WHITHER GERMANY AND THE EMU IN A CHALLENGING ENVIRONMENT?*

While the German economy may currently be a bright spot in Europe, it has faced substantial challenges in recent years. Moreover, tensions are rising regarding Germany's responsibilities and opportunities as a member of the European Monetary Union. Other studies have documented the difficulties that Germany has encountered as a result of the unification and further integration of Europe. This paper adds to that literature by using an aggregate translog cost function approach to examine the relationships among inputs of domestic capital and labour and imports. Our findings indicate that the input pairs of capital‐labour and labour‐imports are substitutes. The substitutes relationship between labour and imports, which has become stronger over time, suggests that increasing globalisation will add to Germany's unemployment woes. Capital and imports appear to be weak complements, but that relationship is not statistically significant. The results also suggest that imports are playing an increasingly important role in Germany's aggregate production, accentuating the role of the international environment.     

MAQUILADORA RESPONSE TO U.S. AND ASIAN RELATIVE WAGE RATE CHANGES

ThiS paper investigates whether the output of the Mexican maquiladoras is an alternative to production in the Pacific Rim. The analysis involves estimating supply functions for Mexican maquiladora output using relative wage data for Mexico, Singapore, and the United States. It also involves estimating the impact of relative wage rates on maquiladora output in five industries as well as on more aggregated levels. Results indicate that production in Mexico and in the Pacific Rim are substitutes, although this relationship is stronger for some industries than for others.     

Exclusion and Difference along the EU Border: Social and Cultural Markers,Spatialities and Mappings

Both notions elaborated in this article, exclusion and the border, are cultural constructs which can take on different meanings in different milieux. In order to understand socio‐cultural exclusion in the context of EU integration and new centralities created by globalization, the project presented here addressed social, cultural and spatial exclusion in peripheral EU border cities and islands. This article focuses on how borderland residents experience socio‐cultural exclusion of ‘others’ and of themselves, and forge their spatialities and mappings. It makes distinctions on several levels: geographically, between external and internal EU borders, between ‘transborder’ and ‘bounded’ field sites and between variations of spatialities and mappings; culturally, between boundary gateways and walls, and between socio‐cultural and spatial exclusion, isolation and insularity; anthropologically, between social and cultural markers dividing the subject and the ‘other’. Local experiences and spatialities along the border were found to be complex and often in conflict with dominant definitions and preconceptions. This, along with the multiple levels of exclusion and difference found on the EU border, has implications for research priorities and policy restructuring. Les deux notions détaillées dans cet article, exclusion et frontière, sont des concepts culturels qui peuvent prendre un sens différent en fonction du milieu. Afin d’appréhender l’exclusion socioculturelle dans le cadre de l’intégration européenne et des nouvelles centralités créées par la mondialisation, le projet traite l’exclusion sociale, culturelle et spatiale dans les villes et îles situées à la périphérie de l’UE. Il s’attache à la façon dont les résidents frontaliers vivent une exclusion socioculturelle des ‘autres’ et d’eux‐mêmes, tout en établissant leurs spatialités et leurs cartographies. Plusieurs plans sont identifiés: un plan géographique, entre frontières internes et externes de l’UE, entre sites ‘transfrontaliers’ et territoires ‘délimités’, et entre divergences de spatialités et de cartographies; un plan culturel, entre accès et remparts frontaliers, et entre insularité, isolement et exclusion socioculturels et spatiaux; un plan anthropologique, entre les repères sociaux et culturels qui séparent le sujet de ‘l’autre’. Le long de la frontière, spatialités et expériences locales se sont révélées complexes et souvent en opposition avec les définitions et a priori dominants. Cet aspect, allié aux multiples niveaux d’exclusion et de différence découverts sur la frontière européenne, influence les priorités de recherches et la restructuration des politiques.     

FIRM SIZE AND EFFICIENCY IN THE SOUTH AFRICAN MOTOR VEHICLE INDUSTRY*

The South African motor vehicle industry has historically been considered a critical industry in the South African economy and the target of numerous government policies designed to protect it and/or increase its international competitiveness. This study examines the cost performance of firms in this industry according to their size, using data categorised by output level. The results are consistent with statistically significant economies of scale at the lowest output levels and a cost inefficiency averaging from about seven to nine per cent for all firms. The findings also suggest that all else equal, the smallest firms and the largest firms have lower unit costs than mid‐sized firms. While this work suggests that policies that would give incentives for the smallest firms to increase their scale of operations might help to reduce their unit costs, further investigation needs to be done with respect to why firms in the mid‐level size categories appear to be less efficient.     

CHALLENGES FOR FRANCE IN THE EMERGING INTERNATIONAL ENVIRONMENT: A DYNAMIC ANALYSIS

France faces substantial challenges as the economic integration of Europe and the international economy continues. This article uses a dynamic aggregate translog cost function with inputs of capital, labor, and imports to examine the likely impact of closer world economic ties on France. This technique allows one to estimate short- as well as long-run direct price elasticities of demand for the inputs and cross-price elasticities for each respective input pair. The findings of the article include that (1) the French economy is becoming more sensitive to changes in import prices and (2) all the inputs are substitutes for one another. These results suggest that continuing international economic integration will present substantial challenges to the French economy. The short-run estimates of direct and cross-price elasticities are consistent with the Le Châtelier principle, except for the cross-price elasticities between capital and labor. Some possible reasons for the latter result are discussed in the article. (JEL F14, O10, O12)     

NAFTA AND THE MAQUILADORAS: BOON OR BANE?

This article examines the factors that affect the value added of the maquiladoras as a group as well as the apparel, electrical equipment, food, furniture, and motor vehicle equipment industries. It also explores the impact of the North American Free Trade Agreement (NAFTA) on the maquiladoras. The economic variables of relative wage rates, relative prices between Mexico and the United States, and U.S. real gross domestic product generally appear to have their expected effects. However, with the possible exceptions of the clothing and electrical equipment industries, this study suggests that NAFTA had either a negative impact or no effect on the maquiladoras. ( JEL F14, 054)