Why Privatize? The Case of Argentina's Public Provincial Banks

This paper analyzes detailed data on the pre- and post-privatization performance of publicly-owned provincial banks in Argentina. It estimates fiscal savings associated with privatization and describes the technical process that was used. The process included the creation of residual entities for the liabilities that private buyers found unattractive. The paper argues that the Fondo Fiduciario, which was created to convert the short-term liabilities of the residual entities into long-term obligations, helped make these privatizations politically feasible. Given the substantial number of state-owned banks in developing countries, this paper provides insight into the desirability and feasibility of future privatizations.     

Is Structural Change Speeding Up? The Case of Sweden, 1850–2000

Abstract

This article focuses on the importance of structural change on productivity growth and conditions in the labour market. From a productivity perspective, a positive relation is found between structural change and productivity growth from the industrial breakthrough until the first oil crisis. From the early 1970s, this positive relation weakened and eventually became negative as labour moved from high to low productive industries. From a labour market perspective, it is found that extent of sectoral reallocation of labour has become more intense over the twentieth century. The extent of job gains and losses seems to have been more intense during the postwar period than during the industrialization phase.     

How Can Developing Countries Benefit from Globalization: The Case of China

With the development of globalization and theemergence of the problems during the courseof globalization,the disputes on the benefits of global-ization are becoming more and more fierce.The dis-pute is focused on the question of whether developingcountries can benefit from globalization.The Latin     

The Shadow Economy in Transition Countries: Friend or Foe? A Policy Perspective

By treating the shadow economy as a distinct entity, rather than just a symptom of policy failures, we are able to examine its short-term and dynamic consequences for development. First, we construct measures of the size of the shadow economy in 25 transition countries for 1990–97. We find hysterisis suggesting that, once established, the shadow economy is hard to remove: a dollar decline (rise) in official GDP is attenuated by a shadow expansion (contraction) of 31 (25) cents. We then examine whether the shadow economy prevents, merely slows down, or actually promotes economic growth and competitiveness, and through what mechanisms. We also consider implications for policymaking.     

Do Transition Economies and Developing Countries Have Similar Destinies?

This paper evaluates the potential of transition economies for achieving sustainable improvements in living standards vis-à-vis developing countries based on their productivity performance. The comparison is made using a bootstrapped Malmquist productivity index and its technological and efficiency change components. The results of estimation indicate that transition economies enjoy significantly higher increases in technical efficiency than developing countries with comparable rates of real GDP growth. Therefore, these results suggest that the former group of countries may have better growth prospects than the latter group, giving empirical support to Stern and Fries’ (Foreign Policy 111:164–165, 1998) optimism that transition economies are the “tiger” economies of tomorrow.

The Impact of FDI on Developing Countries

I. IntroductionForeign direct investment (FDI) has been one of the defining features of the world economyover the last two decades. It has grown at an unprecedented pace for more than ten years,with only a slight interruption during the recession of the early 1990s. Almost all economiesnow are competing to attract multinational corporations (MNCs). Inward FDI flows havebeen far exceeding private debt flows until recently in some emerging market economies. Interms of geographic distributio…     

Information,trust and the diffusion of smallpox vaccination: The Case of Scania in Sweden, 1802–1835

Abstract

This study deals with the diffusion of a new medical technology — vaccination against smallpox — in nineteenth-century Scania in Sweden. Using an aggregated sample of parishes as well as a micro-level dataset for four parishes, we investigate the socioeconomic as well as the geographical patterns of diffusion of vaccination in the province. We also relate the adoption of vaccination across geographical areas, as well as across social groups, to the availability of information, ability to acquire and process this information, and to levels of social capital and trust in society. Our results point to the conclusion that while vaccination spread very quickly geographically after its introduction, there were considerable differences between social groups. The better situated, betted educated, landholding peasants were more ready to adopt the new technology of smallpox vaccination. This had little to do with better access to economic resources as vaccination in general was provided free of charge. Instead we hypothesize that it was related to a higher ability to acquire and utilize the information available, and/or a higher level of trust in the authorities among these peasants.     

Building an Entrepreneurial Economy: The Case of Korea 1998–2005

Abstract

This paper examines how entrepreneurship takes place in an economy where traditional structural settings are not favorable to entrepreneurial activities. Specifically, it investigates the case of Korea during 1998–2005, when the national economy experienced fairly dramatic upsurge of start-ups and related changes. The paper argues that a national economy may achieve significant structural changes when diverse conditions are in place, including not only intentional efforts, e.g. governmental policies, but factors of serendipity triggering potential disruption to the economy, e.g. an external shock such as the Asian financial crisis in 1997. During the observation period, Korea went through notable changes in terms of entrepreneurship. Although limited, the Korean economy looks at possibilities of having small and medium-sized companies co-evolve with large ones such as chaebols.     

The Fisher Effect Puzzle: A Case of Non-Linear Relationship?

The Fisher effect specifies a positive, one-for-one relationship between the nominal interest rate and expected inflation. Most recent empirical studies on the Fisher equation, typically based on ordinary least squares and co-integration estimation, found that the equation did not fit various data sets well. However, recent empirical studies showed that this fit improves if the Fisher equation is treated as a non-linear equation. Using U.S. quarterly data, this paper examines whether the results of the previous studies on the Fisher equation arose as a direct consequence of specification errors. We use time-varying coefficient (TVC) estimation, a procedure that allows us to directly confront the unknown functional form problem, specification errors, and spurious relationships. We find strong support for the view that, under TVC estimation, the Fisher equation holds and is no longer a puzzle.     

Can Financialization Save Nature? The Case of Endangered Species*

The current biodiversity loss is dramatic. Over the past 50 years, more than 68% of the mammals, birds, amphibians, reptiles, and fish on Earth have disappeared, putting the planet's survival and its inhabitants—including human beings—at risk. Financialization, or the transformation of nature into financial assets, is increasingly proposed as a solution to the biodiversity crisis. Proponents of financialization believe that assigning a monetary value to nature will incentivize human beings to protect habitats and their species. This article offers a four-mechanism model of nature's financialization, explaining why it is virtually impossible to financialize nature. We collected data through a unique two-stage data collection process, including a single case study and additional interviews with conservationists and conservation finance specialists. We analyzed the development of a calculative device, the “Index,” designed to assess the impact of conservation efforts on the survival of endangered species. Conservationists hoped to use the Index to calculate the financial return of a conservation impact bond, a financial instrument designed to finance conservation projects. However, they did not achieve their goal. We discuss the implications for the financialization and conservation literature and the role of accounting therein. We notably question previous accounts of financialization, including the need for financial numbers or financial actors. We ultimately show that a financialization project can transform practices toward financialization, even if the financialization process is not complete.     

Why Do Countries Form Regional Trade Agreements? A Discrete-Time Survival Analysis

Open Economies Review - This paper seeks to determine why countries form regional trade agreements. Using bilateral data from 1950 to 2013 for 468 trade agreements and 179 countries, I use survival...     

The city of Trondheim, 1880–1914

Abstract

The four volume history of Trondheim is one of the most ambitious works ever written on Norwegian local history. The first volume, St. Olavs by 1000–1537, by Grethe Authén Blom, was reviewed in the Scand. Econ. Hist. Rev. in 1957 (Vol. V: 1, 4–7). The volume covering the period 1537 to 1807 has not yet been written. The third and fourth volumes deal with the 19th century and constitute a very important contribution to the social and economic history of that period. Volume III, Fra Sögaden t?l Strandgaten, 1807–1880 by Knut Mykland (Trondheim, 1955, reviewed in Scand. Econ. Hist, Rev., IV: 2 (1956), 189–91), is not merely an excellent piece of research, but it also indicates that a serious historical study can still be a work of art.