Search

Begin New Search Topic Strategic Competition

351. Beyond Competitive Devaluations: The Monetary Dimensions of Comparative Advantage

Author:
Paul R. Bergin
Publication Date:
05-2015
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Motivated by the long-standing debate on the pros and cons of competitive devaluation, we propose a new perspective on how monetary and exchange rate policies can contribute to a country’s international competitiveness. We refocus the analysis on the implications of monetary stabilization for a country’s comparative advantage. Motivated by the long-standing debate on the pros and cons of competitive devaluation, we propose a new perspective on how monetary and exchange rate policies can contribute to a country’s international competitiveness. We refocus the analysis on the implications of monetary stabilization for a country’s comparative advantage. We develop a two-country New-Keynesian model allowing for two tradable sectors in each country: while one sector is perfectly competitive, firms in the other sector produce differentiated goods under monopolistic competition subject to sunk entry costs and nominal rigidities, hence their performance is more sensitive to macroeconomic uncertainty. We show that, by stabilizing markups, monetary policy can foster the competitiveness of these firms, encouraging investment and entry in the differentiated goods sector, and ultimately affecting the composition of domestic output and exports. Panel regressions based on worldwide exports to the U.S. by sector lend empirical support to the theory. Constraining monetary policy with an exchange rate peg lowers a country’s share of differentiated goods in exports between 4 and 12 percent.
Topic:
Monetary Policy, Monopoly, Strategic Competition, and Financial Stability
Political Geography:
North America and United States of America

352. New Energy Strategy of Ukraine Until 2020: Security, Energy Efficiency, Competition

Author:
Valeriya Klymenko and Hanna Pashkova
Publication Date:
01-2015
Content Type:
Journal Article
Journal:
Security and Defence Quarterly
Institution:
Razumkov Centre
Abstract:
The proposed “New Energy Strategy of Ukraine until 2020: Security, Energy Efficiency, Competition” (hereinafter referred to as NES 2020) is a comprehensive document for reforming the energy complex of Ukraine for the period until 2020. At the same time, NES 2020 defines, above all, the goals and algorithms for energy sector development, and thus will also remain relevant for creating further long-term strategies and sectoral programmes. Target figures mentioned in the document only demonstrate the general trajectory of energy resources demand and offer development. These figures are to have a more expanded and detailed presentation in the developed action plan of the CMU for implementation of NES 2020. Usually, a strategy, being a document that is the result of target-based programme planning and forecasting in a certain sphere of activity, covers a longer period of time – 10-20 years. However, serious challenges currently faced by Ukraine as a state, given the fact of external aggression and the burden of unresolved issues accumulated during the period of independence with reforming of the national energy complex, require a document with such status for a shorter period of time. The NES 2020 stipulates that by the end of its implementation term the restructuring of the energy complex of Ukraine will be complete, including its transition to modern market models of operation, and that the main safety and energy efficiency targets will be achieved. After 2020, Ukrainian energy sector will move on to a new level of its development – complete integration with the EU energy sector and innovative rebuilding. Thus, implementation of tasks in the energy sector after 2020, will require rather different approaches than those defined by NES 2020, which means – development of a new strategic document. During the development of NES 2020, proposals were considered regarding the content of the suggested document from such respected international organisations, as the International Energy Agency, Energy Community Secretariat, United Nations Economic Commission for Europe, World Bank, Delegation of the European Union to Ukraine, European Bank for Reconstruction and Development, etc. At the final stage of public consultations regarding NES 2020 draft, an expert discussion was organised, which involved representatives of leading scientific research institutions, companies working in the field, international organisations and NGOs, domestic and foreign experts, media, and based on results of which, the final draft of NES 2020 was created. This document was developed by the Razumkov Centre and other leading nongovernmental, public organisations and scientific research institutions of Ukraine, with support of the Verkhovna Rada of Ukraine Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety. Therefore, the draft of NES 2020 can be rightfully viewed as a result of joint effort of Ukraine’s expert community and reputable international institutions.
Topic:
Security, Economics, Politics, Strategic Competition, and Energy
Political Geography:
Europe and Ukraine

353. The Frenemy Next Door: Turkey and Israel in a Changing Middle East

Author:
Oded Eran and Gallia Lindenstrauss
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Global Political Trends Center (GPoT)
Abstract:
Turkish-Israeli relations suffered a big blow because of the Mavi Marmara affair. As Turkey and Israel are working now on mending their relations, the question remains whether they will be able to avoid fierce competition in a relentlessly changing Middle East following the ‘Arab Spring’. As there are also mutual concerns and incentives to cooperate, the term ‘Frenmity’ may be the best way to describe the future relations between the two. In such a complex relationship, the United States may be of help in increasing the elements of amity and cooperation.
Topic:
International Relations, Bilateral Relations, Arab Spring, and Strategic Competition
Political Geography:
Turkey, Middle East, Israel, and Palestine

354. Soft Power, Regionalism and Common Neighborhoods: Russia's Potential in a Competitive Environment

Author:
Andrey Makarychev
Publication Date:
03-2013
Content Type:
Working Paper
Institution:
BILGESAM (Wise Men Center for Strategic Studies)
Abstract:
This paper argues that soft power becomes an indispensable component of Russia’s policies toward its southern neighbors. The author addresses the conceptual and practical dimensions of soft power instrumentalization by the Russian diplomacy. He claims that soft power can be applied not only within bilateral relations between Russia and its individual partners, but also as a tool of more regionally-oriented policies. In this context such regional frameworks with different degrees of institutionalization as the Black Sea and the Caspian Sea regions, Central Asia and the Caucasus are discussed. The paper concludes by stating that Russia’s soft power projection inevitably develops in competition with soft power projects launched by other major actors in Eurasia, including Turkey and the European Union.
Topic:
Environment, Regional Cooperation, Soft Power, Regionalism, and Strategic Competition
Political Geography:
Russia, Central Asia, Eurasia, Turkey, and Crimea

355. International Relative Price Levels: A Look Under the Hood

Author:
Jaime Marquez, Charles Thomas, and Corinne Land
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper examines the structure of international relative price levels using purchasing power parities (PPP) at the product-level from the 2005 World Bank’s International Comparison Program (ICP). Our examination is motivated by questions arising from two applications using economy-wide PPPs: the measurement of real effective exchange rates (REERs) and the correlation between prices and development. Specifically, how would our view on competitiveness be affected if one were to use PPP measures that exclude non-tradable categories? Is it the case that an increase in per-capita income raises the prices of non-tradable categories? These questions are not new. What is new here is the use of relative price levels (as opposed to indexes) at the product level for 144 countries that differ greatly in their level of development.
Topic:
Development, International Trade and Finance, Exchange Rate Policy, Strategic Competition, and Price
Political Geography:
Global Focus

356. Will Europe Fall into a Japanese-Style Stagnation Trap?

Author:
Peter Harrold
Publication Date:
04-2012
Content Type:
Policy Brief
Institution:
Center for Social and Economic Research - CASE
Abstract:
Can Europe avoid falling in to a Japanese-style stagnation trap? In this type of trap, we see a repeated cycle of a financial crisis leading to a fiscal crisis, leading to a decline in consumer and investor confidence, and a resulting fall in demand. The decline in growth that inevitably follows simply causes the cycle to repeat itself. In theory, this should lead to improved competitiveness, but in Japan the forces of decline outweighed any boost in export demand. This E-brief is based on Peter Harrold’s presentation at the CASE 2011 International Conference on "Europe 2000: Exploring the Future of European Integration" held on November 18-19, 2011.
Topic:
Financial Crisis, Crisis Management, Economic Policy, Exports, Macroeconomics, and Strategic Competition
Political Geography:
Japan, Europe, and Asia

357. Competition and Trade Policy: The Case of the Botswana Poultry Industry

Author:
Masedi Motswapong and Roman Grynberg
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The poultry sector is the most successful example of import substitution in Botswana with the country having achieved national self sufficiency. The paper describes the value chain in the industry and shows how, given the small size of the market, a high degree of market concentration exists. There is an estimate of the loss of consumer surplus from the current trade regime. The paper raises issues regarding the fundamental tension between competition and industrial policy in a small developing country. As the larger firms in the poultry industry move towards export readiness after 32 years of protection, the question of a new trade and industry regime is considered.
Topic:
Development, Economics, Economic Development, Trade Policy, Strategic Competition, and Industry
Political Geography:
Africa and Botswana

358. Asian Alliances in the 21st Century

Author:
Dan Blumenthal
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Project 2049 Institute
Abstract:
Washington’s policy since the Nixon administration has been to welcome China into the international system. Beijing has accepted the invitation but, unfortunately, has also chosen to engage in a military competition with the United States that is undermining the post-World War II system from which China itself has greatly benefited. Competition need not lead to conflict. There are alternative futures that Washington has the power and influence to create for its own and its allies’ common interests. Washington’s greatest advantage is a set of highly capable allies. Now is the time to help these alliances become greater than the sum of their parts.
Topic:
International Relations, Alliance, Strategic Competition, and International System
Political Geography:
Asia

359. The Growth of Chinese Exports: An Examination of the Detailed Trade Data

Author:
Brett Berger and Robert F Martin
Publication Date:
11-2011
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Over the past decade, Chinese exports have boomed, increasing far faster than GDP growth. What can account for this explosion? Our paper uses finely detailed Chinese export data (8-digit HS codes) combined with U.S. trade data to explore this question. Although exchange rate policy clearly boosted the trade surplus, and the structure of the economy, e.g. abundant cheap labor, encouraged investment, these alone cannot account for the changing composition and acceleration of exports. We find that the growth in exports is most likely a product of effective Chinese industrial policy and fortuitous timing. The detailed trade data reveal that key “new” technology goods, such as cell phones, LCD screens, and laptops played a critical role. Finally, we use the data to examine the relationship between Chinese exports and global manufacturing, in particular U.S. manufacturing employment. We find that increased Chinese competition in both domestic and U.S. export markets likely lowered U.S. manufacturing employment between 2000 and 2007. Chinese policy is not, however, wholly responsible. Some job losses, such as in textile production, were no doubt the result of China’s natural comparative advantages, while other U.S. job losses are attributable to relatively low investment and slow GDP growth in the United States following the 2001 recession.
Topic:
International Trade and Finance, Hegemony, Exports, Trade, and Strategic Competition
Political Geography:
China and Asia

360. Competition Law and Policy in the European Union

Author:
Michael Wise
Publication Date:
10-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Competition policy played a central role in the development of the EU and its institutions. The European Commission, supported by the European courts, developed the framework for competition policy in Europe. This framework has been built since the Treaty of Rome in 1957 on a foundation of promoting market opening while strengthening the institutions of the European Community. The competition policy of the European Community is now in transition toward a basis in market-centered economic considerations, as well as on application through the now-extensive network of nationallevel authorities. The “modernisation” reforms of the enforcement process became effective in May 2004, along with changes in the control of mergers, and the Commission has been considering revisions to its policies about other topics, notably abuse of dominance and state aid. As the Member States adapt their substantive rules to those of the Community, the roles of the European Commission, the national competition agencies and the courts are changing. Co-ordination of enforcement among many agencies in the European Community, particularly concerning applications for leniency as part of cartel investigations, is increasingly important. The Commission moved to strengthen its capacity for economic analysis and to correct weaknesses in its decision process that had been revealed in critical court decisions. The challenge to this system, well adapted for administrative application, is to produce results that are convincing to the courts while maintaining policy consistency in a system of decentralised enforcement.
Topic:
European Union, Legal Theory, Decentralization, and Strategic Competition
Political Geography:
Europe