applied general equilibrium models of taxation and international trade an introduction and survey we wish to acknowledge the help of three referees and of john pencavel on several earlier drafts as well as the assistance of the modelers whose work is referred to in the paper they corrected our lack of understanding of their work and provided many other helpful comments excellent research and bibliographical assistance have been provided by debbie fretz radwan shaban and janet stotsky helpful comments have been made by charles ballard michael boskin lans bovenberg sylvester damus harvey galper glenn harrison gordon lenjosek jack mutti serena ng t n srinivasan charles stuart and eric toder the authors also acknowledgefinancial support from the national bureau of economic research the national science foundation international business machines and the social sciences and humanities research council ottawa canada

general equilibrium effects of the u s generalized system of preferences this paper presents results from a general equilibrium computational model of the production employment trade and price effects of the united states scheme of the generalized system of preferences gsp the u s gsp introduced in 1976 provides for the suspension of import duties on u s imports of many industrial and semi industrial products from selected less developed trade partners this program was developed under the auspices of the united nations conference on trade and development unctad with the intention of stimulating industrialization and to encourage economic diversification of its beneficiaries through export growth previous studies of the gsp of the u s have employed the vinerian customs union framework focusing on trade creation and diversion baldwin and murray 3 using ex ante partial equilibrium analysis estimated that u s imports from beneficiary developing countries increased by 236 4 million based on trade in 1971 of this only 19 3 was the result of trade diversion sapir and lundberg 19 employing an ex post gravity model estimated trade creation to be 658 3 million and trade diversion to be 270 4 million based on 1979 trade both studies conclude that trade creation exceeds trade diversion so that the

the organisation of innovation collaboration cooperation and multifunctional groups in uk and german manufacturing marked differences exist between the institutional and social context for innovation in the uk and germany the question addressed here is how these different contexts affect the objectives and organisation of innovation in uk and german manufacturing in particular the paper examines the extent to which uk and german plants engage in inter plant collaboration and cooperation and multifunctional working as part of their innovative activity and explores the reasons for differences in these patterns of involvement the investigation is based on a large scale comparative survey of manufacturing plants in the two countries in germany institutional and social norms are found to encourage collaborative inter plant innovation but aspects of the german skills training and industrial relations systems make the adoption of more flexible internal systems more difficult in the uk by contrast the more adversarial nature of inter firm relations makes it more difficult to establish external collaborations based on mutual trust but less restrictive labour market structures make it easier for uk plants to adopt multifunctional working this is linked to differences in attitudes to the property rights and transaction cost problems inherent in innovation

a review of o rourke and williamson s globalization and history the evolution of a nineteenth century atlantic economy much of the comparative economic history of the nineteenth century focuses on the spread of the industrial revolution from britain incomes converged in this view as the transfer of superior technology raised incomes in the periphery in globalization and history kevin o rourke and jeffrey williamson challenge this technological approach arguing that neoclassical effects of trade and factor supply changes provide more insight increased trade stimulated by falling transportation costs and factor movements caused prices of locally scarce factors to fall and promoted factor price convergence

a computational analysis of japan s generalized system of preferences abstract in this paper we employ a general equilibrium computational model of world trade to evaluate the generalized system of preferences gsp of japan we conclude that the japanese gsp is strongly trade creating because preferential treatment is offered primarily on products for which japan is a major world exporter however tariff concessions result in a deterioration in japan s terms of trade which lowers welfare in japan and improves the welfare of japan s major trading partners among the ldcs the gain from preferential treatment accrues primarily to the asian nics hong kong south korea singapore and taiwan

the relationships between science technologies and their industrial exploitation an illustration through the myths and realities of the so called european paradox abstract this paper discusses first the properties of scientific and technological knowledge and the institutions supporting its generation and its economic applications the evidence supports the broad interpretation that we call the stanford yale sussex synthesis second such patterns yield important implications with respect to the so called european paradox i e the conjecture that eu countries play a leading global role in terms of top level scientific output but lag behind in the ability of converting this strength into wealth generating innovations some descriptive evidence shows that contrary to the paradox conjecture europe s weaknesses reside both in its system of scientific research and in a relatively weak industry the final part of the paper identifies a few normative implications much less emphasis should be put on various types of networking and much more on policy measures aimed at strengthening both frontier research and european corporate actors

rising trade costs agglomeration and trade with endogenous transaction costs while transport costs have fallen the empirical evidence also points at rising total trade costs in a model of industry location with endogenous transaction costs that seeks to replicate features from the machinery industry we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade the subtle relationship between endogenous transport costs and the sensitivity of trade

trade taxes and tribute market liberalizations and the new importers in west africa this paper examines dynamics of state business relations in the era of trade liberalization in senegal and cote d ivoire it challenges the orthodox view that replacing nontariff barriers such as licenses and quotas with tariffs depoliticizes trade reduces commercial rent seeking activities and creates a level playing field which will encourage underground activities to surface allowing the state to capture more revenue the paper illustrates that liberalization failed to suppress commercial rent seeking helped to encourage the ascendancy of new politically connected merchant groups the mourides in senegal and the lebanese in cote d ivoire and to some degree increased tax evasion leading to the further erosion of state revenue flows the cases show that trade centered rentierism is rooted in structural features of these west african economies

growth theory and industrial revolutions in britain and america abstract long run economic growth has again become a major focus of economic theory a perception of technological change as an economic process with externalities has motivated the development of aggregate models that generate different steady state growth paths economic history has also long been interested in long run economic growth here a dialogue is presented between growth theory and the historical literature on the industrial revolution in britain and america s surge to international economic leadership in the late nineteenth century in conclusion economists recent thinking about the microeconomics of technological change has provided fruitful material for the economic historian of growth unfortunately the models of endogenous growth on the other hand present too aggregated a view of the economy to prove helpful when confronted with the details of economic history jel classification n0 n1 1 theorie de la croissance et revolutions industrielles en grande bretagne et en amerique la croissance economique a long terme est redevenue un point d interet majeur pour la theorie economique une perception du changement technologique comme processus economique porteur d externalites a engendre le developpement de modeles agreges qui generent differents sentiers de croissance en regime permanent l histoire economique s interesse depuis longtemps a la croissance economique a long terme ce texte engage le dialogue entre la theorie de la croissance et la litterature historique a propos de la revolution industrielle en grande bretagne et de l emergence de l amerique au statut de leader international a la fin du dix neuvieme siecle on en arrive a la conclusion que les recents developpements dans la pensee economique a propos de la micro economie du changement technologique ont produit des resultats utiles pour l histoire economique de la croissance malheureusement d autre part les modeles de croissance endogene presente une vue trop agregee de l economie pour s averer utile dans l examen des details de l histoire economique

patent protection and strategic delays in technology development implications for economic growth we present an endogenous growth model in which both the investment to develop a new technology that upgrades the quality of machines and entry of imitators are determined endogenously according to the model how soon the new technology machine is launched after the patent is granted is influenced by two factors returns to scale in technology development and strategic delays strategic delays in technology development are most likely to occur when earlier dates of success enable imitators to enter an industry i e when imitation is swift and relatively cheap and or patent protection is relatively lengthy we then explore the link between the optimal patent length and economic growth and find that the equilibrium investment in technology development and thus the expected rate of technological progress exhibit an inverted u shape relationship with respect to the legal patent length our results further suggest that in order to minimize the strategic delays in technology development and spur technological progress legal patent lengths should be shorter in industries where barriers to entry are relatively low

3 3 theory of customs unions abstract four recent models those of berglas corden meade and riezman which have extended the theory of customs union to 3 3 dimensions are reviewed the reasons for both apparent and real differences among the welfare propositions from these models are explained some new extensions are derived the main conclusions are that the family of 3 3 models introduce several effects which cannot be present in 3 2 models and that the distinctions among the models are due mostly to diverse assumptions concerning the trilateral pattern of trade which are not readily apparent

is demand pulled innovation equally important in different groups of firms previous empirical literature has tested the demand pull hypothesis and found that innovation may be driven by output using a balanced panel of 216 italian manufacturing firms 1995 2000 and checking for the path dependent nature of r d we find a role of sales in inducing r d however the demand pull effect plays a varying role for different sub samples of firms exporting firms liquidity constrained firms not subsidised firms and those not heading a group seem to be sensitive to sales in deciding r d these results have been obtained using a least squares dummy variable corrected estimator a recent panel data technique suitable for small samples

science parks and regional innovation performance in fiscal austerity era less is more european financial crisis has raised questions about the sustainability and the contribution of innovation anchors especially in southern european countries such as greece this paper utilizes the concept of regional innovation systems riss and introduces a methodological approach that allows for evaluating an science and technology park s stp contribution into the corresponding ris performance taking into consideration 1 the ris idiosyncrasies 2 the dominant role of government expenditures on r d and 3 the underlying complexity of knowledge production and management under alternative sets of restrictions imposed by fiscal consolidation on the preferences of authorities which design and implement science technology and innovation sti policies our framework relies on the estimation of a multi input multi output latent knowledge production function approach and the corresponding efficiency indices data requirements are sourced from the regional innovation scoreboard for the four greek regions and from a small scale case study with respect to the examined regional stp covering the period from 2000 to 2012 the main empirical findings highlight that the contribution of the examined stp in the corresponding ris performance diminishes alongside with the decrease in gerd investment levels with respect to all the efficiency indices these findings are attributed to the structural characteristics of both the ris and the stp under investigation and capture their dependence on managing public financial resources for sti activities

inside the black box technology and economics economists have long treated technological phenomena as events transpiring inside a black box and on the whole have adhered rather strictly to a self imposed ordinance not to inquire too seriously into what transpires inside that box the purpose of professor rosenberg s work is to break open and examine the contents of the black box in so doing a number of important economic problems be powerfully illuminated the author clearly shows how specific features of individual technologies have shaped a number of variables of great concern to economists the rate of productivity improvement the nature of learning processes underlying technological change itself the speed of technology transfer and the effectiveness of government policies that are intended to influence technologies in particular ways the separate chapters of this book reflect a primary concern with some of the distinctive aspects of industrial technologies in the twentieth century such as the increasing reliance upon science but also the considerable subtlety and complexity of the dialectic between science and technology other concerns include the rapid growth in the development of costs associated with new technologies as well as the difficulty of predicting the eventual performance characteristics of newly emerging technologies

information and intellectual property the global challenges the paper analyses the contribution of golden papers seminal works whose ideas remain as fresh and relevant today as when they were first published decades ago and which continue to dominate academic discourse among successive generations of scholars the authors analyse why two works written within an industrial development context the simple economics of basic scientific research by richard nelson 1959 and kenneth arrows economic welfare and the allocation of resources for invention 1962 are so relevant in today s knowledge driven economic paradigm focusing on the papers application to current global policy debates on information knowledge and intellectual property they argue that while the context has changed the essential nature of innovation driven by widespread access to the ability to replicate and improve remains the same hence a focus on endogenous innovation policy is as relevant today as it was 50 years ago

a critical realist interpretation of evolutionary growth theorising the article discusses a critical realist interpretation of evolutionary growth theorising by focusing on some of its basic characteristics the evolutionary ontology is complex differentiated structured systemic open ever changing and radically uncertain its methodology tends to be increasingly based on appreciative theorising retroductive explanations and interdisciplinary analysis after discussing these features the article suggests that critical realism may indeed constitute an important philosophical and methodological foundation for the future development of evolutionary theories of economic growth

level of development and the us generalised system of preferences malaysia and mexico in this article we examine the effects of the united states generalised system of preferences gsp on the exports of mexico and malaysia mexico and malaysia were selected because we hypothesised that differences in industrialisation between them would highlight possible problems connected with the competitive need provisions of the us gsp programme our findings are generally consistent with other gsp studies that covered different countries commodities and time periods and employed various empirical models however our results for mexico do not lend support to the recently advanced proposition that high income ldcs are the primary beneficiaries of the us gsp

biosecurity bioterrorism and the governance of science the increasing convergence of science and security policy science and security policy are increasingly overlapping because of concerns that legitimate research might be misapplied to develop biological weapons this has led to an expansion of security policy to cover broad areas of research and scientific practice including funding publishing peer review employment materials transfer post graduate teaching and academics ability to design and perform experiments and disseminate research such changes raise policy concerns because many of the technologies used to produce biological weapons are dual use and have legitimate peaceful applications as a result attempts to control their generation diffusion or application can have unintended impacts on socially beneficial applications this paper explores recent changes in the governance of science and technology and contributes to future policy making by assessing the relative merits of understanding the development of dual use policy in terms of either technology transfer or technology convergence 2007 elsevier b v all rights reserved

trade preferences for developing countries a survey of results empirical studies of the trade and development effects of the major preferential trading schemes between the industrialised countries and the developing countries are surveyed most studies find the agreements to be trade creating improving welfare for the donor though general equilibrium analysis indicates that terms of trade deterioration offsets efficiency gains there is some evidence that trade preferences stimulate ldc exports of preferred products but total exports are not significantly affected due to limited product coverage the existing literature does not provide evidence on the degree of infant industry protection or on economic diversification of the beneficiaries