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41. Trade and development - a selective review

Author:
Per Botlof Maurseth
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper reviews parts of the recent literature on trade and growth. The relationships between trade and growth have been extensively studied in recent research. Many studies indicate that trade stimulates income and growth. The literature is controversial and many studies are criticised for weaknesses in methodology. Despite the methodological controversies, most evidence gives support for the view that trade stimulates growth. It is argued that major deficiency in the literature is that it does not discriminate between the impact of market access in other countries and the impact of liberal domestic trade policies.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Europe

42. GSP in the 'spaghetti bowl' of trade preferences

Author:
Arne Melchior
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper examines the relative position of GSP (tariff preferences for developing countries) compared to ordinary tariffs and free trade agreements in Norway, the EU and the USA. On average, ordinary GSP gives a tariff rebate of less than 50% in all countries. “Extended” GSP, given to the Least Developed Countries (LDCs) and others, implies zero tariffs in Norway and the EU, but only partial liberalisation in the USA. EU provides extended GSP for 119 countries, while the USA does so for 76 and Norway for 52. Considering the shares of trade rather than the number of countries, extended GSP covers 5% or less of total trade in all cases, and ordinary GSP is much more important. Compared to tariffs in free trade agreements, ordinary GSP is inferior in the USA and the EU, but not too far behind in Norway. This is due to recent cuts in MFN tariffs as well as improvements in the GSP system of Norway. For manufacturing, Norway has low tariffs and a generous GSP system. This is however not the case for agriculture.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
United States, Europe, and Norway

43. The German ICT industry: Spatial Employment and Innovation Patterns

Author:
Björn Frank and Per Botolf Maurseth
Publication Date:
02-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper documents recent developments in German ICT industries. In particular we report results on spatial patterns in innovation and employment in these industries. The paper is motivated by previous studies that have found that ICT industries seem to cluster geographically and having spatially clustered growth rates. In this study, we discriminate between production of ICT devices and production of ICT services. In Germany, production of ICT devices is concentrated in clusters of innovating regions (in terms of patents). ICT service production, on the other hand, is concentrated in larger urban areas. Growth rates in ICT-related employment show different spatial patterns. The data show that negative spatial effects are present for several sectors, which might give support for the so-called backwash effect described by Gunnar Myrdal (1957). For other sectors, positive spatial spillover effects may be present. For overall economic development (in terms of gross regional product per habitant) we find weak positive growth effects ICT, but these growth effects stem more from innovation than from production or use of ICT.
Topic:
Economics, Human Welfare, and Industrial Policy
Political Geography:
Europe and Germany

44. North-South Trade and Wages with Complete Specialisation

Author:
Arne Melchior
Publication Date:
01-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
From the Stolper-Samuelson Theorem, it is expected that North-South trade reduces the real wage of unskilled labour in the North. This paper questions the underlying assumption that trading countries are diversified, and examines theoretically the trade-wage link when the South is completely specialised. While it remains true that trade with the South negatively affects wages in the North, it is no longer the case that the poorer the trade partner is, the more harmful is trade for Northern wages. The negative wage impact is largest when the South has an intermediate capital-labour ratio, since it is then a more efficient producer. This also gives the largest aggregate welfare gains from trade in the North. The specialised South also gains from trade, and these gains are relatively larger, the more extreme is its factor composition. But even if the poorest countries gain from trade, capital accumulation may be more important for their welfare.
Topic:
Economics, Government, Human Welfare, and International Trade and Finance

45. The Challenge of Poor Governance and Corruption

Author:
Jens Chr.1 Andvig
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper is the author's so-called “Opponent paper” to Susan Rose-Ackerman's proposals for good governance and anti-corruption policies at the Copenhagen Consensus 2004 meeting 24–28 May. There the most promising anti-corruption policies had to compete with other best policies at other fields such as fight against AIDS, malaria, hunger prevention, and so on. He argues that while corruption and governance problems are important and may prevent any other kind of policy to succeed, no really effective anti-corruption policy has so far been proposed, and if it was, we wouldn't know that it did. Hence, it would be unreasonable to make a strong claim for anti-corruption projects against their competitors.
Topic:
Economics, Human Welfare, and Politics
Political Geography:
Europe

46. The Inferior Performance of State Owned Enterprises: Is it due to Ownership or Market Structure?

Author:
Leo A. Grünfeld, Eskil Goldeng, and Gabriel R. G. Benito
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
We analyze differences in performance between private companies (PCs) and state owned enterprises (SOEs), with an emphasis on the effects of market structure. We use a panel covering all registered companies during the 1990s in Norway, a country where SOEs play an important role in regular markets. Return on assets as well as costs measures are used as measures of performance in models that investigate markets where SOEs and PCs actually compete with each other. Although market shares and concentration affect performance, ownership identity still explains most of the inferior performance among SOEs.
Topic:
Development, Economics, Emerging Markets, and Industrial Policy
Political Geography:
Norway

47. A Global Race for Free Trade Agreements

Author:
Arne Melchior
Publication Date:
11-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The article examines the currently expanding worldwide network of bilateral free trade agreements. Following regional integration in Europe and later the Americas, the process if East Asia has accelerated from 2002. A Distinctive feature of the current stage in the expansion of FTAs beyond geographical regions and into global space, hence challenging WTOs supremacy on inter-continental trade rules. Setbacks in the WTO Doha Round may stimulate a further move towards «global bilateralism». The more such agreements in place, the greater is the incentive for new ones. Even if political obstacles hinder some agreements, the process is currently accelerating. While it is rational for countries to pursue such agreements, they should in parallel work for multilateral trade liberalisation in order to reduce the discriminatory impact of FTAs. This is needed if we are to avoid that «Most Favoured Nation» treatment under the WTO actually becomes «Least Favoured Nation» treatment: Rules that only apply to countries that are left outside the «free trade race».
Topic:
Economics, Globalization, International Trade and Finance, and Politics
Political Geography:
America, Europe, and East Asia

48. Corruption and fast change: Shifting modes of micro-coordination

Author:
Jens Chr.1 Andvig
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper studies the effects on corruption of having coexisting, contradictory norms for allocating different micro-coordination modes across society. One important reason for their coexistence is fast change, and links to Huntington's classical analysis of corruption are worked out. The notion of micro-coordination most is exposed and its usefulness for explaining corruption is argues through examples. The examples outlined are corruption in land allocation in Kenya, the economic transition in post-communist countries and the global telecommunications industry.
Topic:
Economics and Industrial Policy
Political Geography:
Kenya and Africa

49. A Polanyi Perspective on Post-Communist Corrruption

Author:
Jens Chr.1 Andvig
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper seeks to explain the present high levels of corruption in the post-communist countries, i.e. the centrally planned economies where the communist party lost power as the outcome of a specific historical process where both the character of the former economic system as well as that policy shock itself played key roles. Among the possible explanatory factors the study focuses on the effects of production decline and the 'monetarisation' of the economy which started before the policy shock.
Topic:
Development, Economics, and Government

50. The Intangible Globalization: Explaining the Patterns of International Trade in Services

Author:
Leo A. Grünfeld and Andreas Moxnes
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
We identify the determinants of service trade and foreign affiliate sales in a gravity model, using recently collected bilateral data for the OECD countries and their trading partners, as well as new indicators for barriers to service imports and foreign affiliate sales. We emphasize the strong links between service FDI and trade, since a large proportion of trade is facilitated through foreign affiliate sales. Trade barriers and corruption in the importing country have a strong negative impact on service trade and foreign affiliate sales. We find a strong home market effect in service trade, and rich countries do not tend to import more, which may indicate that rich countries have a competitive advantage in service trade. Free trade agreements do not contribute to increased service trade. A full liberalization of international trade in services in our model, lifts exports by as much as 50% for some countries, and no less than 30%.
Topic:
Economics, Globalization, and Science and Technology