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To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-6435.2010.00470.x Byline: Marcus Neureiter (1), Peter Nunnenkamp (1) Abstract: SUMMARY We use data on motives of international outsourcing and location choices from a recent survey of European companies to assess the labour market repercussions at home. Employing Tobit models we differentiate between job losses as well as job creation for high and low skilled employees at the sector level in ten European home countries. Our findings qualify public concerns about adverse employment effects resulting primarily from cost-oriented sourcing in low wage locations. The quantitative impact on job losses remains modest in the case of cost-saving motives. The simple divide between low and high wage locations hides substantial heterogeneity within both groups. We also find that job losses are typically compensated partly by new job creation, particularly for high skilled workers. Author Affiliation: (1)Kiel Institute for the World Economy, D-24100 Kiel, Germany Article note: Corresponding author: Peter Nunnenkamp, Kiel Institute for the World Economy, D-24100 Kiel, Germany; phone: +49- 431-8814209; email: peter.nunnenkamp@ifw-kiel.de.

To purchase or authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-6435.2007.00376.x Byline: Jonas Dovern (1), Peter Nunnenkamp (1) Abstract: SUMMARY The paper applies an alternative approach to assess whether foreign aid promotes economic growth in developing countries, based on the concept of temporary growth accelerations suggested by Hausmann, Pritchett and Rodrik. In addition to aggregate aid, we differentiate between major aid categories, including grants, loans and so-called short-impact aid. It turns out that aid flows have a small but significantly positive effect on the conditional probability of growth accelerations. This result holds across different estimation methods. However, the significance of results crucially depends on the criteria applied to identify growth accelerations. Author Affiliation: (1)Kiel Institute for the World Economy, Duesternbrooker Weg 120, D-24105 Kiel, Germany

The current confusion about commercial lending determinants appears to be mainly because conflicting hypotheses apply to different lending regimes. It is important to distinguish between credit constrained and non-constrained borrowers, and between voluntary and involuntary lending. The empirical investigation focuses on whether or not banks have honored policy reform and favorable economic performance of debtors by providing additional financing. Furthermore, it is assessed in which way bank lending to developing countries has been influenced by sovereign risk since 1982.

In the paper it is argued that imprudent lending by Western commercial banks until the early eighties must be considered as a major reason for ongoing debt problems of Third World economies. In particular the hypothesis is raised that banks followed a lemming-like behaviour in lending to developing countries, that they were subject to risk-illusions or even could discount the risks involved because of incentives to moral hazard. This finally may have resulted in a turnabout of private lenders to rather restrictive lending policies which macroeconomically may be no less harmful.
Different factors like public guarantees, deposit insurance schemes, the activities of international organizations, credit syndications and the roll-over technique are analysed as important determinants of bank behaviour. Furthermore, possible solutions to the ongoing debt difficulties are discussed, with particular emphasis on the interplay between public authorities and private creditors The major conclusion is that the mechanism of market control over bank policies should be strengthened rather than intensifying government regulation. [ABSTRACT FROM AUTHOR]

Focuses on the impact of rising oil prices on economic growth in developing countries in the seventies. Details on the limiting factor for the growth effects of rising oil prices; Importance of industrialization; Difficulty in financing higher oil bills.