Search

17821. The Impact of Foreign Direct Investment on Developing Countries' Terms of Trade

Author:
Konstantin M. Wacker
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper first shows that important economic arguments in favor of the Prebisch- Singer hypothesis of falling terms of trade of developing countries have implicitly relied on the role of multinational corporations and foreign direct investment. As of yet, the relationship between the latter and terms of trade has not been empirically investigated. In order to start closing this gap in research, data on 111 developing countries between 1980 and 2008 is analyzed using panel data methods. The empirical results suggest that there is no reason to believe multinationals' activities were responsible for a possible decrease of the developing countries' net barter terms of trade. On the contrary, foreign direct investment seems to play a positive role for developing countries' terms of trade.
Topic:
Development, Economics, International Trade and Finance, and Foreign Direct Investment

17822. Are Electoral Coalitions Harmful for Democratic Consolidation in Africa?

Author:
Danielle Resnick
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Electoral coalitions are becoming increasingly popular among opposition parties in Africa because they offer many advantages with respect to reducing party fragmentation and increasing incumbent turnovers. At the same time, however, they are often comprised of parties that are defined predominantly by their leaders' personalities and exhibit little differentiation in terms of their policy orientation. Based on a dataset spanning all opposition coalitions since 2000 in Africa's electoral democracies, this paper demonstrates not only that coalitions rarely defeat incumbents but also that they are only competitive when major opposition parties are involved. More significantly, the paper highlights that in many countries, a sizeable share of total electoral volatility is due to fluctuations in voting for opposition parties that have belonged to coalitions. The paper argues that such volatility reflects the inability of coalition members to build loyal constituency bases over time, which is critical for party development and broader consolidation.
Topic:
Democratization, Development, and Politics
Political Geography:
Africa

17823. Determinants of Industrial Embeddedness: Evidence from African Manufacturing Firms

Author:
Abdelrasaq Na-Allah
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Recent developments in policy initiatives as well as some current practical events have combined to put the spotlight on the issue of industrial embeddedness in sub-Saharan Africa. Though extant research documents some stylized facts, as determinants of its manifestations, their relevance to realities in the sub-continent, have until now been overlooked. Yet, it is difficult to ignore the fact that its constituent economies possess some peculiar attributes with potentially significant implications for embeddedness behaviour. Using data for the country of Lesotho, a probit model is estimated to ascertain the veracity of some of the widely acclaimed explanatory factors. We find, as we argue, that among all, the issue of supply potentials appears the most important.
Topic:
Development and Industrial Policy
Political Geography:
Africa

17824. After the Strategic Concept: Towards a NATO Version 3.0

Author:
Trine Flockhart
Publication Date:
04-2011
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
NATO now has a new Strategic Concept entitled Active Engagement – Modern Defence, agreed at the Lisbon Summit on 19 November 2010. The new Strategic Concept is heaped with high expectations, that it will produce what US Ambassador to NATO Ivo Daalder has called a 'NATO Version 3.0', which will ensure that the Alliance is fit for facing the challenges of the 21st century.
Topic:
Security, Defense Policy, NATO, International Organization, and Regional Cooperation
Political Geography:
United States

17825. Strained Alliances: Iran's troubled relations to Afghanistan and Pakistan

Author:
Janne Bjerre Christensen
Publication Date:
04-2011
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
This report offers a critical examination of Iran's influence in Afghanistan and Pakistan. Two points are made: that Iran's top priority is its own regime's survival and its regional policies are directed by its national security concerns. Secondly, that Iran's engagements in Afghanistan are clearly guided by the presence of the US. Iran's predominant interest is in stabilizing Afghanistan, but as long as Afghanistan is neither safe nor stable, Iran will play a double game and engage with its regional neighbours according to the US–Iran equation. Deterrence, counter-containment and competition are the keywords in these complex relations. The report outlines Iran's reconstruction efforts in Afghanistan, its political platform and 'soft power', and the bonds of mutual dependency in terms of water rights, refugees and drug trafficking. It examines Iran's alleged military interventions and the reasons for playing this double game. Lastly, the report discusses Iran's tense relationship with Pakistan with regard to both Afghanistan and the troubled region of Baluchistan.
Topic:
International Relations, Foreign Policy, Development, Power Politics, and Foreign Aid
Political Geography:
Pakistan, Afghanistan, United States, and Iran

17826. SOULEVEMENTS POPULAIRES EN AFRIQUE DU NORD ET AU MOYEN-ORIENT (IV) : LA VOIE TUNISIENNE

Publication Date:
04-2011
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
La Tunisie est le pays où tout a commencé. C'est égale- ment le pays où la transition démocratique présente au- jourd'hui les plus fortes chances de succès. Les raisons en sont multiples, mais la plus significative réside dans l'ac- tivisme politique et la mobilisation sociale qui ont marqué l'histoire contemporaine du pays et que des décennies de répression n'ont pu mettre à mal. Cette tradition aura for- tement aidé la nation pendant le soulèvement, lors duquel travailleurs, sans-emplois, avocats et membres de la classe moyenne conjuguèrent leurs forces en un vaste mouve- ment. Elle devra à nouveau être mise à contribution alors que la Tunisie affronte des défis majeurs : comment satisfaire à la fois l'envie d'un changement profond et l'impé- ratif de stabilité ; comment intégrer l'islamisme dans le nouveau cadre politique ; et comment remédier aux immenses problèmes socio-économiques qui furent à l'origine de la révolution politique mais qu'en elle-même cette révolution est incapable de résoudre.
Political Geography:
Middle East, Arabia, North Africa, and Tunisia

17827. Webinar: Lower the floor or raise the ceiling? US fiscal and economic outlook

Author:
Leo Abruzzese
Publication Date:
04-2011
Content Type:
Working Paper
Abstract:
A serious deficit-reduction debate is underway. Despite wide policy differences, this is encouraging and long overdue. Agreement on some basic steps may happen soon. A serious, long-term deal won't happen until after the election. A credible plan will require revenue increases. These won't come quickly or easily, but they are unavoidable, The debt ceiling will be raised, amidst much drama. The US will not default on its debt. The US economy is still recovering...but higher energy and food prices are creating headwinds.
Topic:
Debt, Economics, Global Recession, and Financial Crisis
Political Geography:
United States

17828. Cocaine Cities: Exploring the Relationship between Urban Processes and the Drug Trade in South America

Author:
Ignacio A. Navarro
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The relationship between the cocaine trade and urban land markets in South America has been overlooked by the mainstream economics and urban studies literature. This paper examines two avenues through which the cocaine trade can have a large impact on urban development in producer countries: (i) through an employment multiplier effect similar to that of other legal exports, and (ii) through money laundering using urban real estate. We test our hypotheses using the Bolivian case and find that urban growth patterns are closely related to fluctuations in cocaine production. Further, even though our estimates suggest that the cocaine trade affects urban growth through the two avenues presented in the paper, we find that formal urban employment generated by the cocaine trade has a modest effect on urban growth and most of the effect seems to be explained by money laundering using real estate and other paths.
Topic:
Corruption, Crime, Narcotics Trafficking, and Urbanization
Political Geography:
South America and Latin America

17829. Growth and Recovery in a Time of Default: Lessons from the Role of the Urban Sector in Argentina

Author:
Michael Cohen
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
International narratives on Argentina's recovery from the crisis of 2001-02 tend to emphasize the role of rising commodity prices and growing demand from China. Argentina is said to have been 'lucky', saved by global demand for its agricultural exports. The international narrative has also been used by local agricultural exporters to justify their objections against higher export taxes during periods of high commodity prices. These narratives are not correct. Data on the country's recovery show that it was not led by agricultural exports but was fuelled by urban demand and production. When the Convertibility period ended and the peso was devalued in 2002, price increases for imports stimulated the production of domestic goods and services for consumers. This production in turn generated multiplier effects which supported small and medium-sized firms and helped to create many new jobs. This later produced a revival of the construction and then the manufacturing sectors as well.
Topic:
Agriculture, Economics, International Trade and Finance, Markets, and Financial Crisis
Political Geography:
China, Argentina, and Latin America

17830. Socio-Spatial Implications of Street Market Regulation Policy: The Case of Ferias Libres in Santiago de Chile

Author:
Lissette Aliaga Linares
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Unlike in most Latin American cities, street vendors organized in farmers' markets popularly known as ferias libres in Santiago de Chile, gained legal recognition early in the twentieth century. Since then, comunas, or local municipalities, have provided vendors with individual licenses that stipulate the place and time of operations, and have defined a clear set of rules regarding customer service. However, this early legal recognition has not necessarily overcome the embedded conflict over the economic use of public space. As supermarkets become spatially positioned along the main streets within easy access of the city's transportation system, feriantes, or licensed street vendors, are being relocated in less profitable areas. Moreover, coleros, or unlicensed vendors, are still flourishing despite efforts to restrict their numbers.
Topic:
Economics and Markets
Political Geography:
Latin America and Chile