| 1. |
- Forssbaeck, Jens, et al.
(author)
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On the link between exchange-rate regimes, capital controls and monetary policy autonomy in small European countries, 1979-2000
- 2006
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In: World Economy. - : Wiley. - 1467-9701 .- 0378-5920. ; 29:3, s. 341-368
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Journal article (peer-reviewed)abstract
- We investigate international monetary-policy transmission under different exchange-rate and capital-account regimes in eleven small, open economies during the 1980s and 1990s. We find no systematic link between ex-post monetary-policy autonomy and exchange-rate regimes. Capital controls appear to have provided a degree of temporal insulation from foreign monetary policy shocks, though not strict autonomy. The results are consistent both with short-term autonomy for small countries even under fixed exchange rates and an open capital account, and with long-term dependence under flexible exchange rates and an independent stability target. Results also indicate that euro-area market interest rates are significantly more responsive to the development of the corresponding US rate than were the previous national rates.
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| 2. |
- Thede, Susanna, et al.
(author)
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The Multifaceted Impact of Corruption on International Trade
- 2012
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In: World Economy. - : Wiley. - 1467-9701 .- 0378-5920. ; 35:5, s. 651-666
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Journal article (peer-reviewed)abstract
- The purpose of this paper is to perform a detailed examination of corruption effects on trade based on corruption characteristics known to affect economic exchange within the corruption research field. These characteristics are the level, prevalence, customs location, function and predictability of corruption. The multifaceted corruption impact on trade is empirically examined using a corruption-augmented gravity equation. The equation is estimated using a Heckman version of a GMM instrumental variable method. Our results provide strong evidence of that import flows vary systematically with the investigated corruption characteristics and enable the identification of channels through which corruption affects international trade. The empirical investigation clearly indicates the need to examine the multifaceted role of corruption to properly assess the trade effects of corruption.
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| 3. |
- Lodefalk, Magnus, 1969-, et al.
(author)
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Reviewing proposals for a world environmental organisation
- 2002
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In: The World Economy. - : Wiley-Blackwell. - 0378-5920 .- 1467-9701. ; 25:5, s. 601-617
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Journal article (peer-reviewed)abstract
- Since the Earth Summit in Rio 1992, several calls have been made for a world environmental organisation (WEO), and only during the last year, in the run-up to Rio+10, five more have been added. In total, we have found 17 proposals for a WEO. We review, compare, and briefly discuss rationales, models, tasks, organisational set-up, relations to multilateral environmental agreements (MEAs) and organisations such as UNEP and the WTO, as well as the role of principles, compliance and the interest of developing countries. We conclude that a majority of proposers is in favour of an autonomous coordinating agency, that is, a medium level of integration. Frequently the WTO is mentioned as a precursor agency on which a WEO should be based. We question the effectiveness of a 'WTO for the environment' and suggest that other models ought to be considered.
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| 4. |
- Abrego, Lisandro, et al.
(author)
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External Linkages and Economic Growth in Colombia : Insights from a Bayesian VAR Model
- 2010
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In: The World Economy. - : Wiley-Blackwell. - 0378-5920 .- 1467-9701. ; 33:12, s. 1788-1810
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Journal article (peer-reviewed)abstract
- This paper investigates the sensitivity of Colombian GDP growth to the surrounding macroeconomic environment. We estimate a Bayesian VAR model with informative steady-state priors for the Colombian economy using quarterly data from 1995 to 2007. A variance decomposition shows that world GDP growth and government spending are the most important factors, explaining roughly 17 and 16 per cent of the variance in Colombian GDP growth respectively. The model, which is shown to forecast well out-of-sample, can also be used to analyse alternative scenarios. Generating both endogenous and conditional forecasts, we show that the impact on Colombian GDP growth of a substantial downturn in world GDP growth would be non-negligible but that the decline still would be mild by historical standards.
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| 5. |
- Bandick, Roger, 1974-
(author)
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Foreign Acquisition, Wages and Productivity
- 2011
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In: The World Economy. - : Wiley-Blackwell. - 0378-5920 .- 1467-9701. ; 34:6, s. 931-951
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Journal article (peer-reviewed)abstract
- This paper studies the effect of foreign acquisition on wages and total factor productivity (TFP) in the years following a takeover by using unique detailed firm-level data for Sweden for the period 1993–2002. The paper takes particular account of potential endogeneity of the acquisition decision (for example, due to ‘cherry picking’) by implementing an instrumental variable approach and propensity score matching with difference-in-difference estimation. Moreover, in line with the recent literature on firm heterogeneity and trade, this paper allows for the acquisition effect to differ depending on whether the targeted firms were domestic multinational or non-multinationals before the foreign takeover. This paper also allows for the acquisition effect to differ depending on whether the acquisition is horizontal or vertical. Our results show that foreign acquisition has no effects on overall, skilled or less-skilled wage growth, either in targeted Swedish MNEs or in targeted Swedish non-MNEs or if the acquisition was motivated by vertical or horizontal motives. However, the results indicate that both targeted Swedish MNEs and non-MNEs have better growth in TFP after vertical foreign acquisition only but no such impact from horizontal foreign acquisition.
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| 6. |
- Eliasson, Kent, et al.
(author)
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Jobs and exposure to international trade within the service sector in Sweden
- 2012
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In: The World Economy. - : Wiley-Blackwell. - 0378-5920 .- 1467-9701. ; 35:5, s. 578-608
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Journal article (peer-reviewed)abstract
- To establish in which service industries there is international trade (or it may potentially exist), we calculate locational Ginis for different industries. The basic idea is that from this measure of regional concentration of different activities within a country we can identify industries where there appears to be regional trade, and hence also a potential for international trade. Based on our method, we find that: (i) the number of employed in tradable service appears to be at least as large as in the manufacturing sector, (ii) tradable service is much more skill intensive than manufacturing, and (iii) lately, the employment in tradable service has increased substantially. We argue that the last mentioned result is consistent with the substantial growth of skilled labour in Sweden since the mid-1990s (Rybczynski effect) and factors leading to increased relative demand for skilled labour. Particularly, increased competition from and offshoring to low-wage countries seem recently to have had a considerable impact on the creation of skilled jobs and the displacement of less skilled jobs in the tradable sector in Sweden. Furthermore, we apply a similar method as for industries to identify tradable occupations. Using our classification of tradable industries and tradable occupations in a Mincer type wage equation, we find that workers in such industries and occupations receive a wage premia of 1213 per cent.
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| 7. |
- Gholami, R., et al.
(author)
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The causal relationship between information and communication technology and foreign direct investment
- 2006
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In: The World Economy. - : Wiley. - 0378-5920 .- 1467-9701. ; 29:1, s. 43-62
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Journal article (peer-reviewed)abstract
- This paper investigates the simultaneous causal relationship between investments in information and communication technology (ICT) and flows of foreign direct investment (FDI), with reference to its implications on economic growth. For the empirical analysis we use data from 23 major countries with heterogeneous economic development for the period 1976-99. Our causality test results suggest that there is a causal relationship from ICT to FDI in developed countries, which means that a higher level of ICT investment leads to an increase inflow of FDI. ICT may contribute to economic growth indirectly by attracting more FDI. Contrarily, we could not find significant causality from ICT to FDI in developing countries. Instead, we have partial evidence of opposite causality relationship: the inflow of FDI causes further increases in ICT investment and production capacity. ©United Nations University 2006.
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| 8. |
- Hacker, R. Scott, et al.
(author)
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The relationship between exchange rates and interest rate differentials : A wavelet approach
- 2012
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In: The World Economy. - : Wiley. - 0378-5920 .- 1467-9701. ; 35:9, s. 1162-1185
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Journal article (peer-reviewed)abstract
- This paper uses wavelet analysis to investigate the relationship between the spot exchange rate and interest rate differential for seven pairs of countries, with a small country, Sweden, included in each case. The key empirical results show that there tends to be a negative relationship between the spot exchange rate (domestic-currency price of foreign currency) and the nominal interest rate differential (approximately the domestic interest rate minus the foreign interest rate) at the shortest time scales, while a positive relationship is shown at the longest time scales. This indicates that among models of exchange rate determination using the asset approach, the sticky-price models are supported in the short-run and flexible-price models in the long-run.
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| 9. |
- Karlsson, Sune, 1960-, et al.
(author)
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Foreign Firms and Chinese Employment
- 2009
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In: The World Economy. - Oxford : Wiley-Blackwell Publishing Inc.. - 0378-5920 .- 1467-9701. ; 32:1, s. 178-201
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Journal article (peer-reviewed)abstract
- This paper examines the effect of foreign direct investment (FDI) on employment in the Chinese manufacturing sector. As one of the world's largest recipients of FDI, China has arguably benefited from foreign multinational enterprises in various respects. However, one of the main challenges for China, and other developing countries, is job creation, and the effect of FDI on employment is uncertain. The effect depends on the amount of jobs created within foreign firms as well as the effect of FDI on employment in domestic firms. We analyse FDI and employment in China using a large sample of manufacturing firms for the period 1998–2004. Our results show that FDI has positive effects on employment growth. The relatively high employment growth in foreign firms is associated with their firm characteristics and their high survival rate. Employment growth is also relatively high in private domestic Chinese firms. There also seems to be a positive indirect effect of FDI on employment in private domestically-owned firms, presumably caused by spillovers.
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| 10. |
- Kinnman, Susanna, 1975-, et al.
(author)
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What is at Stake in the Doha Round?
- 2007
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In: The World Economy. - : Wiley-Blackwell. - 0378-5920 .- 1467-9701. ; 30:8, s. 1305-1325
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Journal article (peer-reviewed)abstract
- In this study the key elements of the WTO Doha Round are simulated and the main implications for international trade and national income are analysed. Based on negotiation information, three scenarios are designed. All scenarios encompass goods, services and agricultural liberalisation as well as trade facilitation. For goods liberalisation, a so-called Swiss formula is used to cut bound tariff rates. Agricultural tariffs are cut according to a tiered linear formula. Attention has been given to the modelling of trade facilitation. Indirect as well as direct trade transaction costs are modelled. For simulation of the services liberalisation quantitative estimates of indirect trade barriers are used. The simulation results show that all regions in the aggregation gain in the simulated Doha scenarios, with a particularly strong result for developing countries. A conservative estimate is that global income increases with 0.2–0.7 per cent of initial GDP, depending on the level of liberalisation. Trade facilitation contributes the most to these results, with increased market access for non-agricultural goods coming in second place. Overall, simulations indicate the importance of countries' own liberalisation for their national income gains, and the importance of a broad-based round.
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