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151. 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

152. 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

153. Economic Convergence through Savings, Trade and Technology Flows—Lessons from Recent Research

Author:
Per Botolf Maurseth
Publication Date:
10-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper reviews the theoretical and empirical literature on income disparity between countries and convergence in economic growth. New theoretical models modify and often reverse the prediction of convergence in the traditional neo-classical model of economic growth. A particular feature of the recent literature as compared to traditional studies of economic growth is that it acknowledges interdependence between countries. International capital flows, trade in goods and (maybe most important) international technology flows influence individual countries growth performance. The empirical literature on the dynamics of the international distribution of income per capita reveals massive unconditional divergence in income levels. For sub-samples of countries on the other hand, the data support the conditional convergence hypothesis: when other factors are accounted for, there is a tendency for income per capita to converge. For the OECD countries, as well as for some other countries, knowledge flows, either embodied in traded goods or disembodied seem to be important for whether poorer countries are able to catch up with richer ones.
Topic:
International Relations, Economics, International Trade and Finance, and Science and Technology

154. 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

155. Multinationals Searching for R Spillovers

Author:
Leo A. Grünfeld
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper surveys the literature on R and technology spillovers as a motive for FDI. During the last years, a growing body of theoretical studies has generated formal arguments supporting the economic rationale for such behaviour. Yet, theoretical contributions are clustered within a few schools and a wider approach is necessary in order to understand the mechanisms that relate R spillovers to FDI. The empirical literature is more numerous, but provides ambiguous conclusions with respect to the strength of this motive. Micro studies provide less supportive results as compared to studies based on more aggregate data. Studies based on patent information are generally supportive to the existence of this motive.
Topic:
International Relations, Economics, International Trade and Finance, and Science and Technology

156. International R Spillovers and the Absorptive Capacity of Multinationals

Author:
Leo A. Grünfeld
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper studies R spillovers as a motive for firms to go multinational. The establishment of a foreign subsidiary may increase a firm's ability to learn from foreign R activity since R spillovers between firms are moderated by geographical distance. As opposed to earlier studies on this subject, we also model the concept of absorptive capacity where spillovers are endogenised as a function of the firms'own R investments. We employ a three-stage Cournot duopoly model to identify under what conditions a firm chooses to service a foreign market through exports or localised production (going multinational). With exogenous R investments, the absorptive capacity effect contributes to increase the gains from going multinational when the firm is a technology leader in terms of R If R investments are endogenous, only medium-sized absorptive capacity effects will result in firms going multinational. Also, higher spillover rates do not necessarily drive down R and profits for the multinational firm. This stands in contrast to models that ignore the aspect of absorptive capacity.
Topic:
International Relations, Economics, International Trade and Finance, and Science and Technology

157. Exit Neo-Nazism: Reducing Recruitment and Promoting Disengagement from Racist Groups

Author:
Tore Bjørgo
Publication Date:
06-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Young persons belonging to various types of right-wing extremist groups commit a large proportion of xenophobic and racist attacks. Measures against racial violence should therefore include interventions that reduce and (preferably) dissolve such groups. To be effective, this requires knowledge about how such groups emerge and operate, and in particular, on processes of recruitment and disengagement. Through early intervention, it is possible to reduce recruitment of new members to racist youth groups, and also facilitate (early) disengagement for those who are already involved with the group. Although most members of racist groups leave sooner or later, it is important that they quit sooner rather than later—before they hurt others, and before they have internalised a racist world-view and a violent pattern of behaviour. The article describes reasons for why some young people join racist groups; factors and circumstances that cause most of them eventually to consider disengaging; and what prevents some of them from doing so. The Exit project was started to develop methods and strategies for reducing recruitment and facilitating disengagement from racist groups. Beginning in Norway in 1996–97, the Exit approach was subsequently adopted and developed further in Sweden, with strong results. From there, the Exit approach spread on to Germany, where there are now a number of private and staterun initiatives to promote disengagement from neo-Nazi groups. There are also Exit initiatives in several other European countries.
Topic:
Conflict Resolution, Conflict Prevention, and Ethnic Conflict
Political Geography:
Europe, Palestine, Germany, and Sweden

158. From territorial defence to comprehensive security? European integration and the changing Norwegian and Swedish security identities

Author:
Pernille Rieker
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper analyses the relationship between the European integration process and the recent changes in the Norwegian and the Swedish national security identities. The aim of the paper is to compare developments in the Norwegian and the Swedish security identities in the 1990s and to evaluate the extent and scope of Europeanisation in the two cases. The fact that both Norway and Sweden had very traditional security discourses at the beginning of the 1990s and that it is possible to detect shifts away from this traditionalism in parallel with the development towards a European security dimension should prove that a Europeanisation has indeed occurred. While several researchers have studied the influence of the EU on national institutions and policies, less attention has been given to the Europeanisation of national security identities. This paper is therefore an attempt to fill this gap. The fact that Sweden has become a member of the EU while Norway has not also makes these two countries good cases for examining the extent and scope of their respective Europeanisation.
Topic:
International Relations, Security, and Nationalism
Political Geography:
Europe, Norway, and Sweden

159. French, UK, and US Policies to Support Peacekeeping in Africa: Current Status and Future Prospects

Author:
Eric G. Berman
Publication Date:
02-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In May 1997, France, the United Kingdom, and the United States announced their joint “P-3 Initiative”, to harmonize their peacekeeping capacity-building programs in Africa and foster an open dialogue between donors and recipients. The capacity-building programs of France, the UK and the US have since undergone numerous transformations. The centerpiece of French policy, the Renforcement des capacités Africaines de maintien de la paix (RECAMP) has had comparatively few changes to its basic structure, but has been scaled down. The UK African Peacekeeping Training Support Programme has given way to a much larger and more ambitious initiative. The US African Crisis Response Initiative (ACRI) has evolved significantly and will undergo a more fundamental change in 2002, including shedding its name. Moreover, Washington initiated a new capacity-building policy in 2001, which dwarfed ACRI in terms of resources and introduced the provision of lethal equipment.
Topic:
Peace Studies
Political Geography:
Africa, United States, United Kingdom, Europe, and France

160. Lovely but dangerous: The impact of patent citations on patent duration

Author:
Per Botolf Maurseth
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
What is the impact of patent citations on patent renewal behaviour? Patent citations are commonly used as an indicator of technology spillovers. For cited patents therefore, patent citations have a potentially ambiguous impact. On the one hand, patent citations may indicate a scientific breakthrough, a high value of the cited patent and therefore a long survival period. On the other hand, patent citations may indicate competing innovations that render the cited patent obsolete. By discriminating patents by technology field, it is demonstrated that patents that receive citations across technology fields survive longer than other patents. Patents that receive citations within the same technology field lapse earlier.
Topic:
Development, International Trade and Finance, and Science and Technology
Political Geography:
Europe