Trade Openness and Income: A Tale of Two Regions

In this paper, we present evidence of the long‐run effect of trade openness on income per worker for two regions that have followed different liberalisation strategies, namely Asia and Latin America. A model that re‐examines these questions is estimated for two panels of Asian and Latin American countries over the 1980–2008 period using a novel empirical approach that accounts for endogeneity as well as for the time series properties of the variables involved. From an econometric point of view, we apply recent panel co‐integration techniques based on factor models that account for two additional elements usually neglected in previous empirical literature: cross‐dependence and structural breaks. The results point to a positive impact of trade openness in both Asia and Latin America although the size is smaller in the second region. We associate this finding with the degree to which trade was managed in both regions of the developing world.     

Eco-Efficiency and Convergence in OECD Countries

This paper assesses the convergence in eco-efficiency of a group of 22 OECD countries over the period 1980–2008. In doing so, three air pollutants representing the impact on the environment of economic activities are considered, namely, carbon dioxide ( ${\text{ CO}}_{2}$ ), nitrogen oxides ( ${\text{ NO}}_\mathrm{X}$ ) and sulphur oxides ( ${\text{ SO}}_\mathrm{X}$ ); furthermore, eco-efficiency scores at both country and air-pollutant-specific level are computed using Data Envelopment Analysis techniques. Then, convergence is evaluated using the recent approach by Phillips and Sul Econometrica 75:1771–1855 (2007), which tests for the existence of convergence groups. First, we find that eco-efficiency has improved over the period, with the exception of ${\text{ NO}}_\mathrm{X}$ emissions. Second, Switzerland is the most eco-efficient country, followed by some Scandinavian economies, such as Sweden, Iceland, Norway and Denmark. In contrast, Southern European countries such as Portugal, Spain and Greece, in addition to Hungary, Turkey, Canada and the United States, are among the worst performers. Finally, we find that both the most eco-efficient countries and the worst tend to form clubs of convergence.     

Global imbalances and the intertemporal external budget constraint: A multicointegration approach

This paper analyzes the external solvency of a group of 23 OECD countries for the period 1970–2012. The empirical strategy adopted underlines the increasing importance of the financial channel for the external adjustment as proposed in Gourinchas and Rey (2007). We unify the traditional approaches to testing for external sustainability considering the stock-flow system created by the variables representing the external relationships of an open economy. External sustainability is tested using several types of cointegration and multicointegration tests. The results obtained point to weak sustainability in the flows analysis, whereas some degree of strong sustainability is found for up to six countries in the stock-flow approach. Among these countries we find both non-European economies, such as Japan and New Zealand, and Euro-area members, especially those with more restricted access to financing in the international markets.     

New Evidence on Trade and FDI: how Large is the Euro Effect?

In this paper we analyse the effect that the euro has had on trade using a gravity model for 28 countries and covering the period 1990–2013. Our gravity specification includes time-varying fixed effects, correcting any possible bias that may arise from multilateral resistance variables or unobserved time-varying heterogeneity. Additionally, we explore the potential complementarity or substitution relationship between FDI and trade by including FDI inward and outward stocks in the specification. The time period in the dataset covers the creation and evolution of the European Monetary Union (EMU), starting from the introduction of notes and coins and including the recent economic crisis. Overall, our results show a positive effect of the EMU on trade and reveal the existence of a complementary relationship between trade and FDI.     

DOES REAL INTEREST RATE PARITY HOLD FOR OECD COUNTRIES? NEW EVIDENCE USING PANEL STATIONARITY TESTS WITH CROSS‐SECTION DEPENDENCE AND STRUCTURAL BREAKS

This paper tests for real interest rate parity (RIRP) among the 17 major Organisation for Economic Cooperation and Development countries over the period 1978:Q1–2006:Q1. The econometric methods applied consist of combining the use of panel data tests that are valid under cross‐section dependence and the presence of multiple structural breaks. This feature is important because the misspecification errors due to not accounting for structural breaks and/or cross‐section dependence can lead to misleading conclusions. Our results support the fulfilment of the weak version of the RIRP for short‐term interest rate differentials once dependence and structural breaks are considered.     

Circular economy and sustainability: The role of organizational behaviour in the transition journey

Implementing circular economy (CE) requires complex and dynamic changes in technical and behavioural aspects. Few studies spend efforts to understand the organizational behavioural side of CE transition. Thus, this study proposes a theoretical framework that addresses the requirements for the transition towards CE from the organizational perspective. We conducted a systematic review aiming to identify the relations between CE and organizational culture. As a result, we developed a theoretical framework composed of five building blocks (mindsets, values, behaviours, capabilities and competences) that guide the transition towards a CE-oriented culture aiming to achieve sustainability in business. We also identified several gaps for future researches. We concluded that the framework could enrich the literature discussion in the field and be used by practitioners for the identification of paths to implement CE from the organizational culture perspective. In addition, the use of this framework could lead to the achievement of the sustainable development.     

Is eco-efficiency in greenhouse gas emissions converging among European Union countries?

Eco-efficiency refers to the ability to produce more goods and services with less impact on the environment and less consumption of natural resources. This issue has become a matter of concern that is receiving increasing attention from politicians, scientists and researchers. Furthermore, greenhouse gases emitted as a result of production processes have a marked impact on the environment and are also the foremost culprit of global warming and climate change. This paper assesses convergence in eco-efficiency in greenhouse gas emissions in the European Union. Eco-efficiency is assessed at both country and greenhouse-gas-specific levels using Data Envelopment Analysis techniques and directional distance functions, as recently proposed by Picazo-Tadeo et al. (Eur J Oper Res, 220:798–809, 2012). Convergence is then evaluated using the Phillips and Sul (Econometrica, 75:1771–1855, 2007) approach that allows testing for the existence of convergence groups. Although the results point to the existence of different convergence clubs depending on the specific pollutant considered, they signal the existence of at least four clear groups of countries. The first two groups are core European Union high-income countries (Benelux, Germany, Italy, Austria, the United Kingdom and Scandinavian countries). A third club is made up of peripheral countries (Spain, Ireland, Portugal and Greece) together with some Eastern countries (Latvia and Slovenia), while the remaining clubs consist of groups containing Eastern European countries.