bluuebunny/crossref_metadata_2025 huggingface dataset:
Divining directions for development: a cooperative industry–government–public sector research approach to establishing R&D priorities
Authors: Marceau Jane
Published: March 2003

This paper discusses the limitations of many fiscal and related methods of encouraging increases in R&D as a tool for establishing research priorities. It suggests that any ‘national’ rather than industry–specific approach is likely to be ineffective in stimulating the R&D needed for the development of all industries. This is particularly the case in countries such as Australia and New Zealand where many decisions about R&D investments are made overseas, in the headquarters of the multinational firms that dominate most sectors of the economy. Instead, the paper suggests that an industry development approach currently being used in Australia, the Action Agenda approach, be modified to include a broader range of players, notably the public sector R&D community and an industry’s ‘users’, to think about and establish R&D priorities which will underpin progress in the industry as a whole rather than being restricted to individual firms. The proposal rests on the results of AEGIS empirical research (surveys and interviews) into the dynamics of innovation in different ‘product systems’ (broader than sectors) in Australia which indicates the broad range of players that need to be included both in the analysis of innovation and in policies for stimulating the research which can assist innovation.
On Defending Deontology
Authors: McNaughton David , Rawling Piers
Published: March 2003

This paper comprises three sections. First, we offer a traditional defence of deontology, in the manner of, for example, W.D. Ross (1965). The leading idea of such a defence is that the right is independent of the good. Second, we modify the now standard account of the distinction, in terms of the agent‐relative/agent‐neutral divide, between deontology and consequentialism. (This modification is necessary if indirect consequentialism is to count as a form of consequentialism.) Third, we challenge a value‐based defence of deontology proposed by Quinn (1993), Kamm (1989, 1992), and Nagel (1995).
Moral Incapacity and Deliberation
Authors: Clark Michael
Published: March 2003

Was Luther avowing a genuine moral incapacity when he claimed that he could do no other? Bernard Williams has distinguished moral from psychological incapacity in terms of deliberation. There are three particular difficulties for the notion: in addition to (1) scepticism about whether the agent is genuinely incapable, there are (2) the possibility of conflicting moral incapacities, and (3) apparent cases where there is no actual or possible deliberation. If (1) can be countered, (2) can be met by ceteris paribus clauses, and it is shown that these do not remove the element of necessity. And (3) can be met by showing how possible deliberation is involved in putative counter‐examples. Williams' account needs to be augmented to deal with cases of the morally unthinkable, and refined to allow for incipient attempts to do the morally impossible
Morally Serious Critics of Moral Intuitions
Authors: Nelson Mark
Published: March 2003

I characterize moral intuitionism as the methodological claim that one may legitimately appeal to moral judgments in the course of moral reasoning even when those judgments are not supported by inference from other judgments. I describe two patterns of criticism of this method: ‘morally unserious’ criticisms, which hold that ‘morality is bunk’, so appeals to moral intuitions are bunk as well; and ‘morally serious’ criticisms, which hold that morality is not bunk, but that appeals to moral intuition are nonetheless misguided. I consider morally serious criticisms of Kantian and Aristotelian provenance, but defend the intuitionist method from both.
Does the Total Principle have any Repugnant Implications?
Authors: Portmore Douglas W.
Published: March 2003

On the Total Principle, the best state of affairs (ceteris paribus) is the one with the greatest net sum of welfare value. Parfit rejects this principle, because he believes that it implies the Repugnant Conclusion, the conclusion that for any large population of people, all with lives well worth living, there will be some much larger population whose existence would be better, even though its members all have lives that are only barely worth living. Recently, however, a number of philosophers have suggested that the Total Principle does not imply the Repugnant Conclusion provided that a certain axiological view (namely, the ‘Discontinuity View’) is correct. Nevertheless, as I point out, there are three different versions of the Repugnant Conclusion, and it appears that the Total Principle will imply two of the three even if the Discontinuity View is correct. I then go on to argue that one of the two remaining versions turns out not to be repugnant after all. Second, I argue that the last remaining version is not, as it turns out, implied by the Total Principle. Thus, my arguments show that the Total Principle has no repugnant implications.
Three Cosmological Arguments
Authors: Hughes Christopher
Published: March 2003

I set out three (modal) cosmological arguments – one for the existence of a necessary fact, one for the existence of a necessary event, and one for the existence of a necessary individual. Although the arguments do not have the same premisses or conclusions, they have the same structure. Moreover, I argue, given some plausible ancillary assumptions, any one of the arguments can be made to do the work of any of the others. I then suggest that the arguments are inconclusive, because they depend on a doubtful principle linking contingency and explicability.
Conceptualism and Truth
Authors: Peterson John
Published: March 2003

Truth implies mind because falsity does and the same analysis must be given of each. Some philosophers (Aristotle, Brentano) express this by saying that ‘true’ and ‘false’ apply strictly speaking to judgments and derivatively to everything else. A consequence of this is that all non‐judgmental senses of ‘true’ and ‘false’ include some relation to a judgment. But counterexamples to this occur. So an alternative assay must be sought which both covers all cases and retains the idea that truth is mind‐dependent. Under this correction, something is true if and only if it conforms to an ideal standard or measure.

This broader view of truth is compatible with realism and conceptualism but not with nominalism. If there are independent reasons for rejecting realism, it follows that conceptualism is true and universals exist only in minds.
Should We Be Kantians? A Defence of Empiricism (Part One)
Authors: Philipse Herman
Published: March 2003

In his book Mind and World (1994), John McDowell defends the Kantian position that the content of experience is conceptual. Without this Kantian assumption, he argues, it would be impossible to understand how experience may rationally constrain thought. But McDowell's Kantianism is either false or empty, and his view of the relation between mind and world cannot be stated without transcending the bounds of sense. McDowell's arguments supporting the Kantian thesis, which are very different from Kant's arguments, essentially involve a fallacy of ambiguity. In order to understand how thought may be rationally constrained by experience we should become empiricists.
Samesaying, Propositions and Radical Interpretation
Authors: Kemp Gary
Published: March 2003

Davidson's paratactic account of indirect quotation preserves the apparent relational structure of indirect speech but without assuming, in the Fregean manner, that the thing said by a sayer is a proposition. I argue that this is a mistake. As has been recognised by some critics, Davidson's account suffers from analytical shortcomings which can be overcome by redeploying the paratactic strategy as a means of referring to propositions. I offer a quick and comprehensive survey of these difficulties and a concise propositional solution. Further, I argue that Davidson's more general philosophical commitments provide no reason not to embrace the propositional strategy: despite appearances, to invoke propositions in the way suggested is consistent with Davidson's holism and consequent doctrine of semantic indeterminacy.
Descartes's Real Argument
Authors: Downey James Patrick
Published: March 2003

It is still commonly supposed that Descartes based his argument for the mind‐body distinction on the law of the indiscernibility of identicals. I argue that this interpretation is very unlikely to be correct. I explain three contemporary versions of this interpretation and say why I reject it. Basically, use of this law for Descartes's conclusion would require reference to human bodies or else the supposition, for the purpose of the argument, of reference to human bodies. But at the time Descartes formulated his argument, he would not have allowed either. Instead, I amend a different interpretation which others have found, and briefly defend it against one famous objection.
Corporeal Objects and the Interdependence of Perception and Action
Authors: De Gaynesford Maximilian
Published: March 2003

This paper is about how action and perception are related in self–awareness. The main positive claim is that bodily awareness may consist in perceptual experiences that are sufficient to provide corporeal objects with introspective self–awareness. The short–term goal is to examine the grounds and motivations for strong versions of the claim that the self–awareness of corporeal objects is dependent on the exercise of their agency. As examples of ‘patient perceivers’ show, we should not underestimate the resources that perceptual experience alone offers to corporeal selves.
Toleration and the Law in the West 1500–1700
Authors: Kamen Henry
Published: March 2003

Before the emergence of the concept of individual rights, in the eighteenth century, toleration was conceded by states only to the corporations that constituted the state. Many states that, like France after the Edict of Nantes, conceded a form of toleration, did so without accepting the principle of toleration. The recognition or toleration of rights for individuals first became possible only in a wholly secularised society such as that of colonial north America.
Tolerance and Law: From Islamic Culture to Islamist Ideology
Authors: Botiveau Bernard
Published: March 2003

Tolerance implies both renunciation and negotiation, concepts that assume truth as relative. The rationality of religious faith does not acknowledge the existence of a shared truth, but history reminds us that religions could be directed through their social representatives to engage in social realities. This had been the case with Islam, despite the existence of strong structuring of knowledge and the Ulemas who play a vital role in its control and reproduction.
Toleration without Liberal Foundations
Authors: Leader Sheldon
Published: March 2003

The author's aim is to find principles grounding and limiting toleration that are sufficiently sensitive to the variety of distinct settings in which concrete problems arise, and to produce principles which can appeal both to liberals and to non‐liberals. The range of settings is covered by fixing the nature of three distinct species of the genus right to toleration. Once these rights are analysed, an attempt is made to see what agreement about them can be reached by liberals and non‐liberals if they have a common commitment to democracy. A definition of democracy is produced that, it is argued, liberals and non‐liberals would have difficulty rejecting. It is then explored as a definition that has definite consequences over the three rights to toleration, putting the opponents before a choice: either to accept their preferred content for the right to toleration, or to support a democratic policy.
Toleration, Liberalism and Democracy: A Comment on Leader and Garzón Valdés
Authors: Bellamy Richard
Published: March 2003

Leader and Garzón Valdés are correct to link toleration to democracy rather than liberalism. However, it is the democratic character of society and the process of democratic decision‐making that give rise to a genuine practice of tolerance, not an abstract and regulative ideal of democracy, such as they appeal to. Whereas the latter approach collapses into the standard liberal accounts of toleration both rightly find wanting, the former fits with a republican notion of deliberative democracy. This perspective corresponds to the circumstances of toleration and promotes tolerance as a virtue that is intrinsic both to the nature of democratic debate and to the securing of uncoerced agreement amongst people possessing different beliefs and values. As such, it proves more compatible with pluralism, and hence with toleration, than liberalism.
Legal Principles and Legal Theory
Authors: Muñiz Joaquín R.‐Toubes
Published: March 2003

Current legal theory is concerned with the presence of principles in law partly because they are at the core of Dworkin's criticisms of Hart's rule of recognition. Hart's theory is threatened by the possibility that the identification of some principles follows an extremely relaxed rule of recognition, or even no rule at all. Unfortunately, there is no conclusive test to ascertain what is the case in actual practice. On the other hand, the evaluative arguments which support Dworkin's proposal of principled adjudication are forceful but not conclusive. Moreover, since ultimate controversy over values is plausible, judicial discretion may sometimes be inevitable.
A Pluralist Critique of Contractarian Proceduralism
Authors: Rosenfeld Michel
Published: March 2003

In pluralistic societies with conflicting conceptions of the good, purely procedural justice looms as particularly attractive. Moreover, the social contract device, in at least some of its conceptual adaptations, appears capable of yielding purely procedural outcomes. Based on an assessment of the respective contractarian arguments of Hobbes and Rawls, the author asserts that contractarian proceduralism is either purely procedural but not just, or else just but only derivatively procedural. Finally, after proposing that Habermas' discourse ethics and proceduralist paradigm of law can be regarded as the perfection and culmination of contractarianism, the author concludes that it also ultimately fails to produce purely procedural justice.
Deontic Logic: A Personal View
Authors: Von Wright Georg Henrik
Published: March 2003

This article contains an overview of the author's long‐standing involvement with deontic logic, both from a technical and from a wider philosophical point of view. As far as the formal aspects of deontic logic are concerned, the author describes his intellectual development from the original discovery of the analogy between modal (and deontic) notions on the one hand, and quantifiers on the other, through the formulation of a systematic theory of dyadic deontic concepts, to the proposal of a formal logic of action as a foundation for deontic logic. In a more philosophical vein, the author discusses such questions as the very possibility of deontic logic if norms have no truth‐value, the relation between the descriptive interpretation of classical deontic logic and the logic of norm‐propositions, the correct representation of conditional or hypothetical norms, the distinction between moral obligation and practical necessity, and the interdefinability of permission and obligation.
Contributions of the Law to Political Deliberation. Comments on Peter Fitzpatrick's “Consolations of the Law”
Authors: Petev Valentin
Published: March 2003

In this paper the author discusses Peter Fitzpatrick's conception of deliberative politics (Fitzpatrick 2001), defining him as both a moderate optimist and a sceptic. For Fitzpatrick the deliberation is a process intrinsically incomplete; the law shows and compensates for the limits of deliberative politics and gives the political decision its legitimate form. Starting from Fitzpatrick's position, the author dwells, in particular, upon the relationship between law and deliberative decision making in politics showing that the essential question is how to handle deliberative discussion and not what the limits that law posits to deliberation are. Therefore he stresses that the success of deliberation depends not only on sound procedure, but, rather on political convictions, the belief in practical reason and a sense of community and proportionality (in other words, the spirit of democratic government and a critical public opinion) which play a decisive role in deliberative processes.
The Language of Practical Philosophy
Authors: Weinberger Ota
Published: March 2003

Kant’s criticism is based on the idea that all possible knowledge of facts is determined by the immanent structure of our apparatus of cognition, and that therefore we have no access to reality as it is per se (“Ding an sich”). In modern analytical philosophy some elements of this view survived, namely, the distinction between framework construction and actual data of experience, supposition or voluntary setting. The conditio humana is characterised by our capacity of acting. Acting is defined as behaviour determined and controlled by information processes. The structure of these processes defines the semantics and logical principles of practical philosophy. From this view follows the conception of value judgments, the logic of preferences, formal teleology, the analysis of utility and norm logic. The framework theories should be open in order to be able to express all possible theoretical views, namely, subjectivism as well as objectivism. The paper gives a concise account of the systems of practical thought (formal axiology, formal teleology, preference logic and norm logic) and their gnoseological problems.
The Possibility of Deontic Logic
Authors: Coyle Sean
Published: March 2003

A recent series of papers, sparked off by a note by Robert Walter (1996), has rekindled the debate over the possibility of creating a logic of normative concepts. The debate correctly centres on ways in which Jørgensen’s dilemma might be resolved (Jørgensen 1937–8), since a means of resolving that dilemma is the only apparently available way in which to establish that a logic of norms is possible. Two separate questions require answers: (i) what is the correct way in which to regard Jørgensen’s dilemma; and (ii) how should one face that dilemma? I shall argue that traditional responses to the first question are inadequate, and I shall then try to expose as flawed two recent attempts to resolve the dilemma. Finally, I shall relate my conclusions in the earlier part of the paper to the wider question of whether a logic of normative concepts is, after all, a possibility.
Family Electronic Literacy: Part 1 – Home‐School Links Through Audiotaped Books
Authors: Topping K.J. , Shaw M.C. , Bircham A.M.
Published: March 2003

In part one of this discussion of Family Electronic Literacy, the aim is to briefly review the idea of “parental involvement in children’s reading” and its development into the concept of “family literacy”, together with the emerging notion of “electronic literacy”. From an integration of these, the beginnings of “Family Electronic Literacy” will be outlined. In this context the use of the relatively “low‐tech” approach of audiotaped books will be described. The intention is to offer a broad overview, a more detailed description of one specific practical example, a typology of possible methods and references which can be pursued by interested readers. Part two will discuss a more “high‐tech” approach to Family Electronic Literacy through computers and the Internet and include a list of resources.
Family Electronic Literacy: Part 2 – Home‐School Links Through Computers
Authors: Topping K.J.
Published: March 2003

In a previous article (part one), “parental involvement in children’s reading”, its development into the concept of “family literacy”, and the emerging notion of “electronic literacy” were discussed. The use of the relatively “low‐tech” approach of audiotaped books was described in this context. In part two, a more “high‐tech” approach to Family Electronic Literacy through computers and the Internet is considered. The intention is to offer a broad overview, a more detailed description of one specific practical example, and references which can be pursued by interested readers. Future developments are foreshadowed and action implications for practitioners and researchers are discussed. A list of resource locations is appended.
Look! Here’s a New Idea! Using Information Technology to Facilitate the Use of Expository Text
Authors: Pagett Linda
Published: March 2003

Talking electronic stories are now an accepted part of many infant children’s early reading experiences and research has suggested that they have benefits in terms of reading development. Linda Pagett here describes the impact on her class of children of the non‐fiction equivalent of these talking stories – the simple talking topic ‘books’ produced by Sherston Software. Her favourable report suggests that simple books like these have much more potential than might at first be realised.
Redrafting at Key Stage 1
Authors: Durkin Kathy
Published: March 2003

Redrafting is clearly a crucial part of the writing process and teachers are currently required to teach children to redraft writing at Key Stage 2 in the National Curriculum. For Kathy Durkin this is much too late and she reports here on her investigations into introducing redrafting to Key Stage 1 children. From her work it seems there are many dangers in under‐estimating children’s abilities in this regard.
Juliet Makes her Mark
Authors: Trushell John
Published: March 2003

The early experience of a child born into a literate society is marked by literacy events – e.g. announcements, certificates, correspondence – and opportunities for engagement in literacy events. This article considers a selection of opportunities presented during three months in the experience of a four year old girl, Juliet, and the manner in which her emergent literacy has been scaffolded by her family and nursery school.
If you can’t read it then audio read it
Authors: Byrom Gillie
Published: March 2003

Audiobooks are a very popular reading medium for adults. Their use with children as a means of supporting reading has not yet really been investigated to any great extent. Gillie Byrom here describes her study into the use of audiobooks with struggling readers and suggests there is certainly a great deal of potential in these alternative texts.
Practical approaches to teaching punctuation in the primary school
Authors: Waugh David
Published: March 2003

Punctuation has definitely been, until quite recently, a neglected area of study in thinking and research on writing. This has meant that strategies for teaching punctuation have lagged behind, say, those developed for teaching spelling. David Waugh attempts in this article to redress some of this balance by laying out some practical ways forward in teaching punctuation.
The standardised classroom
Authors: Serafini Frank
Published: March 2003

What would classrooms be like if they actually took completely to heart the advice of politicians and those outside the educational service who judge everything by results? Frank Serafini presents here a chilling analysis of the dangers here and highlights the implications of standardising education. Hopefully we will not go along this road, which, as Frank argues, presumes mistakenly that people and children can be standardised as well.
Teaching Reading: Lessons from the Experts
Authors: Wray David , Medwell Jane , Fox Richard , Poulson Louise
Published: March 2003

There have been several investigations into the effective teaching of reading, but very few into the qualities of teachers who are effective practitioners in this area. In this article, the authors report some of the findings of a project commissioned by the Teacher Training Agency to investigate the characteristics of effective teachers of literacy. The effective teachers studied had a number of features in common, including a coherent set of beliefs about the importance of meaning in literacy teaching and an ability to help their pupils to make connections between language at the text, sentence and word levels.
Testing Rhyme Recognition: How Does Your Test Measure Up?
Authors: Rappaport Jennifer , Hunter‐Carsch Morag
Published: March 2003

New rhyme tests are being devised throughout the U.K. by educators in response to the Baseline Assessment procedures. The writers, a speech and language therapist and a teacher‐educator, are concerned that rhyme tests should be designed in a way which is sensitive to children’s developmental levels. This report on Rappaport’s (1993) Test of Rhyme Recognition (TORR) is part of a larger multidisciplinary study developing a Teaching Programme.
The Power and the Story
Authors: Carter Jennie
Published: March 2003

Role‐play can be empowering, engaging and motivating. Very young children naturally incorporate the texts they have seen and heard into their role‐play in quite sophisticated ways. This article seeks to explore the collaborative and creative nature of role‐play and to connect this living through imagined experience to early reading encounters.
Assessing Writing at Key Stage 1: Some Problems and Suggested Solutions
Authors: Fox Richard
Published: March 2003

This paper presents criticisms of the current approach to assessing children’s writing at KS1, via the use of judgements of best‐fit to descriptors of performance at different levels. It then offers a more detailed and systematic approach to assessment, based on judgements of attainment for seven dimensions and eight levels of writing. These are linked to the existing NC criteria. It is claimed that the new framework has a number of possible advantages and uses.
Multilingualism and Literacy Difficulties: Bridging home and school
Authors: Cortazzi Martin , Hunter‐Carsch Morag
Published: March 2003

This article concerns the social and cultural aspects which affect teachers’, parents’ and children’s communication in situations where multilingual children are struggling to cope with learning literacy in a language which is not the main one they use at home. In particular, the article explores some issues associated with multilingualism and dyslexia. It makes reference to research reported at the British Dyslexia Association’s first international conference on this topic which took place in June 1999 (Schwartz 1999; BDA/Peer in press). It also draws upon some of the early pioneering research on teaching principles for children with specific learning difficulties (Strauss, Werner and Lehtinen, 1947; Cruickshank, 1961) in order to synthesise broad guidelines and provide a framework of questions for today’s teachers of multilingual children who are struggling with literacy learning. The questions are designed to facilitate a collaborative approach between teachers, parents and children through raising awareness of multilingual issues and exchanging information. In this way the broad framework may assist in preparing the ground for closer diagnostic assessment and supportive teaching.
‘Being a Member of a Club makes me feel special!’ Children’s Responses to a Community Literacy Project.
Authors: Tanner Julia
Published: March 2003

This article presents the findings of a preliminary small‐scale evaluation of one aspect of the Read It Project, a community literacy project initiated and managed by Leeds Education 2000. It focuses on the reading attitudes and behaviour of children who attended Read It Clubs in 1998/9, based on survey data collected from sixty‐one participating children. It is clear children enjoyed the Read It Clubs they attended, valued the experience and believed they gained from it.
Tuning in to teacher–talk: a second language learner struggles to comprehend
Authors: Long Susi
Published: March 2003

This article presents findings from a 9–month ethnographic study of cross–cultural learning for the purpose of helping teachers better understand classroom conditions and behaviors that support and hinder students’ comprehension of teachers’ spoken language. Data from a close, observational study of an 8–year–old learning to get along in a new language environment illustrate conditions that caused her to tune out and those that supported her attempts to comprehend. Because spoken language often sounds like an incomprehensible string of sounds to a new language learner, this article suggests that incomprehensibility as well as students’ discomfort and sense of vulnerability can be greatly reduced when teachers scaffold their use of language in specific ways.
The King Never Emigrates
Authors: Epstein Gil S. , Hillman Arye L. , Ursprung Heinrich W.
Published: March 2003

This paper uses a locational model of rent‐seeking to describe incentives to emigrate. A country is considered in which how a person fares in privileged income redistribution is determined by proximity to a king. Contests for privilege determine whether the more or the less productive in the population are located closer to the king. A distinction is drawn between contests for privilege that are “easy” and “difficult.” When contests are “easy,” the more productive are furthest from the king and emigrate first. When contests are “difficult,” the least productive emigrate first. In either case, the population begins to unravel.
Saving Rates, Trade, Technology, and Stochastic Dynamics
Authors: Jensen Bjarne S. , Richter Martin , Wang Chunyan , Alsholm Preben K.
Published: March 2003

This paper develops a framework for analyzing the stochastic dynamics of small growing trading economies with CES sector technologies. The open neoclassical two‐sector growth model with a diffusion process (uncertainty) for the aggregate saving/investment ratio is demonstrated with sample paths and long‐run probability distributions of the overall factor endowment ratio. Stochastic endogenous growth and cycles require a combination of fundamental growth parameter values: saving rates, terms of trade, and sectorial substitution elasticities.
International Integration and Growth: A Survey and Empirical Investigation
Authors: Haveman Jon D. , Lei Vivian , Netz Janet S.
Published: March 2003

The authors attempt a comprehensive assessment of different forms of international integration on growth. In particular, the paper considers the impact of trade flows, of inward foreign direct investment, of preferential treatment of less‐developed countries, and of membership in trade blocs. Results confirm that general openness and foreign direct investment into a country do lead to increased growth; that membership in a trade bloc facilitates growth; and that the variation in income in the trade bloc also encourages more rapid growth among member countries.
Investment, Exports, and Output in South Korea: A VAR Approach to Growth Empirics
Authors: Feasel Edward , Kim Yongbeom , Smith Stephen C.
Published: March 2003

This study examines the time‐series behavior of investment, exports, and output in South Korea from 1956 to 1996. Impulse‐response analysis and variance decompositions indicate that investment rates and export growth rates have significant short‐run effects on the growth rates of per capita output. While there are long‐run effects to the levels of per capita output, statistically all growth rate effects disappear within four years. No special role for equipment investment was found. These findings are consistent with the predictions of the Solow growth model. The study found no empirical support for endogenous growth theory.
Imported Technology and R&D in the Taiwanese Electronic Industry
Authors: Tan Lin‐Ti , Hwang Amy R.
Published: March 2003

The paper identifies the R&D status of the Taiwanese electronics industry by employing a bivariate probit selectivity model to examine the relationship between imports of technology and inhouse R&D at the firm level. A complementary relationship between imported technology and inhouse R&D is observed, which implies that imported technology does not inhibit inhouse R&D in the Taiwanese electronic industry. However, technology‐importing enterprises have a higher average level of R&D expenditure than nonimporting ones, indicating that the R&D conducted in the industry is dominated by the adaptive R&D of the technology‐importing enterprises.
An Empirical Economic Development Based Model of International Banking Risk and Risk Scoring
Authors: Simpson John
Published: March 2003

The paper reconsiders the relationship between international banking risk and economic development. It is shown quite conclusively that the significant explanatory variables of international banking risk scores (when international banking risk is used as a proxy for country risk) are the income elasticity of demand for imports (when the latter is used as an indicator of economic growth and development), the phase of industrialization (based on country per capita income), and certain historical economic and financial variables (external debt levels and international bank size according to total assets). The investigation arrives at a new approach to risk scoring systems and models.
Democracy and Development: Cruel Dilemma or Symbiotic Relationship?
Authors: Bhagwati Jagdish N.
Published: March 2003

The paper dissects the hypothesis that democracy is inimical to economic development. The historical origin of this perspective is presented and its key theoretical and empirical assumptions are examined and assessed. The chief conclusion is that there is no necessary tradeoff between democracy and development. When compared to authoritarian regimes, democracy is more likely to foster an environment that facilitates the innovative and entrepreneurial process so essential for sustained development. On the other hand, democracy is better for development only when accompanied by an expansion of markets and competition. Democracy without markets is unlikely to deliver significant growth. In this context, liberalized international trade can act in a productive symbiosis with democratic institutions to promote development by facilitating bilateral flows of ideas, knowledge, goods, services, and technology.
Predicting the Crises of the Greek Drachma
Authors: Karfakis Costas
Published: March 2003

The paper investigates the role of fundamentals in the speculative episodes experienced by the Greek drachma during the 1990s, and examines whether the openness of the Greek economy has altered the role of fundamentals in the likelihood of a currency crisis. An interesting aspect of the empirical analysis is that the crises are related significantly to macroeconomic fundamentals of the Greek economy. The analysis shows that the openness of the Greek economy has introduced new elements and concerns in the predictability of speculative attacks on the drachma.
Measuring the Intensity of Vertically Integrated Multinational Enterprises
Authors: Tang Linghui
Published: March 2003

Using data collected by the Bureau of Economic Analysis (BEA), this study attempts to measure the intensity of vertically integrated multinational enterprises (VMNEs) for US foreign direct investment (FDI). By comparing the primary industry of US parents and their foreign affiliates, it is found that a significant proportion of VMNEs exists for US FDI abroad, which range over 14 manufacturing and three nonmanufacturing industries. The intensity of VMNEs is found to be negatively related with the host countries’ labor cost. Meanwhile, a critical amount of VMNEs arise to take advantage of proximity to customers through FDI.
Strategic Trade Policy and Vertical Structure
Authors: Ziss Steffen
Published: March 2003

We introduce intermediaries into the Brander‐Spencer model of strategic trade policy. A key finding is that in regimes involving independent retailers, output competition and linear pricing (and two‐part tariffs under certain restrictions), the optimal policy involves an export tax instead of a subsidy. If firms commit to vertical structure before governments commit to policy then under output competition firms choose integration, whereas if policy precedes structure then at least one firm chooses separation. Under price competition separation is a dominant strategy regardless of whether the structure decision is made before or after the policy decision.
Country Size and Economic Fluctuations
Authors: Crucini Mario J.
Published: March 2003

This paper investigates the character of business cycles across large and small economies. Empirically, G‐7 countries have less volatile investment, consumption, and trade balance ratios, higher correlations between domestic sacing and investment rates, and about the same correlation of the trade‐balance ratio and investment ratio as 68 smaller countries. These observations are consistent with a standard one‐sector two‐country general equilibrium model in which the only source of heterogeneity is country size. Since many developing countries are small, these findings suggest that even absent differences in markets and instutitions, economic fluctuations would be more severe in developing countries.
Evidence on the Contribution of Trade Reform Towards International Income Equilization
Authors: Ben‐David Dan , Bohara Alok K.
Published: March 2003

This paper provides some historical evidence on the impact of trade reform on income disparities between the liberalizing countries. The convergence test developed here involves joint estimation of augmented Dickey‐Fuller type equations using seemingly unrelated regression (SUR) techniques. Monte Carlo simulations are used to calculate the critical values which are in turn used to determine the significance of convergence. We find that countries which embarked on extensive trade liberalization programs exhibited significant income convergence with one another while countries that did not liberalize trade showed no evidence of convergence.
Meaningful Measures of the Current Account
Authors: Fisher Eric O’N. , Woo YoungSoo
Published: March 2003

Since the conventional current account uses cash‐flow accounting, it is potentially devoid of economic meaning. Assessing foreign assets at market values and including expected transfers from abroad, this paper reports two measures of the external surplus that are grounded in economic theory. The first measure is the aggregate generational current account, annual differences in the sum of net foreign assets across all current and future generations. The second measure is the generational profile of net foreign assets in a benchmark year. These ideas are implemented with data from Korea.
Preferential Trading and Real Wages
Authors: Panagariya Arvind , Suthiwart‐Narueput Sethaput
Published: March 2003

Following the Stolper–Samuelson type of logic, the general impression is that freeing up trade, whether preferentially as in the North American Free Trade Agreement (NAFTA) or on a nondiscriminatory basis as in the Uruguay Round, must lower real wages in one set of countries and raise them in the other set of countries. An increase in the real wage in all countries as a result of freeing up of trade either relies on gains via an improvement in the terms of trade or requires special assumptions such as increasing returns, complete specialization or asymmetries in production technology. This paper shows that even within a standard three‐country, three‐good, small‐union model, preferential trade liberalization can lead to increased real wages in both partner countries without necessarily relying on terms‐of‐trade improvements, increasing returns, complete specialization, or asymmetries in production technology.
Social Security Policy and International Labor and Capital Mobility
Authors: Geide‐Stevenson Doris
Published: March 2003

This paper studies the connection between social security policy and international factor movements within a two‐country overlapping‐generations model with production. Incentives for factor movements emerge because one country relies on private savings while the other country operates a social security system. The pattern of migration depends on the steady‐state capital–labor ratios compared with the Golden Rule capital–labor ratios. Incentives to migrate do not vanish in the long run and one country might empty out. Capital always moves to the social‐security country. Without compensation neither labor nor capital mobility represents a Pareto improvement for the economy.
Deindustrialization and Trade
Authors: Spilimbergo Antonio
Published: March 2003

This paper extends the Dornbusch–Fisher–Samuelson (1977) model to explain deindustrialization and trade; this extension follows Baumol’s (1967) observation on the negative correlation between the size of the service sector and growth. It is shown that trade improves welfare through the exploitation of comparative advantages but accelerates the shift toward services, slowing down the rate of growth. Trade can decrease welfare if manufacturing activities with learning‐by‐doing move abroad. In this case, some experience is lost and all countries lose.
International Cross‐Ownership and Strategic Trade Policies
Authors: Long Ngo Van , Soubeyran Antoine
Published: March 2003

The paper analyzes a model of strategic trade policies in the presence of international cross‐ownership of firms that are heterogenous both in terms of costs and in terms of extent of foreign ownership. The equilibrium pattern of taxes and subsidies is characterized for any arbitrary cross‐ownership profile, and any number of heterogenous firms. The equilibrium subsidy (or tax) given to any firm is shown to depend, in a separable manner, on the firm’s characteristics and on the covariance of the distribution of cost and foreign ownership across firms. A neutrality theorem is proved concerning the Nash equilibrium of the game between governments: in equilibrium, the pattern of trade, the value of each firm, and world welfare are independent of the ownership pattern.
Real Exchange‐Rate Prediction over Short Horizons
Authors: Wu Jyh‐Lin , Chen Show‐Lin
Published: March 2003

The objective of this paper is to examine the predictability of real exchange rates during the period following Bretton Wood. The uniqueness of the model is that it allows for time‐varying‐coefficient and Markov‐switching eteroskedasticity. Evidence is provided to show that the model, with appropriate specification, is superior to the random walk in terms of out‐of‐sample redictability even when forecast horizons are short.
Bailouts, Endogenous Financial Regimes, and Market Sentiments
Authors: Long Ngo Van , Tian Huilan
Published: March 2003

The authors examine the role of strategic interactions among a small number of financial intermediaries who know that the current financial regime is subject to change. The current financial regime offers protection to the intermediaries against bad outcomes. Each financial intermediary’s investment strategy is shown to depend on its rivals’ strategies. It is shown that a small shock that causes an initially small deviation from an intermediary’s equilibrium strategy can lead to a series of larger deviations by its rivals, thereby precipitating a change of financial regime.
Estimating the Value of Implicit Government Guarantees to Thai Banks
Authors: Kaplan‐Appio Idanna
Published: March 2003

The paper estimates the contingent liability of the Thai government to their banking system prior to the 1997 financial crisis by maximizing a likelihood function that utilizes the established result that deposit insurance can be modeled as a put option on the value of bank assets. The results show that the estimated value of the government guarantee was large and statistically greater than the premium banks paid for this guarantee, suggesting that guarantees provided a subsidy to Thai banks. Additionally, the estimates are able to identify weak banks before the crisis emerged. These results suggest that the estimated value of implicit deposit guarantees can serve as an early warning indicator of banking crises. The paper contrasts the option pricing results with traditional balance sheet indicators, and demonstrates that these alternative indicators are unable to identify weaknesses in the Thai banking systems before the crisis.
Germany’s Economic Unification: An Assessment after Ten Years
Authors: Sinn Hans‐Werner
Published: March 2003

A political miracle occurred when Germany was reunited, and at first glance an economic miracle has followed. Real incomes in the eastern area have now reached the western level, and investment per capita has been much higher than in the west. However, every third deutschmark spent in the east has been coming from the west, investment in equipment has fallen below the west German per capita level, and convergence seems to have come to a halt at an overall labor productivity of only 59% of west Germany. Excessively high wages coupled with investment incentives that made the cost of capital negative rank high among the possible explanations. This paper describes reforms of the labor market that could help to make convergence continue.
Determinants of Net Trade Flows in the OECD: New Evidence with Special Emphasis on the Former Communist Members
Authors: Martín Carmela , Velázquez Francisco J.
Published: March 2003

This study estimates an econometric panel‐data model, in order to explore the capacity of some of the hypotheses formulated in recent dynamic models of trade and economic growth to explain the bilateral trade of OECD countries. The study suggests that the larger a country’s endowment of both tangible and intangible (human and technological) capital in relation to that of its trade partners, the higher the export/import ratio of its bilateral trade. It also shows that direct investment enhances the export/import ratio with the host country. The former communist countries reflect only minor differences from the other OECD members.
The Dynamics of Temporary Policies in a Small Open Economy
Authors: Schubert Stefan F. , Turnovsky Stephen J.
Published: March 2003

The paper corrects a subtle, but crucial, conceptual flaw in a solution procedure initially proposed in 1990 by Sen and Turnovsky to analyze anticipated regime changes in small open economies based on the intertemporal optimization of rational forward–looking agents. The problem is its failure to consider the intertemporal solvency of the economy consistently. The paper focuses on temporary shocks, although the procedure also applies to announced future permanent policy changes. Since the issue is generic and relevant to a large class of policy changes, it is important for the intertemporal solvency aspect to be incorporated consistently. The authors show that the seriousness of the error in the previous solution procedure depends upon the specific shock, and two contrasting examples are discussed.
Migration Policy in a Small Open Economy with a Dual Labor Market
Authors: Müller Tobias
Published: March 2003

The paper uses a two–sector efficiency–wage model to analyze the consequences of immigration for a small open economy with a dual labor market. Immigrants are characterized by an (exogenous) return probability. Legal regulations impose preferential hiring of natives or “old” immigrants. As a result, there is sectoral segregation between natives and immigrants, leading to discrimination of the type equal pay for equal work,but unequal “work.” In the short run (with sector–specific capital), immigration has a positive first–order impact on natives' welfare if migration policy favors segregation through high return rates or restrictive hiring practices (“guest–worker system”). In the long run, its effect is only determined by factor intensities (2 ¥ 2 model). Finally, the improved integration of migrants yields efficiency gains and improves aggregate welfare of all residents.