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56611. Globalisation and industrial location: The impact of trade policy when geography matters

Author:
Arne Melchior
Publication Date:
12-2000
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper shows how industrial location and welfare depends on “most-favoured nation” (MFN) versus distance-related trade barriers, using a monopolistic competition model with regions located along a “Hotelling” line or on a square plain. Manufacturing production will cluster close to the periphery if transport costs are relatively high, but in central areas if MFN barriers are relatively high. The peripheries will be at a disadvantage, which increases when trade barriers are reduced. When countries or trading blocs are formed, a core-periphery pattern emerges within each of them. While lower transport costs create more centralisation within countries, lower MFN barriers between countries have the opposite effect.
Topic:
Economics, Globalization, Industrial Policy, and International Trade and Finance

56612. Patterns of Trade and Foreign Direct Investment in Africa—A simple test of the new trade theory with multinationals

Author:
Lars C. Svindal and Leo A. Grünfeld
Publication Date:
12-2000
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In this study, we present an empirical survey of the patterns of trade and FDI in Africa based on a sample of 28 countries and their transactions with the OECD countries. These patterns are used to test whether the predictions of the new trade theory with multinationals as described by Markusen and Venables (1995,1998) fit the development in Africa. The theory states that multinational production will gradually outgrow trade as countries converge in terms of income, yet our econometric study gives only week evidence supporting such a pattern. Alternative explanations are also investigated,and it is shown that trade barriers, geographical distance, income per capita and access to ocean explain much of the variation in trade and FDI in Africa.
Topic:
International Relations, Development, and Economics
Political Geography:
Africa

56613. Foreign Ownership, R, and Technology Sourcing

Author:
Leo A. Grünfeld
Publication Date:
12-2000
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper explores the relationship between domestic R and the inflow of foreign capital through foreign direct investment and foreign ownership. The idea that firms invest in a foreign country in order to more easily absorb the knowledge and technology of foreign firms is tested empirically using a unique firm level data set covering foreign ownership and R for all Norwegian firms over the period 1990 to 1996. The study gives no clear evidence supporting the existence of such a motive behind foreign ownership. On the other hand, the econometric study indicates that foreign investors may try to exploit their technological advantages in the Norwegian market. The results also show that the degree of foreign ownership is more volatile when firms are highly R intensive. We hypothesize that this is due to the fact that large R investments often result in large losses as well as gains to the firms.
Topic:
Foreign Policy, Economics, International Trade and Finance, and Science and Technology

56614. The Right Role for the IMF in Development

Author:
Nancy Birdsall, John W. Sewell, and Kevin Morrison
Publication Date:
05-2000
Content Type:
Policy Brief
Institution:
Overseas Development Council
Abstract:
Horst Köhler faces immense challenges as the new Managing Director of the International Monetary Fund (IMF). But no challenge is more crucial than making sure the IMF plays the right role in developing countries. Too often, it is not playing that role now. The IMF's activities in the developing world have grown radically. Today, much of its work goes beyond macroeconomic issues and crisis prevention and management, into deeper structural issues. And as a major provider of long-term development finance, it is significantly involved in efforts to reduce poverty. But the IMF lacks expertise in the wide-ranging policy and institutional complexities of development and poverty reduction. Its expertise lies in macroeconomic policy and restoring stability amid financial crises. Macroeconomics is the same for poor and rich countries alike, as IMF First Deputy Managing Director Stanley Fischer has said. But much of what the IMF is involved in now is not macroeconomics. The Fund should focus on: short-term liquidity lending to all countries hit by macroeconomic crises; advising through policy dialogue; and collecting, assessing, and distributing information on countries with regard to macroeconomic policy and financial markets. While poor countries need access to the Fund's short-term lending and macroeconomic advice, the IMF should leave long-term development lending to the World Bank and to other lenders and donors expert in poverty reduction.
Topic:
Environment, International Organization, International Trade and Finance, and International Monetary Fund
Political Geography:
United States

56615. Reviewing U.S.-Nigeria Relations: New Links to Reinforce Democracy

Author:
Princeton Lyman and Linda Cotton
Publication Date:
03-2000
Content Type:
Policy Brief
Institution:
Overseas Development Council
Abstract:
Emerging from 15 years of military rule, the Republic of Nigeria is struggling to build a stable, peaceful democratic nation from its 200 ethnic groups divided among 36 states. In May 1999, retired General Olusegun Obasanjo was elected President-a repeat performance of his earlier role as catalyst for democratic change. In 1979, Obasanjo presided over the only transition to civilian rule until now. His democratic instincts won him three years in jail under former President Sani Abacha's brutally repressive military regime.
Topic:
Environment, International Organization, and International Trade and Finance
Political Geography:
Africa, United States, and Nigeria

56616. Misplaced Charity Undermines Kosovo's Self-Reliance

Author:
Iain Guest
Publication Date:
02-2000
Content Type:
Policy Brief
Institution:
Overseas Development Council
Abstract:
For ten years, the international community has sent large, expensive missions to rebuild war-torn societies-without considering their impact on local civil society. At a time when civil society is seen as a pillar of development, this is an alarming omission.
Topic:
NATO, Environment, Humanitarian Aid, International Organization, and International Trade and Finance
Political Geography:
Kosovo

56617. International — Organic Pollutants

Author:
Caspar Fithin
Publication Date:
12-2000
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
Delegates from 122 countries recently concluded an international agreement restricting the use of persistent organic pollutants. The agreement marks an important step towards eliminating the use of highly toxic and long-lived chemicals that do not break down easily in the environment. However, the significance of the accord extends well beyond its subject area: negotiators managed to find compromises on several issues that have bedevilled other international environmental agreements.
Topic:
Diplomacy, Environment, and International Cooperation

56618. CIAO: Eastern Europe/EU — Transition Traps

Author:
Caspar Fithin
Publication Date:
12-2000
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
There has been a large differential in foreign direct investment receipts between the front-runners in the Central European applicant countries and laggards. The accession process itself has exacerbated this bifurcation, raising questions over EU policy towards the applicants and the implications for the region's long-term stability. Accession prospects appear to induce virtuous cycles for the front-runners while potentially trapping the laggards. Moreover, the latter are faced with difficult choices between long-term EU conditionality and more immediate transition imperatives, which are not always compatible
Topic:
Emerging Markets, International Organization, and International Trade and Finance
Political Geography:
Eastern Europe

56619. CIAO: Romania — Far-Right Ascendant

Author:
Caspar Fithin
Publication Date:
11-2000
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
Leftist Ion Iliescu and far-right leader Corneliu Vadim Tudor will contest the second round of the presidential election on December 10. Tudor has a real chance of defeating Iliescu. He came a strong second in the first round, owing to disgust with the outgoing coalition, a popular anti-corruption platform and a shift away from extremist rhetoric. The PRM is an unpredictable, potentially destructive force with links to the Ceausescu era and dubious security circles and, now, the ability to obstruct reforms in parliament. Iliescu's weak credentials on reform and minority questions may hinder his attempts to form a common front against Tudor.
Topic:
Government and Politics
Political Geography:
Eastern Europe and Romania

56620. CIAO: United States — 'Plan Colombia'

Author:
Caspar Fithin
Publication Date:
11-2000
Content Type:
Policy Brief
Institution:
Oxford Analytica
Abstract:
Congressional criticism of 'Plan Colombia's' military component, and the advent of a new administration in Washington, are likely to lead to a strategic review of US policy. The outcome may be a policy that is less military focused, more regionally oriented, and based on closer cooperation with other aid donors. It has become increasingly clear that Plan Colombia can only be implemented if the EU and its member states are prepared to increase their financial contribution. This will give the Europeans considerable leverage, and they are likely to use it to insist on a less militarised approach. However, even with a change in policy emphasis, the prospects of success will remain poor.
Topic:
Government and Politics
Political Geography:
United States, Europe, Washington, and Colombia