Consequences of Economic Partnership Agreements between East and Southern African Countries and the EU for Inter- and Intra-regional Integration

Abstract

The European Union is currently negotiating Economic Partnership Agreements (EPAs) with six African, Caribbean and Pacific country groupings, aiming at establishing mutual free trade. This paper empirically assesses the impact of the EPAs on trade flows and government revenues for 22 East and Southern African countries and discusses implications for intra-regional integration. The results indicate that while moderate trade effects can be expected, relatively large budget effects are likely to occur in a number of these countries, exposing them to considerable structural and financial adjustment requirements. In addition, EPAs would strengthen the need to consolidate overlapping intra-regional integration schemes.     

基于GIS与AHP法的河南省经济格局时空分异研究

［目的］研究区域经济格局对揭示经济发展空间演变机制和实现区域可持续发展具有重要的意义。文章以粮食生产核心区——河南省为例,通过定量刻画其济格局时空分异特征,明确河南省经济格局的发展态势和演化特征,为河南省经济发展提供参考。［方法］文章采用GIS空间分析和AHP方法,通过建立经济评价指标体系,基于2010—2015年河南省的统计年鉴数据评价其经济格局分异特征。［结果］（1）总体上,河南省国民生产总值持续增长,经济发展持续向好,但经济增速逐年放缓。（2）河南省经济空间格局先后经历了“八”字形、“一”字形演变特征,并逐步形成以郑州为中心的“十”字形经济空间格局。（3）全省中高经济发展水平城市数量增多,各地市经济发展的差异逐步缩小。［结论］河南省经济内部差异呈下降趋势,全域经济带动效益开始显现,应强化城市辐射效应,并加强对更小尺度经济格局演变的研究。     

Assessing skewness in financial markets

It is a matter of common observation that investors value substantial gains but are averse to heavy losses. Obvious as it may sound, this translates into an interesting preference for right-skewed return distributions, whose right tails are heavier than their left tails. Skewness is thus not only a way to describe the shape of a distribution, but also a tool for risk measurement. We review the statistical literature on skewness and provide a comprehensive framework for its assessment. Then, we present a new measure of skewness, based on the decomposition of variance in its upward and downward components. We argue that this measure fills a gap in the literature and show in a simulation study that it strikes a good balance between robustness and sensitivity.     

Product Market Competition,Information and Earnings Management

We study theoretically the effect of product market competition on the incentives to engage in earnings manipulation, and we show how manipulating earnings is particularly rewarding in more competitive markets since the boost in market value of reporting good earnings is especially important. Using a panel dataset of about 70,000 observations spanning the period 1989–2011, we document that the competitive environment is an important determinant of Jones type discretionary accruals and it also affects real earnings management. In additional analysis, we find that the effect of competition on earnings manipulation is particularly important for companies that seem to be underperforming their competitors and that the competition‐earnings management linkage is moderated by the degree of information visibility at the industry level.     

Effect of ownership structure on underinvestment and overinvestment: empirical evidence from Spain

This paper investigates how ownership affects the investment‐cash flow sensitivity by taking into account the non‐linearities of ownership with respect to firm value, and using a free cash flow index and a criterion for financial constraints to disentangle underinvestment and overinvestment. Interesting results are provided by estimating using the Generalized Method of Moments to eliminate the endogeneity problem. The alignment of interests between owners and managers and the monitoring by concentrated ownership both alleviate the sensitivity of investment to cash flow both in underinvestor and overinvestor firms. However, in the presence of controlling owners, underinvestment and overinvestment are exacerbated.     

Conditions and benefits of applying decision technological solutions as a tool to curb corruption within the procurement process: The case of Hungary

Unethically influencing a decision maker is as old as civilization. Corruption is an especially damaging phenomenon in the field of public procurement. Experiences in curbing procurement corruption in Hungary, a former Eastern-block country which recently joined the EU, strengthens the view that by raising the level of evaluation practices through the use of decision support methodologies that can serve to narrow the possible damaging effects of corruption. This outcome may be achieved if legal regulations provide a supportive frame and organizational culture can be shaped to accommodate new decision practices.     

China trade: Busting gravity's bounds

Since China's accession to the World Trade Organization in 2001, annual growth rates of its imports and exports have increased, and raised tensions between China and some of its major trading partners. Using a gravity model of trade, we find that China's orientation toward foreign trade is much greater than expected for an economy of its size and level of development. Our analysis shows that China's excessive orientation toward foreign trade (“over-trading”) varies substantially across countries and we consider various explanations for the over-trading. A comparison of China's export boom with the earlier export booms of more market-based East and Southeast Asian economies shows that China's export boom has exceeded earlier booms in magnitude but not in duration. We conclude with a discussion of the likely scale of future export and import flows from and to China.     

The Basic Analytics of Access to Financial Services

Access to financial services, or rather the lack thereof, is often indiscriminately decried as problem in many developing countries. This paper argues that the “problem of access” should rather be analyzed by identifying different demand and supply constraints. We use the concept of an access possibilities frontier, drawn for a given set of state variables, to distinguish between cases where a financial system settles below the constrained optimum, cases where this constrained optimum is too low, and—in credit services—cases where the observed outcome is excessively high. We distinguish between payment and savings services and fixed intermediation costs, on the one hand, and lending services and different sources of credit risk, on the other hand. We include both supply and demand side frictions that can lead to lower access. The analysis helps identify bankable and banked population, the binding constraint to close the gap between the two, and policies to prudently expand the bankable population. This new conceptual framework can inform the debate on adequate policies to expand access to financial services and can serve as basis for an informed measurement of access.     

ASSESSING THE ASSESSMENT OR,THE RAE AND THE OPTIMAL ORGANIZATION OF UNIVERSITY RESEARCH

The UK Research Assessment Exercise (RAE) is assessed as an incentive scheme affecting the allocation of research talent of varying ‘quality’ across departments. The ‘centres of excellence’ policy implicitly pursued through the RAE is an optimal allocation strategy only if all departments in all disciplines are of the generalist variety, i.e. each pursues a research path through all its stages. Conversely, the RAE‐induced research allocation minimizes efficiency if applied to specialist departments, when resources are concentrated on one specific research obstacle. It is argued that the RAE should not take the organization of University research as exogenous, but rather should encourage specialization. All results are obtained by applying to University research concepts and solutions borrowed from the mathematical theory of systems reliability.