energy security in asean a quantitative approach for sustainable energy policy abstract we investigate energy security of the association of southeast asian nations asean under the 4 a s framework the asean economic community aec agreement launched in 2015 renewed a regional focus on energy security and sustainability we employ an analytic framework to quantitatively assess progress in different categories including availability acceptability affordability and applicability key metrics include the documentation of co 2 emissions energy access measures and energy supply reserves from 2005 2010 we identify relevant energy indicators using high quality historical data from the iea and world bank we find that asean made little progress toward establishing energy security in the previous five year planning period 2005 2010 as it regressed in most categories except applicability therefore we suggest that increased development of renewable energy and energy efficiency technologies would move asean in a positive direction toward achieving energy security and sustainable energy policy goals

sense and no n sense of energy security indicators energy security ranks high on the policy agenda of many countries to improve on energy security governments undertake regulatory measures for promoting renewable energy increasing energy efficiency or curbing carbon dioxide emissions the impacts of such measures on energy security are typically monitored by means of so called energy security indicators in this paper we show that the common use of wide spread energy security indicators falls short of providing a meaningful metric regulatory measures to improve on energy security trigger ambiguous effects across energy security indicators we conclude that a major pitfall of energy security indicators is the lack of a rigorous microeconomic foundation

conceptualization of energy security in resource poor economies the role of the nature of economy abstract this paper studies how energy security is conceptualized in four resource poor advanced island economies singapore south korea japan and taiwan it is found that the energy security conceptualization of the four economies in effect returns to the very original and conventional one stable and reliable energy supply however these economies are different in the level of stability and reliability demanded why are they similar in energy security conceptualization whereas different in the level of stability and reliability demanded adopting documentation analysis comparative study and the varieties of capitalism theory we find that the nature of economy constitutes the decisive factor that shapes energy security conceptualization the coordinated market economies cmes are more concerned about energy supply disruption than the liberalized market economies lmes the paper demonstrates that despite numerous energy security concepts in the literature resource poor economies still adopt the original and conventional one in practice the findings suggest that security of supply is the top measure for resource poor economies to improve their energy security and creating a joint petroleum and lng market would be desirable for the four economies in this study

policy rivalry among industrial states what can we learn from models of strategic trade policy the economic theory of international trade has changed dramatically over the last decade by admitting into its mainstream a body of literature that focuses on the implications of monopolistic and oligopolistic elements in international markets by applying the tools of the new industrial organization in an international context two new classes of models have emerged models of intra industry trade and models of strategic trade policy the policy implications of models of strategic trade policy were quite disturbing for the economics profession since these models demonstrated that the classical harmony between national and cosmopolitan welfare maximization does not exist if one assumes opportunities for strategic manipulation of oligopolistic international industries this article reviews two prominent models of strategic trade policy the brander spencer model and the krugman model and relates them to more familiar earlier concepts such as stackelberg s asymmetrical duopoly solution and the venerable infant industry argument for government intervention the primary purpose of this article however is to provide a synopsis of the large literature addressing the question of whether models of strategic trade policy can give guidance for government policy

responding to public disclosure of corporate social irresponsibility in host countries information control and ownership control we extend the internalization literature by theorizing on how public disclosure of corporate social irresponsibility csi can damage reputation based firm specific advantages of multinational companies mncs and how foreign subsidiary governance can subsequently be used as strategic responses specifically we distinguish between two foreign subsidiary governance mechanisms information control and ownership control that the prior literature has often assumed operate in parallel and posit that they function in divergent directions in this context furthermore we explain how two host country characteristics press freedom and regulatory quality amplify the need for mncs to utilize different governance mechanisms as responses to csi disclosure

the return of the reciprocitarians us trade policy today we are always willing to be trade partners but never trade patsies president ronald reagan state of the union message washington 1987

the government procurement agreement implications of economic theory this paper analyzes the provisions of the new agreement on government procurement gpa drawing insights from trade theory and recent developments in the economics of information and law a central conclusion is that in a world where imperfectly informed procurers purchase from imperfectly competitive firms on behalf of imperfectly informed tax payers it is not easy to devise rules which would be optimal in all situations nevertheless the non discriminatory provisions of the gpa seem to approximate closely the rules which would maximize global welfare a significant benefit of the gpa is in helping to overcome national agency problems in procurement by creating mechanisms for reciprocal international monitoring supported by multilateral enforcement there is however scope for improvement first the gpa does not equip bidders for government contracts to vault over trade restrictions so the creation of genuine international competition for government procurement remains crucially dependent on the liberalization of trade secondly weaknesses remain in the enforcement mechanism these include the low level of compensation to a successful challenger the absence of restrictions on settlements and the lack of provision for challenge and review of bail outs the paper proposes certain improvements this abstract was borrowed from another version of this item

the economics of development a survey i the subject our definition of the subject will be the use of economic analysis to understand the economies of poor or developing countries this includes in particular how standards of living in the population are determined and how they change over time and further how policy can or should be used in the influence of these processes the definition contains in principle much or most of analytical methods in economics insofar as they can be put to use in the examination of the issues of interest this is as it should be but it poses a problem for a survey in a journal a comprehensive treatment is infeasible so we shall follow a different route the survey will focus on what i take to be the major themes and approaches which characterise the productive aspects of the subject there is therefore no pretence at being exhaustive the purpose is rather to highlight some of the advances many of these have been of real substance there are a number of possible purposes for a survey and it is important to be clear at the outset for whom it is intended what it is and what it is not this survey is addressed to economists and students of economics who know the tools of their trade but not necessarily how they have been applied to and fashioned for the analysis of the economics of developing countries it is a description of the ways in which problems can be productively formulated and approached in terms of examples chosen for their intrinsic importance and interest the vastness of the subject means that we have to be highly selective it does not seek to provide a summary evaluation of the current view of the appropriate response to immediate policy questions it is not a history of thought nor a research manifesto nor an attempt to adjudicate or settle the major debates where they arise naturally from the major purpose some judgements on these subjects will be offered but they do not themselves constitute the primary intent of this survey there are three lines of enquiry or sets of questions which have i suggest been distinctive of the most fruitful work in development economics they will

understanding the motivations behind the myanmar china energy pipeline multiple streams and energy politics in china abstract why exactly did china decide to construct the myanmar china energy pipeline while important for china s long term energy strategy very few studies have yet analyzed the project from the standpoint of china s domestic policy process this paper fills the gap by illuminating the broader historical context and presenting how this pipeline fits into energy politics in china the policy making process is fleshed out by using the multiple streams framework msf analysis of this case using msf shows that first local governments and scholars played a key role in facilitating the project especially in raising the proposal to the government agenda second a policy window remains an important element in china s energy policy decisions in light of the china myanmar pipeline idea was not taken seriously in the 1990s when it was first proposed third although this cross border energy project is part of a national strategy of energy security domestic political considerations such as promoting investment in china s underdeveloped southwest were also at work these conclusions are useful for understanding not only the motivations behind such transboundary pipeline projects but also china s energy decisions at large

energy security electricity population and economic growth the case of a developing south asian resource rich economy economic growth and increasing population is driving the demand for energy in developing economies globally including south asia energy security concerns have heightened in these economies consequently raising questions in their ability to meet the key sustainable development goals this paper specifically examines the inter relationships between energy security captured through the channel of electricity availability based on electricity consumption and economic output in a multivariate framework incorporating the effects of capital formation and population for nepal a developing economy in south asia time series econometrics based on the ardl bounds test approach to cointegration and the toda yamamoto granger causality tests are used to examine and test for long run equilibrium relationships and causality between 1975 and 2014 we find that there is no long run relationship between electricity consumption and economic output for nepal distinguishing it at the regional level for south asia however a 1 increase in population increases electricity consumption by 4 16 in the long run we propose that large scale development of available renewable energy such as hydropower and improvements in energy efficiency will not only strengthen energy security in the long run but also will help tackling climate change in south asian developing economies like nepal

bilateral treaties and the most favored nation clause the myth of trade liberalization in the nineteenth century textbook accounts of the anglo french trade agreement of 1860 argue that it heralded the beginning of a liberal trading order this alleged success holds much interest from a modern policy point of view for it rested on bilateral negotiations and most favored nation clauses with the help of new data on international trade the ricardo database the authors provide empirical evidence and find that the treaty and subsequent network of mfn trade agreements coincided with the end of a period of unilateral liberalization across the world they also find that it did not contribute to expanding trade at all this is contrary to a deeply rooted belief among economists economic historians and political scientists the authors draw a number of policy lessons that run counter to the conventional wisdom and raise skepticism toward the ability of bilateralism and mfn arrangements to promote trade liberalization

sustainable energy security for india an assessment of the energy supply sub system this paper undertakes part of the assessment of the sustainable energy security ses for india ses goes beyond energy supply and is a function of the aggregate energy system of a country including the energy demand and conversion and distribution sub system the supply sub system which consists of eight primary energy sources viz coal oil natural gas biomass hydro solar wind and nuclear has been evaluated for four dimensions of ses viz availability affordability efficiency and environmental acceptability using 16 selected metrics the dimensional indices are calculated for domestic and imported energy sources separately for the years 2002 2007 and 2012 results reveal that the ses index for oil has increased by 10 but it has decreased by 6 for gas from 2002 to 2012 while changes for other energy sources are marginal the overall supply sub system ses index is approximately 0 75 against an ideal value of 1 0 which reveal the shortfall from the desired value a sensitivity analysis reveals that the ses index is relatively robust to variation in weights the assessment provides a comprehensive way to track the performance of the energy supply sub system and can be used to design policy interventions for improving the overall ses index for india

chinese energy investments in europe an analysis of policy drivers and approaches abstract enhancing the understanding of china eu energy relations the article examines chinese energy investments in europe from 2008 to 2015 and analyzes the energy interests and policy approaches underpinning them analysis of this data shows that within the eu 30 chinese investments largely focused on the oil and gas sector especially through the acquisition of company shares chinese energy investments in europe reflect a clear political and commercial strategy that addresses the prc s need to balance supply chain security of fossil fuels environmentally friendlier energy production and use as well as to enhance the market position and energy industrial capabilities of chinese state owned or state supervised energy companies based on a comprehensive set of domestic incentives for international investment the chinese penetration of the european energy sector is embedded within two levels of political cooperation the first level revolves around bilateral investment agreements between china and 27 eu member states on the second level china and the eu have established a variety of formats that guide their energy cooperation the conclusion of the proposed bilateral investment agreement between the prc and the eu would create a uniform investment environment across the continent and facilitate mutual economic benefits for both parties

potential cooperation in renewable energy between china and the united states of america abstract china and the united states of america us are developing renewable energy concurrently in this paper we seek the opportunities for potential cooperation between these two countries based on the analysis of annual economic data a mathematical model has been established to characterize correlations among gdp carbon dioxide emissions energy prices and the renewable energy cooperation index based on statistical analyses such cooperation can promote economic development reduce carbon dioxide emissions improve the environment and realize green growth if us monetary and technology resources and chinese markets are combined benefits can be mutually gained

optimal embodied energy abatement strategy for beijing economy based on a three scale input output analysis abstract energy strategies in china s 11th and 12thzfive year plan failed to reduce the total energy consumption and misled the implementation of energy saving measures as they were focused towards the direct energy input as well as formulated based on incomplete energy consumption information therefore an optimal energy abatement strategy built on comprehensive information on overall embodied energy consumption is in urgent need adopting the three scale input output analysis this study uses beijing as a case to depict a specific urban economy s overall energy consumption impacted by local direct energy use domestic and foreign trade the results show that energy embodied in domestic trade dominated beijing s energy consumption while local direct energy is accounting for less than 1 3 of beijing s total embodied energy consumption the quantity of energy embodied in imports far exceeds that embodied in exports making the city a net embodied energy importer and indicating that policies considering direct energy use only will cause energy leakage problem these findings suggest that the current measures such as displacing energy intensive sectors to other regions lead to local reduction but overall rise moreover analysis for five abatement scenarios average intensity share absolute share discriminatory absolute and discriminatory intensity was carried out to figure out the optimal abatement strategy for beijing due to less loss of potential output it is found that intensity share scenario is the optimal one among all the scenarios concerned analysis in this study suggests that each region should break limits of self centered perceptions and multi scale governance for more appropriate responsibility assignment is recommended for overall energy abatement

resistance to reform status quo bias in the presence of individual specific uncertainty comment why do governments so often fail to adopt policies which economists consider to be efficiency enhancing our answer to this question relies on uncertainty regarding the distribution of gains and losses from reform we show that there is a bias towards the status quo and hence against efficiency enhancing reforms whenever some of the individual gainers and losers from reform cannot be identified beforehand there are reforms which once adopted will receive adequate political support but would have failed to carry the day ex ante the argument does not rely on risk aversion irrationality or hysteresis due to sunk costs jel d72 f13 why do governments so often fail to adopt policies that economists consider to be efficiency enhancing this is one of the fundamental questions of political economy the answer usually relies on what may be

evaluating energy security in the asia pacific region a novel methodological approach this paper establishes an energy security assessment instrument based on a new and expanded conceptualisation of energy security the instrument is a systematic interrogative tool for evaluating energy security of individual states or regions it consists of eleven broad energy security dimensions associated with the current global energy system these energy security dimensions take into account numerous quantitative and qualitative attributes of each country s energy security and policy and include both traditional energy security concerns and many new factors such as environmental socio cultural and technological another dimension largely absent from previous analyses is the existence of and the issues addressed in energy security policy in each country this instrument serves as an assessment system with which to evaluate energy security in the asia pacific region the existing studies on energy security in the asia pacific region suffer from serious limitations no study to date examines regional energy security policies by adopting a more comprehensive energy security definition as a starting point most studies also focus on a single country or issue even if they examine energy security in major regional economies they lack critical comparative analysis the instrument is valuable as it may be utilised to draw a comprehensive map of regional energy security situation which can also include comparative analysis of energy security characteristics across the asia pacific region ultimately it may be utilised to set up a framework for improved regional energy cooperation with the aim of providing regional leaders with a blueprint for improving regional energy security and policy

unintended consequences energy r d in a deregulated energy market abstract many advanced industrialized nations are substantially reducing their national public and private investments in energy research and development r d driven in part by changes occurring as a result of the deregulation of these nations energy sectors in particular funding for strategic energy r d aimed at developing future energy supply options eg fusion fission clean fossil energy renewable energy has been decreased substantially in both the public and private sectors in many of these nations these trends are now starting to be seen in the united states as it moves towards the deregulation of the nation s utilities the magnitude of the reductions in support for energy r d in the public and private sectors and the shift towards decidedly shorter term r d has profound implications for nations approaching deregulation though utility customers may be short term winners from the deregulation of utilities by paying less for energy a national failure to invest in energy r d is very likely to have long term negative impacts on national energy sectors the economies and environmental wellbeing

an analysis of import expansion policies an analysis of import expansion policies 1 introduction policy makers appear to display unlimited ingenuity in devising new and ever more complex measures to influence international trade no sooner did the profession come to understand the economics of trade restricting devices such as tariffs quotas and voluntary export restraints vers the discirminatory nature of vers has been recently noted and analyzed in dinopoulos and kreinin 1988 1989 then a new policy instrument was introduced christened by bhagwati 1987 as voluntary import expansion vie in several recent instances the united states insisted that japan voluntarily expand its import of certain products such as semiconductors or beef from the united states while the ver restricts the volume of trade below free market equilibrium the vie would expand the volume of trade beyond the equilibrium level but both policies depart from free trade equilibrium and both are discriminatory in nature a ver that limits japanese auto exports to the u s favors european suppliers who are excluded from the restriction their thems of trade improve and or their volume of export expands a vie that forces the japanese to import a minimum amount of semiconductors from the united states excludes european suppliers a similar vie on beef imports would discriminate against australian and argentinian suppliers it constitutes a form of export protectionism bhagwati and irwin 1987 how might a government administer a vie in the case of semiconductor imports by japan the possibilities are a subsidy by the japanese government on imports from the u s or an instruction to the large chip using companies in japan to purchase more american chips 1 alternatively the japanese government may buy u s chips for its own use or it may favor american suppliers in awarding contracts in the fall of 1987 certain japanese steel companies agreed under miti pressure to expand purchases of american coal even though it costs a7 per ton more than australian coal and in january 1988 1 an instance of a vie in the construction sector came to light japan had been under american pressure to permit u s construction companies to bid on large japanese public works projects like the kansai airport near osaka and the tokyo bay bridge such projects can amount to 70 billion in the next decade in response the japanese government proposed to permit joint foreign japanese companies to bid on these projects and give american companies preferential treatment in forming such partnership this paper analyzes the economic effects of a vie and whenever appropriate compares it to an export subsidy whereas the export subsidy is an instrument used by the exporting country the vie is a policy instrument employed by the importing country section ii presents a comparison between the two instruments within a two country general equilibrium framework when the offer curves are elastic section iii addresses the question of the optimum vie and compares it to the optimum tariff section iv analyzes the case when the offer curve of the vie administering country is enelastic another key distinction between a vie and an export subsidy is that the former is discriminatory between different trading partners while the latter is not section iv incorporates this feature by recasting the analysis in a three country general equilibrium framework section v states the conclusions of the paper ii view versus export subsidy a two country analysis with elastic offer curves in coventional trade geometry an export subsidy assumed as usual to be financed by a lump sum tax is shown by an outward shift namely an increase of the offer curve of the subsidizing country by contrast a graphical representation of a vie is more complex and is displayed in figure 1

interests ideology and institutions a review of bhagwati on protectionism jagdish bhagwati widely known as one of the most outstanding trade economists but in fact an economist of much wider range has turned in this little book to the political economy of international trade based on the inaugural ohlin lectures at the stockholm school of economics this book reflects a dramatic shift in the theory of commercial indeed of economic policy that has occurred in recent years a shift to which bhagwati himself has made a central theoretical contribution this shift has taken the form of changing the way in which the government and hence economic policy is considered and modeled in economic theorizing for many years economists have been working with the assumption of the absent colleague when a correct policy was not implemented because political obstacles were in the way the economist would say it is not for me to identify these political constraints let the political scientist turn his mind to such issues but the colleague in political science would do his own thing and economically correct policies remained unimplemented we only heard from time to time complaints about lack of political will but this is not a helpful notion the phrase sometimes suggests that the good intentions are there but somehow the will to give them expression is missing but it is hard to believe that intentions not manifested in any way other than proclamations exist the phrase then comes near to being a tautology for the absence of will is also the absence of the action to express this will one does not have to be a behaviorist to believe that will must be expressed in action so that if there is no action ipso facto there is no will alternatively it might give rise to an infinite regress it would be of no use to exhort those without the will to muster the will for if the will to action is absent the will to will the will will also be absent attention should have turned to how to create the political base the alliance or coalition of interests to implement the reform eventually economists themselves started to think about the political economy of policy making theorizing about the invisible hand of the market was now supplemented by reflections on the nasty invisible foot of interest groups that trampled on and destroyed the beautiful work of the invisible hand the earlier economic writings did however contain an implicit theory of the state on this theory the state and the government like platonic guardians looked after the common interest the general welfare of the community as a whole whenever markets failed governments stepped in to correct these failures whenever markets were inadequate to pursue desirable objectives other than efficient allocation such as income redistribution conservation of the environment or the pursuit of cultural values the government saw to it that these objectives were included bhagwati calls it the puppet government view for government acts like a puppet of the economists according to this view government could do no wrong the new theory of pubiic choice has swung to the opposite extreme government can do no right it is simply the executor of the selfinterested pressure groups on whose support it depends and whose rent seeking distorts economic activity in directions far away from an efficient or equitable allocation of resources it should be noted that bhagwati in his exploration of directly unproductive profitseeking dup activities has both widened the concept of rent seeking and narrowed the scope of its damaging effects by showing that pace the public choice school in a distorted economy additional rent seeking or revenueseeking can increase welfare bhagwati examines the ideology interests and institutions that influenced and conditioned for nearly half a century attempts at trade liberaliza

investor perceptions of financial misconduct the heterogeneous contamination of bystander firms we suggest that when one firm reveals financial misconduct others in the industry suffer lower valuations but do so heterogeneously to understand this heterogeneity we conceptualize such contamination as a generalization instantiation process investors generalize the culpability to the industry category and perceive the instantiation of generalized culpability within the industry bystander firms this theoretical separation allows us to hypothesize the factors that affect the degree to which both of these elements of the contamination process occurs specifically we predict that characteristics of the misconduct firm or event factors that lend to investors familiarity with the misconduct firms or that prompt attributions of blame for the misconduct affect the potency of the generalization of culpability to the industry while characteristics of the industry bystander firms investors familiarity with such firms or factors that lend to investors perceptions that they have strong governance affect the firms vulnerability to being perceived as instantiating the generalized culpability we tested our hypotheses on a sample of 725 firms across 84 financial misconduct events and the results of our event analyses broadly support our predictions our study thus has implications for future research on the social view of financial markets organizational misconduct and corporate governance

what determines china s crude oil importing trade patterns empirical evidences from 55 countries between 1992 and 2015 abstract this study develops a conceptual framework that synthesizes the supply demand price and openness of crude oil trade along with a list of traditional economic political and geographical factors to investigate the determinants of crude oil imports in emerging markets we test the framework using china s crude oil imports from 55 countries for the period from 1992 to 2015 using both static and dynamic panel data models we find that china s crude oil import is associated with exporting country s supply demand and price as well as its bilateral trade relationships these factors were found to affect china s import of crude oil from the middle east however only bilateral trade relationships affect its imports of crude oil from the asia pacific furthermore we do not find substantial evidence in this research to indicate that china s direct investment increases crude oil imports from those countries this article is part of a virtual special issue entitled comparing sustainable energy policies in northeast asia toward the harmonized public private partnership

energy security and sustainability in northeast asia abstract energy security has typically to those involved in making energy policy meant mostly securing access to oil and other fossil fuels with increasingly global diverse energy markets however and increasingly transnational problems resulting from energy transformation and use old energy security rationales are less salient and other issues including climate change and other environmental economic and international considerations are becoming increasingly important as a consequence a more comprehensive operating definition of energy security is needed along with a workable framework for analysis of which future energy paths or scenarios are likely to yield greater energy security in a broader more comprehensive sense work done as a part of the nautilus institute s pacific asia regional energy security pares project developed a broader definition of energy security and described an analytical framework designed to help to compare the energy security characteristics both positive and negative of different quantitative energy paths as developed using software tools such as the leap long range energy alternatives planning system

china s ongoing energy efficiency drive origins progress and prospects abstract in 2004 china s government launched a vigorous programme to reverse the trend of rising national energy intensity and to reduce intensity by 20 over the period 2006 2010 the aim of this paper is to examine this programme in the context of nearly 30 years of measures to enhance energy efficiency in china and thus to evaluate the likelihood that today s policies will yield improvements over a longer period the country achieved a sustained decline of energy intensity in the period 1980 2001 but this trend was reversed in 2002 this reversal arose from a shift in the structure of the economy to more energy intensive industries and from a decline in the rate of technical innovation the measures taken since 2003 have been directed principally at energy intensive industries but have also addressed other sectors of the economy though the energy intensity target for the year 2010 may be achieved greater efforts will be needed to address a number of constraints which include the reluctance to use economic and financial instruments the dependency of energy policy on industrial and social policies the nature of political decision making and of public administration a shortage of skills and social attitudes to energy

reciprocated unilateralism in trade policy abstract using the menu auction approach to endogenous determination of tariffs and allowing additionally for lobby formation itself to be endogenous this paper analyzes the impact of unilateral trade liberalization by one country on its partner s trade policies we find that such unilateral liberalization may induce reciprocal tariff reductions by the partner country intuitively unilateral liberalization by one country has the effect of increasing the incentives for the export lobby in the partner country to form and to lobby effectively against the import competing lobby there for lower protection

the threats to the world trading system intend to consider here the prospects for the gatt focused multilateral trading system the perils it faces and the promise it nonetheless holds the threats faced at present by the ga it arise from a variety of factors including changes in the world economy these changes have produced fissiparous tendencies gnawing at many of the basic principles embodied in the gatt recalling the preamble to the gatt and mindful of its central articles the following may justifiably be cited as the main principles of the gatt a fix rule trading regime is to be preferred to a fix quantity one in other words managed trade or results oriented trade which seeks quantitative targets of outcomes in trade instead of settling on rules and lettingchips fall where they may is to be rejected multilateralism where these trade rules extend without discrimination to all members of the trading regime is generally to be preferred to discriminatory arrangements markets are to be opened through conventional reduction in trade barriers and new disciplines are to be established by resort to mutuality and balance of concessions ruling out aggressive unilaterally determined demands for unrequited concessions that could come from the strong against the weak and in the same spirit of the rule of law the adjudication of dispute must be impartial pitting the strong against the weak in equal contest both the balance

the role of acquisitions in foreign direct investment evidence from the u s stock market this paper examines foreign direct investment by studying shareholder wealth gains for 1273 u s firms acquired during the period 1970 1987 three findings stand out first cross border takeovers are more frequent in research and development intensive industries than are domestic acquisitions furthermore in three fourths of cross border transactions the buyer and seller are in related industries these industry patterns suggest that costs and imperfections in product markets play an important role in foreign direct investment second targets of foreign buyers have significantly higher wealth gains than do targets of u s firms this cross border effect is comparable in size to the wealth effects of all cash and multiple bids two effects receiving substantial attention in the finance literature and is robust to inclusion of these two variables third while the cross border effect on wealth gains is not well explained by industry and tax variables it is positively related to the weakness of the u s dollar indicating a significant role for exchange rate movements in foreign direct investment

energy security in china a quantitative analysis and policy implications abstract this study aims to examine how china s energy security has changed over 30 years of reform and the opening period it constructs a 4 as quantitative evaluation framework the availability of energy resources the applicability of technology the acceptability by society and the affordability of energy resources the quantitative results show that china s energy security was at its best during the sixth fyp period 1981 1985 but then deteriorated until it hit higher levels between 1995 and 2005 however it was still lower than the level reached during the sixth fyp period during the eleventh fyp period 2006 2010 the energy security situation deteriorated again differences in policy priority over the study period appear to affect the country s energy security status this study suggests that china needs to develop renewable energy resources on a large scale and pay more attention to emissions control to reverse the downward trend in energy security

gatt safeguards and voluntary export restraints what are the interests of developing countries introduction trade in services and the multilateral trade negotiations agriculture in the uruguay round interests of developing countries gatt law agricultural trade and developing countries lessons from two case studies textiles and clothing in a new round of trade negotiations differential and more favorable treatment of developing countries and the international trading system balance of payments and related issues in the uruguay round of trade negotiations gatt safeguards and voluntary exports restraints what are the interests of developing countries international control of subsidies and countervailing duties export promoting subsidies countervailing threats and the general agreement on tariffs and trade

up the average cost curve inefficient entry and the new protectionism abstract a two country model is developed in which each country produces one good with increasing returns the goods being perfect or imperfect substitutes with cournot nash behavior and free entry certain restrictive trade policies have effects opposite to their favorable effect under noentry assumptions import tariffs and export subsidies lead to inefficient entry that raises rather than decreases the average production cost of and price charge by the domestic industry with negative welfare consequences we argue that these predictions of our model are closely consistent with extensive canadian data on entry exit and firms responses to trade liberalization

a theory of trade policy leadership abstract this paper constructs a two country model of bilateral trade negotiations in the presence of political uncertainty to demonstrate that unilateral trade liberalization may be an optimal policy for a large country the political uncertainty is due to producer opposition to trade agreement ratification in the foreign country unilateral liberalization by the home country has a salutary effect on negotiations because it mitigates the pain of potential ratification failure on the foreign country it also promotes foreign ratification because it effectively punishes foreign import competing producers for lobbying against an agreement these benefits are shown to outweigh up to a point the terms of trade cost that the home country must suffer when it actually liberalizes unilaterally in equilibrium therefore we see a pattern in which the home country unilaterally liberalizes for several periods until ratification in the foreign country succeeds at which point foreign country finally reciprocates we also demonstrate that contrary to the standard optimal tariff result there may be an inverse relationship between the home country s monopoly power and its optimal unilateral tariff

welfare effects of british free trade debate and evidence from the 1840s the classical economists engaged in a vigorous debate over whether britain s tariff reductions in the 1840s should be made contingent on tariff liberalization abroad some notably robert torrens believed that a unilateral tariff reduction would so deteriorate british terms of trade as to outweigh efficiency gains and make the country worse off in this paper britain s foreign trade elasticities are estimated for this period in a simultaneous equation model they are used in a simple general equilibrium model that explicitly takes the terms of trade into account to assess the welfare impact of tariff reductions the results indicate that britain would have been made worse off from a unilateral tariff reduction however foreign tariff reductions mitigated the terms of trade deterioration and could easily have made britain better off

evaluating energy security of resource poor economies a modified principle component analysis approach abstract this study proposes to aggregately measure energy security performance with the principal component analysis in its application of the methodology to four resource poor yet economically advanced island economies in east asia singapore south korea japan and taiwan this study establishes a novel framework to conceptualize energy security the framework incorporates three dimensions vulnerability efficiency and sustainability three indicators being allocated to each dimension the study finds that all the three dimensions are critical for the resource poor economies but have different weights in each of them an urgent task for these four economies is to implement energy efficiency and conservation measures liberalization of electricity sector can be a helpful tool to reduce energy consumption and increase efficiency all of them have been committed to promoting renewable energy development which shall be further expanded in these economies

corporate reputation s invisible hand bribery rational choice and market penalties drawing upon rational choice and investor attention theories we examine how accusations of corporate bribery and subsequent investigations shape market reactions using event study methodology to measure loss in firm value for public firms facing bribery investigations from 1978 to 2010 we found that total market penalties amounted to 60 61 billion we ran moderated multiple regression analysis to examine further the degree to which the unique characteristics of bribery explain variations in market penalties companies committing bribery in less corrupt host countries and with the involvement of compromised executives experienced greater market penalties than did other companies after partitioning share value losses into components for regulatory penalties class action settlements and loss to reputation we found that reputational penalties account for 81 8 of every dollar of share value loss omission of reputational penalties in rational choice calculus underestimates bribery costs by 4 5 times the results suggest that firms should not underestimate the importance of market imposed reputational penalties by merely considering regulator imposed fines and sanctions

fossil fuel dependence and vulnerability of electricity generation case of selected european countries abstract this paper analyses the diversity of fuel mix for electricity generation in selected european countries and investigates how the fuel bill has changed as a share of gdp between 1995 and 2005 the drivers of fuel dependence related vulnerability are determined using laspeyres index decomposition a what if analysis is carried out to analyse the changes in the vulnerability index due to changes in the drivers and a scenario analysis is finally used to investigate the future vulnerability in the medium term the paper finds that the british and the dutch electricity systems are less diversified compared to three other countries analysed the gas dependence of the dutch and italian systems made them vulnerable but the vulnerability increased in all countries in recent years gas price and the level of dependence on gas for power generation mainly influenced the gas vulnerability the united kingdom saw a substantial decline in its coal vulnerability due to a fall in coal price and coal dependence in electricity generation the scenario analysis indicates that uk is likely to face greater gas vulnerability in the future due to increased gas dependence in electricity generation and higher import dependence

industrial strategy a missing link in british economic policy this paper critically analyzes the potential and limitations of economic instruments for environmental protection it presents a general framework for analyzing environmental issues along with a taxonomy for classifying different approaches to environmental protection a key contribution of the paper is to identify critical steps in marketing economic incentive approaches for environmental protection the challenge to researchers is to design tools that will help achieve environmental goals more effectively this means taking careful account of political technical and economic constraints in system design copyright 1993 by oxford university press

is energy security a driver for economic growth evidence from a global sample abstract this study examines whether energy security contributes to economic growth for a global sample of 74 countries covering the period from 2002 to 2013 the benchmark model is built based on an extended version of the cobb douglas production function ten measures of energy security are employed to capture five aspects of energy security including availability accessibility acceptability affordability and develop ability besides the whole sample we also conduct the panel data analysis on subsamples of countries based on different income levels using panel corrected standard errors pcse and feasible generalized least squares fgls techniques that correct for heterogeneity and autocorrelation and produce robust standard errors the empirical results appear to be relatively robust to these two estimation techniques overall we find that energy security enhances economic growth for both the whole sample and subsamples of countries meanwhile energy insecurity measured by energy intensity and carbon intensity variables has a negative impact on economic growth the results vary across subsamples for several cases the findings imply that at the global level energy for economic development energy security and climate change mitigation should be pursued as integrated themes since there are linkages among these three agendas

procompetitive gains from trade and comparative advantage having made the concepts of pro or anticompetitive output changes precise necessary and sufficient conditions for trade gains are derived under conditions of increasing returns to scale and imperfect competition in a general equilibrium model with any finite number of goods and factors these conditions yield generalizations of the theorems of comparative advantage in goods and implicit factor trade the factor content version of the h o theorem other generalizations can be obtained if one assumes quasihomothetic preferences and that welfare effects are dominated by price rather than income effects copyright 1996 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

retrospectives challenges to free trade the recent theoretical literature on strategic trade policy suggests that government intervention in international trade has the potential to be welfare improving government promotion of exports from imperfectly competitive industries for example may enable domestic firms to capture economic rents from foreign firms thereby increasing national welfare in addition active responses to foreign protection by a policy of reciprocity may be required to prevent a loss of domestic welfare although these findings may bring into question the traditional economic case for free trade many economists doubt that these theories provide sound guidance for trade policy economists in the nineteenth century also argued about whether theoretical justifications for tariffs compromised the case for free trade this paper discusses two older debates somewhat related to the current focus on strategic industries and reciprocity and concludes with an observation about how developments in economic theory affect economists view of policy

the impact of energy price uncertainty on macroeconomic variables abstract this paper evaluates the macroeconomic implications of energy price volatility through the lens of a dynamic stochastic general equilibrium dsge model in an open economy the model develops a small open economy in which households consume energy products and firms use energy as productivity inputs where the country is so small that it needs to import energy the price of which is determined abroad whereas positive energy price shocks cause an economic slowdown due to higher costs for consumers and firms energy price volatility shocks generate an increase in gdp in the short run and a reversal in the long run these findings are empirically supported by estimates from a panel var model applied to 10 asian economies where energy price volatility has a positive impact on gdp in the short run moreover the paper finds that increasing demand or supply uncertainty also affect energy prices with amplified fluctuations relative to a model that abstracts from energy market volatility leads households to cut consumption for precautionary savings motives which in turn increases investment both energy price and uncertainty fluctuation lead to high macroeconomic volatility in the business cycle policy makers should encourage investment in energy security and renewable energy such that households and firms would become less responding to fluctuations in the non renewable energy market

fair trade and harmonization of climate change policies in europe abstract in march 2000 the european commission presented a green paper on greenhouse gas emissions trading within europe supporting implementation of a community wide scheme in which the design and regulation of all essential elements would be harmonized at the community level the present paper analyzes economic arguments used to justify such a coordinated scenario showing these arguments to be based on misleading rhetoric about fair trade and harmonization diverse allocations of emissions allowances across member states are justified in theory in practice too no empirical evidence or model based results demonstrate that an uncoordinated european trading scheme would adversely affect competitiveness to any significant extent or substantially increase industrial relocations

the unnatural and retrograde order adam smith s theories of trade and development reconsidered this paper extends some new interpretations of adam smith s theory of trade by reconciling what have previously been regarded as his three separate theories of absolute advantage market widening and vent for surplus however this reconstruction of smith s trade theory is shown to be inconsistent with his theory of the natural stages of economic development in book iii of the wealth of nations rather the interpretation of smith s trade theory proposed here is more consistent with smith s analysis of the unnatural and retrograde order which was the actual development path of western europe

evaluation of electricity supply sustainability and security multi criteria decision analysis approach abstract electricity supply plays a significantly important role in national economy and society development accordingly the evaluation of electricity supply sustainability and security as an early warning method is beneficial for the decision makers policy makers to take various measures to enhance electricity supply sustainability and security this study aims at developing a multi criteria decision analysis framework for electricity supply sustainability and security evaluation and a total of nine metrics i e shannon weiner index electricity import dependence supply adequacy rural electrification rate electric power losses ratio residential consumption ratio electricity per gross domestic product electric power consumption per capita and fossil fuel dependence in four dimensions including availability and security of supply affordability and reliability energy and economic efficiency and environmental stewardship were employed for electricity supply sustainability and security evaluation fuzzy analytic hierarchy process which allows the users to use linguistic terms to express their opinions was used to determine the weights of the criteria which represent their relative importance in the evaluation of electricity supply sustainability and security grey rational analysis was used to prioritize the status of electricity supply sustainability and security of different countries in different years the electricity supply sustainability and security of the five major emerging national economies brazil russia india china and south africa was studied in chinese perspective by the proposed method

indicators for energy security the concept of energy security is widely used yet there is no consensus on its precise interpretation in this research we have provided an overview of available indicators for long term security of supply sos we distinguished four dimensions of energy security that relate to the availability accessibility affordability and acceptability of energy and classified indicators for energy security according to this taxonomy there is no one ideal indicator as the notion of energy security is highly context dependent rather applying multiple indicators leads to a broader understanding incorporating these indicators in model based scenario analysis showed accelerated depletion of currently known fossil resources due to increasing global demand coupled with increasing spatial discrepancy between consumption and production international trade in energy carriers is projected to have increased by 142 in 2050 compared to 2008 oil production is projected to become increasingly concentrated in a few countries up to 2030 after which production from other regions diversifies the market under stringent climate policies this diversification may not occur due to reduced demand for oil possible benefits of climate policy include increased fuel diversity and slower depletion of fossil resources

shaping china s energy security the impact of domestic reforms this paper is a subsequent study of china s energy security situation which concludes that china s energy security has not improved over 30 years of economic reform the objective of the study is to explore qualitatively why the energy security situation has not improved to answer the why question the study opens up a new perspective by analyzing the relationship between energy security and energy policies from the macroeconomic reform perspective this study discusses major reforms that took place over 30 years it is found that china s macroeconomic reform has restricted the formation of china s energy policies and determined its energy security situation in essence china s energy policies are only a reaction to the macroeconomic measures in other words china s energy policies are not originally intended to improve energy security but passive reactions to china s macroeconomic reform this explains why china did not improve its energy security situation despite 30 years of reform

environmental pollution and world trade abstract in this paper we present a model that highlights the relationship between international trade and environmental pollution it includes a small open economy that produces a domestic composite good and imports another composite good and energy products the pollution is created by local production global production and transportation given this model we demonstrate that free trade within the current political and economic context may produce a suboptimal level of welfare the rationale is based upon the argument that transportation is energy intensive and that therefore trade itself is a source of pollution consequently under certain global conditions the introduction of an energy tariff in a small open economy raises social welfare and is superior to free trade a consumption tariff adopted by a single nation will not have similar consequences because it has no impact upon local usage however when a consumption tariff is globally adopted there is the opportunity for a net benefit finally we argue that a global tariff that raises both the price of energy and the price of the imported composite good may generate the greatest increase in welfare by reducing both energy intensive production and energy intensive trade

the east asia challenge to neoclassical orthodoxy abstract this article reviews the east asian miracle economic growth and public policy which concludes that east asian economic success has little to do with government using criteria similar to that used in the world bank report this study shows that contrary to world bank contention industrial policies used in east asian economies have been effective non neoclassical tools for economic development with government complementing market factors by creating an environment conducive to economic growth given that japan and korea are the most representative examples of industrial policies and that the report seems to acknowledge the success of the japanese industrial policies the present study confines itself largely to a discussion of korean evidence

free trade fair trade strategic trade and protectionism in the u s congress 1987 88 what conditions led the one hundredth congress of the united states to enact fair trade and strategic trade policies into law during 1987 88 political partisanship is an important force with democrats supporting and republicans opposing all types of trade intervention otherwise the coalitions of support for and opposition to the various trade policies differ particularly in the senate in that body international business is associated with support for fair trade policies and with opposition to classical protectionism while domestic u s business is associated with support for classical protectionism liberalism is strongly associated with support for fair and strategic trade policies but is not associated with classical protectionism in the house of representatives the long standing protectionist coalition remains an influence few forces in support of free trade remain in u s politics changing international market conditions rapidly affect the making of u s trade policy

rethinking classical trade analyses within a framework of capitalist development a classical trade theory which comprises smith s productivity theory ricardo s reasoning against the corn laws torrens s argument for extended colonisation and mill s recommendation to send capital abroad is advanced it portrays england s economic expansion in the nineteenth century lacunae exist however because of these economists belief in the automatic spread of industries to the agricultural countries and their inattention to the economic advances made by the late coming capitalist countries as well as the impact of england s capital exports on the capital importing countries subsequent researches which address these and which relate to current debates on theories and policies are discussed 1996 academic press limited

non transboundary pollution and the efficiency of international environmental co operation abstract the standard view is that situations where no transborder environmental externalities occur are most efficiently dealt with by national environmental policies rather than by international co operation though this may be the general case non coordinated national policies do not always produce the most efficient international allocation this paper presents four cases in which the allocative outcome of non coordinated domestic policy choices can be improved upon by international environmental co operation the first case refers to the use of environmental policy as a strategic trade instrument the other cases refer to the existence of discrete technologies set up costs and increasing returns to scale the form of international environmental co operation should be adapted to the situation formal international agreements between countries are characterised by high transaction costs and may not always be the most efficient form of co operation

free trade old and new challenges the paper analyses the old and new challenges to the theory and policy of free trade the old challenges have sought to undermine the case for free trade by citing one or another type of market imperfection thus the postwar period has seen two such challenges factor market imperfections were analysed in the 1950s to 197os product market imperfections in the i980s the new challenges are twofold one comes from the demands for fair trade as a precondition for free trade the other from the concern that free trade while efficient immiserises the unskilled in the richer countries having given a harry johnson lecture four years ago in london i was startled to be invited to give yet another one today but then i recalled his unmatched productivity his articles continued to be published even after his death the pipelines in several journals being full of them it is only appropriate then that he be honoured many times over also in these days of preoccupation with increasing returns to scale such a proliferation of lectures in the memory of a great economist is doubly fitting since harry johnson was in the english tradition of taking his theory from the real world s problems and then taking it back to talk penetratingly about them i thought it appropriate to address the earlier johnson lecture to the threats posed currently to the multilateral trading system by increasing resort

how oil prices affect east and southeast asian economies evidence from financial markets and implications for energy security abstract oil prices have been volatile to investigate how oil price swings affect asian economies this paper examines how they affect industry and aggregate stock returns economic theory implies that there is a strong link between a sector s stock return and its economic activity evidence presented here indicates that sectors such as airlines food and industrial transportation are harmed by oil price increases and that sectors such as oil and gas production and exploration benefit the findings also reveal that many industries within each country are impacted by oil prices the paper concludes by offering several suggestions to help asian economies weather the effects of oil price changes and increase energy security

fostering a renewable energy technology industry an international comparison of wind industry policy support mechanisms this article examines the importance of national and sub national policies in supporting the development of successful global wind turbine manufacturing companies we explore the motivations behind establishing a local wind power industry and the paths that different countries have taken to develop indigenous large wind turbine manufacturing industries within their borders this is done through a cross country comparison of the policy support mechanisms that have been employed to directly and indirectly promote wind technology manufacturing in 12 countries we find that in many instances there is a clear relationship between a manufacturer s success in its home country market and its eventual success in the global wind power market whether new wind turbine manufacturing entrants are able to succeed will likely depend in part on the utilization of their turbines in their own domestic market which in turn will be influenced by the annual size and stability of that market consequently policies that support a sizable stable market for wind power in conjunction with policies that specifically provide incentives for wind power technology to be manufactured locally are most likely to result in the establishment of an internationally competitive wind industry

is free trade passe abstract if there were an economist s creed it would surely contain the affirmations i understand the principle of comparative advantage and i advocate free trade yet the case for free trade is currently more in doubt than at any time since the 1817 publication of ricardo s principles of political economy and this is due to changes that have recently taken place in the theory of international trade while new developments in international trade theory may not yet be familiar to the profession at large they have been substantial and radical in the last ten years the traditional constant returns perfect competition models of international trade have been supplemented and to some extent supplanted by a new breed of models that emphasizes increasing returns and imperfect competition these new models call into doubt the extent to which actual trade can be explained by comparative advantage they also open the possibility that government intervention in trade via import restrictions export subsidies

safety crises and r d outsourcing alliances which governance mode minimizes negative spillovers abstract this study examines how r d alliance governance affects both the probability and magnitude of negative spillovers triggered by a partner s safety crisis i show that hierarchical governance leads to a lower probability that a partner will suffer a crisis and thus trigger a negative spillover yet this governance mode leads to negative spillovers of greater magnitude should they happen because expected spillover costs are calculated as the probability of occurrence times the magnitude of such costs it is not clear which governance mode best minimizes expected spillover costs i combine transaction costs economics and signaling theory to develop a contingency model that identifies which effect is more likely to dominate as a way to address the reported dilemma i found evidence in support of the described dilemma and the contingency model in a sample of 296 r d outsourcing alliances in the biopharmaceutical industry

international r d rivalry and industrial strategy this paper presents a theory of government intervention which provides an explanation for industrial strategy policies such as r d or export subsidies in imperfectly competitive international markets domestic net welfare is improved by the capture of a greater share of the output of rent earning industries although the subsidy ridden noncooperative international equilibrium is jointly suboptimal behaviour of governments and firms is modelled as a three stage subgame perfect nash equilibrium the assumption that the government is the first player in this game allows it to influence equilibrium outcomes by altering the set of credible actions open to firms

strengthening of energy security low carbon growth in asia role of regional energy cooperation through trade abstract prudent demand supply management of energy is pivotal for the energy security of the countries and transitions towards the sustainable low carbon energy system this study empirically investigates the existing demand supply gaps of energy in the south though east asian stea countries and analyzes how the gaps can be minimized most efficiently through intraregional energy trade stochastic frontier gravity model extended with the determinants of efficiency models used for both primary energy and renewable energy goods reg trade the result implies that for most of the countries intraregional export of primary energy as well as reg are positively influenced by gross domestic products gdp of the exporting and importing countries tariff and distance adversely affect the exports while the implication of cross exchange ratio seems minimal in both cases regional trade agreements rta are also found to have notable positive impact on intraregional trade results show that china and thailand are the most efficient in this intraregional primary energy export while bangladesh and myanmar remain the least efficient china and japan are the most efficient in reg exports while bangladesh remains the least efficient on average the whole region has the weighted export efficiency of 56 5 in intraregional primary energy trade and 63 1 in reg trade the determinants of efficiency model reveals that institutional quality better infrastructure goods market efficiency and technological readiness have reasonable impacts to enhance the countries intraregional energy trade efficiencies

the international economics of intellectual property right protection a welfare theoretic trade policy analysis abstract this paper provides an analytical construct for examining the trade policy effects of greater intellectual property protection in technology importing countries it is shown that two types of conflict are likely to arise between net technology importers and exporters the first relates to the level of protection with importers preferring a low level and exporters a high one the second conflict hitherto unexplored relates to the manner of protection with importers likely to prefer discriminatory regimes favoring local r d creation whereas exporters would prefer nondiscriminatory protection in importing countries

emerging differences in state grain trading australia and canada the australian wheat board awb and canadian wheat board cwb have attracted attention recently because they are two of the largest state trading enterprises stes engaged in agricultural trade they have traditionally been viewed as nearly sister agencies among major stes in the world market these two agencies historically had similar characteristics including price pooling cost pooling export sales monopolies monopoly powers within domestic markets grain quality control and government underwriting of initial producer prices and export credit however during the past 6 years similarities between the awb and cwb have begun to diverge and the importance of their differences is becoming increasingly apparent this paper identifies major emerging differences between the awb and cwb and explores potential explanations hypotheses for these dissimilarities a major point is that reforms in institutional design and legislative changes have given rise to emerging differences in key aspects of the marketing systems and performance

energy and food security linkages through price volatility abstract this study examines the linkages between energy price and food prices over the period 2000 2016 by using a panel var model in the case of eight asian economies our results confirm that energy price oil price has a significant impact on food prices according to the results of impulse response functions agricultural food prices respond positively to any shock from oil prices our results show that there is a linkage between energy and food security through price volatility since inflation in oil price is harmful for food security it would be necessary to diversify the energy consumption in this sector from too much reliance on fossil fuels to an optimal combination of renewable and nonrenewable energy resources that will be in favor of not only the energy security by also the food security in addition the paper found that the impact of biofuel prices on food prices is statistically significant but explains less than 2 of the food price variance however by increasing the demand for biofuel there should be more concern about the global increase in agricultural commodities prices and endangering food security especially in vulnerable economies