Search

Begin New Search Topic International Relations Publishing Institution Centre for European Policy Studies

31. Foreign Investment in the US (I): Disappearing in a black hole?

Author:
Daniel Gros
Publication Date:
04-2006
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The US international investment position today should in principle be equal to the sum of past current account balances (mostly deficits). However, this is by far not the case even taking into account the balancing item 'errors and omissions'. Between 1982 and 2004, the US has accumulated a grand total of around $4.5 trillion (thousand billion). (The sum of current account deficits has been about $1 trillion smaller than the amount of net sales of US assets to the rest of the world because of the anomaly in reinvested earning.) Despite this accumulation of deficits the US net international debtor position (IIP) has deteriorated 'only' by $2.7 billion (and is now estimated – at the end of 2004, end 2005 figures are not yet available for the US IIP – at 'only' around $2.5 trillion). This implies a total of 'unearned' gains to the US of around $1.8 trillion during 22 years. The quite detailed data available for a somewhat shorter period (1989-2004) show that only a very small part of this sum, around 10-20%, can be explained by exchange rate and stock market changes.</p
Topic:
International Relations and International Trade and Finance
Political Geography:
United States

32. Foreign Investment in the US (II): BEING TAKEN TO THE CLEANERS?

Author:
Daniel Gros
Publication Date:
04-2006
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The income account of the US balance of payments has so far remained in surplus because of a very large differential in reported earnings on direct investment – US firms seem to enjoy a much higher rate of return than foreign firms in the US. There is little difference in terms of the rate of dividend payments; the difference is due to what is called 'reinvested earnings' (earnings minus dividends). Foreign firms report almost no reinvested earnings on their direct investment in the US whereas US firms report substantial reinvested earnings from their direct investment abroad, on average over $100 billion more p.a. than foreign firms report on their US investment. This anomaly is probably due to the desire of foreign firms to minimise their US taxes, whereas US firms do not face tax liabilities if they report high foreign profits to the US authorities. The procedure used to generate the data for reinvested earnings thus has a built-in bias to improve the US current account and – over time – its international investment position. The true picture is likely to be much worse.</p
Topic:
International Relations and International Trade and Finance
Political Geography:
United States

33. Ukraine and the European Neighbourhood Policy: Ensuring the Free Movement of Goods and Services

Author:
Olga Shumylo
Publication Date:
03-2006
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The negotiation of a regional trade agreement between the EU and Ukraine is the next significant step towards Ukraine's deeper integration with the West. Drawing on analyses of official and independent analytical materials and statistical data, this paper explores the form such an arrangement should take – namely, which of the existing models would be an appropriate model for EU-Ukraine trade relations: a Free Trade Agreement, a Customs Union or something along the lines of the European Economic Area Agreement.
Topic:
International Relations and International Trade and Finance
Political Geography:
Europe and Ukraine

34. Moldova's Convergence with the Acquis - A Pro-Growth and Pro-Integration Strategy

Author:
Oxana Gutu
Publication Date:
03-2006
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The enlargement of the EU and the European Neighbourhood Policy (ENP) have revived the debate in the 'neighbourhood countries' around the need to converge legislation with EU internal rules and regulations, known as the acquis communautaire. The political incentive of accession to the EU, which has driven legal approximation in new EU member states, is missing for ENP countries. Yet, in the case of countries like Moldova, the cost of non-compliance is significant and translates into loss of existing export markets (e.g. in Romania) and the inability to expand into new markets (SEE countries and the EU). The situation is made still worse by a poor level of economic governance. As convergence with the acquis is a huge task, the key challenge for ENP countries is to determine the priorities, sequence and degree of legal approximation. This paper argues that the optimum degree and appropriate pace of convergence need to be driven by economic rationale and the development of the trade potential of the country. Thus, to secure benefits and avoid high costs for the economy, the legal approximation agenda will be moving along clearly identified economic integration scenarios, i.e. achieving a functioning market economy; taking full advantage of EU trade preferences (GSP and APTs), preparing for an FTA with the EU and, over a considerable number of years, gradually achieving a stake in the EU's Internal Market.
Topic:
International Relations and International Trade and Finance
Political Geography:
Europe, Moldova, and Romania

35. Plan B

Author:
Richard Baldwin
Publication Date:
06-2005
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
The resounding French 'non' will have important consequences for French domestic politics. It may also change the way EU leaders proceed with future Treaties. But I do not believe that it will be the 'political tsunami' for the EU that many observers have predicted. Two reasons buttress this belief.
Topic:
International Relations and Treaties and Agreements
Political Geography:
Europe and France

36. The Europeanisation of the Transnistrian Conflict

Author:
Marius Vahl
Publication Date:
05-2005
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
To describe the Transnistrian conflict as 'frozen' is becoming less and less appropriate. Although the conflict remains unresolved, there have been a number of significant and at times dramatic developments in recent years, both in the diplomatic efforts to negotiate a settlement, and in the underlying geopolitical alignments and political and economic structures sustaining the conflict. It is argued here that these changes are primarily because of the European Union.
Topic:
Conflict Resolution and International Relations
Political Geography:
Russia, Europe, and Asia

37. EU-Russia - Four Common Spaces and the Proliferation of the Fuzzy

Author:
Michael Emerson
Publication Date:
05-2005
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
On the 10th of May the EU and Russia signed four 'roadmap' documents at summit level in Moscow, on the Common Economic Space, the Common Space of Freedom, Security and Justice, the Common Space of External Security and the Common Space on Research, Education and Culture. This was the culmination of two year's work since the May 2003 summit that decided in principle to create the four spaces as a long-term project. It was intended also to give new momentum to the relationship, after seeing that the Partnership and Cooperation Agreement of 1994 had not become a motor for anything very substantial, while the subsequent phase (in 1999) of swapping common strategy documents also led nowhere in particular.
Topic:
International Relations and Arms Control and Proliferation
Political Geography:
Russia, Europe, and Asia

38. Impact of Public R Financing on Employment

Author:
Jyrki Ali-Yrkkö
Publication Date:
08-2005
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This study analyses how public R financing impacts the labour demand of companies. To our knowledge, no previous studies have distinguished the impact between a firm's global and domestic employment. Our company-level panel data covers a period from 1997 to 2002. The statistical method employed in the study takes into account the possibility that receiving public support may be an endogenous factor. Our results suggest that public R financing increases both group-level and domestic R employment. We also analysed the impact of public R funding on employment other than in the R area, and found that it is not affected by public funding. It is possible, however, that such funding has an impact in the longer term.
Topic:
International Relations, Civil Society, Economics, and International Trade and Finance

39. Update on the Ratification Debates: What Prospects for the European Constitutional Treaty? Results of and EPIN Survey of National Experts

Author:
Sebastian Kurpas, Marco Incerti, Justus Schönlau, and Julia De Clerck-Sachsse
Publication Date:
05-2005
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The ratification process of the Constitutional Treaty has taken some unexpected turns, since the publication of our initial report. The situation has changed especially dramatically in France: within only 10 days the 'yes' camp slid from a previously stable figure of around 60% to below 50%. Our report had concluded that “if the reasons for a particular European compromise are not made transparent to the citizens, issues can be used in a divisive way at the national level”. It therefore called for a stronger European dimension in the national debates and expressed the hope that politicians and the media would play their role in stressing the common European significance of the European Constitution.
Topic:
International Relations, Government, and Treaties and Agreements
Political Geography:
Europe and France

40. Speed of Convergence and Relocation: New EU Member Countries Catching up with the Old

Author:
Kari E. O. Alho, Ville Kaitili, and Mike Widgrén
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
Economic convergence of the EU's new member countries (NMCs) towards the incumbent EU countries (EU-15) is of paramount importance for both partners, not only in terms of real income but also in nominal terms. In this study we build a dynamic, computable general equilibrium model, starting from the Balassa-Samuelson two-sector framework, then modify and enlarge it (with, among other things, endogenous capital formation, consumption behaviour and labour mobility) to address several other issues such as uncertainty, welfare and sustainability in terms of foreign indebtedness. At the same time we make flows of foreign direct investment (FDI) endogenous in order to evaluate the impact convergence has on the EU-15 and the inter action between the two regions through FDI. We find that in a general equilibrium setting, fears of adverse effects resulting from a relocation of EU-15 manufacturing to the NMCs are not well founded.
Topic:
International Relations, Development, Economics, and Foreign Direct Investment
Political Geography:
Europe