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51. Sectoral Productivity Trend: Convergence Islands in Oceans of Divergence

Author:
Fulvio Castellacci, Gaaitzen J. de Vries, and Bart Los
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In their influential study on productivity growth at the sector-level, Bernard and Jones (1996, BJ) observed convergence of aggregate labor productivity levels in 14 highly developed countries in 1970-1987. They also found evidence that this could be attributed to convergence in services productivity rather than in manufacturing. The main question this paper addresses is whether this result can be generalized to a broader set of countries. Several strands of growth theory suggest that thresholds with regard to a variety of issues can lead to multiple growth regimes, which are likely to lead to very heterogeneous patterns of convergence and divergence. To analyze this, we use econometric techniques that explicitly allow for identification of parameter heterogeneity (quantile regressions and quantile smoothing splines), both with regard to initial conditions and to performance conditional on these initial productivity levels. BJ's data are extended in several dimensions. The recently developed sectoral dataset we use spans the period 1970-2004 and covers 49 countries, including many developing countries. Overall, our findings suggest that convergence as found by BJ only applies to limited groups of country-sectors ('convergence islands'), whereas the biggest parts of our sample spaces can be considered as 'oceans of divergence'.
Topic:
Development, Economics, and Emerging Markets

52. Closing the Technology Gap?

Author:
Fulvio Castellacci
Publication Date:
08-2010
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper focuses on the dimensions shaping the dynamics of technology. We present a model where the knowledge stock of a country grows over time as a function of three main factors: its innovation intensity, its technological infrastructures and its human capital. The latter two variables contribute to determine the absorptive capacity of a country as well as its innovative ability. Based on this theoretical framework, we carry out an empirical analysis that investigates the dynamics of technology in a large sample of developed and developing economies in the last two-decade period, and studies its relationships with the growth of income per capita in a dynamic panel model setting. The results indicate that the cross-country distributions of technological infrastructures and human capital have experienced a process of convergence, whereas the innovative intensity is characterized by increasing polarization between rich and poor economies. Thus, while the conditions for catching up have generally improved, the increasing innovation gap represents a major factor behind the observed differences in income per capita.
Topic:
Development, Economics, Emerging Markets, Science and Technology, and Infrastructure

53. State Bipolarity, Kin Organizations and Violent Collective Action

Author:
Jens Chr.1 Andvig
Publication Date:
10-2010
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper seeks to explain state failures. To do so, we focus on non-market forms of interactions in the public sector that allow officials to move into high or low effort levels, a kind of state tendency to bipolarity or manic depression. The activity level actually 'chosen' will have important consequences for the overall non-state economy. The paper outlines reasons why low effort and high corruption levels are likely to go together and increase the risks for possible rise in violent conflicts. It further describes mechanisms that show how non-formal institutions may impact corruption, state activity levels and possible economic gains from joining violent rebellion.
Topic:
Corruption, Markets, and Fragile/Failed State

54. 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

55. Crime, Police Corruption and Development

Author:
Jens Chr.1 Andvig and Gbewopo Attila
Publication Date:
03-2010
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Recently economists have begun to study various aspects of public sector institutions (with their behavioral neighborhoods) and their effects on the long run economic development. Degrees of corruption, rule of law and protection of property rights have all apparently significant economic impact. These results are all based on the construction of indicators for these difficult-to-observe explanatory variable complexes. In most cases the indicators applied have been developed for most countries and have on the one hand 'nice' statistical properties when embedded in regression equations, but on the other hand are conceptually fuzzy with unclear relationships to basic observations. In this paper we go through many of the same relationships, but based on international efforts to collect questionnaire information about citizens' experience with crime and police corruption. This information is more conceptually distinct and likely to be more closely related to relevant experience, but proves on the other hand less amenable to econometric analysis. Despite the latter weakness we have found it worthwhile to pursue it in order to complement the indicator- based approaches.
Topic:
Corruption, Crime, Economics, and Law

56. The Politics of the Comprehensive Approach: The Military, Humanitarian and State-building Discourses in Afghanistan

Author:
Karsten Friis
Publication Date:
03-2010
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Over the last years there has been an increasingly vocal call for improved coherence and coordination among the international community engaged in Afghanistan. Facing a surge in violence, limited developmental and economical progress and a corrupt and inept domestic political leadership, it is assumed that better coordination among the international actors will address many, if not all, these challenges.
Topic:
Humanitarian Aid, International Cooperation, International Affairs, Military Strategy, Foreign Aid, Counterinsurgency, Governance, and Peacekeeping
Political Geography:
Afghanistan

57. Enemies, Irregular Adversaries, Spoilers, Non-compliant Actors. How the Definition of Actors Influences Afghanistan Strategies

Author:
Grant Dansie
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Current descriptions and explanations of the situation in Afghanistan include the use of a wide range of terms; however the true meaning of these terms is often unclear. In planning and outlining effective strategy clear and useful definitions will be required to ensure worthwhile and successful results. This study examines how definitions may significantly affect strategy by focusing on the example of non-violent or low level violent actors in Afghanistan that are perceived as negatively affecting international peace and stability operations. It highlights that the situation is inherently more complex that at first glance. Our definitions may carry entrenched meanings that negatively affect our perceptions of certain actors. At the same time the situation on the ground is extremely complex with numerous factors influencing this perceived negative behaviour. The study outlines a number of dilemmas involved in developing these definitions, as well as highlighting how these play out on the ground. The study draws on a number of interviews with NGO workers, researchers, Western government officials and NATO/ISAF troops.
Topic:
Conflict Resolution, NATO, War, and Non State Actors
Political Geography:
Afghanistan and United States

58. Regional Development of Russian Industry

Author:
Linda Skjold Oksnes
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper analyzes the convergence process of industrial productivity across Russian regions during the period 1996-2004 by applying empirical methods. The industrial sector refers to, in accordance with Russian official statistics, oil gas extraction, electricity production, mining quarrying and manufacturing. Convergence in productivity levels is well analyzed in economic literature, but few have tested the hypothesis on Russian regions. Most previous convergence analysis of Russian regions has examined the development in income per capita. Russia's special history and vast geographical extent have led to huge regional variations in resource endowments, market access and industrial structure, to name a few. Since the regression results are highly sensitive for regionspecific factors, these are identified and controlled for in the analysis. In addition, panel data techniques are used to check the robustness of the results to region-specific characteristics, which are not always measurable. The analysis also tests whether there is a tendency to economic agglomeration in the data. The hypothesis of absolute convergence is not supported in the analysis, but when region-specific factors are controlled for there are signs of convergence among Russian regions.Trade and investment as a share of regional industrial production appear in the analysis as the most significant explanatory variables.
Topic:
Development, Economics, Industrial Policy, and Infrastructure
Political Geography:
Russia

59. Effects of the EU Enlargement on Income Convergence in the Eastern Border Regions

Author:
Fredrik Wilhelmsson
Publication Date:
06-2009
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper analyses the effect of the EU enlargement process on income convergence among regions in the EU and in the Eastern neighbourhood of the EU. The data used is NUTS II regions in the EU and Oblasts' of Russia over the period 1996-2004. The estimation techniques used take into account both regional and spatial heterogeneity. The main findings are that the regional income differences are reduced within EU15. The income convergence within the EU is mainly driven by reductions in the differences across countries rather than by a reduction in regional differences within countries. When differences in initial conditions in the regions are controlled for by fixed regional effects there are strong evidences of convergence among regions in all studied country groups.
Topic:
International Relations and Regional Cooperation
Political Geography:
Europe

60. Protecting Civilians and Protecting Ideas: Institutional Challenges to the Protection of Civilians

Author:
Benjamin de Carvalho and Jon Harald Sande Lie
Publication Date:
07-2009
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Although the Protection of Civilians (PoC) today is largely embedded in the UN system as a whole, there are a number of issues still critical to address at the institutional level for the PoC to inform a shared culture of protection effectively. These include addressing the extent to which preparations for civilian protection are an integral component of mission planning, and whether protection activities are part of the mission's mandate per se or a mere part of its many tasks. Also of key concern is the extent to which operational capacity is achieved and designed to enhance protection.
Topic:
Security, Civil Society, Human Rights, and United Nations