:
United States of America

359. When CO2 Goes to Geneva: Taxing Carbon across Borders — Without Violating WTO Obligations

Author:
Maria Paniezi
Publication Date:
11-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Carbon taxes become relevant for international trade when they are coupled with border tax adjustment (BTA) legislation for imported products. BTAs are intended to level the playing field between domestic and foreign products, but such tax schemes, if not designed properly, can be found to violate a country’s international commitments before the World Trade Organization (WTO). This paper argues that environmentally conscious governments can impose a WTO-compatible BTA to offset domestic CO2 legislation, and that federal governments need to engage in coordinated efforts to harmonize treatment of high CO2 emitters domestically, since domestic industries will not bear the burden of environmental regulation alone.
Topic:
Climate Change, Environment, International Trade and Finance, and World Trade Organization
Political Geography:
Global Focus

360. G20 Monitor: G20 outreach to society in 2015

Author:
Tristram Sainsbury
Publication Date:
10-2015
Content Type:
Working Paper
Institution:
Lowy Institute for International Policy
Abstract:
The G20 engagement groups represent a cross-section of society at the G20. They have an important role in publicly holding the G20 to account, assessing the forum’s performance, and contributing to the G20 agenda. The groups have differing agendas and vastly different priorities ahead of the Antalya Leaders’ Summit in November. However, there are some areas of overlap, such as calls from several groups for G20 leaders to respond to the Syrian refugee crisis and be more active in addressing gender inequality. Open and effective outreach to broader society should be an important priority of the 2016 Chinese G20 Presidency. China should look to improve the efficiency of the engagement processes in 2016, so that engagement groups are more focused on recommending fewer, but more pragmatic and high-impact policy solutions.
Topic:
Foreign Policy, Diplomacy, International Cooperation, International Organization, and International Trade and Finance
Political Geography:
China