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21. 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

22. European Integration and Domestic Regions: A Numerical Simulation Analysis

Author:
Arne Melchior
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Does European economic integration create more inequality between domestic regions, or is the opposite true? While former research has asked for a general answer to this question, we argue that such a general answer does not exist and that the outcome depends on the liberalisation scenario. In order to examine this, we need models with higher dimensionality where the question is where and not whether there will be spatial agglomeration. For this purpose, the paper develops a numerical simulation model with nine countries and 90 regions in order to examine the impact of European and international integration on the regions. Eastward extension of European integration is beneficial for old as well as new members, but within countries the impact varies along the east-west axis. Reduction in distance-related trade costs is particularly good for the European peripheries. Each liberalisation scenario has a distinct impact on the spatial income distribution, and there is no general rule telling that integration causes more or less agglomeration.
Topic:
International Relations, International Trade and Finance, and Regional Cooperation
Political Geography:
Europe

23. The Internationalization of Firms in the Service Industries: Channels, Determinants and Sectoral Patterns

Author:
Fulvio Castellacci
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper presents the results of a new survey on the international activities of Norwegian enterprises in various service industries. The survey focuses on three main internationalization channels: international sales, international cooperation and R outsourcing. The empirical analysis studies the relevance of these channels, and investigates the related strategies, objectives and determinants. International sales and collaborations emerge as the two most relevant channels, whereas the scope for R outsourcing seems to be far more limited. The analysis of the determinants of international activities suggests three main results: (1) the innovative capability of firms matters for their international performance; (2) the various internationalization channels seem to be complement, rather than substitute, strategies to compete in foreign markets; (3) sectoral specificities greatly affect firms' internationalization strategies and performance.
Topic:
Economics, International Trade and Finance, and Markets
Political Geography:
Europe

24. Aid for Trade and the Post-Washington Confusion

Author:
Arne Melchior
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper examines the rationale for”aid for trade” (AfT), starting with a review of developments in the field and institutions involved. A statistical analysis attempts to trace for which countries there has not been a positive relationship between trade and development. The results indicate that for 40 countries, representing 2/3 of the world population, there has been a positive relationship between trade openness and growth. The relationship has however been negative for 15 countries representing 3% of the world population, and not so clear for the rest (around 100 countries, covering 30% of the world population). For the negative cases, the” problems with trade” are the same as the” problems with growth”, so AfT should be granted in conjunction with help for economic development in general. AfT related to supply-side limitations should be given not only to the LDCs (Least Developed Countries); other classifications in fact serve better in order to trace those with the greatest need for AfT.
Topic:
Development, Economics, Humanitarian Aid, and International Trade and Finance
Political Geography:
Washington

25. GSP in the "spaghetti bowl"; of trade preferences

Author:
Arne Melchior
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper examines the relative position of GSP (tariff preferences for developing countries) compared to ordinary tariffs and free trade agreements in Norway, the EU and the USA. On average, ordinary GSP gives a tariff rebate of less than 50% in all countries. “Extended” GSP, given to the Least Developed Countries (LDCs) and others, implies zero tariffs in Norway and the EU, but only partial liberalisation in the USA. EU provides extended GSP for 119 countries, while the USA does so for 76 and Norway for 52. Considering the shares of trade rather than the number of countries, extended GSP covers 5% or less of total trade in all cases, and ordinary GSP is much more important. Compared to tariffs in free trade agreements, ordinary GSP is inferior in the USA and the EU, but not too far behind in Norway. This is due to recent cuts in MFN tariffs as well as improvements in the GSP system of Norway. For manufacturing, Norway has low tariffs and a generous GSP system. This is however not the case for agriculture.
Topic:
Development, International Trade and Finance, and Third World
Political Geography:
United States, Europe, and Norway

26. Norway's Trade with Developing Countries

Author:
Per Botolf Maurseth
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper presents some characteristics of Norway's trade with developing countries. Norwegian trade with low and low middle-income countries has increased in recent years. Imports have increased more than exports. This is partly because a large part of Norwegian exports is petroleum sold to other OECD countries. Norwegian trade with the least developed countries, on the other hand, is stagnant and constitutes only a minor share of Norwegian foreign trade. This pattern is similar to other OECD countries: Developing countries increase their share in world trade while least developed countries are marginalized. By adjusting for size and geographical position of Norwegian trade partners it is found that Norwegian trade with developing countries is as expected as compared to other OECD countries.
Topic:
Foreign Policy, Development, International Trade and Finance, and Third World
Political Geography:
Norway

27. The Norwegian Import Regime for Agriculture

Author:
Arne Melchior
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Norway maintains one of the highest levels of protection for agriculture in the OECD, but the tariff structure is not so transparent due to the extensive use of specific tariffs, i.e. tariffs expressed in NOK/kg or the like. In this paper, we use world market prices and Norwegian import prices to calculate ad valorem equivalents of specific tariffs. This shows that 28% of the tariff lines in agriculture are above 100%, and 10% are above 300%. The average of MFN applied tariffs is in the range 73-103%, depending on the calculation method. Protection is somewhat lower (54-74%) for goods exported by developing countries. While the Least Developed Countries have zero tariffs, other developing countries obtain 10-15% tariff reductions under the GSP system of tariff preferences. Tariff rate quotas provide some increase in market access. Protection of grains and feedstuff raises the forage costs in agriculture, and especially feedstuffs are important in the exports of developing countries.
Topic:
Agriculture, Economics, and International Trade and Finance
Political Geography:
Europe and Norway

28. Trade policy differentiation between developing countries under GSP schemes

Author:
Arne Melchior
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper reviews options with respect to differentiation between beneficiaries of GSP (tariff preferences for developing countries). It has for a long time been accepted that the Least Developed Countries (LDCs) may be treated better than other developing countries, but a recent WTO dispute indicates that discrimination beyond this is possible if it is based on objective criteria related to development. The paper discusses GSP differentiation in the light of this, and argues that the most generous preferences are given to a wider group of countries than the LDCs. A main reason is that LDCs constitute a small part of the developing world, and 4/5 of the world's poor live outside the LDCs. Preferences for the poorest should not become an obstacle for improved market access for the “second poorest”. The paper discusses possible reforms in Norway's GSP systems in this light. According to objective criteria, the special position of Botswana and Namibia in Norway's current GSP system could be questioned, since e.g. Botswana is now an upper middle income country.
Topic:
Development, International Cooperation, International Trade and Finance, and Third World
Political Geography:
Botswana

29. Trade and development - a selective review

Author:
Per Botlof Maurseth
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper reviews parts of the recent literature on trade and growth. The relationships between trade and growth have been extensively studied in recent research. Many studies indicate that trade stimulates income and growth. The literature is controversial and many studies are criticised for weaknesses in methodology. Despite the methodological controversies, most evidence gives support for the view that trade stimulates growth. It is argued that major deficiency in the literature is that it does not discriminate between the impact of market access in other countries and the impact of liberal domestic trade policies.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Europe

30. GSP in the 'spaghetti bowl' of trade preferences

Author:
Arne Melchior
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper examines the relative position of GSP (tariff preferences for developing countries) compared to ordinary tariffs and free trade agreements in Norway, the EU and the USA. On average, ordinary GSP gives a tariff rebate of less than 50% in all countries. “Extended” GSP, given to the Least Developed Countries (LDCs) and others, implies zero tariffs in Norway and the EU, but only partial liberalisation in the USA. EU provides extended GSP for 119 countries, while the USA does so for 76 and Norway for 52. Considering the shares of trade rather than the number of countries, extended GSP covers 5% or less of total trade in all cases, and ordinary GSP is much more important. Compared to tariffs in free trade agreements, ordinary GSP is inferior in the USA and the EU, but not too far behind in Norway. This is due to recent cuts in MFN tariffs as well as improvements in the GSP system of Norway. For manufacturing, Norway has low tariffs and a generous GSP system. This is however not the case for agriculture.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
United States, Europe, and Norway