calculated inequality portfolio benchmarking and regional office property investment in the uk the paper explores the reasons for the persistence in the uk of significant relative interregional variations in office property investment in the face of economic theory and empirical evidence that would support its more even spatial distribution the argument is made from a cultural economy perspective and involves the application to property of a concept drawn from the accountancy literature calculative practice uk investment decision making is distinguished by the primacy attributed to portfolio benchmarking as an influence on investment strategy the wider logic underpinning property benchmarking is subjected to critical appraisal then evidence is presented that suggests that benchmarking is a self referential practice which results in convergence and rigidity in fund structures and in the concentration of performance around a bounded range of sub optimal returns it is a barrier to the greater geographical diversification of office property investment

working for regional development the case of canadian labour sponsored investment funds lincoln a 2000 working for regional development the case of canadian labour sponsored investment funds reg studies 34 727 737 in today s global economy a number of challenges have been posed for workers and community members however despite being weakened by multinational capital and neo liberal policy agendas workers and trade unions remain capable of shaping the geography of capitalism while uk and us labour organizations have considered a range of strategies to protect their members an innovative and impressive attempt at tackling the politics of finance and capital has come from within the canadian labour movement in attempting to resist globalization certain canadian unions have actively engaged with the investment of their members pension fund money through the creation of labour sponsored investment funds in this paper i draw on empirical material collected in canada to explore the development of these labour sponsored funds through investing in these provincial funds

power illusion in coalitional bargaining an experimental analysis abstract one feature of legislative bargaining in naturally occurring settings is that the distribution of seats or voting weights often does not accurately reflect bargaining power game theoretic predictions about payoffs and coalition formation are insensitive to nominal differences in vote distributions and instead only depend on pivotality we conduct an experimental test of the classical baron ferejohn model with five player groups holding real power constant we compare treatments with differences in nominal power we find that initial effects of nominal differences become small or disappear with experience our results also point to the complexity of the environment as having a negative impact on the speed at which this transition takes place finally and of particular importance as a methodological observation giving subjects a pause accelerates learning

strategic trade policy intellectual property rights protection and north south trade abstract in this paper we analyze the issue of optimal tariffs when the northern and southern firms compete in quantities in an imperfectly competitive northern market and there are potentially varying degrees of intellectual property rights ipr violation by the south ipr violation is reflected through the leakage of technological knowledge spillovers from the northern to the southern firm creating unit cost reduction it is shown that optimal tariffs in this framework are always higher than in the simple duopoly model since they serve here not only as profit shifting devices but also as instruments that influence domestic innovative activity generate scale economies and countervail the ipr violation of the south the other notable difference from the standard duopoly model is that positive tariffs may be desirable from the world welfare point of view

cluster or capture manufacturing foreign direct investment external economies and agglomeration phelps n a cluster or capture manufacturing foreign direct investment external economies and agglomeration regional studies this paper reviews the nature and significance of external economies associated with multinational enterprise mne participation in the manufacturing industries of host economies it argues that the balance of forces of internalization and externalization is currently skewed towards the former and the interests of mnes rather than the latter and the interests of local and national communities and governments a stylized comparison of developmental and competition state interventions in relation to mnes and their foreign direct investment fdi suggests that in the absence of co ordinated interventions by governments there will commonly be a failure of the logic of internalization to permit localized processes of externalization indeed the experiences of the competition states of the uk and the usa highlight the potential for the partial internalization or capture of loc

state accumulation projects and inward investment regimes strategies abstractstate accumulation projects and inward investment regimes strategies regional studies based on kitchener waterloo ontario and saguenay lac saint jean quebec case studies we link inward investment regimes iir to the strategic relational approach to the state the state continues to be significant in 1 selecting multinational enterprise mne value chain segments 2 policies maximizing foreign direct investment fdi spillovers 3 empowering iir participants and 4 managing the institutionalized compromises underlying these policies quebec s developmental state qds reflects labour s greater power and has stronger levers to maximize fdi spillovers than ontario s competition state ocs however both confront significant fdi challenges

the regional financial sector a scottish case study dow s c 1992 the regional financial sector a scottish case study reg studies 26 619 631 the regional finance literature suggests that financial market segmentation may affect regional economic activity but that the uk financial sector is sufficiently integrated to rule out this effect this paper attempts to broaden the scope of the debate by considering the credit creating behaviour of the banking sector together with the interdependent financial behaviour of all other sectors in a region it is concluded that financial behaviour in this broad sense affects regional activity even in an integrated national financial market in particular financial integration may adversely affect the allocation of new credit to a peripheral region the argument is assessed by considering the scottish case dow s c 1992 le secteur financier regional cas d etude de l ecosse reg studies 26 619 631 la documentation relative au secteur financier regional laisse supposer que la segmentation du marche finan

development of financial intermediation and the dynamics of urban rural disparity in china 1978 1998 chen y p liu m and zhang q development of financial intermediation and the dynamics of urban rural disparity in china 1978 1998 regional studies this paper focuses on the impacts of financial intermediation development on the urban rural income disparity urid in china using a twenty year province level panel data set from 1978 to 1998 it is found that the change of urid may be explained by fiscal policy during the early reform period 1978 1989 and financial intermediates during the later reform period 1990 1998 in addition it is shown that the direction the kuznets effect an inverted u shaped relationship between per capita gross domestic product and urid is sensitive to changes in government development policies this study adds to the spatial economic inequality literature by clarifying the effects of urban biased financial intermediation policy on the underlying dynamics of convergent and divergent effects on urban rural inequality chen y p liu m et zhang q le developpement

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

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

financialisation the valuation of investment property and the urban built environment in the uk the financialisation literature has been criticised for its limited empirical base and its failure adequately to link the everyday world with that of high finance the paper addresses these shortcomings by examining the calculative practice of property valuation the way that valuations are performed affects their results and therefore the operation of the property market the paper traces the evolving influence of finance capital on the valuation of commercial property in the uk by constructing a historiography of investment valuation since 1960 traditional approaches to valuation have been increasingly challenged by those derived from financial economics however the former remains the dominant method for undertaking market valuation its grounding in comparison a centring and standardising process offers an explanation for some of the changes in the urban built environment that are ascribed to financialisation this suggests that a more detailed and historically sensitive interpretation of financialisation is required

banking activities and local output growth does distance from centre matter ozyildirim s and onder z banking activities and local output growth does distance from centre matter regional studies in this paper the relation between local banking activities and local output growth is empirically studied in turkey during the period 1991 2000 although there is no legal restriction against regional banking the banking sector is spatially concentrated in turkey in this institutional structure the distance between headquarters and the local branches is argued to affect the role of financial intermediation in the development of provincial prosperity empirical findings suggest that banking activities have a significant positive impact on the per capita local output growth of regions especially on those that are distant from the financial centre however when bank loans are adjusted to the size of the local economy provincial gross domestic product gdp the relation between banking activities and the output per capita is found to be negative suggesting that these loans are us

bargaining in bicameral legislatures when and why does malapportionment matter malapportionment of seats in bicameral legislatures it is widely argued confers disproportionate benefits to overrepresented jurisdictions ample empirical research has documented that unequal representation produces unequal distribution of government expenditures in bicameral legislatures the theoretical foundations for this empirical pattern are weak it is commonly asserted that this stems from unequal voting power per se using a noncooperative bargaining game based on the closed rule infinite horizon model of baron and ferejohn 1989 we assess the conditions under which unequal representation in a bicameral legislature may lead to unequal division of public expenditures two sets of results are derived first when bills originate in the house and the senate considers the bill under a closed rule the equilibrium expected payoffs of all house members are surprisingly equal second we show that small state biases can emerge when 1 there are supermajority rules in the malapportioned chamber 2 the senate initiates bills which produces maldistributed proposal probabilities and 3 the distributive goods are lumpy we thank seminar participants at new york university the university of pennsylvania and the 2002 annual meeting of the american political science association for helpful comments james snyder and michael ting gratefully acknowledge the financial support of national science foundation grant ses 0079035 stephen ansolabehere gratefully acknowledges the support of the carnegie corporation under the carnegie scholars program this paper was written while michael ting was at the university of north carolina at chapel hill and he thanks the department of political science there for their support

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

editor s introduction korea s transition to maturity korea is currently undergoing a spectacular transformation as measured by any one of a number of yardsticks politically this nation of 42 million people is approaching its destiny with democracy with increasing anticipation financially it has the sole distinction among the highly indebted developing countries of actually turning the corner on external debt and reducing it in absolute terms structurally it has managed to transform itself from an assembly economy to a high quality export producer and socially it now confronts a host of new but not completely unwelcome economic problems associated with rapidly rising living standards and even more rapidly rising expectations as attested to by labor demands commitments to universal health insurance and recently enacted minimum wage and pension legislation there can be no doubt in any case that korea is on the brink of the final stage of development that will bring it to the ranks of the lower oecd economies before the end of the century despite this optimistic prognosis korea continues to face substantial hurdles some problems are perennial for developing countries particularly those following an export orientation such as protectionism in major markets while others are new such as dealing with the recently emerging current account surplus korean observers have every confidence that traditional pragmatism will dominate decisionmaking on these policy issues however there is equal concern that political events may short circuit the economy s remarkable performance of 1986 and 1987 central to the economy s performance in the postelection period will be the government s ability to deal with economic and social demands from various segments of society and maintain effective management control korea has managed to post very respectable real growth in the last five years with gnp increments averaging 8 7 since 1982 and to move its current account balance through successively smaller deficits and into surplus in 1986 following spectacular performance in 1986 12 5 real growth and a 4 5 billion surplus 1987 has all the indications of being almost as strong despite labor strife and the ensuing large boosts in wages throughout the period the won continued to appreciate indeed exchange rate management has taken on a curious twist in the korean context as trade partners like the united states push for revaluation in hopes of stemming korea s export success it is in fact somewhat ironic that just as korean industrial policy has taken a major step towards less intervention the imperfections of the global trading environment signal a new and potentially much more direct role for government in managing trade diplomacy the quality of economic management has been one of korea s major achievements it can be seen not only in the coordination of economic policies and for this the economic planning board headed by successively effective deputy prime ministers can be duly credited but also in the responses to economic shocks which have included timely and successful adjustment programs and in the implementation of far reaching reforms of the trade regime and to a lesser extent the financial sector economic management also extended into the arena of industrial policy largely through financial sector interventions where market signals were often directed or amplified this may lead to the curious paradox that while korea s economic agents respond so well to market signals according to some ca has not yet firmly taken root in korea 3 italism there are legitimate questions about the nature of economic management in the future as technocrats who have so far been insulated from direct scrutiny as steinberg points out now become more accountable to the public this volume s opening essays kim s strategy and vision for the future and steinberg s speculation of new socio political tensions heightening nationalism and greater fragmentation provide an often neglected

bargaining in legislatures bargaining in legislatures is conducted according to formal rules specifying who may make proposals and how they will be decided legislative outcomes depend on those rules and on the structure of the legislature although the social choice literature provides theories about voting equilibria it does not endogenize the formation of the agenda on which the voting is based and rarely takes into account the institutional structure found in legislatures in our theory members of the legislature act noncooperatively in choosing strategies to serve their own districts explicitly taking into account the strategies members adopt in response to the sequential nature of proposal making and voting the model permits the characterization of a legislative equilibrium reflecting the structure of the legislature and also allows consideration of the choice of elements of that structure in a context in which the standard institution free model of social choice theory yields no equilibrium

senate representation and coalition building in distributive politics p7 vhe senate s equal representation of states shapes coalition building in distributive politics the great variation in state population means that some states have far greater need for federal fttnds than others but all senators have equal voting weight as a result even though all senators votes are of equal value to the coalition builder they are not of equal prwice coalition builders can include benefits for small states at considerably less expense to program budgets than comparable benefits for more populous states building on formal models of coalition building two hypotheses are developed and tested first coalition builders will seek out less costly members to build supportive coalitions efficiently second the final outcomes of distributive policy will more closely reflect the preferences of small state senators than large state senators the hypotheses are tested by examining the 1991 and 1997 98 reauthorizations of federal surface transportation programs the findings support both hypotheses

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

lobbying and cournot nash competition abstract arguments for strategic trade intervention with cournot duopolists are reconsidered in a model where domestic firms can lobby for increased subsidies an export subsidy may not improve national welfare if lobbying costs are included even if an optimal positive subsidy exists the government needs information about lobbying effectiveness in order to correctly implement the program

convergence and difference in regional office development cycles in this paper data and analytical techniques not hitherto employed for the purpose have been used to explore the particularities of the role played by finance capital in influencing the spatio tem

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

good for the gander foreign direct investment in the united states as recently as 1978 c fred bergsten thomas horst and theodore moran were able to address the most urgent issues linking u s welfare and direct investment in a book called american multinationals and american interests a decade later the focus of policy attention had shifted almost completely scores of books and articles attempted to interpret the flow of incoming foreign direct investment ifdi that raised the 2 1 percent share of the u s nonfinancial corporate assets held by foreign controlled enterprises to 10 6

the gulliver effect and the optimal divergence approach to trade policies the case of nepal abstract a country could be small in the world economy yet become big in relation to its smaller neighbors imposing on them its relative price structure and the consequences of its trade policies we examine here the consequences of such a gulliver effect looking at the case of nepal whose economy is closely linked to the economy of india since india s protective policies are not optimal for nepal we consider the various alternatives for nepal the optimal divergence is for nepal to allow the free import of intermediate and capital goods while for import competing industries it cannot depart from india s trade policy

international equity markets and trade policy abstract this paper derives optimal trade policies for exporting and importing countries when a market is imperfectly competitive and firms are internationally owned it is shown that an increase in foreign ownership of firms lowers both the optimal export subsidy of the exporting country and the optimal import tariff of the importing country at the same rate foreign ownership also affects the distribution of world welfare between countries however it does not affect trade patterns and firm values

less than 2 c an economic environmental evaluation of the paris agreement abstract the literature dedicated to the analysis of the different climate agreements has usually focused on the effectiveness of the aims for emissions in the light of the advance in climate change this article quantifies the variation in emissions that the intended nationally determined contributions indcs will entail and their financial allocation and policies country by country and regionally the objective is evaluating the paris agreement feasibility regarding the indcs and its economic and environmental constraints the criteria through which the 161 indcs are analysed are as follows i socio economic impact of the transition ii focus on energy management iii substitution of non renewable sources iv the role of technology v equality of the transition vi compliance with emission reductions the results obtained show that the paris agreement excessively relies on external financial support 41 4 moreover its unilateralist approach the socio economic and biophysical constraints could be the underlying cause of the ineffectiveness of the 2 c objective this way each country would emit an average of 37 8 more than in the years 2005 2015 when this is weighted the figure would be a 19 3 increase due mainly to the increases in china and india these figures would lead the temperatures up to 3 4 c

price stabilization and impacts of trade liberalization in the southeast asian rice market abstract a global rice model using a partial equilibrium framework is used to investigate the impact of trade liberalization in major rice trading countries of southeast asia focusing on the price stabilization mechanism that has long been adopted by governments in indonesia malaysia and the philippines the simulation results suggest that the removal of state trading enterprises in these three countries would lower their domestic prices by as much as 34 but increase the world prices by about 20 when free trade liberalization is realized in 2020 domestic prices decline further in indonesia and the philippines leading to an increase in their imports which are estimated to be as much as 4 5 million tons the impact on domestic prices however is absorbed nearly evenly among indonesia the philippines thailand and vietnam

familiarity and the determination of yields for regional office property investments in the uk henneberry j and mouzakis f familiarity and the determination of yields for regional office property investments in the uk regional studies this paper examines how effectively investment yields incorporate spatial variations in risks and returns into property prices it is hypothesized that the pricing of property investments in non core uk regions is affected by a pure familiarity heuristic adopted by investors based in london consequently the determination of office yields is based not on the intrinsic investment characteristics of regional markets but on a core market benchmark combined with a regional premium this results in very long term mispricing patterns with implications not just for the office property investment market but also for the regions especially those outside the core

trade creation and trade diversion effects of regional trade arrangements low income countries although the number of regional trade arrangements rtas among the lowest income developing countries is surging the literature on their welfare effects is still scarce and the few that exist fa

development cultures and urban regeneration the importance of levering private finance and investment into urban regeneration is a central consideration of policy attention has focused on institutional investors motives for holding regeneration investments and on how they might be encouraged to put more money into inner city areas the paper argues that while helpful the impact of such an approach upon urban regeneration will be limited this is because by definition institutional investors are only interested in institutional property and buildings which do not conform to this frame of reference will not be of interest to them however other actors see things differently independent developers embrace the challenge presented by fringe locations mixed uses and the local urban culture and aesthetic and translate these characteristics into development values urban policy needs to address the contrasting ways in which the nature construction and application of investors strategic rationality intercept with local development conditions in particular greater emphasis should be given to encouraging independent locally based forms of property investment and development

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

the implications of knowledge based growth for the optimality of open capital markets this paper re examines the view that opening capital markets must have long run benefits the analysis shows that the desirability of opening a country s capital markets depends on the nature of the technology assumed models of knowledge based growth predict that changes that alter the economy s level of production will also affect the economy s growth rate and hence the welfare of future generations standard neoclassical growth models imply no such effects on growth or welfare if production does involve an important element of learning by doing inference from the standard models may be seriously misleading in particular opening capital markets does not necessarily improve welfare for the nation or for the world as a whole

openness and the market friendly approach to development learning the right lessons from development experience abstract two central policy issues in economic development today are how open should a developing country be to the world economy and what should the government do or not do to promote rapid growth this paper examines these questions in relation to the highly successful east asian countries and contributes to the debate between world bank and heterodox economists the paper suggests that there has been significant convergence between the two schools on analytical and empirical issues but not on policy it takes this debate further by analyzing the principal issues still in contention

the growth and geographical anatomy of venture capitalism in the united kingdom martin r l 1989 the growth and geographical anatomy of venture capitalism in the united kingdom reg studies 23 389 403 the 1980s have seen the emergence and rapid growth of venture capitalism in the uk this paper examines this growth both in terms of the spatial organization of the venture capital industry and the regional distribution of venture capital investment the picture that emerges is of an industry which is over centralized in the london area and which in the course of its recent development has tended to concentrate investment in the already more prosperous southeastern and adjacent parts of the country while local venture capital markets are beginning to become established in northern britain it will be some time before the existing regional imbalance is likely to be redressed martin r l 1989 la croissance et la distribution geographique du capital risque au royaume uni reg studies 23 389 403 les annees 1980 ont temoigne de la naissance et de l essor du capital risque au

interest rates and convergence across italian regions dow s montagnoli a and napolitano o interest rates and convergence across italian regions regional studies the purpose of this paper is to investigate the evidence for economic convergence across italian regions using trends in interest rate spreads and premia as indicators of regional credit conditions the results indicate the presence of persistent interest rate differentials and thus an absence of convergence across the twenty political regions but a high degree of convergence is observed within the four macroeconomic areas dow s montagnoli a and napolitano o 20 dow s montagnoli a et napolitano o les taux d interet et la convergence a travers les regions italiennes regional studies a partir des tendances des marges d interet sur les credits et des primes sur les taux d interet comme indicateurs des conditions de credit regionales cet article cherch

legislative bargaining under weighted voting organizations often distribute resources through weighted voting we analyze this setting using a non cooperative bargaining game based on the baron ferejohn 1989 model unlike analyses derived from cooperative game theory we find that each voter s expected payoff is proportional to her voting weight an exception occurs when many high weight voters exist as low weight voters may expect disproportionately high payoffs due to proposal power the model also predicts that ex post the coalition formateur the party chosen to form a coalition will receive a disproportionately high payoff using data from coalition governments from 1946 to 2001 we find strong evidence ofsuch formateur effects

the la nder are the building blocks of the german capital market data on major voting blocks in the german officially listed companies for the end of 1997 and may 2001 are used in order to explore the spatial dimensions of the system of corporate control listed companies are very unevenly distributed and their institutional and geographical concentration has not decreased holdings of voting blocks in companies are in turn getting more and more dispersed but the majority of corporate control is still intraregional with the holders of voting rights coming from the same lander as the controlled corporations gravity equations show that distance is a very strong determinant of corporate control links and its role applies to all types of companies and holders though to a varying degree from the perspective of corporate control the german capital market is very regionalized considering that the study spans a short period of time however the pace of integration is pronounced a partir des donnees sur les principaux regroupements de votes dans les societes allema

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

challenges of transformation innovation re bundling and traditional manufacturing in canada s technology triangle bathelt h munro a k and spigel b challenges of transformation innovation re bundling and traditional manufacturing in canada s technology triangle regional studies this paper develops a perspective of regional re bundling in overcoming economic crises it does this by focusing on the effects of the recent global financial crisis on traditional manufacturing it analyses the structure of innovation processes and their development over time in canada s technology triangle a region known for university related spin off processes and successful modernization what is less well known is that this region has been strongly influenced by traditional manufacturing industries it is shown that these industries have been well prepared to deal with the effects of the crisis due to ongoing innovation and diversification stimulated by prior economic crises bathelt h munro a k and spigel b

undermining the financial basis of regions the spatial structure and implications of the uk pension fund system martin r and minns r 1995 undermining the financial basis of regions the spatial structure and implications of the uk pension fund system reg studies 29 125 144 regional growth theory and regional policy traditionally focus on the process of industrial development relatively little is known about the flows of money and financial capital that shape that development this paper examines the spatial organization and implications of the uk pension fund system one of the principal circuits of financial capital in the national economy it is shown how the great bulk of pension fund contributions that originate right across the various regions of the uk are channelled into and controlled by financial institutions in the south east of the country moreover those funds are then invested primarily back into companies and organizations located or headquartered in the south east this spatially centralized system pursues liquidity rather than productive investment and little of the money trickles down to

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

legislative representation bargaining power and the distribution of federal funds evidence from the us congress this article investigates the relationship between representation in legislatures and the geographic distribution of federal funds in a legislative bargaining model we demonstrate that funds are concentrated in high representation areas and two channels underlie this result the proposal power channel reflects the role of representation in committee assignments and the vote cost channel reflects the role of representation in coalition formation in our empirical analysis we find that small states relative to large states receive more funding in the us senate relative to the house we also find empirical support for the two channels underlying this relationship throughout the history of federations and international organisations a key consti tutional design question involves how jurisdictions of different sizes are represented in legislative bodies and how their votes will ultimately be weighted large jurisdictions typically argue for delegation sizes or voting weights that are roughly proportional to population whereas small jurisdictions typically argue for an equal number of delegates or votes for each jurisdiction this conflict over representation is presumably driven at least in part by a belief that increased representation strengthens bargaining power in the battle over the geographic distribution of funds authorised by these legislative bodies in this article i analyse the relationship between legislative representation bar gaining power and the geographic distribution of federal funds from both a theoretical and empirical perspective in addition to investigating the existence of a relationship between representation and federal funds i also explore the underlying mechanisms that is i ask which political institutions such as agenda control provided to commit tees and the formation of coalitions under majority rule shape the bargaining power of jurisdictions in central legislatures and thus facilitate the relationship between repre sentation and the distribution of federal spending to provide a framework for analysing these issues i begin by developing a simple theoretical model of a central legislature that determines the crossjurisdiction distri bution of local public goods which are financed by a national tax base both delegation sizes and population are variable allowing me to consider a variety of institutional arrangements for jurisdictional representation legislators represent local interests and given the common pool problem associated with concentrated benefits and dis persed tax costs attempt to increase ownjurisdiction spending but to restrain spending elsewhere the model follows a recent literature on legislative bargaining in which a proposer must secure a majority of votes in order to pass legislation and due to the

regional finance a survey the role of money and nancial markets in the regional matters 1 economy has been attracting increasing attention in we start with a review of the treatment of money recent years it has been a topic of interest for longer in regional economics and then turn to the much

finance business property and urban and regional development halbert l henneberry j and mouzakis f finance business property and urban and regional development regional studies compared with other factors of production the supply of business property and its role in urban and regional development has received comparatively little attention traditional analyses assume that the supply of such property responds to demand in a relatively unproblematic way however there is evidence that institutional structures and processes in the property and capital markets have produced regional imbalances in the quantity quality and price of business accommodation benefiting some places and handicapping others such imbalances are present to different degrees internationally and their characteristics and causes are similarly varied the special issue addresses this gap in knowledge

post the washington consensus economic governance and industrial strategies for the twenty first century recent events in the global economy have led to a growing dissatisfaction with the neo liberal economic paradigm that has dominated economic policy over the last 30 years and the increasing concentration of and abuse of economic power within the corporate sector that has ensued however amidst calls for a new approach to economic management there is a danger that a new policy framework may overlook underlying economic governance structures that exist and may evolve within the economy such oversight has implications for development this paper seeks to demonstrate that the long run efficacy of industrial strategy depends upon designing appropriate economic governance structures that serve the wider public interest it does so by exploring past experiences of industrial strategy drawing lessons from the usa the uk japan the third italy and the emerging and transition economies we also offer some suggestions for ways forward

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

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

energy and carbon embodied in the international trade of brazil an input output approach abstract all goods and services produced in an economy are directly and or indirectly associated with energy use and according to the type of fuel utilized with co2 emissions as well international trade is an important factor in shaping the industrial structure of a country and consequently in affecting a country s energy use and co2 emissions this study applies input output techniques to the brazilian economy to evaluate the total impacts of international trade on its energy use and co2 emissions a commodity by industry io model in hybrid units energy commodities in physical units and non energy commodities in monetary units is applied to the brazilian economy in 1995 results show that total energy embodied in the exports of non energy goods of brazil equals 831 pj while total carbon embodied is 13 5 mtc these amounts are larger than the relevant amounts embodied in the imports of non energy goods respectively 679 pj and 9 9 mtc these figures are better understood by contrasting them with the total energy use and the corresponding total carbon emissions of the brazilian economy in 1995 estimated by this work 6781 pj and 99 4 mtc respectively this means that international inflows and outflows of energy embodied in non energy goods are in the order of 10 and 12 of the total energy use while inflows and outflows of carbon embodied in non energy goods are approximately 10 and 14 of the corresponding total carbon emissions of the brazilian economy in 1995 the general picture is that brazil is not only a net exporter of energy 153 pj and of carbon 3 6 mtc embodied in the non energy goods internationally traded by the country in 1995 but also that each dollar earned with exports embodied 40 more energy and 56 more carbon than each dollar spent on imports these findings suggest that brazilian policy makers should be concerned about the extra impacts international trade policy may have on energy use and carbon emissions of the country

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

the components of talent company size and financial centres in the european investment management industry clark g l the components of talent company size and financial centres in the european investment management industry regional studies as the centre for advanced financial services and having the complex array of services needed to invest beyond europe s borders london dominates the european financial services industry as in other global financial centres there is a premium on talented investment managers identified in the media as star performers investment companies rely on such employees for risk adjusted rates of return on the basis of asset and or style specific investment strategies while protecting their clients against the risks occasioned by market uncertainty drawing upon frameworks from organizational ecology this paper integrates the size of companies with the market for talent sectorally and geographically

exogenous tariff changes with an endogenous lobbying response as pointed out by krueger 1993a 1993b changes in policy which are exogenous to the lobbying process may lead to a vicious circle of protectionism a sector which receives protection will tend to grow thereby increasing the constituency for greater protection and reducing the constituency which opposes protection the possibility of such a vicious circle is examined in the context of a trade model where capital which is immobile in the short run may lobby for a sector specific import tariff if costs associated with overcoming the free rider problem do not rise too quickly exogenous policy changes will be reinforced by the endogenous lobbying response as capital flows into the protected sector in the long run the implications of lobbying by third parties versus lobbying by the specific factors themselves are also examined

regulatory change corporate restructuring and the spatial development of the british financial sector marshall j n gentle c j s raybould s and coombes m 1992 regulatory change corporate restructuring and the spatial development of the british financial sector reg studies 26 453 467 the paper explores the dynamics of employment growth and change in the financial sector in the regions of britain during the 1980s complementing other work which has focused on international and corporate finance it focuses on personal financial markets the paper demonstrates the way in which regulatory change has initiated corporate diversification into new markets this reorganization has also included a round of innovation in new financial services and intensified competition in established personal sector markets restructuring has both intensified the concentration of the industry in the south and east of the country and promoted decentralization from london professional and managerial staff associated with the development of new services have been concentrated in the greater south east the rationaliza

behavioral identification in coalitional bargaining an experimental analysis of demand bargaining and alternating offers alternating offer and demand bargaining models of legislative bargaining make very different predictions in terms of both ex ante and ex post distribution of payoffs as well as in the role of the order of play the experiment shows that actual bargaining behavior is not as sensitive to the different bargaining rules as the theoretical point predictions whereas the comparative statics are in line with both models we compare our results to studies that attempt to distinguish between these two approaches using field data finding strong similarities between the laboratory and field data regardless of the underlying bargaining process

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

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

1992 and its impact on local and regional banking markets molyneux p 1989 1992 and its impact on local and regional banking markets reg studies 23 523 533 the aim of this paper is to examine how the structure performance and ownership characteristics of ec banking markets will influence the expansion strategies of large ec banks up to 1992 we will also examine the implied effect this will have on local and regional banking markets within the ec the emphasis focuses on large bank acquisition opportunities available up to 1992 we find that the majority of potential big banks acquisition targets are based in the uk germany france spain italy and luxembourg the limited big bank takeover opportunities available to banks will probably encourage them to establish niche business branch networks overseas it will also accelerate the current move of large banks to acquire small and medium sized regional banks across borders as well as to form joint ventures with institutions in other ec countries molyneux p 1989 1992 et son impact sur les marches banc

malapportionment and multilateral bargaining an experiment abstract members of collective decision making bodies often represent communities that differ in population sizes malapportionment results when decision making power is not allocated evenly across the population two well known institutions with malapportionment have emerged bicameralism and weighted voting this paper studies experimentally how agenda setting power affects the distribution of resources comparing across those two institutions conventional wisdom suggests that malapportionment favors scarcely populated states i find that this is the case under weighted voting but not necessarily in a bicameral system in the later case the allocation of agenda setting power can be used to eliminate distortions stemming from malapportionment

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

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

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

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

do capital importing countries pay higher prices for their imports of goods abstract we examine the effects that a country s net capital flows have on the border prices that a country pays for its imports of goods using data from 2000 to 2009 for 11 euro area countries we utilize a pricing to market specification to study exporters pricing behavior to the rest of the countries in the sample at the industry level for 900 goods disseminated at the 4 digit standard international trade classification level this allows us to construct a panel dataset which contains observations across exporters importers industries and time we find a strong positive influence of the importing country s net capital inflows on the border prices of its imports of goods this result is robust across different specifications of the underlying model as well to different sample dis aggregations across types of capital flows product categories and exporters

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

the effects of u s trade laws on poverty in america this study examines the relationship between the application of u s trade laws and the distribution of income and levels of poverty in america specifically we examine the recent use of administered protection by u s industries and compare the experiences of these industries under the trade laws with their associated poverty rates wage levels and rates of unemployment this study seeks to determine whether this protection has served to alleviate or to exacerbate poverty we find an inherent bias in the trade laws toward increasing the incidence of poverty

causal relationship between exports and economic growth some empirical evidence in taiwan japan and the us causal relationships between exports and economic growth are tested for taiwan the us and japan the variables are stationarized the method of hsiao 1979 is employed in finding the direction of causation wald and likelihood ratio tests confirm that exports growth in the us and a feedback causal relationship exists in japan only terms of trade causes economic growth in japan

communication in multilateral bargaining one of the most robust phenomena in the experimental literature on multilateral bargaining is the failure of proposers to extract equilibrium rents however all previous experiments have overlooked the fact that outside the lab committee members are allowed to and do engage in sometimes intense communication processes prior to voting on a proposal we conduct an experimental test of the baron ferejohn model in which we allow committee members to engage in unrestricted cheap talk communication before a proposal is submitted we find that proposers extract a significantly higher share of resources when communication is allowed communication increases proposer power through two channels first it mitigates the uncertainty surrounding the amount a coalition member is willing to accept second it allows potential coalition members to compete for a place in the coalition by lowering this stated price