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Begin New Search Topic Industrial Policy Publishing Institution Norwegian Institute of International Affairs

11. Transition from socialism—the corruption heritage

Author:
Jens Chr.1 Andvig
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper explores the apparently high incidence of corruption in those former socialist countries where the Communist Party lost power. It argues that part of the explanation of the high corruption incidence is to be sought in the simultaneous production decline which gives rise to a Schumpeter effect, where former bureaucrats are becoming corruption entrepreneurs. Another important factor is the swift change in the ruling norms giving rise to a Huntington effect an overshooting of the applicability of the market mechanism. An important driver of both effects is the monetation of the centralised multi-tiered bartering system of the old socialist economies. That process is briefly compared to older forms of market expansion into decentralised non-market agricultural economies as analysed by Polanyi and Marx.
Topic:
Economics, Government, and Industrial Policy

12. Remarks on Private-to-private corruption

Author:
Jens Chr.1 Andvig
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The OECD's Anti-Bribery Convention may be regarded as the strongest international expression of the recent recognition of corruption as a major global issue. The convention aims to contain trans-border corruption by making it illegal for citizens and enterprises located in the countries that have signed the convention to get involved in corrupt transactions with officials abroad. Working out the convention the legal regulation of transborder corruption has become harmonised across countries. Given the initial success, the question has been raised whether the convention should be extended or modified in some way. New policy instruments have been proposed; greater precision in how to deal with middlemen has been urged.
Topic:
Economics, Government, Industrial Policy, and International Trade and Finance

13. Sunk costs in the exporting activity: Implications for international trade and specialisation

Author:
Arne Melchior
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
International trade costs may be sunk and not proportional to sales. The paper explores this theoretically, by allowing firms to invest in sales channels or marketing in order to increase demand in each market. The returns to such investments will, ceteris paribus, be higher in markets with lower variable trade costs (e.g. transport costs). Firms will therefore invest and sell more at home than in foreign markets, and more in foreign markets with low variable trade costs. Sunk export costs will therefore amplify the trade-reducing impact of other trade barriers, and dampen the «home market effect» whereby large countries tend to be net exporters of differentiated goods.
Topic:
Economics, Emerging Markets, Industrial Policy, and International Trade and Finance

14. Divergence and dispersion in the Russian economy

Author:
Per Botolf Maurseth
Publication Date:
12-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In the Soviet Union, one result of central planning was geographical decentralisation of economic activity to a large set of remote peripheral regions. For Russian post-Soviet regions an important question is whether centripetal market forces may alter the pre-existing industrial location. This paper addresses some aspects of regional economic development in Russia. The Russian economic landscape differs from what is common in market economies. Peripheral regions are generally richer than the average. During the 1990s, differences in gross regional product increased. These developments have also meant less spatial concentration of economic activity. During the last half of the 1990s, economic growth was higher in central regions than in the peripheries. If these trends continue, the Russian economic landscape will alter significantly in the future, with income per capita, total income and population being concentrated in economic central regions.
Topic:
Development, Economics, and Industrial Policy
Political Geography:
Russia and Soviet Union

15. International R Spillovers and the Effect of Absorptive Capacity

Author:
Leo A. Grünfeld
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
We study the productivity effects of R spillovers through imports, foreign direct investment and domestic intermediates, using a highly disaggregated data set for Norwegian business sectors. As opposed to the large body of similar studies, we explicitly analyse the importance of absorptive capacity effects, claiming that the positive contribution from R spillovers is an increasing function of the R activities of the economic units that receive the spillovers. We find strong support for the existence of R spillovers through imports and domestic intermediates, but no sign of such spillovers through foreign ownership. Surprisingly, we identify absorptive capacity effects relating to spillovers from imports, but no such effects with respect to domestic intermediates. One possible explanation is that the cost of learning from international R sources is larger than from domestic R sources, implying that own R investments can counteract the negative effect of geographical and cultural distance on R spillovers.
Topic:
International Relations, Economics, Industrial Policy, and International Trade and Finance
Political Geography:
Norway

16. Meet Me Halfway but don't Rush—Absorptive capacity and strategic R investment revisited

Author:
Leo A. Grünfeld
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In this paper, we analyse how R investment decisions are affected by R spillovers between firms, taking into consideration that more R investment improves the ability to learn from competing firms - the so-called absorptive capacity effect of R The model in this paper is an extension of d'Aspremont and Jacquemin (1988), where they show that exogenous R spillovers reduce the incentive to invest in R when firms compete in a Cournot duopoly. Our model treats R spillovers as endogenous, being a function of absorptive capacity effects. Contrary to earlier studies, we show that absorptive capacity effects do not necessarily drive up the incentive to invest in R This only happens when the market size is small or the absorptive capacity effect is weak. Otherwise firms will actually chose to cut down on R Furthermore, absorptive capacity effects also increase the critical rate of spillovers that determines whether participating in research joint ventures leads to lower or higher R investment. Finally, we show that strong learning effects of own R are not necessarily goodfor welfare. Moreover, if the market size is large, welfare will be at its highest when the learning effect is small.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
Europe

17. Globalisation and industrial location: The impact of trade policy when geography matters

Author:
Arne Melchior
Publication Date:
12-2000
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper shows how industrial location and welfare depends on “most-favoured nation” (MFN) versus distance-related trade barriers, using a monopolistic competition model with regions located along a “Hotelling” line or on a square plain. Manufacturing production will cluster close to the periphery if transport costs are relatively high, but in central areas if MFN barriers are relatively high. The peripheries will be at a disadvantage, which increases when trade barriers are reduced. When countries or trading blocs are formed, a core-periphery pattern emerges within each of them. While lower transport costs create more centralisation within countries, lower MFN barriers between countries have the opposite effect.
Topic:
Economics, Globalization, Industrial Policy, and International Trade and Finance