Cost of Protection: A Second Look at the Romer Variety Effect

The welfare loss calculated by Romer (J Dev Econ 43:5-38, 1994) under the assumption that certain import varieties disappear a result of increased protection are an order of magnitude larger than those obtained by any other investigator. In this paper, we will argue that the key source of Romer’s result is the total absence of domestic varieties of the differentiated product. Once we allow the differentiated product to be produces at home, the results change dramatically. This allows for the realistic possibility that domestic production substitutes for imports once tariffs are imposed.     

U.S. national security export controls: Implications for global competitiveness of U.S. high-tech firms

U.S. exporters of high-technology, ‘dual-use’ products are competitively disadvantaged in global markets by the complexity, range, and stringency of U.S. national security export controls. This paper demonstrates that fungibility of high technology and lax interpretation of multilateral export control agreements by other advanced countries have made the existing control regime ineffective. It further shows that persistent U.S. restrictiveness of exports in non-critical, widely available goods and technologies may needlessly and permanently erode U.S. firms' competitive position in existing as well as rapidly-opening markets worldwide. The need to revise the notion of national security to include not only military security, but also its complement, economic security, is discussed. The pivotal issue of enforceability of multilateral controls is explored, and corporate strategies for U.S. high-tech firms to achieve export control policy change are suggested.     

Do transport costs justifyregional preferential trading arrangements? no

Do Transport Costs JustifyRegional Preferential Trading Arrangements? No. — This paper reaches two conclusions. First, in evaluating PTAs, no special consideration need be given to transport costs over other types of costs. Unless one focuses on cases in which PTA and global free-trade outcomes are identical, it does not matter whether differences in delivered prices result from transport costs or from differences in technology or factor endowments. Second, gravity models are inherently incapable of giving any guidance on whether a specific grouping is desirable or whether transport costs make regional PTAs desirable. The gravity equation is consistent with virtually any trade model. The welfare implications of PTAs, however, depend crucially on the specific model.     

A new Bandung? : Economic growth vs. distributive justice among emerging powers

The demographic weight and the scale and magnitude of economic growth in China and India—as well as in Brazil and South Africa—marks a seismological transformation in world politics. However, despite their economic clout, the emerging powers of the global South have done little to challenge the Euro-North American domination of the international stage—leaving that task to Bolivia, Venezuela, and Iran. The reluctance of the large states of the global South to challenge the contemporary world order—and the widening income and wealth inequalities within their borders—suggests that they are increasingly complicit in this new world order. However, as growing inequalities unleash greater political instability, it is in the interests of states in the global South to cooperate with each other to change the rules of the game.     

Embedded knowledge and offshore software development

Offshore software development scenarios may include groups with domain specific knowledge who collaborate internationally across multiple local contexts. A key challenge in the understanding and also practice of such distributed work is concerned with the issue of knowledge, and how it can be effectively managed. In this paper, we develop a conceptual scheme based on theories associated with embedded knowledge. Drawing on evidence from a longitudinal case study of a British software company with an offshore subsidiary in India, we discuss problems associated with the embeddedness of knowledge in two geographically separated units of a firm.