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1461. U.S.-Thai Economic Prospects–Turning A New Page

Author:
Judy A. Benn
Publication Date:
11-2021
Content Type:
Special Report
Institution:
East-West Center
Abstract:
Judy A. Benn, Former Executive Director American Chamber of Commerce in Thailand, explains that “for Thailand to take full advantage of post-pandemic opportunities and reignite its economy to make-up for the last 18 months, the nation will need to capitalize on its centralized geographic location and position as one of Southeast Asia’s strongest manufacturing bases.”
Topic:
International Trade and Finance, Treaties and Agreements, Bilateral Relations, Regulation, and Economy
Political Geography:
North America, Thailand, Southeast Asia, and United States of America

1462. To Grow or Not to Grow: Belarus and Lithuania

Author:
Thorvaldur Gylfason and Eduard Hochreiter
Publication Date:
09-2021
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
We compare the economic growth performance of Belarus and Lithuania since the collapse of the Soviet Union in 1991. Our interest in this country pair is driven by the two countries´ interwoven histories as well as by the fact that Belarus remains autocratic and strongly tied to Russia, while Lithuania has reinvented itself as a democratic market economy fully integrated into the EU. Our aim is to better understand the extent to which the growth differential between the two countries can be traced to increased efficiency, i.e., total factor productivity, in the use of capital and other resources via, inter alia, better institutions (intensive growth) as opposed to sheer accumulation of capital (extensive growth), the hallmark of Soviet economic growth. To this end, we compare the development of some key determinants of growth in the two countries since the 1990s. A simple growth accounting model suggests that advances in education at all levels, good governance, and institutional reforms have played a more significant role in raising economic output and efficiency in Lithuania than in Belarus, which remains marred by problems related to weak governance as well as autocratic rule. Further, as in Estonia and Latvia, the EU perspective has made a significant contribution to growth in Lithuania. The Russian connection has done less for Belarus. Finally, we touch upon the impact of the corona virus on the economies of the two countries.
Topic:
European Union, Economy, Economic Growth, Post-Soviet Space, and Autocracy
Political Geography:
Russia, Europe, Lithuania, and Belarus

1463. The Gap that Survived the Transition: The Gender Wage Gap over Three Decades in Estonia

Author:
Jaanika Meriküll and Maryna Tverdostup
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper looks at the gender wage gap throughout the transition from communism to capitalism and throughout a time of rapid economic convergence. The case of Estonia is used, and micro data from the Labour Force Survey from 1989 to 2020 are employed. The communist regimes had highly regulated wage setting and high levels of educational attainment and labour market participation for women. Although the regime was formally egalitarian, the gender attitudes were conservative and the raw gender wage gap was as large as 41% at the end of the communist period in Estonia. The large gender wage gap under communist rule narrowed quickly during the first years of economic transition, but the further decline in the gap has been slow. The paper has two main messages. The first is that there is strong inertia in the gender wage gap persisting through the communist period and economic convergence. None of the known long-run cultural drivers of gender attitudes can explain this. The second is that the decline in the gap is related to the overall decline in wage inequality, the rise in minimum wages, and more egalitarian gender attitudes. The gender attitudes are responsible for a smaller effect than wage inequality is.
Topic:
Economy, Minimum Wage, Post-Soviet Space, Wage Income, Attitudes, and Gender Wage Gap
Political Geography:
Eastern Europe and Estonia

1464. Source – Assembly – Sink: Value Added Flows in the Global Economy

Author:
Robert Stehrer
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In this paper we provide a method to characterise global value chains and a related decomposition of bilateral gross exports by distinguishing three different stages of the value-added flows: (i) the source of value added, (ii) the final assembly stage of a product, and (iii) the final absorption (sink) of this product. Methodologically this is embedded in a simple framework using matrix algebra allowing for intuitive interpretations of the individual decomposition terms and results. The approach leads to a novel decomposition of bilateral gross export flows and related value-added trade indicators. It is shown how these correspond to existing measures using the property of inverse matrices. Specifically, the paper sheds light on the nature of the double-counting terms discussed in the literature. Finally, the approach outlined is extended by incorporating insights from the hypothetical extraction method. We argue that this is a complementary approach which however can be used to flexibly define the value chains of interest and characterise the respective flows that are considered part of this defined value chain, again carefully differentiating the source, assembly, and sink dimensions.
Topic:
International Trade and Finance, Economy, Exports, Global Value Chains, and Decomposition
Political Geography:
Global Focus

1465. Heterogeneous Effects of Non-tariff Measures on Cross-border Investments: Bilateral Firm-level Analysis

Author:
Amat Adarov and Mahdi Ghodsi
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
We analyse the heterogeneous effects of technical regulations and safety standards embodied in non-tariff measures on foreign direct investment using global firm-level panel data of bilateral cross-border ownership relationships over the period 2008-2018. To this end, we develop a novel measure of time-varying bilateral ad valorem equivalents of sectoral non-tariff measures, which reveals that technical barriers to trade (TBTs) played a much greater role as a trade-inhibiting factor in comparison with import tariffs and sanitary and phytosanitary (SPS) measures over the period 1996-2018, with their relative importance increasing in the post-Great Recession period. Estimations using the Poisson pseudo-maximum likelihood framework reveal the importance of non-tariff measures as a driver of foreign direct investment, with heterogeneous effects observed for the measures imposed by the host and the home country, as well as across sectors and types of non-tariff measures. Among other results, we find that an increase in the stringency of technical barriers to trade imposed by the host country is associated with higher investment in the foreign subsidiaries operating in this country, pointing to the regulatory barrier-jumping motive of foreign direct investment. The effect is much stronger for the multinational corporations operating in the information and communications technology sector.
Topic:
International Trade and Finance, Foreign Direct Investment, Economy, and Business
Political Geography:
Global Focus

1466. The Long Shadow: Immediate and Downstream Consequences of the Collapse of the USSR

Author:
George W. Breslauer
Publication Date:
09-2021
Content Type:
Journal Article
Journal:
Brown Journal of World Affairs
Institution:
Brown Journal of World Affairs
Abstract:
For most Russians, the collapse of the Union of Soviet Socialist Republics (USSR) in 1991 was highly disorienting, if not traumatizing. They were sud- denly living in a new world. Many appreciated the newfound freedoms (of speech, association, religion, travel, and limited economic entrepreneurship) bequeathed by Mikhail Gorbachev’s reforms. Still, however much they appreci- ated Gorbachev’s ending of the Cold War, Russians had to get used to a long list of shattering losses. Their country was no longer a distinct, multi-ethnic civilization or an acknowledged “great power” that could take pride in its history. The economy was collapsing amidst deepening shortages of consumer goods, while organized crime climbed above ground to demand protection money and collude with state and party officials to strip state assets.1 Abroad, the country was a lonely “has-been.” The states of Eastern Europe were no longer military allies or vassals, and Russia could no longer claim to be the virtuous leader of an anti-imperialist “world communist movement.” The USSR’s prior claims of being a “global power” were nullified by the parlous state of the Russian military and the country’s economic dependence on the West in the wake of the collapse. The only international status indicator that remained was the claim of being a nuclear “superpower.”
Topic:
History, Economy, Vladimir Putin, and Post-Soviet Space
Political Geography:
Russia and Soviet Union

1467. Scenarios for an impact assessment of global bioeconomy strategies: results from a co-design process

Author:
Ruth Delzeit, Tobias Heimann, Franziska Schunemann, and Mareike Soder
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
The replacement of fossil resources with renewable biomass in a bioeconomy is seen as a major contribution to climate change mitigation. This transformation will affect all members of society, making it crucial to consider the views of different stakeholders to ensure a socially acceptable transition towards a sustainable bioeconomy. To explore potential outcomes of bioeconomy strategies assuming different future pathways, a scenario analysis is a tool to inform decision-makers about policy impacts and trade-offs. The inter- and transdisciplinary research project “BioNex – The future of the biomass nexus” is the first project to develop bioeconomy scenarios together with stakeholders from politics, industry, and civil society in an iterative co-design process. As a result, three storylines describing diverging potential global futures are developed and quantified: Towards sustainability, business as usual, and towards resource depletion. The futures are driven by different assumptions on climate policy, cropland expansion, productivity growth in agriculture, prices of fossil energy, and consumption behaviour. Additionally, in the co-design process, three bioeconomy policies are developed: policy as usual, stronger development of the bioeconomy, and no policies. Besides presenting the results of the stakeholder workshops, this paper evaluates the strengths and shortcomings of a stakeholder approach in terms of policy-oriented research. According to the experience made within this study, it provides valuable insights for researchers and funding authorities they can use to optimise the employment of stakeholder-based research approaches.
Topic:
International Cooperation, Economy, Biology, and Models
Political Geography:
Global Focus

1468. No Boundaries – The Syrian-Lebanese Drug Economy

Author:
Moran Levanoni
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
In this issue of Iqtisadi, Dr. Moran Levanoni analyzes how the Syrian-Lebanese border area has become one of the most important centers for the production of illegal drugs in the Middle East. Hezbollah's key role in the Middle East drug trade is contextualized within its global empire that includes parts of South America, Africa, and Eurasia.
Topic:
Economy, Hezbollah, Drugs, and Illicit Financial Flows
Political Geography:
Middle East, Lebanon, and Syria

1469. Pax Caucasia: Prospects of Peace and Cooperation in South Caucasus

Author:
Farid Shafiyev
Publication Date:
06-2021
Content Type:
Journal Article
Journal:
Caucasus Strategic Perspectives
Institution:
Center of Analysis of International Relations (AIR Center)
Abstract:
The current issue of the Caucasus Strategic Perspectives (CSP) journal entitled “Pax Caucasia: Prospects of Peace and Cooperation in South Caucasus” is dedicated to the possible cooperation opportunities in the aftermath of latest 44-days war between Armenia and Azerbaijan in the fall of 2020 with focus on different views from various countries. The CSP’s new issue includes 5 articles, 2 commentaries and 1 book review. In the framework of post-war cooperation situation, the CSP’s current authors analysed the economic difficulties of Armenia, Azerbaijan’s enhancing role in the region and existing geopolitical confrontations, performance of peacekeeping activities, as well as economic cooperation opportunities emerged in the post-war period.
Topic:
Foreign Policy, Development, War, Peacekeeping, Geopolitics, Economy, Strategic Competition, and Regional Politics
Political Geography:
Russia, Eurasia, Turkey, Armenia, Azerbaijan, South Caucasus, United States of America, Nagorno-Karabakh, and Guam

1470. ECOWAS' Efforts in Promoting South-South Cooperation Between its Member States and Global South Countries

Author:
Sidnoma Nita Belemsobgo
Publication Date:
10-2021
Content Type:
Journal Article
Journal:
Conjuntura Austral: Journal of the Global South
Institution:
Conjuntura Austral: Journal of the Global South
Abstract:
South-South Cooperation (SSC) is an innovative, forthright, and ambitious means to expand collaboration between countries with a similar economic profile. Over the past decade, it straightforwardly imposes within West African states’ practices. Indeed, as time passes, many countries have developed significant technical capacities and know-how that they can share. To formalise such sharing of experiences and best practices and raise it to another and higher level, it was essential to hand over this role to a supranational organisation with more tools and experience to coordinate the exchange. In that effect, In West Africa, states leaned towards the Economic Community of West African States (ECOWAS), which gathers 15 member states and which is the main catalyst for promoting exchanges and sharing within the sub-region. The study provides an overview of the South-South partnership promoted by ECOWAS on the economic and social aspects through an exploratory documentary study while providing the levers of development for this partnership. The study's main aim is to assess the importance of SSC for ECOWAS member states sustainable development. The specific objectives are: assess ECOWAS initiatives promoting SSC; provide some cases of success stories of good practices.
Topic:
Development, International Cooperation, Partnerships, Economy, and ECOWAS
Political Geography:
Africa and West Africa