bipolarity multipolarity and free trade recent literature typically attributes the relative scarcity of open international markets to the prisoner s dilemma structure of state preferences with respect to trade i argue that the prisoner s dilemma representation does not reflect the most critical aspect of free trade agreements in an anarchic international system security externalities explicit consideration of these effects suggests that a bipolar international political system has an advantage relative to its multipolar counterpart with respect to the opening of markets among states less credible exit threats and stronger incentives to engage in altruism within its alliances explain the advantage of a two power system the real income gains that motivate free trade are also the source of the security externalities that impede it their ability to internalize these effects makes military alliances the natural basis of agreements to open international markets the evolutionary prospects of alliances vary however ones that are the products of bipolar systems are more likely to evolve into free trade coalitions than are their multipolar counterparts i argue that less credible exit threats and stronger incentives to engage in alliance altruism explain the advantage of a two power system several important limits of the argument should be made clear immediately i argue at the systemic level i attempt to isolate the political and economic incentives for free trade that occur at the level of the international system i do not therefore consider the impact of unitlevel factors on the pursuit of these incentives for example neither the role of special interest groups nor the organization of domestic exchange via hierarchies instead of markets is considered doyle 1986 frieden 1988 ruggie 1982 the conditions i assume are those of standard international trade theory ethier 1983 and illustrative rather than systematic empirical referents are used these restrictions are appropriate given my purpose to demonstrate analytically the advantage of a bipolar international political system with respect to free trade

institutionalizing the triple helix research funding and norms in the academic system abstract what are the institutional mechanisms that enable or hinder the development of new forms of knowledge production this issue has been slightly neglected in the discussion of the triple helix to redress this shortcoming the authors suggest an institutionalist complement to the triple helix model the article analyzes the institutional regulation of academic research with a special emphasis on how norms in the academic system are constituted via research funding it is argued that funding is a key mechanism of change in the norm system since its reward structure influences the performance and evaluation of research the empirical analysis is based on the public financing of technical research in sweden with comparisons made with other countries the structure of research funding has been reformed in all the countries studied in addition to continuing recognition for scientific merit the reforms have had the effect of emphasizing the commercial potential and the societal relevance of the research supported the two dominant models of research funding an intra academic model and a top down interventionist model seem to be replaced partly with a catalytic one however there are counteracting tendencies some agencies still reproduce a model of reputational control and a collegial orientation among researchers it is concluded therefore that the forces of change and continuity are engaged in a process of negotiation about the normative regulation of academic research

natural resources national income and economic growth in africa abstract because standard measures of aggregate income such as gross domestic product gdp do not account for natural resource depletion their use as gauges of economic performance tends to exaggerate the benefits of resource extraction accounting for natural resource depletion in 18 african countries indicates different patterns of growth than those suggested by gdp figures use of the revised measures in analyses of the link between exports and growth suggests that export expansion may generate increases in measured gdp without stimulating increased production in contrast real exchange rate alignment is correlated with growth in both conventional gdp and the revised accounts

academic research underlying industrial innovations there has been no systematic study of the characteristics of the universities and academic researchers that seem to have contributed most to industrial innovation nor do we know how such academic research has been funded this paper based on data obtained from sixty six firms in seven major manufacturing industries and from over two hundred academic researchers sheds new light on the sources characteristics and financing of academic research underlying industrial innovation the findings should be of interest to economists concerned with technological change and to policymakers attempting to increase the economic payoff from the nation s academic research copyright 1995 by mit press

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

implications of agricultural trade liberalization for the developing countries abstract the developing countries as a group could expect to experience only small welfare gains if they chose not to actively participate in agricultural trade liberalization and relied solely on the benefits of partial liberalization in the oecd countries participation along the lines of the dunkel package with the developing countries reducing positive assistance by less than the developed countries would yield gains of the order of us 20 billion more comprehensive participation in trade liberalization involving reductions of both positive and negative protection would almost triple these welfare gains while some developing countries do not gain from trade liberalization even with full participation the number of such countries and the magnitude of their losses are greatly reduced

testing for market power in multi product industries across multiple export markets a large body of theoretical literature has developed in the past 15 years incorporating various models of imperfect competition into international trade theory empirical work testing for imperfect competition in export markets however has been much more limited in particular the empirical evidence in support of widespread imperfect competition in u s export and import sectors is somewhat scant and mixed 2 one technique for assessing the existence of market power in export markets has been developed by knetter 33 who estimated a reduced form single equation in which the export price to a specific market for a good was a function of the exchange rate a country specific dummy variable and a time dummy knetter rejected the null hypothesis of perfectly competitive markets in nearly all of the u s and german export markets studied 3 his methodology has been adopted by other researchers who have rejected the perfect competition hypothesis in other u s export markets 4

unfair trade practices the case for a differential response trade distorting practices by other states did not seriously affect u s commercial interests until the mid 1960 s however growing overall and sectoral trade deficits as well as rapid changes in trading patterns have made such practices a more salient political issue the modal and preferred american policy response has been to rely on u s supported liberal institutions notably the general agreement on tariffs and trade gatt to provide a framework for multilateral negotiations designed to eliminate

rational hegemons excludable goods and small groups an epitaph for hegemonic stability theory in defining international free trade as a public good hegemonic stability theory posited early in the 1970s that its reliable supply depended upon a distribution of international power analogous to that within a privileged group more recently however critics have challenged three assumptions fundamental to hegemonic theory its premises of free trade public goods and privileged groups they have concluded that hegemony is not necessary for and indeed may be antithetical to a stable world economy based on market exchange the author argues that the critics overstate their case the assumptions they attack allow hegemonic theory to represent analytically several critically important barriers to free trade among states among these are the existence of strategic interdependence among the actors and the prevalence of informational asymmetries the most significant flaw in hegemonic theory is its neglect of the essence of the domain to which it applies the politics of inter state trade in an anarchic world

impacts of grants and contracts on academic researchers interactions with industry abstract based on a representative national sample of 1564 academic researchers we investigate the impacts of research grants and contracts on the nature and extent of faculty research and technology activities with industry a particular focus is on understanding the independent contributions of industry and government grant sources on levels of industrial involvement in addition to examining the source of grants the study controls for a number of independent factors including scientific field research center affiliation tenure status and gender results suggest independent effects of grants and contracts on industrial activities grants and contracts from industry have a significant effect on academic researchers propensity to work with industry as measured by an industrial involvement scale federally sponsored grants also have an impact in increasing work with industry but a more moderate one further those with more grants and contracts of each type have a greater propensity for industrial involvement than those who have such contracts but fewer this holds even when proxies for productivity and career stage are introduced in regression equations the analysis also considers whether provision of grants and contracts is best viewed as a predictor of industrial involvement or just another type of industrial involvement using factor analysis and nested multivariate modeling to compare effects

are economists traditional trade policy views still valid recent analysis of trade policies under imperfectly competitive market conditions as well as in situations where trade in high technology products is important have raised doubts whether economists should continue their traditional opposition to trade taxes and subsidies this paper evaluates the new theoretical arguments for interventionist trade policies by comparing them with the traditional arguments for and against free trade investigating the empirical evidence supporting the conditions assumed in the new models appraising the realism of the behavior assumptions of these models and the sensitivity of their conclusions to changes in these assumptions and considering the political economy implications of these conclusions the general conclusion is that there are serious practical difficulties with the interventionist arguments of the new trade theorists as they themselves recognize just as there are with such traditional arguments for trade intervention as the terms of trade case for protection however the new industrial organization approach to trade theory has already provided valuable insights into trade behavior in international markets and promises to provide many more as more realistic behavior models are developed this abstract was borrowed from another version of this item

the optimality of free trade science or religion ominous trends in america s international position and overall economic performance have generated increasing public dissatisfaction with the nation s laissez faire approach to trade recent academic research has meanwhile cast new doubt on the theoretical case for free trade especially where high technology industries are concerned as a consequence of these parallel developments much of both academic and public debate over appropriate trade policy now centers on the practical implications of the modeling approach known as the new trade theory some look to the new theory for a better understanding of trade policy s potential role in improving overall economic performance others seek theoretical justification of policies from which they themselves expect to benefit

wage indexation and the variability of inflation an empirical result abstract the effect of wage indexation on the variability of inflation is empirically tested the empirical analysis based on pooling annual data 1954 1976 for eleven countries provides evidence that wage indexation increases the variability of inflation

trade and trade policy with imperfect competition the case of identical products and free entry abstract this paper analyses intra industry trade between economies containing an imperfectly competitive industry in which firms produce a homogeneous output production is subject to increasing returns to scale and there is free entry and exit of firms trade is shown to unambiguously increase welfare by reducing the degree of monopoly in each market and increasing firm size the effects of differences in technology and endowments on the pattern of trade and welfare are examined import tariffs are shown to raise welfare in the country employing the tariff and the welfare implications of various types of industry subsidy are examined

science policy in changing times are governments poised to take full advantage of an institution in transition while it is widely acknowledged that the institution of science is currently undergoing a major transformation there remains reluctance in many sectors to embrace the changes and maximize the utility of science and its role in economic growth the transformation of science is driven by economic factors rather than those value based accordingly confusion and contradiction in science policy statements become apparent when the structure of science policy and the mechanisms that aim to support collaborative arrangements of science are examined historical and cognitive evidence shows the distinctions of applied and basic research are human constructions and as such have become a handicap to the emerging knowledge based economy it is concluded that if the economic and social benefits of integrated arrangements in knowledge production are to be realized there is a pressing need to modify the current institution of science and the policies that would underlie it 2003 elsevier science b v all rights reserved

hegemonic stability theory and 19th century tariff levels in europe although the theory of hegemonic stability has attracted an impressive array of adherents current formulations leave many conceptual issues unresolved existing formulations also fail to draw from the theory any implications concerning the process by which a hegemonic state creates and maintains a regime as an example great britain is generally agreed to have been hegemonic in the nineteenth century but britain s behavior was generally inconsistent with that implied by a theory of hegemonic stability i advance an alternative set of explanations for changes in international tariff levels based on the notion of a political business cycle

the evolving state of the art in technology transfer research revisiting the contingent effectiveness model the purpose of our study is to review and synthesize the rapidly evolving literature on technology transfer effectiveness our paper provides a lens into relatively recent work focusing particularly on empirical studies of us technology transfer conducted within the last 15 years in doing so we update and extend the contingent effectiveness model of technology transfer developed by bozeman 2000 specifically we include the growing interest in social and public value oriented technology transfer and thus the contingent effectiveness model is expanded to consider this literature we categorize studies according their approaches to measuring effectiveness draw conclusions regarding the current state of technology transfer evaluation and offer recommendations for future studies

testing theories of regime change hegemonic decline or surplus capacity two theories explain changes in the international regimes for major economic sectors a theory of hegemonic stability explains sectoral change as a consequence of ebbing hegemony a theory of surplus capacity attributes regime shifts to a serious global problem with excess production capacity in the sector the history of the world automobile industry shows that surplus capacity offers the better prediction and explanation for the timing of regime changes however a synthesis of the two theories is even more satisfactory hegemonic decline is a necessary but not sufficient condition for change surplus capacity in the absence of a hegemon creates the conditions necessary for change

inflation and wage indexation with multiperiod contracts this paper deals with the impact of wage indexation on the rate of inflation in two alternative institutional settings simultaneous and overlapping multiperiod contracts the results show that in the case of simultaneous contracts the degree of indexation determines the timing of price changes but not its intercontract magnitude when contracts are overlapping and uniformly distributed over time indexation always increases the absolute rate of inflation and its variability

credible enticements can host governments tailor multinational firms organizations to suit national objectives abstract this article discusses the impact of host government policy inconsistency on multinational corporations relationships with local suppliers that benefit from public funding empirical findings suggest that such relationships suffer from transactions cost disadvantages due to concerns that unexpected losses of funding may cause the suppliers to demand new contracts the findings reflect statistical tests on a structural equation latent variable model using data from a survey of 111 affiliates of mncs operating in 36 countries

indexing and inflation abstract much of the opposition to indexation as a means of adapting to ongoing inflation arises from the view that indexation is itself inflationary this paper examines the basic for that view in a simple macroeconomic model in which budget deficits are in part financed through the printing of money it is shown that all aspects of indexing wage indexation bond indexation and tax indexation tend to increase the impact on the price level of any inflationary shock however this association between indexation and inflation is in large part a consequence of the monetary and fiscal policies being followed by the government evidence from a cross section of forty countries on the effects of indexation on the inflationary impact of the oil price shock of 1973 1974 suggests that indexation did not in general increase the inflationary impact of the oil shock the evidence is further consistent with the view that the absence of an excess inflationary effect of indexation is a result of the countries with substantial indexation not having accommodated the oil price shock as much as other countries

long run trends in 26 primary commodity prices abstract this paper uses time series techniques to re examine the prebisch singer hypothesis that there has been a secular deterioration in primary commodity prices in terms of manufactured goods instead of using price indices it considers 26 individual commodity prices over the period 1900 1983 this avoids possible aggregation and interpretation problems associated with the use of aggregate indices the study finds that 16 of the 26 prices are trendless five have statistically significant negative trends the remaining five have positive trends it concludes that the prebisch singer hypothesis should certainly not be considered a universal phenomenon or stylized fact

dumping and dynamic competition abstract when the current output level affects future production costs domestic and foreign profit maximizing firms may set prices below current costs to gain experience antidumping enforcement which poses a barrier to below cost sales by foreign rivals changes the payoff structure of competition and alters the equilibrium decisions of both foreign and domestic firms a comparison of the nash equilibria with and without antidumping rules shows that these rules change market outcomes even when they do not appear to be binding ex post this positive analysis of antidumping enforcement complements previous studies that have considered the motivation for dumping

comparative advantage trade and growth export led growth revisited abstract this paper argues that the evidence in support of export promotion and export led growth is not as strong as is sometimes suggested and that the effectiveness of such policies depends on both the level of development and the structure of exports employing cross section analysis for a wide range of less developed countries we found a strong correlation between economic growth and the proportion of manufactures and stage three processed primary products moreover the proportions of both manufactures and stage three items were also strongly correlated to the level of per capita income although not conclusive these findings lend support to our contention

exports imports and economic growth in south korea and japan a tale of two economies this article investigates the relationship between exports imports and economic growth for south korea and japan by constructing a vector autoregression var model causality is examined between real gross domestic product gdp real exports and real imports several principal results emerge from the empirical work first the three variables are cointegrated for both countries implying that a long run steady state exists second there is evidence of bidirectional causality between imports and economic growth for both countries finally japan seems to experience export led growth while gdp growth in south korea has a negative effect on export growth these contrasting findings could result from export goods in japan exhibiting greater nonprice competitive aspects although their success fails to trigger a virtuous circle since growth fails to lead to increased exports while for south korea output growth leads to a decrease in export growth suggesting a strong domestic market

cooperation in the liberalization of international trade after hegemony what nations dwell in perpetual anarchy for no central authority imposes limits on the pursuits of sovereign interests because as states they cannot cede ultimate control over their conduct to an supranational sovereign they cannot guarantee that they will adhere to their promises the possibility of a breach of promise can impede cooperation even when cooperation would leave all better off yet at other times states do realize common goals through cooperation under anarchy

navigating the impact innovation double hurdle the case of a climate change research fund this paper analyses how the funding for research grants was allocated from a specific research fund which aimed to support innovative research projects with the potential to have research impact by reducing carbon emissions the fund received a total of 106 proposals of which 27 were successful at obtaining financial support our aims were to test which factors influenced the funding decision and to discover whether or not and to what extent the fund met its intended objectives through the allocation of monies the allocation process and its outcomes were analysed using correlation logistical and linear regression to test our research hypotheses using this research funding process as a single study we found that trying to clear the impact innovation double hurdle in a single funding initiative ultimately compromises both goals this paper therefore contributes to our understanding of innovation management within the context of carbon emission reduction and explains which factors influenced success in securing research monies through the funding process

international trade and agricultural development in developing countries significance of the uruguay round of gatt negotiations abstract liberalization of world trade in agricultural products ranks high on the agenda of the uruguay round after a period of more than six years however the negotiations have not been concluded nevertheless an outcome seems to be in sight the agreement will most likely not result in a move to freer trade it seems that domestic policies will become even more regulative than in the past in an attempt to cut exportable surpluses and to ease trade tensions among the main exporting nations this paper explores possible impacts of the gatt round on agricultural development in developing countries agricultural development is more than only growth in agricultural production or productivity however it is argued in the paper that other variables which also indicate agricultural development are often closely correlated with growth in production and productivity trade in agricultural products is not always an engine for agricultural development if internal divergences are not accounted for by appropriate domestic policies trade may be even harmful to agricultural development hence empirical research based on cross country analysis does not provide a clear answer about the role of trade for development past policies in industrialized countries have most likely had a negative effect on developing countries as a group however the effects differ widely across countries liberalization policies in industrialized countries would not just reverse these negative effects for developing countries price reduction in industrialized countries may not result in the often cited production decline in the short term present x inefficiency in agriculture will be reduced by liberalization leading to an outward shift of the supply curve hence liberalization may not lead to higher world market prices for temperate zone products in the short and medium term apart from this empirical models differ widely in the price effects they predict the expected outcome of the uruguay round increased regulation of domestic policies is likely both more negative for developing countries than past protectionist policies and worse than an overall liberalization world market prices will increase uncertainty and instability can be expected to grow and food aid may become less available there will be a need to react to these challenges with measures on the international and national level initiatives to deal with food crises in developing countries and to stimulate liberalization in developing countries should be considered finally developing countries should be made aware that their own domestic policies have a much greater economic impact than policies in other countries even if the latter are as protectionist as current agricultural policies in the industrialized world

interests power and multilateralism multilateralism characterizes to varying degrees patterns of interaction among states and the formal organizations they construct the utility of multilateral norms or organizations varies with the type of cooperation problem states confront thus the functional logic of international cooperation leads to hypotheses about the conditions under which the institution of multilateralism may be a feasible and efficient solution as in coordination problems and those under which it will not as in collaboration problems within these constraints powerful states choose institutions that will serve their interests with multilateral arrangements becoming more attractive as the future is valued more highly multilateral institutions should be stable in circumstances of changing distributions of power relative to more hierarchical institutions the vulnerability of patterns of international cooperation to various exogenous changes depends on the type of strategic interaction underlying state behavior

the influence of market demand upon innovation a critical review of some recent empirical studies abstract a number of recent empirical studies of technical change at the level of the individual firm have concluded that market demand is the dominant influence upon the innovation process calling forth innovations in market economies the pace of innovation in the private sector heavily influences the growth of national output and productivity and these studies and their conclusions have therefore received much attention having been extensively quoted in discussions of appropriate government policy for the encouragement of innovation this paper reviews a number of these studies and concludes that their findings and the interpretations of their findings in the secondary literature are seriously flawed and in many cases invalid the proposition that market demand governs the innovation process is by no means conclusively demonstrated in these studies and they are therefore inadequate and inappropriate guides for the formulation of policy most of the studies examined employ a working definition of demand factors which is so broad as to embrace a range of possible influences upon innovation which should more properly be classified elsewhere the concept of demand utilized in these studies bears little resemblance to the more restrictive and precise definition of market demand found in economics in addition the phenomena analyzed in these studies are a very heterogeneous lot the studies do not address identical empirical questions and their findings are as a result neither uniform nor unambiguous both demand and supply side influences are crucial to understanding the innovation process and it is the exclusive preoccupation with only one set of these forces which is criticized in this paper some implications of the criticism for government policy toward innovation are discussed in the conclusion

an empirical investigation of the causal relationship between openness and economic growth in china this study investigates the causal relationship between openness and economic growth in china the integration and cointegration properties of the data are analysed and the models of granger sims geweke and hsiao are used to identify a bi directional causal relationship between gnp and exports plus imports this bi directional causation is consistent with china s development strategy of protected export promotion

distributional consequences of the russian price liberalization the russian price liberalization was implemented in january 1992 amid great controversy and debates have continued with undiminished intensity despite the controversy the russian government had little choice but to go ahead the attempt to retain fixed prices in an inflationary environment had brought the food economy nearly to a halt in autumn 1991 marketing fell sharply inventories expanded and barter increased this created severe problems for an economy as dependent on internal trade in food as was the case in the ussr there was a high likelihood of full scale collapse both of marketing and production in spring and summer 1992 had prices not been liberalized ideally price liberalization would have been implemented in an environment with economic infrastructure conducive to competition for example private ownership clear channels for the flow of information on markets and well developed transportation for new interregional flows but none of this was in place in january 1992 because necessary measures were not taken immediately after the august coup nor had they been taken by prior governments the severity of pending collapse in the food sector however meant that the liberalization could not be postponed foremost among many areas of concern regarding food price liberalization was the impact on the welfare and nutrition of the poor this article focuses on the short term distributional impact of liberalization

distortions in world food markets in the wake of gatt evidence and policy implications abstract although the principle of trade liberalization has gained wide acceptance in recent years many policy makers in developing countries especially in latin america are exploring temporary import restrictions in the form of additional tariff protection to insulate domestic farmers from the impact of depressed prices until the uruguay round accord leads to higher world market prices for agricultural products the paper argues that there is little reason to believe that current world market prices will rise substantially in real terms even with the uruguay round accord fully implemented this finding suggests that additional tariff protection would not make economic sense

the uruguay round agreements impact on developing countries abstract implementation of the results of uruguay round will bring about significant increases in trade investment income and welfare for developing countries this derives from increased market access to developed countries markets and from enhanced efficiency originating from their own liberalization commitments although the distribution of benefits will be uneven developing countries will also benefit from improved rules for trade and investment coupled with enhanced institutional enforcement of these rules and greater exposure to global competition within a more predictable secure and credible international trading environment to maximize the benefits however developing countries will need to continue with recent unilateral reforms to improve their supply response

toward an aspiration level theory of open innovation although open innovation has become increasingly established in the management literature comprehensive theoretical explanations of what drives firms to be open are sparse taking the perspective of the behavioral theory of the firm we conceive of open innovation as a form of nonlocal search arguing that firms will turn to open innovation when substantially under or over performing relative to their aspirations we further enquire how this relationship is moderated by firm specific innovation related resources human capital research and development investment and patents employing a representative survey of uk firms we find some evidence of moderation allowing us to present explanations of search through open innovation and contribute to the behavioral theory of the firm itself

how did investor state dispute settlement get a bad rap blame it on nafta of course in the short history of the us bilateral investment treaty bit programme there have been no instances of dispute settlement cases initiated against the united states by firms from bit countries the nafta experience changed that where other studies have only hinted at the reasons for nafta controversies this paper makes clear three causal factors i changing patterns and intensity of fdi ii the application of those rules to developed countries amid those changing fdi patterns and iii ambiguities in isds rules themselves the paper explores these and traces the ways in which lessons of the nafta have been instrumental in changing the pursuit of investment protection agreements bits used to be uncontroversial but the nafta focused attention on reforms to isds that maintain the utility of bits in the governance of fdi without creating a legal structure for simply challenging the state

agriculture under trade policy reform a quantitative assessment for india abstract under the impetus of the general agreement on tariffs and trade gatt accord the indian government is likely to extend the ongoing trade liberalization process to the agricultural sectors this paper provides a fresh quantitative assessment of such a policy of agricultural trade reform using a dynamic nine sector seven income classes computable general equilibrium model developed for india s seventh plan period 1985 90 the simulation outcomes suggest that the gains from agricultural trade liberalization may not be as large or as unambiguous as is often suggested the results also high light the possible conflict between successful agricultural trade liberalization and the requirement to reduce agricultural subsidies under gatt

exports growth and causality in developing countries abstract previous empirical studies have interpreted results in regressions of output variables on export variables as providing support for an export promotion development strategy such an interpretation is questionable since these regressions provide no means of determining the direction of causality this paper performs causality tests between exports and growth for 37 developing countries the results cast considerable doubt on the validity of the export promotion hypothesis

on optimal wage indexation the observed practice of contracting for labor services in advance introduces stickiness or friction into the economic system in the presence of monetary and real stochastic disturbances the stability of the levels of employment and output hinges on the nature of the wage contracts in this paper we demonstrate the existence of optimal indexation schemes that are capable of eliminating the aforementioned friction by duplicating the equilibrium that would obtain if labor services were contracted for after the stochastic disturbances were realized

regional land markets and trade induced inequities leger l a 1994 regional land markets and trade induced inequities reg studies 28 109 118 regional policies can be used to redress trade induced inequities in a small open economy a ricardo viner general equilibrium trade model is used in which interregional migration of labour is costly increasing relocation costs arise from the operation of markets for essential services in particular residential land these create distributional inequities and suggest the possibility of manipulation population density in regional land use to effect both redistribution and a move to greater productive efficiency leger l a 1994 les marches fonciers regionaux et les inegalites provoquees par les echanges reg studies 28 109 118 dans une petite economie ouverte depourvue de terrains a b tir les politiques regionales servent a corriger les inegalites provoquees par les echanges on se sert d un modele d echanges du type ricardo viner reposant sur la notion de l equilibre general et qui suppose que le cout

does government funding complement or substitute private research funding to universities abstract there is growing political pressure on universities to intensify their interaction with industry and to enlarge their own research funding options in a context characterised by increasing constraints on public spending however whether the successful achievement of such a political desired outcome is consistent with a restriction of government funding is not clear and requires further investigation as a matter of fact there is scant empirical evidence on whether and to what extent government funding affects the external funding options available to universities in particular those related to research and consulting activities by using a set of probit and tobit panel data models estimated on financial data for the whole population of italian university departments engaged in research in the engineering and physical sciences this paper provides evidence that government funding to universities complements funding from research contracts and consulting contributing to increasing universities collaboration with industry and activating knowledge transfer processes

the new protectionism revisited this paper reviews the strategic trade literature in oligopolistic industries beginning with the brander spencer 1984 model of duopolistic international rent shifting issues of long run equilibrium entry conditions and empirical estimates of the size of oligopolistic rents in tradable goods industries are reviewed in addition the results of simulation models of strategic trade policy are summarized the final sections of the paper deal with issues of the retaliation by other countries against single country policies and long term policy equilibrium it is emphasized that the prisoners dilemma characterization of these equilibria may be inappropriate and managed trade may be a more plausible outcome in oligopolistic industries than strategic trade policies

challenges of trade and agricultural development for east central europe and states of the former ussr abstract the agricultural transition in central and eastern europe and the former ussr reflects a fundamental change in development strategy and will have a profound impact on agricultural trade the greatest impact will be indirect through agriculture s contribution to general economic reform and acceleration of regional and global growth the direct impact on trade in food and fiber will in aggregate consist of a fall in net imports most of the decline in net imports will derive from reduction in demand and improved utilization potential for productivity increase is substantial but not all of the increased productivity will be reflected in the traditional supply response of increased production instead marginal resources will shift out of farming and producers will restructure and adopt new technologies in pursuit of lower costs shifts in the commodity composition of trade will occur and the changes in grain and livestock markets will be greatest if the reform is successful the former soviet union could become a modest net grain exporter instead of a large importer wheat would be the leading export grain and levels of wheat exports and corn imports could become quite sensitive to relative prices on world markets

primary commodity prices manufactured goods prices and the terms of trade of developing countries what the long run shows the authors revisit in this article the empirical foundation of the alleged secular decline in the prices of primary commodities relative to those of manufactures they use a newly constructed index of commodity prices and two modified indexes of manufactured good prices and find that from 1900 to 1986 the relative prices of all primary commodities fell on trend by 0 5 percent a year and those of nonfuel primary commodities by 0 6 percent a year they thus confirm the sign but not the magnitude of the trend implicit in the work of prebisch but even the more limited secular decline shown by their relative price indexes may be magnified by an incomplete account of quality improvements in manufactures they then show that the evolution of terms of trade of nonfuel primary commodities is not the same as that of the net barter terms of trade of non oil exporting developing countries finally they find that despite the decline that has probably occurred during the current century in the terms of trade of nonfuel primary commodities the purchasing power of total exports of these products has increased considerably similarly the fall that may have occurred after world war ii in the net barter terms of trade of developing countries seems to have been more than compensated for by the steady improvement in their income terms of trade

the uruguay round and agricultural policies in developing countries and economies in transition abstract this paper reviews changes in the global trade policy environment as a result of the uruguay round agreement on agriculture and their potential impact on developing countries and economies in transition the agreement is except in a few cases not likely to present these countries with major policy adjustment problems in latin america unilateral reforms have proceeded further than required by the agreement in africa countries that have experienced structural adjustment are liberalizing faster than the agreement requires in asia the situation is mixed but in general agricultural trade liberalization appears to be moving more slowly especially when compared to latin america progress in reducing quantitative restrictions has been show in eastern europe and the cis the progression and completeness of liberalization varies widely though gatt notions of tariffication and tariff bindings have strengthened the position of reformers in those countries that are members of the wto while the short term impact of the agreement may be modest the bringing of agriculture under the rules of gatt should help prevent reintroducing non tariff restrictions in the future however given that much of the food imports particularly in parts of asia are still conducted by parastatals if state trading in gatt legal it is hard to anticipate how strong discipline on trade distorting support could be brought about

trade policy and growth of developing countries some new data abstract the present study provides empirical evidence on trade policy and economic growth of developing countries our data indicate that adverse changes in world demand carried greater weight in determining export performance than changes in trade policy the results presented confirm that high growth rates of export earnings occur only when external demand to strong low income countries are shown to fare worse across all time periods though there are regional variations these are not due solely to differences in trade policy thus an outward oriented policy is not necessarily a valid policy recommendation for all conditions and all countries

agricultural incentives in developing countries measuring the effect of sectoral and economywide policies the impact of sector specific direct and economywide indirect policies on agricultural incentives for 18 developing countries for the period 1975 84 are estimated the direct effect is measured by the proportional difference between the producer price and the border price adjusting for distribution storage transport and other marketing costs the indirect effect has two components 1 the impact of the unsustainable portion of the current account deficit and of industrial protection policies on the real exchange rate and thus on the price of agricultural commodities relative to nonagricultural nontradables and 2 the impact of industrial protection policies on the relative price of agricultural commodities to that of nonagricultural tradable goods the authors found that a in almost all cases the direct effect is equivalent to a tax on exportable goods and to a subsidy for importables b the indirect effect also taxes agriculture and dominates the direct effect and c the direct policies for both importables and exportables stabilize domestic producer prices

intra firm trade abstract the study analyses intra firm trade that is the estimated one third of world trade which is transacted between affiliated parties as firms realize the increasing potential for integrating their operations throughout the world they are contributing to significant shifts in the patterns of interntional trade and industrial development as emphasized here international trade is inextricably linked to the growing and substantial share of transactions between affiliated parties conveyed through multinational enterprises

the role of foreign capital in domestic manufacturing productivity empirical evidence from asian economies the paper empirically examines the relative contribution of foreign and domestic machinery and equipment on manufacturing productivity in seven asian economies a cobb douglas production function is used to test whether foreign machinery is more productive than domestic machinery the study is based on a pooled cross sectional time series model including seven countries hong kong singapore south korea malaysia indonesia the philippines and india for the years 1975 to 1990 the results support the hypothesis that a country s stage of development skill level of its labour force and the technology embodied in capital play a crucial role in determining the relative impact of foreign and domestic capital on manufacturing productivity

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

crossing the rubicon exploring the factors that shape academics perceptions of the barriers to working with industry although academics are under increasing pressure to engage industry in their research they often find it difficult to do so conflicts with industry over the timing of disclosure and the choice of topics are common moreover collaborations with industry may require academics to negotiate formal contracts about the ownership of intellectual property to help understand the factors that might mitigate these conflicts this paper examines how the professional and collaborative experiences of academics shape their perceptions of the barriers to industry collaboration using a rich dataset of uk academics we find that perceived barriers to collaboration are lower for academics with industrial and collaborative experience and for those who trust their industry partners however for the transactional costs of industry engagement we find entrepreneurial experience and the diversity of methods used to collaborate with industry increases the perceived barriers to collaboration

pathways to impact and the strategic role of universities new evidence on the breadth and depth of university knowledge exchange in the uk and the factors constraining its development there has been an increasing focus on the strategic role of universities in stimulating innovation and economic growth primarily though the transfer of technology this paper interrogates some of the key aspects of much of the conventional wisdom concerning the transfer of technology and the knowledge exchange process in general it analyses the results from two unique surveys a survey of the uk academic community that generated more than 22 000 responses and a stratified survey of businesses that generated more than 2 500 responses the results suggest that much of the conventional wisdom concerning knowledge exchange involving academia is too narrowly confined or is misinformed first there is an excessive focus in much of the academic and policy discourse on commercialisation and technology transfer there are many knowledge exchange mechanisms used by academics these include commercialisation processes but also many other hidden connections second the focus on the science base ignores that knowledge exchange involves academics from all disciplines third the preoccupation with improving innovation and business performance tends to ignore that knowledge exchange involves partners from the public and third not for profit sectors as well as private sector businesses fourth the main constraints that hinder or limit the knowledge exchange process include a lack of time insufficient internal capability to manage relationships and insufficient information to identify partners problems concerning cultural differences between academics and business and disputes concerning intellectual property are not prominent overall the paper suggests that the notion of an academic ivory tower seems to be a myth as far as the uk is concerned it also suggests that a strategic focus on strengthening connections between academia and the rest of society may generate long term benefits but it will also face challenges and should not distort or divert from the wider foundations of scholarship on which the success of universities are built

the dynamics of innovation from national systems and mode 2 to a triple helix of university industry government relations abstract the triple helix of university industry government relations is compared with alternative models for explaining the current research system in its social contexts communications and negotiations between institutional partners generate an overlay that increasingly reorganizes the underlying arrangements the institutional layer can be considered as the retention mechanism of a developing system for example the national organization of the system of innovation has historically been important in determining competition reorganizations across industrial sectors and nation states however are induced by new technologies biotechnology ict the consequent transformations can be analyzed in terms of neo evolutionary mechanisms university research may function increasingly as a locus in the laboratory of such knowledge intensive network transitions

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

economic reforms and productive capacity realisation in bangladesh an empirical analysis using firm level data from the bangladesh food manufacturing sector this paper examines the impact of economic reform on productive capacity realisation in the eighties the results suggest that although improvement occurred in the realisation of productive capacities after the implementation of economic reforms there is however room for significant further improvement in increasing output by realising the unrealised capacity

technology transfer and public policy a review of research and theory abstract my purpose is to review synthesize and criticize the voluminous multidisciplinary literature on technology transfer to reduce the literature to manageable proportions i focus chiefly not exclusively on recent literature on domestic technology transfer from universities and government laboratories i begin by examining a set of fundamental conceptual issues especially the ways in which the analytical ambiguities surrounding technology transfer concepts affect research and theory my literature review follows and i emphasize technology transfer s impact and effectiveness i employ a contingent effectiveness model of technology transfer to organize the literature as the model s name implies it assumes that technology effectiveness can take a variety of forms in addition to examining the more traditional effectiveness criteria those rooted in market impacts the model considers a number of alternative effectiveness criteria including political effectiveness capacity building

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

exports and growth a causality analysis for the pulp and paper industries based on international panel data this study examines the causal relations between exports and domestic production in the pulp and paper industries the issue is whether exports are the engine of growth or whether exports follow growth the data were time series of the 15 main exporting countries between 1961 and 1995 the method was granger causality analysis with error correction based on models estimated in three ways ordinary least squares by country least squares with dummy variables lsdv and seemingly unrelated regression regardless of method the strongest relation was an instantaneous within a year feedback between exports and production the lsdv results implied average multipliers across countries of 1 2 to 1 4 from exports to production and 0 20 to 0 25 from production to exports in both industries experiments with monthly data on the pulp industries of canada and the usa showed that temporal aggregation could affect the granger causality test results

agriculture in the uruguay round interests of developing countries agriculture has been favored and protected in developed countries while trade policies in developing countries frequently support industry at the expense of exportables and unprotected importables in agriculture this protection constrains expansion of temperate and subtropical agricultural exports from developing countries several studies have estimated the effects of liberalization of trade restrictions on world prices export earnings and import costs while developing countries generally would benefit from having the agricultural policies of the most powerful countries bound by international rules on trade there are differences among the developing countries as to which products should be liberalized even if such conflicts did not exist politically feasible means to obtain such compliance are elusive the potentially most feasible approaches for developing countries to obtain some measure of liberalization in the uruguay round of trade negotiations are discussed

trade in manufactured goods patterns of change this paper looks at the changing pattern of trade in manufactured goods between the developed industrial countries and the developing countries it first reviews recent changes in this trade and the policies applied it then analyzes the comparative advantages of the industrial and the developing countries and indicates the commodity composition of this trade the implications of the results are drawn with reference to the benefits of trade in manufactured goods for the participants