A note on the foreign exchange market efficiency hypothesis

This paper examines the weak and strong forms of the foreign exchange market efficiency hypothesis (MEH) (as defined in the paper) using the recently available Harris-Inder null of cointegration procedure, which is powerful enough to distinguish between cointegration and near cointegration, and thus provide more robust results than conventional cointegration tests. Our results indicate that both forms of the MEH are rejected for all the major currencies of the European Economic Community (EEC). (JEL F310).     

Interregional trade and economic integration: A partial equilibrium analysis

The classical comparative static analysis of economic integration is extended to a spatial world by the theory of partial spatial price equilibrium. It is made operational by gravity-like specifications of the demand functions and is applied to a quantitative study of regional effects of the EEC and EFTA formation in Scandinavia and the FRG. Aggregated effects of integration on regional output are presented, based on a hypothetical pre-integration versus post-integration comparison for 1970. It is shown that, contrary to the common views, European economic integration has not been generally detrimental to geographically peripheral areas.     

Fishing for Privilege

The Common Agricultural Policy of the European Community has for year attracted widespread criticism from economists, politicians and many other commentators. The Common Fisheries Policy is less widely known but it. too, neglects the truths of economic analysis. Antony Dnes, Lecturer in Business Economics at the University of Edinburgh, demonstrates how the neglect by the EEC of private property rights in fisheries encourages inefficiency, damages fish stocks, and encourages fishermen to adopt practices against their long-term interests.     

Foreign location decisions by US transnational firms: An empirical study

The paper aims at identifying the variables that are significant in determining the choice of host countries for manufacturing subsidiaries of US transnational firms. The approach that is taken is to relate variables that on the basis on a priori theoretical reasoning influence foreign location decisions, with (a) total market penetration by US firms and (b) the choice these firms make between exporting to their foreign markets and on site manufacturing. Location decisions are viewed as emerging from the interaction of characteristics typical to the industry of the transnational firm and factors specific to potential host countries. Particular attention is devoted to finding out whether locational choices and market shares are interdependent. The sample of observations under investigation consists of the activities of US majority-owned subsidiaries, classified in fourteen industry groupings and operating twenty countries. Sub-samples of countries are also studied. It is found that for the European countries, in particular EEC members, market penetration is dependent on local manufacturing.     

SHIFTING SIZE DISTRIBUTION OF METRO AREAS

This paper reviews traditional theoretic arguments for metro size distribution as an outcome of technical characteristics of production and the nature of demand for commodities and compares theoretical expectations with actual population growth experience in metro areas. Rigorous comparisons of actual with expected growth, however, are very difficult due to problems in making operational definitions of "place", "intermediate size" and "metropolitan". Despite these practical difficulties the actual record of growth by size class is reviewed for the U.S. since 1900 and for the countries of the European Community since 1950. The theoretical distribution is computed from the frequency distribution deduced by Losch which is calibrated to discrete size intervals according to Zipf and compared with actual distributions for U.S. counties, U.S. Standard Metropolitan Areas and EEC Functional Urban Regions. On the basis of these multiple comparisons it is concluded that somewhere perhaps as early as the 1940s and certainly by 1970 there was a strong shift in favor of intermediate size areas, but that by the early 1980s that this shift was weakening with indications of a lag in the adjustment in Europe compared with the U.S.     

On East-West Economic relations: Does EEC discriminate?

Conclucions The field is still wide open for all kinds of speculations about the content of future EEC discriminations against the communist countries, but so far there is very little substance to the accusations that EEC is discriminating against them. Neither strategic export controls nor credit discrimination seems to have been affected at all by the creation of EEC. On non-oil products a few individual cases of protection can be cited, and the consultation procedure may conceal some discrimination. But it is important to stress that the reasons for this discrimination are of the same protectionist nature as those behind the chicken war and other protectionist measures against USA, EFTA and other third nations. That the procedures are different-consultations and quotas against the communists and mainly tariff protection against the Western nations-is motivated more by the communist state trading system and its consequences than by special EEC policies.The only case where some EEC discrimination for non-commercial, political reasons can be suspected is for oil and oil products. The present strict mutual scrutiny of the import policies of the different member countries is likely to continue and to develop into some form of common policy, where security considerations may influence the setting of upper import limits of Soviet oil. But so long as this policy is not made official it is impossible to pinpoint any discrimination.In summary it can be said that the communist accusations, implying that EEC constitutes an endeavour to hurt the Soviet Union and the socialist camp through a discriminatory trade policy, are based more on the possibility that such a discrimination can come into existence than on any evidence that it actually has done so. These accusations are in fact very much akin to the Western exaggerations of actual Soviet economic warfare, based on the fact that the Soviet trade system indeed makes it possible to hide any kind of political warfare considerations inside the system.NOTE: The present article does not deal explicitly with economic planning problems or the socialist countries. However, we think the political problems discussed in this article are an interesting aspect of the relations between centrally planned economies and the market economies.

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Technology and growth — measures and concepts: a case study of Denmark

Listed according to GDP per capita, Denmark ranks twelfth in the world and fourth in the European Economic Community (EEC). However, traditional technology indicators such as R&D intensity rank Denmark surprisingly low in the hierarchy of developed countries — surprisingly low in relation to the general assumption that high GDP is often associated with a high R&D effort [1]. This is particularly the case in a country which, like Denmark, lacks important natural resources and has relatively high wages for the unskilled workforce.Although there is no strict theoretical reason for this assumption, especially in a neo-classical/neo-factor proportion approach, the discrepancy between the levels of GDP and R&D makes it interesting to determine whether technology stems from sources other than immediately measurable R&D efforts.In the following we outline the Danish economy, and then see how knowledge and technology may be produced to explain the discrepancy between Denmark's economic level and its level of R&D.     

Planning for full European community membership the effects of changes in indirect taxation using an input-output approach and application to the Greek economy

Conclusion Our primary aim in this study has been to assess some of the economic effects of substituting VAT for a number of indirect taxes which currently exist in Greece. Such a substitution is justified not only by the special merits of VAT as a commodity tax but also by the anticipation of the country's membership of the EEC. This study has shown that the replacement of a number of indirect taxes in Greece with a VAT involving the zero-rating of five groups of consumer expenditure, the exemption of one group and the taxation of all other groups at a rate of 11% leads to a change in domestic prices and results in the increase of the cost of living by 1.09%. However, this increase in the cost of living is smaller than the increase in the cost of living under uniform VAT and fully-rated sectors.The estimations of this study may help in determining governmental policies when Greece attains the full membership of the European Community. However, they need to be interpreted with caution as their accuracy depends on the reliability of the estimated input-output coefficients, the policies of the tax authorities, the strength of the trade unions and the competitiveness of the Greek economy.The authors are indebted to Mr. S.M. Kanbur of Worcester College, Oxford, U.K., for helpful comments.     

The European sectoral social dialogue: questions of representation and membership

In the debates on the European social dialogue as a potential level of supranational industrial relations, the key questions of representations and mandates are often neglected. To what extent can the European sectoral social dialogue act for national constituencies across 27 Member States in the perspective of collective action by European associations? This article addresses this question by the means of three dimensions: the representation of heterogeneous members, the various degrees of national players' commitment in the European committees and finally, the definition of a common agenda among members.     

Lost in the American Agricultural Swamp

How serious are the problems that result from taxpayer support for American agriculture? Jim Bovard, of the Cato Institute in Washington, in a Letter from America, explores distortions which put the Common Agricultural Policy of the EEC into the shade.     

The Road Bruges

Will the single market lead to a single economy? Patrick Robertson, the founder of the Bruges Group, claims that the single market and harmonisation is in danger of being used as a subtle means of protecting domestic industries with the ultimate aim of forming a European superstate.     

Social Capital Across European Countries: Individual and Aggregate Determinants of Group Membership

Social capital refers to norms and networks of reciprocity, trust, and cooperation that facilitate coordinated action for a mutual benefit. Theoretical and empirical studies have documented the positive contribution of social capital in social welfare and development. This study empirically explores the determinants of social capital, in the form of group membership, across European countries. Data is derived from the European Community Household Panel, which covers a large sample of individuals from a set of European countries. Binary logistic regression models are applied to regress an index of individuals' group membership on a set of individual characteristics (income, education, gender, age, marital status, employment), as well as aggregate characteristics of countries (GDP per capita, income inequality, social trust, trust in public institutions, corruption, unemployment, and violation of political and civil rights). Results provide evidence of the impact of both individual and aggregate factors on group membership. These factors constitute a possible means to rebuilding patterns of social capital, especially in Southern European countries, where special‐interest groups and patron‐client relations prevail over generalized norms and networks of reciprocity, trust, and cooperation that promote wider social welfare and development objectives.     

欧盟玩具安全新指令2009／45／EC解析

本文介绍了欧盟玩具安全新指令2009／45／EC的出台背景、制定进程、主要内容以及与旧指令88／378／EEC的差异。     

The Irish Sea Fisheries: Development and Curtailment of a Renewable Resource Industry

Abstract . The volume of the sea fish catch in the Republic of Ireland increased by 16 times in the period 1950-82. Influences contributing to development included active promotion by a State agency, government funding, fleet expansion, growth in the labor force, establishment of processing, and development of domestic and export markets.Fish landings became more concentrated in the major ports and along the less developed west coast. Fishery expansion is now curtailed by resource problems. These are partly the result of pressures exerted by foreign fleets, now within the context of the European Economic Community (EEC). Internal conflicts have arisen through competition between Irish fishermen for scarcer resources. The major needs in this new phase of the industry are for restructuring of the fleet, exploitation of new stocks, resource conservation, development of mariculture, more advanced processing and marketing, and comprehensive policy formulation.     

Agricultural Prices and Markets - the Domino Effect

The Common Agricultural Policy of the EEC is under increasing fire. Dr Blight applies 'Austrian' economic analysis to show that regulation of agriculture serves neither the efficient farmer nor the consumer.     

Britain, the EU and the global economy

Britain should retain a global outlook in its political and economic affairs. Whilst recognising her proximity to and trade relations with Europe, it is argued that in order to compete on the world stage Britain should adopt a more flexible economy along American lines as a contrast to the European model. Importantly, this means retaining economic and political sovereignty.     

The Future of European Monetary Arrangements

European Monetary Union is stilla a viable target, but disarray after Maastricht means it will be more difficult to achieve.     

Benchmarking institutional variety in the eurozone: An empirical investigation

The European debt crisis has shown that the future of the European Union (EU) depends on the willingness of each member country to implement responsible policies, avoid moral hazard and uncooperative attitudes, and ensure stability and soundness. However, the European institutional variety means that each member country reacts differently to shocks and policies, follows a different path of recovery, and adapts to common institutions, including the common currency, in different ways. Helping countries to converge toward a situation that guarantees well-being, stability, and development at the national and community level is the goal of the European benchmark. This benchmark is a framework inspired by European treaties that, through the distance-to-frontier score methodology, aims to measure member countries’ performance and identify inefficiencies and negative externalities within the economic, social, and political institutions of each member country. The paper presents an empirical investigation of the European benchmark. Based on the results obtained, all countries can improve their performance, and none of them can be considered a model for the others. However, the Mediterranean and post-communist countries have more challenges to face and therefore need to make greater efforts.     

Are the French still Physiocrats?

The influence of economic thinking on policy is a perennial subject of debate among economists. Walter Eltis traces the origins of the Anglo-French conflict on agricultural prices in the EEC (the Common Agricultural Policy) to the divergent teaching of British and French economists 150 to 200 years ago.     

欧洲与我国“汽车及其挂车转向装置的要求”标准差异解析

汽车转向系作为改变车辆方向装置,其质量好坏直接影响到汽车行驶安全、操作人员的舒适度及汽车燃油能耗等问题。本文主要通过对欧洲标准70/311/EEC《关于各成员国汽车及其挂车转向机构的相关法律》与我国国家标准GB17675-1999《汽车转向系基本要求》、GB7258-2004《机动车运行安全技术条件》第6条有关转向系技术标准之间的差异及对比分析,为相关标准的制修订以及制造企业出口相关产品时所要关注的问题提供建议。