FOREIGN DIRECT INVESTMENT: THE KNOWLEDGE‐CAPITAL MODEL AND A SMALL COUNTRY CASE

This research looks at how foreign direct investment (FDI) in a small open economy compares with that of larger countries. I apply several specifications of the knowledge‐capital model to unique FDI data from the isolated country of Iceland, allowing for comparison with previous analysis of larger and similarly open economies. Using this together with other techniques, I seek to explain investment determinants by geography, economic size and skilled labor availability. The results of these analysis show that popular specifications do not accurately predict the effects for a small country case.     

CROSS‐COUNTRY TECHNOLOGY TRANSFER AND POLITICALLY DRIVEN INTERNATIONAL AGREEMENTS FOR ENVIRONMENTAL STANDARDS

Grossman and Helpman highlighted a political framework to internalize inefficiency incurred due to unilateral trade policy implementation by sovereign countries. This paper extensively adopts their framework to explore the effects of special interest politics on governments under negotiation to forge international environmental standards to control global emission. Particular attention is given to a case in which negotiation is driven by transferring the abatement technology. Within a specific factor model of international trade, improving the abatement efficiency through technology transfer can give the most mutually beneficial outcome, achieving the lowest level of global pollution compared to other political benchmarks.     

INCOME-GENERATING FUNCTIONS IN A LOW INCOME COUNTRY: COLOMBIA

Income generating functions are statistical tools used to explain income inequality and other economic outcomes and behavior. These functions are often associated with a strict human capital framework, but they need not be. Instead, they may be viewed as a reduced form equation summarizing the relationship between income and various personal and locational characteristics. Following this latter interpretation, we develop the regression and analysis of variance approaches to income generating functions and estimate them empirically using micro-economic data from one low income country, Colombia. Proceeding to increasingly parsimonious specifications of income generating functions, insights are gained into the structure of incomes in Colombia.     

中国城乡一体化评析及公共政策探讨

对城乡一体化理论、概念及其形成背景作了讨论,对我国一些地方实施城乡一体化的结果作了实地考察,在此基础上根据若干文献资料对我国一些地方实施城乡一体化的实践作了评价。并得出结论：从制度、机制角度提出的城乡一体化,在实践中发生了概念性误偏,畸变成了物质环境布局的一体化,结果未能收到预定成效,反而影响了地方的可持续发展。最后,提出了实施我国城乡一体化的若干公共政策建议。     

黑龙江省城乡一体化进程中的小城镇发展模式初探--以大庆市肇州县为例

在我国城市化进程中,积极发展小城镇已成为城市化的一个重要突破口,小城镇能否步入健康发展的轨道,直接关系到农村经济的发展以及农村城市化问题.而各地区由于自然、经济、历史、文化等背景的差异,发展模式必然不同.黑龙江省农村小城镇的发展还处于较低水平,没有充分发挥其带动农村经济发展、加快城市化步伐的潜力.文章通过对大庆市肇州县小城镇发展基础条件及相关问题的分析,探索适合黑龙江省小城镇发展的模式.     

PROFIT TAX AND FIRM MOBILITY IN A THREE‐COUNTRY MODEL

We construct a three‐country model that incorporates international relocation by imperfectly competitive firms and examine both the effects of each country's profit tax reduction on the consumption and welfare of all countries, and the incentive for the countries to decrease the profit tax. In such a model, both the terms of trade and international relocation of firms offer the key to understanding the impacts of one country's profit tax policy. In particular, we note that the relocation of firms from the other two countries is positively related to the wage incomes of the third country through a shift in labour demand, and the terms‐of‐trade improvement is not only positively related to the wage incomes, but also negatively related to profit incomes through a shift in world consumption demand. We show that (i) in a three‐country world economy, regardless of the reduction's source, the profit tax reduction of each country leads to relocation of firms away from foreign countries toward its own economy and deteriorates the terms of trade of its economy and (ii) this becomes a ‘beggar‐thy‐neighbour’ policy in the sense that it lowers the welfare of the other foreign countries.     

THE J CURVE: CHINA VERSUS HER TRADING PARTNERS

The short‐run effects of currency depreciation are said to be different from its long‐run effects. In the short run, the trade balance deteriorates and improvement comes after some time; hence, the J‐curve phenomenon. Previous studies that tested the response of the trade balance to exchange rate changes in China employed aggregate trade data and provided mixed results. Indeed, most of them concluded that real depreciation has no long‐run impact on the Chinese trade balance. In this paper, we disaggregate the data by country and using recent advances in time series modelling estimate a trade balance model between China and her 13 major trading partners. We show that real depreciation of the Chinese currency has a favourable impact on her trade balance with a few partners, especially the USA. Not much support is found for the J‐curve hypothesis.     

IMPLICATIONS OF ALTERNATIVE EMISSION TRADING PLANS: EXPERIMENTAL EVIDENCE

Abstract.  Two approaches to emissions trading are cap-and-trade, with an aggregate cap on emissions distributed as emission allowances, and baseline-and-credit, with firms earning emission reduction credits for emissions below baselines. Theory suggests the long-run equilibria of the plans will differ with baselines proportional to output. To test this prediction we develop a computerized environment in which subjects representing firms can adjust their emission rates and capacity levels and trade emission rights in a sealed-bid auction. Demand for output is simulated. We report on six laboratory sessions with variable emissions rates, but fixed capacity: three each with the cap-and-trade and baseline-and-credit mechanisms.     

FEMALE LABOUR FORCE PARTICIPATION AND RELIGION: A CROSS‐COUNTRY ANALYSIS

This paper empirically examines whether female labour force participation (FLFP) in a cross‐section of countries between 1985 and 2005 varies depending upon the religion practised in these countries. Using a cross‐sectional empirical specification, we initially find that FLFP is lower in Muslim countries. However, the association between Islam and FLFP greatly diminishes once other controls are included in the regression, suggesting that Islam might not diminish FLFP as some have argued. Moreover, once these additional controls are included, the association between Islam and FLFP is similar to that between Catholicism and FLFP. Countries where Protestantism is prevalent or where no religion is practised have higher FLFP. Finally, we find some evidence that the association between FLFP and religion is weakening over time.     

城乡关系的自然顺序及其演变——亚当·斯密的城乡关系理论解析

经济地理学的理论渊源之一亚当.斯密关于城乡关系的系统理论阐释及其意义,却被经济地理学者忽视了。自然顺序揭示了城乡关系的本质和初始状态,认为城乡之间是一种基于产业分工而形成的互为市场的互利关系,并强调城镇的增设应该与农村和农业发展成比例。发展经济学家忽视了这种初始状态的意义,经济地理学家侧重于空间分布的解释。城乡关系主要受政策—文化和地理—贸易两组变量的制约与影响。特定的产业保护政策形成的风俗习惯以及地理条件(主要是临海的区位)的先天差异改变了自然顺序,导致反自然的演变结果和趋势。亚当.斯密历史和逻辑相结合的分析方法,贯穿于他对影响城乡关系的地理、经济、文化等诸要素的综合集成研究中,非常值得当代经济地理学家借鉴。     

SPILLOVER EFFECTS OF ECONOMIC INTEGRATION IN A THREE‐COUNTRY MODEL*

Using a simple monopoly model, we examine the effects of economic integration. We show that the number of markets and the shapes of marginal revenue curves, are crucial in evaluating economic integration when the marginal cost is not constant. The effects of tariff reductions in a three‐country model contrast with those found in a two‐country model. Effects also depend on which trade policy the non‐member country adopts. When both importing countries simultaneously lower their tariffs, the Metzler paradox may arise.