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Begin New Search Topic Development Content Type Working Paper Publishing Institution Norwegian Institute of International Affairs

1. Do the effects of R tax credits vary across industries? A meta-regression analysis

Author:
Fulvio Castellacci and Christine Mee Lie
Publication Date:
07-2013
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper presents a survey of the micro-econometric literature on the effects of R tax credits on firms' innovation activities. The authors focus on one specific aspect that has not received sufficient attention in previous research: the sectoral dimension. Our meta-regression analysis (MRA) sets up a new database collecting a large number of firm-level studies on the effects of R tax credits and investigates the factors that may explain differences in the estimated effects that are reported in the literature. The main result of the MRA analysis is indeed that sectors matter. Micro-econometric studies that have focused on a sub-sample of high-tech industries have on average obtained a smaller estimated effect of R tax credits. The paper proposes a simple framework to investigate why the effects of R tax credits vary across sectors and points out new directions and hypotheses for future research.
Topic:
Development, Economics, International Trade and Finance, and Markets

2. The Norwegian Approach to Afghanistan: Civilian-Military Segregation

Author:
Karsten Friis
Publication Date:
12-2013
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In a way, one could consider Norway a typical example of a small International Security Assistance Force (ISAF) partner in Afghanistan, with 400 troops at its disposal and responsible for one of the 26 provincial reconstruction teams (PRT). Norway is a signatory to the Atlantic Pact and a staunch North Atlantic Treaty Organization (NATO) member. At the same time, the people and the government of Norway — like those in many European countries — share reservations about the extraterritorial use of military force. They consider Norway to be a "peace-nation," a small state without strategic global interests. Norwegian foreign policy favors the multilateral institutional approach, providing stability and predictability through the United Nations (UN). The government of Norway has to balance military needs with civilian demands for humanitarian aid and the support of human rights — in particular women's rights. In Afghanistan, Norwegian civilian aid priorities included the strengthening of Afghan governance capacities, rule of law, education, and rural development.
Topic:
Conflict Resolution, Development, Humanitarian Aid, and Foreign Aid
Political Geography:
Afghanistan and Norway

3. Policy Strategies for Economic Development in Cuba: A Simulation Model Analysis

Author:
Fulvio Castellacci and Hamza Kanar
Publication Date:
12-2013
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The economic reforms recently implemented in Cuba do not adequately deal with the structural issues that hamper the country's economic development. The paper presents a system dynamics model to investigate Cuba's development process, and a simulation analysis to compare different policy scenarios that may be realized in the future as economic reforms will continue. The results indicate that the most effective development policy would be to combine active public policies to enhance the R sector, on the one hand, and foster the emergence of an efficient private sector that will develop the capital infrastructure of the economy, on the other.
Topic:
Development, Economics, and Foreign Aid
Political Geography:
Latin America and Caribbean

4. Innovative and absorptive capacity effects of education in a small, open economy

Author:
Taran Fæhn and Brita Bye
Publication Date:
12-2012
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Evidence points to relatively low supply elasticities for workers skilled for research and development (R), which can hamper innovation and growth. Increasing the supply of R skills will expand an economy's innovative capacity. A simultaneous effect of increased education, which is particularly important for small, open economies, is to raise final goods producers' capacity to absorb cross-border knowledge spillovers. In a calibrated endogenous growth model for Norway, we find that increasing the share of highly educated workers has pronounced absorptive capacity effects that partially crowd out R innovation. Both innovative and absorptive capacity expansions contribute to higher growth and welfare.
Topic:
Development, Education, Human Welfare, Markets, and Labor Issues
Political Geography:
Europe

5. Revising COIN: The Stakeholder Centric Approach

Author:
Karsten Friis, Erik Reichborn-Kjennerud, and Harald Håvoll
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
With the apparent lack of progress and success in Afghanistan, counter- insurgency (COIN), both as a theory and practice, is falling out of favor within the political and military establishment in the US. This comes at a time when the US is redirecting its geopolitical focus away from global instability towards the Asia-Pacific and the 'New Great Power Game'.
Topic:
Foreign Policy, Development, Emerging Markets, Terrorism, and Counterinsurgency
Political Geography:
Afghanistan, United States, and Australia/Pacific

6. The structure and dynamics of cut flower export markets from Kenya and Ethiopia

Author:
Brian D. Perry
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This report is part of a broad study of trade preferences and market conditions between various developing countries and Norway, conducted under the auspices of the Norwegian Institute of International Affairs and funded by the Norwegian Ministry of Foreign Affairs. Norway's Generalized System of Preferences (GSP) was established in 1971. From 2002 Norway has provided duty and quota free market access (DQF-MA) for all goods from all the 50 least developed countries (LDCs3). In 2005 the results of a review of Norway's GSP were published (Melchior, 20054), which showed that agricultural products from developing countries other than LDCs were still subject to substantial tariffs, and this contrasted dramatically with advantages given to European trading partners. As a result, from 1 January 2008 changes were made to Norway's GSP5. An important adjustment was that 14 low income countries that were not part of the LDC group were included in the provision for duty and quota-free market access (DQFMA). Consequently, 64 low income countries now benefit from DQFMA to Norway for all their goods.
Topic:
Agriculture, Development, Economics, International Trade and Finance, and Markets
Political Geography:
Kenya, Africa, Norway, and Ethiopia

7. A case study of Norway's beef trade from developing countries

Author:
Arne Melchior, Karl M. Rich, and Brian D. Perry
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Norway has traditionally operated a rather closed, managed market for beef importsnder WTO-auspices, Norway operates a tariff-rate quota (TRQ) for beef that allows the entry of a small amount of product at a relatively low tariff rate, with higher rates of duty imposed on imports over the quota. There are several different TRQs of relevance to boneless beef. The main quota is the WTO quota, which allows for the annual import of 1,084 tons of frozen beef at an in-quota duty rate of NOK 33,60/kg for boneless cuts. Countries with ordinary GSP access receive a 30 percent discount on this duty, so that the in-quota GSP tariff is NOK 23,52/kg. The WTO quota is administered once per year by an auction system – table 6 provides a list of the prices and volumes for the 2011 WTO quota. For imports outside the WTO quota, the duty is 119,01 NOK/kg, with GSP countries paying 10 percent less at NOK 107,11/kg.
Topic:
Development, International Trade and Finance, and Markets
Political Geography:
Norway

8. Innovation, Absorptive Capacity and Complexity along Development Stages

Author:
Fulvio Castellacci and Jose Miguel Natera
Publication Date:
04-2012
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper presents an empirical analysis of the time series properties of Schumpeterian multiple equilibria models. It considers a panel of 116 countries over the period 1980-2008, and makes use of panel cointegration analysis and Granger causality tests to identify the set of dynamic relationships linking together innovation, absorptive capacity and economic growth in different country clubs. The results provide general support for this class of models and show that absorptive capacity and innovation progressively become more important engines of growth as the development process unfolds over time. Relatedly, the complexity of the economic system (measured by the number of significant Granger causal relationships driving economic growth) increases as we move from the less-developed, to the middle-income and then to the advanced country clubs.
Topic:
Development, Economics, International Cooperation, and Political Economy

9. A new panel dataset for cross-country analyses of national systems, growth and development (CANA)

Author:
Fulvio Castellacci and Jose Miguel Natera
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Missing data represent an important limitation for cross-country analyses of national systems, growth and development. This paper presents a new cross-country panel dataset with no missing value. We make use of a new method of multiple imputation that has recently been developed by Honaker and King (2010) to deal specifically with time-series cross-section data at the country-level. We apply this method to construct a large dataset containing a great number of indicators measuring six key country-specific dimensions: innovation and technological capabilities, education system and human capital, infrastructures, economic competitiveness, political-institutional factors, and social capital. The CANA panel dataset thus obtained provides a rich and complete set of 41 indicators for 134 countries in the period 1980-2008 (for a total of 3886 country-year observations). The empirical analysis shows the reliability of the dataset and its usefulness for cross-country analyses of national systems, growth and development. The new dataset is publicly available.
Topic:
Development, Economics, Government, International Affairs, and Infrastructure

10. Innovations in disarmament, demobilization and reintegration policy and research: Reflections on the last decade

Author:
Robert Muggah
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This literature review offers a general overview of policy-related and theoretical innovations in disarmament, demobilization and reintegration (DDR) over the past decade. Drawing on an extensive review of academic and prescriptive contributions, it teases out key trends in the character and shape of DDR activities. If detects a shift from minimalist (security-first) interventions preoccupied with military and police priorities to maximalist (development-oriented) activities in the present era. It also notes a progressive professionalisation and standardization of DDR practice within the multilateral, bilateral and non-governmental communities. Moreover, the review observes a shift in the focus of research on DDR. Early in the decade, scholars were preoccupied with the process and practice of DDR as a spatially, temporally and socially bounded activity. Whilst establishing useful conceptual parameters, these researchers seldom considered more fundamental issues of causality and correlation, actor agency or intervention outcomes. Meanwhile, the latest wave of scholars are investing in comparative case studies, statistical assessments drawing on large-n samples and more experimental approaches to test counter-factuals. Focusing on a wider case selection these researchers are also exploring new sectoral horizons such as the relationships between DDR and combatant agency, peace agreements, transitional justice, security sector reform, and state-building more generally.
Topic:
Conflict Prevention, Security, Development, and Peace Studies

11. 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

12. 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

13. 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

14. 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

15. Theoretical Models of Heterogeneity, Growth and Competitiveness

Author:
Fulvio Castellacci
Publication Date:
09-2009
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper presents a survey of theoretical models of heterogeneity, growth and competitiveness. We compare two main theoretical traditions, evolutionary economics and mainstream heterogeneity models, in order to investigate whether the incorporation of heterogeneous agents has made the recent wave of mainstream models more similar to the evolutionary modelling style and results. The results of our survey exercise can be summarized as follows. On the one hand, we observe some increasing similarities and converging aspects between the evolutionary and the mainstream approaches to the study of heterogeneity. On the other hand, however, there are still some fundamental differences between them, which mainly relate to the distinct set of theoretical assumptions and methodological frameworks in which these heterogeneity models are set up and rooted. In short, the evolutionary approach emphasizes the complexities of the growth process and makes an effort to provide a realistic description of it, whereas the mainstream approach does instead follow a modelling methodology that emphasizes the analytical power and tractability of the formalization, even if that implies a somewhat simplified and less realistic description of the growth process.
Topic:
Development, Economics, Industrial Policy, International Trade and Finance, and Markets

16. Technology Clubs, Technology Gaps and Growth Trajectories

Author:
Fulvio Castellacci
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper looks at the convergence clubs literature from a Schumpeterian perspective, and it follows the idea that cross-country differences in the ability to innovate and to imitate foreign technologies determine the existence of clustering, polarization and convergence clubs. The study investigates the characteristics of different technology clubs and the growth trajectories that they have followed over time. The cross-country empirical analysis first explores the existence of multiple regimes in the data by means of cluster analysis techniques. It then estimates a technology-gap growth equation in a dynamic panel model specification. The empirical results identify three distinct technology clubs, and show that these are characterized by remarkably different technological characteristics and growth behavior.
Topic:
Development, Economics, International Trade and Finance, and Science and Technology

17. Is corruption contagious? An econometric analysis

Author:
Gbewopo Attila
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In this paper, I analyze how corruption in one country may be affected by its neighbors' corruption. It seeks to explain why corruption is perpetuating in large geographical areas populated by developing countries despite anticorruption efforts made in the single country.
Topic:
Corruption, Development, Third World, and Foreign Aid
Political Geography:
Africa

18. Structural Change and the Growth of Industrial Sectors: Empirical Test of a GPT Model

Author:
Fulvio Castellacci
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper investigates the empirical relevance of a model of structural change and the growth of industrial sectors. The model analyses the process of diffusion of general- purpose technologies (GPTs) and how this affects the dynamic performance of manufacturing and service industries. The empirical analysis studies the dynamics and the determinants of labour productivity growth of a large number of sectors in 18 OECD countries over the period 1970-2005. The results of dynamic panel data and cross-sectional analysis provide support for the empirical validity of the model. Industries that are close to the core of the emerging GPT based on information and communication technologies (ICTs) are characterized by greater innovative capabilities and have recently experienced a more dynamic performance. Relatedly, countries that have been able to shift their industrial structure towards these high-opportunity manufacturing and service industries have grown more rapidly.
Topic:
Development, Economics, Globalization, and Industrial Policy

19. Empowering commercial actors: Outsourcing of humanitarian and development services in international peace operations and post-war settings

Author:
Nina Græger
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper explores the increased outsourcing of humanitarian and, in particular, development services in conflict and post-conflict settings to private, profit-seeking companies that operate according to commercial principles. In integrated post-conflict missions, humanitarian aid and reconstruction and development tasks (including state building) now take place more or less in parallel. Arguably, governments, donors, NGOs and commercial companies are increasingly becoming part of the same political project: to assist countries in the transition from war to peace. The blurring of the lines between war and post-war settings has expanded the scope of activity by commercial actors. On the positive side, commercial companies seem to score better on efficiency and may contribute to a more professional humanitarian and development sector. On the negative side, the ability of governments to monitor and control private contractors is limited, while at the same time, allegations of corruption have sometimes been raised. Furthermore, profit-maximising companies are not likely to abide by or feel committed to established concepts and principles of humanitarian action in the provision of their services to the same extent as more traditional actors. If this is the case, the long-term legitimacy of the international community's commitment in war and post-war settings may suffer serious damage.
Topic:
Development, Humanitarian Aid, Non-Governmental Organization, Third World, and Foreign Aid

20. Governance Indicators: A guided Tour

Author:
Per Botolf Maurseth
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In recent years, countries' governance has been paid increasing attention. At the same time, the availability of governance indicators has also increased. Such indicators are used by investors, aid donors and researchers. This paper reviews some commonly used governance indicators. Their construction and their usefulness are discussed. It is con-cluded that governance indicators are a useful tool for evaluating countries' performance, but that they should be complemented with other sources of information.
Topic:
Development, Economics, Humanitarian Aid, Post Colonialism, and Foreign Aid
Political Geography:
United States