bluuebunny/crossref_metadata_2025 huggingface dataset:
Measuring the Impact of New Public Management and European Integration on Recruitment and Training int he UK Civil Service
Authors: Maor Moshe , Stevens Handley
Published: March 2003

This article investigates the impact which the institutional development of the European Union (EU) and the new public management (NPM) have had on the process of recruitment and training of senior public officials in the United Kingdom between 1970 and 1995. Information provided by directors of personnel and training has enabled the extent of change observed in three government departments – Agriculture, Transport and Health – to be measured on a numerical scale. This is combined with a historical analysis rooted in practitioner experience. The evidence from both sources suggests that whereas NPM pressures have had a relatively similar impact on recruitment and training practices in all three departments, the response to EU pressure is much stronger in the Ministry of Agriculture than in the Departments of Transport and Health. The EU impact in Agriculture is particularly strong in respect of recruitment and career progression, the only area and the only department in which our index suggests that policy has been more heavily influenced by European pressures than by NPM. These findings reflect the strength of the political commitment to NPM and the power of the central departments in imposing it across Whitehall; and in the case of Agriculture the development of a cadre of senior officials who have almost all had experience of working in or with the EU institutions.
Quasi‐market Transformation: An Institutionalist Approach to Change in UK Hospitals
Authors: Kitchener Martin
Published: March 2003

Quasi‐market transformation (QMT) refers to the process by which the dominant organizational form in a field is replaced, following the introduction of a quasi‐market. In this article, analysis of comparative case‐study data reveals that, until the early 1990s, a common interpretive scheme, or set of values and norms, underpinned a set of structures and systems in many UK hospitals. These similarities of form are represented as the directly managed (DM) hospital archetype. When change initiatives challenged this archetype, the outcomes were negotiated and the interpretive scheme remained largely unscathed. Following the introduction of a quasi‐market in 1991, a new trust hospital interpretive scheme has emerged. For the first time, UK hospitals have experienced transformation and now display an alternative set of structures and systems. This article explains how the trust hospital archetype has become legitimized through different tracks of change within individual hospitals.
Political Responsibility For Bureaucratic Incompetence: Tragedy At Cave Creek
Authors: Gregory Robert
Published: March 2003

In April 1995 a viewing platform built by the Department of Conservation collapsed at a New Zealand wilderness location, Cave Creek, plummeting 14 people to their deaths. The tragedy was unprecedented in New Zealand public administration. This article examines the concepts of political accountability and responsibility in the light of the disaster and the findings of the commission of inquiry into it. It does so with reference to the New Zealand state sector reforms, and theoretical and conceptual contributions to the understanding of (public) policy fiascos and disasters. Although public accountability requirements were fulfilled in the case of Cave Creek there was an unsatisfactory resolution of political responsibility. A fuller appreciation of vindicative political responsibility is needed in tragic cases of this kind where the humanity and justice of impersonal governmental systems need to be at least symbolically affirmed. However, the prospects for such a wider sense of proportion may not be enhanced in a managerialist era.
The Governance Narrative: Key Findings and Lessons from the Erc’s Whitehall Programme
Authors: Rhodes R.A.W
Published: March 2003

This article provides a personal interpretation of the key findings of the Economic and Social Research Council’s Whitehall Programme. I tell the distinctive story of ‘governance’— of fragmentation, networks, unintended consequences and diplomacy — challenging the dominant, managerial account of change in British govern‐ment since 1979. I present a view of the world in which networks rival markets and bureaucracy as ways of allocating resources and co‐ordinating policy and its implementation.
Introducing Purchaser/Provider Separation in the Catalan Health Administration: A Budget Analysis
Authors: Gallego Raquel
Published: March 2003

This article examines the extent to which the Catalan reform launched in 1990 effectively introduced the purchaser/provider separation within the public health administration. The reform had two formulation sources: a law passed by the Catalan Parliament, which left this principle vague, and a further ‘new public management’ discourse, which interpreted the law in terms of a clear purchaser/provider separation. This study uses Dunleavy’s (1991) analytical model of agency types to compare the impact of the reform on the budget structures of the health administration agencies affected — namely, the Department of Health and Social Security, the Catalan Health Service and the Catalan Health Institute. The data show that while the provider role was clearly defined and implemented, the purchaser role was not. Instead, the role of the health authority embodied the complex blend of functions established by the text of the law, which was also reflected in its budget structure, and which blurred the separation between purchaser and provider.
Evaluation in France, a Component of Territorial Public Action
Authors: Fontaine Joseph , Warin Philippe
Published: March 2003

Evaluation practices developed in France, especially by local authorities and above all by regional councils, provide an interesting opportunity to examine from the inside the way public policies are constructed. Taking evaluation practices seriously as a subject of study reminds us, in a way, of the necessary empiricism needed to analyse public policies. At a time when this discipline experiences, at least in France, a surge in conceptual proposals, the point of view expressed here aims to point out the necessary modesty we have to show in the face of the complexity of the subjects studied and of the usefulness of evaluation practices to explain territorial public policies.
Modernization and Change in Social Housing: The Case for an Organizational Perspective
Authors: Mullins David , Reid Barbara , Walker Richard M.
Published: March 2003

It is argued that past approaches to the research of housing policy and housing organizations are now inadequate and unable to provide a clear explanation of modernization and change. The modernization of social housing is associated with changing core organizational competencies and the movement towards a variety of partnership approaches. In response we develop a tripartite theoretical framework based around new institutional economics, strategic management and institutional theory. An exploratory review of the evidence at a sectoral level (examining social housing as a field, regulation and the profession) and the organizational level (focusing upon changing organization behaviour) is used to illustrate the legitimacy of this approach. In conclusion a research agenda is outlined.
Public–private transformations. Institutional shifts, cultural changes and altering identities: two case studies
Authors: Veenswijk Marcel B. , Hakvoort Jan L.M.
Published: March 2003

The central question of this article is which changes in cultural orientation arise during institutional transformation within public–private hybrid organizations. The article presents a theoretical review, using the Dutch interaction model, in which various models of institutional transformation and cultural change are brought up. We present two case studies which are part of an inter–university study of hybridization and processes of privatization.
Assessing R&D quality in rehabilitation technology development. The case of Roessingh Research and Development
Authors: De Weerd‐Nederhof Petra C. , Van Harten Willem H. , Boer Harry , Hermens Hermie
Published: March 2003

This paper presents a framework for describing and evaluating the links between the design of the R&D function, its context and its performance. As a first step towards the development of a quality assurance system, this framework was used to assess R&D quality performance at a privatized R&D unit connected to a rehabilitation centre (Roessingh Research and Development). The results suggest that the framework is a useful instrument for managers to identify and understand the strengths and weaknesses of the R&D function, both with respect to its present, operational (quality) performance as well as its strategic flexibility, i.e. its readiness to adapt to, anticipate, or even create future (quality) performance requirements. The paper concludes with managerial implications with regard to the choice of an appropriate quality assurance system for Roessingh R&D, thus illustrating briefly how the framework can be used to apply ISO/BS quality standards (which are aimed at product development) in more fundamental R&D.
The governance of external research: empirical test of some transaction‐cost related factors
Authors: Croisier Bernard
Published: March 2003

In this article, we analyse the impact of some transaction‐cost related factors on the governance of external research. We study how transaction costs vary according to specific attributes of the R&D project, such as the stage in the R&D process, the number of partners implied, the number of technological fields covered, the geographical scope and the duration of the project. According to transaction cost theory, we hypothesize that the higher the transaction costs relative to market governance, the more it is likely that the governance structure will move towards hierarchy.
Why did we make that cheese? An empirically based framework for understanding what drives innovation activity
Authors: Harmsen Hanne , Grunert Klaus G. , Declerck Francis
Published: March 2003

In the more recent product development literature the interplay between R&D skills and competencies and market skills and competencies is seen as a major determinant of successful innovation. The study reported in this article was done in order to cast more light on these two constructs in an industry with low R&D expenditures, but where product development is nevertheless considered to be strategically important. That industry is the food processing industry. The results of a series of case studies indicate that constructs other than R&D and market orientation may be more appropriate for understanding innovation and explaining innovation success in the case material. A new set of constructs focusing on what causes specific innovation activities to occur is proposed and a revised framework is developed.
Managing technology as a virtual enterprise
Authors: Weisenfeld Ursula , Fisscher Olaf , Pearson Alan , Brockhoff Klaus
Published: March 2003

The complexity of R&D projects and growing international competition are factors leading to more co‐operation especially among small and medium‐sized firms. But even large integrated firms are often not willing or able to perform the necessary amount of R&D and to cope with the uncertainty associated with radical innovations.

In a virtual company, members form a network, thereby enabling projects to be pursued by combining member’s resources. Specific assets of a virtual company are its flexibility and ability to handle variety. Costs of co‐ordination and motivation are lowered if the virtual company succeeds in building trust and commitment. On the other hand, lack of these pose severe problems.

In markets with a strong scientific‐technological basis and rapid rate of change the concept of a virtual organization seems appealing. High R&D costs and risks can be shared, developments and time‐to‐market can be accelerated and the partners can concentrate on their respective core competencies.

In the paper we use an example from the biotechnology industry as a case study and discuss some of the theoretical and practical problems that are encountered in the virtual enterprise.
The development of co–innovation strategies: stages and interaction patterns in interfirm innovation
Authors: Bossink Bart A.G
Published: March 2003

Organizations that choose or are forced to innovate in co–operation with other organizations, go through four stages of co–innovation strategy development. The stages are successively: (I) autonomous strategy making: organizations develop strategies on their own, (II) co–operative strategy making: organizations concentrate on developing innovation strategies in close co–operation with other organizations, (III) founding an organization for co–innovation: organizations found a joint organization in which they develop co–innovation programs, and (IV) realization of innovations: organizations develop innovations, based on the co–innovation strategies and programs. The description of the stages is based on an interfirm network approach and a research project in the Dutch construction industry. The stage model can be a guideline for organizations that participate in co–innovation processes and have to decide how and with whom they co–innovate.
Suggestion systems: transferring employee creativity into practicable ideas
Authors: Van Dijk Christiaan , Van Den Ende Jan
Published: March 2003

Nowadays many companies are aware of the importance of employee creativity. Suggestion systems are among the instruments for channelling creativity. However, companies vary strongly in the success with which they use suggestion systems. This article aims to clarify the organisational conditions for the successful use of suggestion systems. The Creativity Transformation Model encompasses the main factors that influence the functioning of suggestion systems. The model is tested within specific divisions of three companies that can be considered best practices in the use of suggestion systems. By applying the model, companies will be able to transfer employee creativity optimally into practicable ideas.
Sources and assessment of complexity in NPD projects
Authors: Kim Jongbae , Wilemon David
Published: March 2003

When examining the reasons why NPD projects are late, over budget, or why they suffer from performance problems, complexity is often directly linked to the results achieved. While some research has been done in the complexity area, more research is needed to assess the role that complexity plays in the successful development of new products. In this paper complexity is defined and several reasons are examined why this factor can be a significant issue in successfully managing NPD efforts. Several sources of complexity are also examined including technological; market; development; marketing; organizational; and intraorganizational complexity, i.e., one company partnering with another to develop a new product or technology. A template is then constructed to help product developers evaluate complexity in their development projects. Finally, the paper concludes with suggestions of how the complexity template can be applied by development managers and their teams.
‐ings and ‐ers
Authors: Hyman John
Published: March 2003

This paper is about the semantic structure of verbal and deverbal noun phrases. The focus is on noun phrases which describe actions, perceptions, sensations and beliefs. It is commonly thought that actions are movements of parts of the agent’s body which we typically describe in terms of their effects, and that perceptions are slices of sensible experience which we typically describe in terms of their causes. And many philosophers hold that sensations and beliefs are states of the central nervous system which we generally describe in terms of their typical causes and effects. For example ‘Brutus’s killing of Caesar’ is thought to describe a movement of a part of Brutus’s body – e.g. the thrust of an arm – in terms of one of its effects, namely, Caesar’s death. And ‘Hyman’s visual perception of a table in front of him’ is thought to describe the visual experience I’m having right now in terms of its cause. The object of the paper is to show that these doctrines misrepresent the semantic structure of verbal and deverbal noun phrases.
Trends in Contemporary Hermeneutics and Analytical Philosophy
Authors: Zaccaria Giuseppe
Published: March 2003

This paper focuses on some issues where the process of convergence between analytical and hermeneutic perspectives, with respect to their general philosophical grounds, mainly turns out to be clear. On the analytical side, the overcoming of logical Neopositivism and radical formalism and the rejection of the atomistic theory of reference by holistic theories of meaning have been the core shifts. On the side of the continental philosophical tradition, the main theoretical change lies in replacing the centrality of the subject with the centrality of language, with its links to the dimension of intersubjectivity. Furthermore, the importance given to concepts such as action and intention, mainly due to the Wittgensteinian connection between language and forms of life, has led to recognising the active role of the subject in the world and the ability of language to be a means for doing things and not just a system of signs representing the world. Such a convergence, though it has not yet been reached, seems to be particularly fertile in the legal domain. Here, for example, some outcomes of speech acts theory fit the hermeneutic view of law.
A Cosmopolitan Philosophy of International Law? A Realist Approach
Authors: Zolo Danilo
Published: March 2003

Analyzing different works and in particular Habermas' reflection on Kant, the author reconstructs, first, his approach to international law and his political and legal cosmopolitanism. Second, he presents some critical observations on Habermas' cosmopolitanism in the context of his more general discursive theory of law and state. In this perspective, he discusses the problems of peace and of the role of the United Nations, the strategy of protection of human rights, and the question of world citizenship. He argues that Habermas' cosmopolitanism is a radicalization of Kantian tradition based on a centralization of international power and a cosmopolitan law. Finally, he develops realist arguments in favour of a non‐globalistic conception of international law.
Presupposing the Basic Norm
Authors: Bindreiter Uta U.
Published: March 2003

According to Hans Kelsen, the basic norm is the necessary presupposition of the positivistic cognition of law, making possible both descriptive legal cognition and Verbindlichkeit. The nature of the presupposition in question here has been a subject of controversy ever since. Presupposing the basic norm gives rise to formulations that are neither purely descriptive nor purely normative. The author contends that Kelsen's doctrine of the basic norm was intended to apply to all jurists irrespective of function. Kelsen, without being aware of it initially, invested the verb “to presuppose” with an ambiguity that suits precisely this purpose.
Sovereignty and Representation
Authors: Wintgens Luc J.
Published: March 2003

In this contribution the author explores some aspects of the relation between sovereignty, democracy and representation. After shortly focusing on the idea of sovereignty, he then questions Rousseau's refusal to take representation into account within a democratic framework, an idea that is however latent in his general approach.
Consolations of the Law: Jurisprudence and the Constitution of Deliberative Politics
Authors: Fitzpatrick Peter
Published: March 2003

Initially, deliberative politics offers a failure of self‐identity in that the literature dealing with it divides between its determinate elevation in terms of reason, and such, and its dissipation in response to the diversity of interests pressing on it. Next, drawing on the resources of poststructural jurisprudence and by way of locating law at a defining limit of deliberative politics, a similar divide is found in law itself. Then, more productively, law is shown to be constituted with‐in that divide and to take characteristic content from it. Finally, the analysis is returned to deliberative politics where the divide found in the literature can now be seen as offering this politics possibilities of effective constitution and distinctive content.
The Rule of Reasons. Three Models of Deliberative Democracy
Authors: Forst Rainer
Published: March 2003

In this paper, the author contrasts three models of deliberative democracy: a liberal one, a communitarian one, and an alternative to both. Rather than understanding deliberative democracy as the rule of principles of justice or of communal values, the third model conceives of it as the “rule of reasons.” On the basis of a discussion of seven components of an “ethos of democracy” (the cognitive capacities of citizens, political virtues, the cultural, institutional and material conditions of democracy, political legitimacy, and the “ground” of democracy), the third view, which is based on a theory of moral and political justification, emerges as superior.
Legal Formality and Freedom of Choice. A Moral Perspective on Jhering’s Constructivism
Authors: Somek Alexander
Published: March 2003

In this article it is argued that Jhering’s conception of legal formality, which became notorious for being the most extreme expression of conceptualism, makes sense if it is recast as a theory of rights. It is from this vantage point that Jhering’s later methodological self‐critique becomes intelligible in which he mitigated the strains of conceptual constructivism by reflecting on the value of choice granted by a system of rights.
Instituting Authority. Some Kelsenian Notes
Authors: Roermund Bert Van
Published: March 2003

A rule of recognition for a legal order L seems utterly circular if it refers to behaviour of “officials.” For it takes a rule of recognition to identify who, for L, counts as an official and who does not. I will argue that a Kelsenian account of legal authority can solve the aporia, provided that we accept a, perhaps unorthodox, re‐interpretation of Kelsen's norm theory and his idea of the Grundnorm. I submit that we should learn to see it as the vanishing point rather than the final basis of validity in a legal order. To prepare the ground for this proposal, I will briefly explore the claim to authority that is characteristic of politics. Then I sketch a multi‐layered canonical form of the legal norm, including their “empowering” character (Paulson) in terms of performative operators. I show how it leads to a “perspectival” account of the basic norm. In conclusion, I briefly point to the example of sovereignty and acquis communautair in international law to illustrate this view
Memory in the Construction of Constitutions
Authors: Schäfer Michael
Published: March 2003

In connection with the contemporary debates in political philosophy between liberal, republican and proceduralist–deliberative views of democratic politics, I deal with the question of how the different concepts in these debates can be related to the particular national history, memories and expectations of a polity. I shall concentrate on one German example of the relationship between constitutionalism and democracy, in order to show that political philosophy must pay more attention to the different shared practices and understandings within each liberal society.
Cosmopolitan Democracy and the Rule of Law
Authors: Scheuerman William E.
Published: March 2003

The ongoing process of globalization calls out for novel forms of transnational liberal–democratic decision–making. In this spirit, David Held and a group of interlocutors (especially Daniele Archibugi) propose an ambitious model of “cosmopolitan democracy.” Although the proponents of cosmopolitan democracy are right to insist that transnational liberal democracy must avoid the dangers of an excessively centralized world–state, their own efforts to do so ultimately fail. The weaknesses of their ideas about the notion of the “rule of law“ generate unforeseen theoretical difficulties for their account. Any transnational network of liberal–democratic governance worth defending will need to do a better job preserving a substantial quotient of traditional rule of law virtues.
‘Eye‐candy’ in ‘Interactive Books’– a Wholesome Diet?
Authors: Burrell Clare , Trushell John
Published: March 2003

CD‐ROMs are becoming more widely used now and one particular genre seems to have a good deal to offer as a medium for the development of reading. These so‐called ‘interactive books’ have not yet been investigated in terms of their usefulness in teaching reading and Clare Burrell and John Trushell make a useful beginning to this. They are particularly concerned with whether the eye catching graphics of these books helps or hinders children’s reading of them and their report raises many interesting issues.
From Tyrannosaurus to Pokemon: autonomy in the teaching of writing
Authors: Graham Lynda
Published: March 2003

This article is about action research into the teaching of writing. In 1999–2000 primary teachers in Croydon took part in a project to raise standards in writing. Teachers undertook case studies of representative children, and made considered changes to their teaching of writing in the light of their observations of these children. The article focuses on case studies from four of these classes. (Reception, Y1, Y3 and Y6.) The four classes were chosen because in them children made most progress as writers during the project year. Brief outlines are made of case studies from these classes, followed by descriptions of the main changes to teaching in these classrooms. In conclusion, an analysis is made of common patterns of teaching across the four classes. These changes include the opportunity for children to: write about things that mattered to them; write as experts; hear their writing read aloud; and experience genuine response to this writing. In addition, it was also found that boys made most progress when given the opportunity to write in the company of other boys.
“Beyond the frame”: exploring children’s literacy practices
Authors: Burnett Cathy , Myers Julia
Published: March 2003

The aim of this small–scale research project was to examine the literacy events children choose to engage in outside school. Two groups of Primary School children were involved in investigating the use of literacy in their lives, using disposable cameras to record literacy events and texts. The photographs and the discussion stimulated by them provided evidence that these children used literacy in richly diverse ways for purposes which they saw as meaningful. Although limited in size and scope, the study showed that uses of literacy presented by these children reflected community literacy practices (as identified by Barton & Hamilton, 1998). However, it was also clear that the children acted with considerable autonomy, motivation and creativity in making their use of literacy meaningful to them. This paper provides a report on the project and discusses the implications of these findings for the teaching of literacy in school.
Shared thinking: metacognitive modelling in the literacy hour
Authors: Fisher Ros
Published: March 2003

This paper considers evidence from an ESRC funded study of twenty teachers, teaching the literacy hour. In 170 hours of observation only one instance of a teacher modelling her thinking about reading or writing was recorded: and this was unplanned. It is suggested here that, although there should be opportunities for metacognitive modelling within the literacy hour, teachers find it difficult to use these opportunities. Some ideas about the importance of metacognition are reviewed and an example of metacognitive modelling in shared writing is analysed. It is argued that concern for improved performance may cause more attention to be focused on what is to be achieved rather than how.
Factor Mobility and Income Growth: Two Convergence Hypotheses
Authors: Razin Assaf , Yuen Chi‐Wa
Published: March 2003

While technologies and policy fundamentals are presumably different internationally, inducing differences in growth rates, capital mobility can be a powerful force in equalizing output growth rates across countries. The paper provides some indirect evidence in support of this effect. In the context of regional growth, however, labor mobility can potentially equalize income levels across regions in the presence of human capital externalities. Supporting evidence is found for this effect, revealing that restrictions on labor flows tend to make per capita incomes more divergent across nations and/or regions.
Foreign Direct Investment and Economic Growth: Theory and Application to China
Authors: Berthélemy Jean‐Claude , Démurger Sylvie
Published: March 2003

The paper investigates the relationship between foreign direct investment and economic growth. A model of endogenous growth first highlights the transfer of foreign technology as a key determinant of economic growth, and suggests that economic growth may conversely influence the inflows of foreign capital. Simultaneous‐equation model estimation based on a sample of 24 Chinese provinces, from 1985 to 1996, confirms the fundamental role played by foreign investment in provincial economic growth in China, and stresses the importance of potential growth in foreign investment decisions.
Size Does Matter: Technical and Scale Efficiency in Indian State Tax Jurisdictions
Authors: Thirtle Colin , Shankar Bhavani , Chitkara Puneet , Chatterjee Somnath , Mohanty Madhu S.
Published: March 2003

Data Envelopment Analysis (DEA) is used to measure tax efficiency in 15Indian states from 1980/81 to 1992/93. Tax efficiency is shown to be conditional on state gross domestic product (SDP), agriculture’s share in state SDP,and a poverty index. The considerable remaining efficiency differences areattributable to the small size of some tax jurisdiction rather than to technical inefficiency. Multilateral Malmquist tax indices show that six of the states were consistently efficient, while three were consistently inefficient. Tax efficiency grew at an average annual rate of 3.9% until 1986/87, but growth ceased after that date for all but two states.
Technical Progress and the North–South Terms of Trade
Authors: Sarkar Prabirjit
Published: March 2003

In a classical world where prices of both northern manufactures and southern raw materials are determined by market demand and supply, technical progress in one region leads to a terms‐of‐trade improvement of the other region irrespective of whether technical progress is labor‐saving or raw‐material saving. But in a neo‐Kaleckian framework characterized by surplus capacity, and an effective demand problem in the North and a capacity constraint in the South, the terms of trade would turn against the South even if the North experienced a higher rate of technical progress than that of the South.
On Mixed Strategies for Development
Authors: McKay Andrew , Milner Chris
Published: March 2003

The paper investigates whether mixed trade strategies of import substitution and export promotion, if permanently or temporarily applied, can generate pro‐tradables movements in the real exchange rate. Static and dynamic general‐equilibrium modeling with a nontradables sector and alternative types of tradables is used to explore real exchange rate responses to uniform and nonuniform trade policy interventions. The paper shows that uniform, permanent interventions are neutral, having no impact on the equilibrium real exchange rate. The real exchange rate effect of temporary uniform interventions is, however, in general ambiguous when prices and incomes are fully endogenized. The breakdown of Lerner symmetry or of neutrality following uniform temporary interventions does not mean that intended promotion of tradables necessarily results in a pro‐tradables movement in the real exchange rate.
Incentives, Risk, and Agency Costs in the Choice of Contractual Arrangements in Agriculture
Authors: Agrawal Pradeep
Published: March 2003

The author develops a theory of the choice of contractual arrangements in agriculture by analyzing the incentives, risk‐premia, and agency (supervision and shirking) costs under different contracts using the principal–agent framework. The theory is able to explain many tenancy‐related issues, such as why sharecropping can be the optimal contract even in the presence of considerable shirking by the tiller, the predominance of sharecropping and of the 50*T*:*T*50 output share, the coexistence of sharecropping with other contracts, and the tenancy ladder.
Foreign‐Investment Tax and Tariff Policies in Developing Countries
Authors: Chao Chi‐Chur , Yu Eden S.H.
Published: March 2003

In this paper we examine the welfare effects of tax on foreign capital and tariff policies for a small open economy with sectoral unemployment. The individually and jointly optimal tax and tariff rates in the absence or presence of international tax credits are derived. A subsidy on foreign capital coupled with a tariff can be jointly optimal when tax credits are absent in the source country. However, the capital subsidy policy may fail to hold when the foreign country follows a tax credit system.
Why Democracies Cooperate More and Fight Less: The Relationship Between International Trade and Cooperation
Authors: Polachek Solomon W.
Published: March 2003

This paper provides an economics‐based interpretation of the standard finding in the literature that democracies rarely fight each other. A general theory of conflict between two countries is presented and empirical analysis applies this theory to the question of why democracies rarely fight each other. The results show that the fundamental factor in causing bilateral cooperation is trade. Countries seek to protect wealth gained through international trade, therefore trading partners are less combative than nontrading nations. Democratic dyads trade more than nondemocratic dyads, and thus exhibit less conflict and more cooperation.
Trade Policy Platforms of Competing Parties: What Makes Them Different?
Authors: Mayer Wolfgang
Published: March 2003

Theoretical voting models predict convergence of two parties’ trade policy platforms. In contrast, real‐world observations reveal substantial differences in the platforms of competing parties. This paper modifies the standard probabilistic voting model in a way that allows for divergence of policy platforms. Two parties are shown to adopt different policy platforms if the impact of trade policy choices on expected election outcomes depends on the specific identity of the policy‐promising party; that is, if the chance to win depends not only on what trade policy is promised but also on which party does the promising.
Preferences, Country Bias, and International Trade
Authors: Roy Santanu , Viaene Jean‐Marie
Published: March 2003

The paper analyzes international trade in a Ricardian world where consumer preferences exhibit country bias. In particular, consumers differentiate between identical physical goods by country of manufacture. In contrast to the classical Ricardian model, the pattern of international specialization in production depends on the preference structure. Possible equilibrium configurations include ones where both countries specialize incompletely and trade in both commodities, as well as situations where the pattern of specialization and trade is the reverse of that in the classical Ricardian world. Both interindustry and intraindustry trade can occur simultaneously, though there are no market imperfections or scale economies.
Comparative Advantage and the Pattern of Trade Within Industries
Authors: John T. Durkin Jr.  , Krygier Markus
Published: March 2003

This paper investigates empirically one aspect of the vertically differentiated models of intraindustry trade. These models predict that the pattern of trade within an industry is based on comparative advantage rather than being completely random. An empirical model is specified in which the relative quality of two countries’ bilateral exports within an industry depends on the relative differences in unit labor requirements. Using a variety of econometric methods, the results suggest that the quality of US manufacturing exports to the UK, Japan, and Germany relative to its imports from these countries is positively and significantly related to the relative differences in value added per worker.
Southern Multinationals
Authors: Adams Laurel A.
Published: March 2003

Investments in the North by Southern firms are still unusual. While such investments may be motivated by tariff jumping and internalization, casual empiricism suggests that such reverse DFI may be motivated by improved technology access. This paper examines, within a theoretical framework, whether enhanced technology access provides sufficient motivation for the endogenous formation of southern multinationals. Southern firms are most likely to establish northern subsidiaries in industries with rapid technological obsolescence; when global sales are high relative to DFI costs; and when domestic production costs are high. Neither market power nor significant market shares are a prerequisite for southern multinationals.
The Effect of Exchange Rate Volatility on Trade in Durables
Authors: Lee Jaewoo
Published: March 2003

Because durable goods have the quality of an asset, risk‐averse consumers wan to pay a lower price for durable than for nondurable goods so that they are compensated for the risk of price changes; they require risk premium. Since the exchange rate is a strong source of uncertainty in import prices, exchange rate volatility has a negative effect on the demand for imported durables. In an imperfectly competitive market, the volatility of the exchange rate is predicted to reduce the relative price of imported durables. The prediction is supported by an empirical investigation of US imports.
Do National Borders Really Matter? Canada–US Regional Trade Reconsidered
Authors: Anderson Michael , Smith Stephen
Published: March 2003

This paper reconsiders the Canada–US border’s effect on trade. The authors first test whether the findings of McCallum (1995) and Helliwell (1996)—that the border substantially decreases trade—change when better data are used. It is found that the “border effect” may be substantially less than previously measured—up to 50% smaller—but remains surprisingly large. An explanation of the border’s effect is sought. Transportation equipment offers a natural experiment, as North American trade has been completely liberalized for several decades. A higher border effect is found for these freely traded goods, which rules out standard protection as the border effect’s cause.
Trade Gains in Chaotic Equilibria
Authors: Kemp Murray C. , Shimomura Koji
Published: March 2003

It is shown by means of an overlapping‐generations (OLG) example that free international trade may be both deterministically chaotic and gainful in the sense of Pareto to a participating country.
Hong Kong: The Fragile Economy of Middlemen
Authors: Wan, Jr Henry Y. , Weisman Jason
Published: March 2003

The paper shows that standard trade models can be adapted to address crucial policy issues in our dynamic, imperfect‐information world. It also shows that intermediated trade is essential to the modernization of the 1.2 billion‐person Chinese economy; yet, notwithstanding sincere intentions in Beijing and Hong Kong, subtle changes may deny Hong Kong its irreplaceable catalyst role, leaving China ultimately to technical stagnation.
Chaotic Equilibria in a Small, Open, Overlapping‐Generations Economy with Child–Parent Externality
Authors: Nishimura Kazuo , Shimomura Koji
Published: March 2003

This paper presents a simple overlapping‐generations model of a small open economy with child–parent externality that exhibits chaotic equilibrium dynamics.
Foreign Capital, Urban Unemployment, and Economic Growth
Authors: Fung Michael Ka‐yiu , Zeng Jinli , Zhu Lijing
Published: March 2003

A three‐sector endogenous growth model, is used to study the effects of foreign direct investment (FDI) on the dynamics of urban unemployment, labour income, and capital income as well as national welfare in a Harris–Todaro economy. It is shown that more FDI can affect the economy’s dynamics and national welfare positively or negatively. The paper derives conditions as to how the growth rate and welfare effects of FDI relate to the intersectoral mobility of capital, the destination of FDI, the elasticities of substitution, and the factor intensities of the final good production.
Public Procurement, Market Integration, and Income Inequalities
Authors: Trionfetti Federico
Published: March 2003

Aggregate demand externalities are the source of the cumulative processes of the new economic geography. In this paper these externalities drive the endogenous emergence of the pattern of international specialization in integrating economies. A distinguishing feature of this work is that it considers two aspects of market integration simultaneously: reduction of trade costs, and liberalization of the public procurement market. The first dimension has been widely studied. Adding the second dimension, which is on the policy agenda of the WTO and the EU, yields insights concerning the pattern of international specialization, income inequalities, and welfare.
Overseas Investment and Firm Exports
Authors: Head Keith , Ries John
Published: March 2003

A firm can serve overseas customers by exporting or by producing in the foreign market. Thus, ceteris paribus, one might expect increases in overseas investment to displace exports. However, most empirical work has found a positive relation between the two variables. The authors use a panel dataset containing 25 years’ of data on 932 Japanese manufacturing firms to investigate the effect direct investment abroad has on exports. For the full sample of firms, complementarity is found. The relationship, however, varies across firms. Those that are unlikely to ship intermediates to overseas production affiliates exhibit substitution.
Exchange Rate Volatility and Exports: Regional Differences between Developing and Industrialized Countries
Authors: Sauer Christine , Bohara Alok K.
Published: March 2003

This study uses a large panel of industrialized and developing countries to investigate the link between exchange rate volatility and exports. Although the empirical literature on this relationship is extensive, a clear consensus about its nature and importance is yet to emerge. Using fixed‐ and random‐effects models to capture cross‐country differences, pooled export equations are estimated for the entire panel and various subsets of countries. The results, which are robust across different volatility measures, indicate that negative effects exist for LDC exports, especially from Latin America and Africa, but not for exports from Asian LDCs or industrialized countries.
Agriculture and the WTO: Next Steps
Authors: Anderson Kym , Hoekman Bernard , Strutt Anna
Published: March 2003

The potential welfare gains from further liberalizing agricultural markets are shown in this paper to be huge, both absolutely and relative to gains from liberalizing textiles or other manufacturing, according to new simulation results of the Global Trade Analysis Project. The probability of the WTO delivering sizeable farm protection cuts in the next round of multilateral trade negotiations would be greater if industrial and service sector negotiations were undertaken simultaneously as part of a comprehensive new round. The immediate challenge for analysts and negotiators is to identify and assess feasible policy packages that facilitate genuine agricultural reform rather than encourage inefficient re‐instrumentation of farm support measures. Such assessment will require significant improvements in both analytical tools and databases.
Monetary Shocks and Real Exchange Rate Hysteresis: Evidence from the G‐7 Countries
Authors: Rapach David
Published: March 2003

Long‐run monetary neutrality specifies that nominal disturbances do not affect long‐run real exchange rates. However, the “over depreciation” of the US dollar in the late 1980s, after its strong appreciation earlier in the decade, suggested to a number of observers that nominal disturbances alter long‐run real exchange rates; that is, money supply shocks entail real exchange rate hysteresis. Using data from the G‐7 countries and the post‐1973 float, the paper measures the long‐run effects of relative money supply disturbances on real US dollar exchange rates. Little evidence of hysteretic monetary policy effects is found.
Difference‐Equations Solution of Exchange Rate Dynamics
Authors: Akiba Hiroya
Published: March 2003

The paper focuses on an appropriate and consistent theoretical as well as empirical model of the rational‐expectations version of the asset‐market approach to exchange rate determination. Using a “sticky‐price” monetary model, and formulating the model by a difference‐equations system, explicit solutions are obtained as functions of forcing variables extending to past dates only. This “backward‐looking” characteristic of the solution is in stark contrast to conventional “forward‐looking” models, and alleviates empirical investigation because of the need for past data only. This discrete dynamic model is superior to the corresponding continuous model, because its solutions neither exhibit the empirically unfounded “overshooting” behavior, nor have saddle‐point (in)stability. Rather, the exchange rate is shown to follow an oscillatory path with asymptotic stability, and this seems to replicate the actual movements closely approximated by a random‐walk process.
Investor Expectations and the North American Free Trade Agreement
Authors: Rodriguez Peter
Published: March 2003

The paper uses a stock market event study to examine investors’ expectations of NAFTA's effect on the profitability of manufacturing industries in the USA, Canada, and Mexico. The main finding is that factor intensity, specifically a measure of the industry–wide labor–capital ratio, is the most significant determinant of excess returns. The results suggest that investors believed the NAFTA would favor industries that used abundant factors intensively and reduce profitability in industries that relied heavily on scarce factors; and, more generally, that factor intensity is a primary source of comparative advantage. No significant relationship was found between the relative scale of industries among the three countries and the NAFTA's expected influence on profitability.
Commercial Real Estate Capital in the Restructuring of Downtown Baltimore
Authors: Zhu Jieming
Published: March 2003

Along with the suburbanization and international division of labor, downtown Baltimore has been declining as a center of commerce in Maryland since the beginning of the 20th century. Government‐led interventions have intended to stop vicious cycles of the city towards a despairing state, in the context that deconcentration of service jobs seemed irreversible due to the arrival of an “auto‐air‐amenity epoch.” However, in an uncertain time when the city is undergoing restructuring, commercial real estate capital, playing a determinant role in shaping urban landscape, has contributed significantly to the formation of uneven temporal and spatial urban development. This paper finds that the rising of new premier waterfront locations for offices created by high‐order capital precipitates the falling of the old Baltimore CBD, and thereby polarizes downtown Baltimore.