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  • Author: Madoka Hammine
  • Publication Date: 05-2016
  • Content Type: Working Paper
  • Institution: European Centre for Minority Issues
  • Abstract: The aim of this working paper is to compare the language policies of Finland and Sweden, especially in the field of education for the Sami population. The analysis is carried out on a macro level; firstly it investigates and examines how Finland and Sweden have intro-duced legislation to protect Sami languages, followed by a discussion of the current situa-tions in the field of education, according to each stage of education. A comparison of the two nations highlights their different outcomes due to the different policies of their governments.
  • Topic: International Affairs
  • Political Geography: Finland, Sweden
  • Author: Vadim Poleshchuk
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: European Centre for Minority Issues
  • Abstract: The Russian-speaking population of Estonia experienced serious problems on the labour market and in education in the years following the post-Soviet transition. The perception of inequality is typical among minority groups. Nowadays there are no significant disparities in terms of health conditions or access to the health care system for majority and minority groups; however, there are accumulated negative factors for the minority population, especially when we look closer at socially marginalised groups. In addition to their generally weaker socio-economic status, many Russophones face the problem of social exclusion, proven by higher rates of extreme poverty, incarceration, and homelessness, trafficking victimisation, drug abuse and HIV/AIDS. All these factors may have an adverse effect on the enjoyment by ethnic minorities of the right to health. Considering the demographic make-up of Estonia, a reduced use of the Russian language in the provision of health services has emerged as a new challenge to the national health care system.
  • Topic: International Relations, International Affairs
  • Political Geography: Estonia
  • Author: Caitlin Boulter
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: European Centre for Minority Issues
  • Abstract: This paper examines the prevalence of Roma voices in Swedish and German newspaper articles. It explores the importance of discursive self-representation for minority and marginalised groups, and evaluates the degree to which a voice is afforded to the Roma in three of the largest newspapers in each country, across a varied political spectrum. Sweden and Germany are leaders in minority protection and both profess to be seeking solutions to the widespread discrimination against Roma within their own countries and across Europe, and therefore provide interesting comparative case studies, both due to their historical relationship with Roma communities and in light of contemporary events. This paper uses quantitative analysis to determine the percentage of newspaper articles about Roma that include a Roma voice, and the findings are analysed using theories regarding European identity-building, Orientalism, and media discourse.
  • Topic: International Affairs, Minorities
  • Political Geography: Germany, Sweden
  • Author: Evangelos Venetis
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
  • Abstract: Nowadays Islamic finance is gradually becoming an important part of the international financial system. During the ongoing financial crisis, the role of Islamic finance for the stabilization of the international financial system appears to be strong and promising due to its ethical principles and religious foundation. This analysis focuses both on the quantitative and qualitative examples of the economic upheaval in the Eurozone and Greece and explores the prospects of introducing and developing possible prospects of Islamic finance in the Greek economy.
  • Topic: International Political Economy
  • Political Geography: Greece
  • Author: Sophia Kalantzakos
  • Publication Date: 03-2016
  • Content Type: Working Paper
  • Institution: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
  • Abstract: COP21 in Paris sparked a glimmer of hope that perhaps nations were finally ready to take on the climate crisis. The message of optimism now requires concrete action and steadfast commitment to a process that raises a number of crucial challenges: technological, political, social and economic. Who will lead after COP21? As the crisis continues to grow, new robust leadership is imperative. This paper discusses why a close collaboration between the EU and China may result in the necessary push to solidify a concrete vision and a roadmap for our common future in the Anthropocene.
  • Topic: Climate Change
  • Political Geography: Global Focus
  • Author: Kim Young Gui
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: There have been voluminous contributions such as Daudin et al. (2011), Johnson and Noguera (2012), Koopmans et al. (2010), and Trefler and Zhu (2010) in measuring value added trade based on input-output tables as generalizations of the vertical specialization measures following Hummels et al. (2001). These studies focused on trade in intermediate goods as a key feature of recent global trade. In the case of Korea, about 50% of total exports and 70% of its total imports are intermediate goods trade. This paper contributes to the discussion about the trade in intermediate goods and productivity by revisiting Basu (1995), Jones (2011), and Lee and Pyo (2007) to examine implications of trade in intermediate goods for macroeconomic business cycles and productivity and welfare at the current stage of Korean development. The major revision of the Basu (1995) model is attempted by decomposing intermediate goods into domestically produced intermediate inputs and imported intermediate inputs to investigate implications of the model in a small open economy. The major finding is that the procyclicality of the intermediate goods usage relative to labor usage and TFP changes in both value added and gross-output regressions are significantly weaker in a small open economy like Korea than the large economy of the United States. We also investigate the effects of misallocation and multiplier effects due to intermediate goods on industrial productivity and efficiency following the model of Jones (2011). Since the effects of misallocation can be intensified through the industrial input-output structure of the economy, we calculate the intermediate goods multiplier by Korea's 29 manufacturing industries. We find technical changes and the degree of inefficiency are related with the magnitude of multipliers, but we leave a fundamental identification problem to future research
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Asia, Korea
  • Author: Oh Yoon Ah
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: This paper examines the determinants of China's development finance to developing countries with a focus on Asia from 2000 to 2012. It uses a recent version of China Aid Data, one of the most reliable and publicly available data sources that systematically collect and differentiate different types of China's official development financial flows. This paper differs from previous studies in two aspects that (1) it analyzes a wider range of developing countries, moving beyond earlier research largely limited to Africa; and (2) it examines regional variation in China's motives for development financing. The findings show that China's allocations decision for concessional development flows, or ODA, has mixed motives of humanitarian, commercial and strategic interests. It is noteworthy that China's ODA appears not to be in competition against, but rather in a complementary form to, established donors in this period. Yet substantial regional variation is observed, suggesting different regional dynamics are at work. On the other hand, it is found that China's allocations decision for less-concessional development financing largely follows commercial considerations. This paper also provides detailed discussion of the trends in China's development finance to Southeast Asia, which is an Asian region critical for China's economic and foreign policy interests. The paper ends with a discussion of the implications of possible shift in China's overseas development finance strategy since 2011.
  • Topic: International Relations, International Political Economy
  • Political Geography: Asia
  • Author: Choi Nakgyoon
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: This paper studied the effects of anti-dumping measures on the imports to investigate whether the trade restriction effect of an anti-dumping duty is dominant in the US, the EU, China, and India from 1996 to 2015. Our results indicate that a 1% increase in the anti-dumping duties decreases the import of the targeted product by about 0.43~0.51%. The actual statistics, however, show that the total import of the targeted products increased by about 30 percent while an anti-dumping duty was in force. That indicates that an anti-dumping duty is just a temporary import relief. This paper also investigated whether an anti-dumping duty is terminated in the case that the injury would not be likely to continue or recur if the duty were removed. The increase in market share, MFN tariff rate, and dumping margin turns out to decrease the hazard of termination of an anti-dumping duty, but the increase in value added increases the hazard of termination. Generally speaking, this result indicates that the WTO member countries have regulated the overuse of an anti-dumping measure. It also implies that anti-dumping duties have been used as a tool for trade remedy.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: China
  • Author: Yoon Yeo Joon, Whang Un Jung
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: We propose a new measure of inter-industry ‘distance’. This is constructed a la Antras et al. (2012). While they measure the distance of an industry from its final use ? what they call ‘downstreamness’ of an industry ? we measure the distance between a pair of industries. Our proposed index is a measure of input-output linkages between industries that incorporates a ‘distance’ flavor. Our measure distinguishes the number of vertical production stages that an industry’s product goes through until it is finally used by another industry by assigning larger weights to the value of input use with longer production chains. Hence our measure contains more information on the relation between two industries along the vertical production chain. We use this index to construct an aggregate measure of ‘industry connectedness’ of regions in the U.S. It measures the degree of industrial linkages of a region. We then empirically establish that each region’s labor productivity is positively associated with the ‘industry connectedness’. The result contributes to the large literature of agglomeration economies that the industrial linkage is one of the main sources of agglomeration economies and productivity growth, as emphasized by Marshall (1920). It also suggests that our index can serve as an alternative measure of the industrial linkages.
  • Topic: International Political Economy, International Affairs
  • Political Geography: Global Focus
  • Author: Han Chirok, Shin Kwanho
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: Some countries have persistent current account surplus, contributing to global imbalances up to a level that is worrisome. For example, Germany has been continuously experiencing current account surpluses since 2002, amounting to 8.4% of GDP in 2015. China has never experienced current account deficits since 1997, the year that data is first available. Japan's record is even longer; its consecutive current account surplus started from 1981. Recently, Korea joined this large current-account surplus club: since the currency crisis in 1997, Korea's current account balance has been continuously in the black, expanding even more in these recent years. In this paper, we present an empirical methodology that explains how current account balances are determined and by employing it, try to diagnose factors that account for Korea's current account surplus. In fact, the IMF has introduced a methodology, the External Balance Assessment (EBA: Phillips et al., 2013), to assess exchange rate and current account gaps that are defined as the difference between current levels and those consistent with fundamentals. For example, the 2016 External Sector Report, by utilizing this methodology, demonstrates that Korea's real effective exchange rate in 2015 was 4 to 12 percent undervalued than the level consistent with fundamentals.
  • Topic: International Political Economy
  • Political Geography: Korea
  • Author: Kim Wongi
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: In this paper, I empirically examine the effects of uncertainty about government spending policy on economic activity using U.S. time series data. To this end, I constructed government spending policy uncertainty indexes and estimate proxy SVAR model. Proxy SVAR model with constructed indexes shows that an increase in government spending policy uncertainty has negative, sizable, and prolonged effects on economic activity. Moreover, the results imply that the commonly adopted recursive SVAR model in literature on policy uncertainty systematically underestimates the adverse effect of government spending policy uncertainty because of the endogeneity issue. One policy suggestion based on the empirical finding is clear announcement of future government spending path.
  • Topic: International Political Economy
  • Political Geography: Global Focus
  • Author: Park Soonchan
  • Publication Date: 10-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: This study tests whether Ricardian comparative advantage is valid for value added in exports that does not include intermediate inputs imported from various industries in a number of countries. Using a panel data on valued added contents of bilateral exports, we find that changes in the labor productivity lead to growth of value added in exports. This implies that Ricardian comparative advantage is an important determinant of exports in longitudinal changes. The estimated coefficients of the observed productivity turn out to be larger than those of CDK (2012), implying that Ricardian comparative advantage has greater influence on determining the patterns of trade in a world with global value chains.
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Pyun Ju Hyun
  • Publication Date: 10-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: This study examines how exchange rate volatility can influence total factor productivity (TFP) in various dimensions. Using Korean manufacturing plant-level data for 1990-2007, we first compare and contrast the effects of exchange rate volatility on TFPs between two different exchange rate regimes―pegged and free floating. We find that the exchange rate volatility had a negative effect on productivity in both regimes but this negative effect was greater during the period when exchange rate fluctuation was restricted, compared to the period with free floating rate. We also find that the negative effects of the volatility on productivity were heterogeneous over TFP quantiles and exhibited an inverted W-shape curve. In particular, the negative effects were more pronounced for exporting plants that had the lowest or highest TFPs.
  • Topic: International Affairs
  • Political Geography: Global Markets
  • Author: Andrea Teti, Pamela Abbott
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: Arab Transformations Project, University of Aberdeen
  • Abstract: Based on the Arab Transformations survey of Iraq in 2014, this paper examines the relative weight of religious identification and region of residence in several key areas, including main challenges perceived by the population, perceptions of security, of economic conditions, of governance, political mobilisation, corruption, and migration. Contrary to the perception that sectarian identity is the most important factor in understanding contemporary Iraqi politics, this analysis shows that religious identification is often a confounding variable, and that regional location better captures variations in respondents’ perceptions, including in key areas such as security, the economy, and migration.
  • Topic: International Security, International Affairs
  • Political Geography: Middle East
  • Author: Andrea Teti
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: Arab Transformations Project, University of Aberdeen
  • Abstract: The EU claimed it would learn the lessons of the Arab Uprisings with a ‘qualitative step forward’ in its approach to development, democracy, and security. However, an examination of the conceptual structure of revised EU Neighbourhood Policy (ENP) suggests EU policy changed little, and that in later incarnations it displayed a retrenchment towards conventional notions of democracy, development, and security, prioritising the latter over the former two. The Union seems to have failed to re-examine its approach to democracy, development, and security, falling back on approaches to all three which have been tried – and have failed – in the past.
  • Topic: International Relations, International Affairs
  • Political Geography: Europe, Middle East
  • Author: Andrea Teti, Pamela Abbott
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: Arab Transformations Project, University of Aberdeen
  • Abstract: The Arab Uprisings moved the EU to learn lessons from past mistakes and re-define its approach to development, democracy, and security. Reality, however, has fallen short of this aim. Analysis of the revised Neighbourhood Policy suggests it changed little, falling back on pre-Uprisings conceptions and discarding approaches which were more inclusive, organic, and better suited to long-term EU interests. Conversely, ArabTrans survey data shows MENA populations display precisely the more substantive and holistic approaches to democracy which EU policy discarded. It also shows supporters of the Uprisings were driven by dissatisfaction with the provision of satisfactory socioeconomic conditions and tackling corruption, and that their expectations of improvements remain largely frustrated. This mis-match between policy and popular expectations leaves existing difficulties unaddressed.
  • Topic: International Security, International Affairs, Popular Revolt
  • Political Geography: Middle East
  • Author: Andrea Teti, Pamela Abbott
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Arab Transformations Project, University of Aberdeen
  • Abstract: The Arab Uprisings represented a series of events unprecedented in the history of the Middle East: mass, popular and largely non-violent uprisings took place starting in December 2010 in Tunisia and reverberating throughout the region. These protests threatened – and in several cases resulted in the overthrow of – apparently stable autocratic regimes. The unprecedented nature and extensive domestic, regional and international impact of the Uprisings in and of itself merits attention, but coming hard on the heels of a global financial crisis and given the resonance of the Arab Uprisings with protest movements beyond the region, these Uprisings appear all the more significant beyond the region itself. The significance of the Uprisings is not just academic, however: the Middle East is one of the most frequently conflictual regions in the world, it is central to the global political economy – e.g. as a source of hydrocarbon fuels, and as a global logistical nexus –, it is a source of and transit point for migratory flows towards Europe, and its autocracies have been supported as key allies by Western governments, both in Europe and North America.
  • Topic: International Affairs, International Development
  • Political Geography: Middle East
  • Author: Pamela Abbott, Andrea Teti
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Arab Transformations Project, University of Aberdeen
  • Abstract: In order to understand why the Uprisings happened in the Arab World in 2010-11 and specifically to understand their origins in Egypt, it is necessary to combine a long term political economy trend analysis with an analysis of short term dynamics (della Porta 2015). This enables us to locate the Uprisings in a socio-economic, cultural and political context in Egypt and analyse the interaction between structure and agency (Beinin 2009; della Porta 2014). In doing so we take account of the three temporalities of capitalism: long term changes; mid-term moves between growth and crisis; and the short term dynamics of the immediate juncture. Specifically, the Uprisings can be located in a crisis of neo-liberalism, the growth of the precariat (Standing 2011), a breakdown of the social contract between the state and citizens, and a perception of growing inequalities and a decline in satisfaction with life (Therborn 2013; Subrabmanyam 2014; Verme et al 2014; World Bank 2015). While in the West the growth of the precariat – is a relatively recent phenomenon, in Egypt a large proportion of workers have always been employed in the informal sector, what happened in the 2000s was that an increasing number of the educated sons of the middle classes were forced into this type of employment. This occurred in the face of sluggish real economic growth, at least partly due to the demographic transition with a decline in decent jobs, (full-time, permanent formal sector) for the increasing number of educated young people coming onto the labour market (Hakimian 2013).
  • Topic: International Relations, International Affairs
  • Political Geography: Middle East
  • Author: Rachel Sigman, Staffan I. Lindberg
  • Publication Date: 11-2016
  • Content Type: Working Paper
  • Institution: Varieties of Democracy Institute (V-Dem)
  • Abstract: One of the most common adjectives used to describe democracy in sub-Saharan Africa is "neopatrimonial". Characterized by strong executives, pervasive clientelism and use of state resources for political legitimation (Bratton and van de Walle 1997), neopatrimonial democracy has been (controversially) associated with a range of (mostly undesirable) social, political and economic outcomes. This paper offers an empirical assessment of neopatrimonialism in Africa's political regimes. We show that, contrary to conventional wisdom, African regimes vary both quantitatively and qualitatively in their embodiment of neopatrimonial rule. Moreover, we find no clear evidence indicating that neopatrimonialism necessarily impedes the advancement or survival of democracy
  • Topic: Democracy
  • Political Geography: Global Focus
  • Author: Carl Henrik Knutsen, John Gerring, Svend-Erik Skaaning
  • Publication Date: 11-2016
  • Content Type: Working Paper
  • Institution: Varieties of Democracy Institute (V-Dem)
  • Abstract: Theoretical work on the institutional sources of economic growth regards decentralization and democracy in a positive light. Despite this, empirical work shows that neither fiscal decentralization nor national democracy is a robust predictor of per capita GDP growth. We argue that these theories have failed to bear fruit because they ignore the linchpin of decentralization and democracy, namely local democracy. Democracy at a local level enhances economic growth by enabling decentralized policy selection and incentivizing local politicians to select policies that benefit economic development, including the provision of local public goods. We test for the relationship using a novel measure of local democracy with global coverage and time series extending from 1900 to the present. We find robust evidence that local democracy nurtures growth. This relationship holds up when accounting for country- and year-fixed effects, when controlling for democracy at the national level, and when we treat our measure of local democracy as an endogenous regressor. Additional tests reveal that the relationship is clearer in contexts where our argument suggests that it should operate more strongly, namely (national- level) democracies and in periods and regions where local-level institutions have a more pronounced role in policy-making.
  • Topic: International Affairs
  • Political Geography: Global Focus