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The world has lived through an accelerated globalization process over the last 15 years. Global trade relative to world GDP has grown from 39% in 1992 to 52% in 2005. At the same time, the share of world trade of OECD countries has gone down from 73% in 1992 to 64% in 2005. These shifts have led to changes in the structure of the world trade network and, in particular, how the role and influence of emerging markets on world trade have evolved. This paper is designed to elucidate some aspects of this changing trade architecture using network analysis. [ABSTRACT FROM AUTHOR]

This paper presents the analysis of sigma (σ) and unconditional beta (β) convergences of per capita GDP among the ten European countries which accessed the European Union in 2004. Our results confirm the existence of both types of convergence in the second half of the 1990s and the 2000s, whereas in the first half of the 1990s, the countries rather diverged or at least did not converge. Generally, the poorer and new EU member states grew faster than the richer new EU member states. As a result, the income gap between these countries has decreased although it still remains quite large. The convergence occurred at the rate of 2.87% during the years 1995–2006 and 3.23% during 1996–2006. [ABSTRACT FROM AUTHOR]

The formation of a customs administration framework based on the digital economy in the Eurasian Economic Union (EAEU) requires the application of fundamentally new technologies. The successful implementation of digital technologies in the information space of the EAEU presupposes the solution of a number of problems associated with the ensuring the implementation of the concept of sustainable development of the EEU member states in the new economic reality and transition to a new paradigm of customs administration based on the digitalization of the processes of regulation of foreign economic activity. Based on this paradigm, we set the following tasks: to identify trends and substantiate the need for digitalization of the customs administration mechanism in the Eurasian Economic Union based on the use of new technologies; to reveal the meaningful features of digital technologies that are promising for the development of the mechanism of customs administration of the EAEU; consider the applied aspects of the latest information technologies used in the course of EAEU customs administration system digitalization; and assess the prospects for their use, analyze the prospects of organizational, legal and managerial support of this process in the EAEU at the supranational and national levels. The article concludes that within the framework of the digital transformation of the EAEU, new opportunities are opening up for the customs regulation framework, based on the introduction of technologies for analyzing large amounts of data, immersive technologies, blockchain, the use of innovative methods for obtaining and processing customs information (satellite tracking, radio frequency identification), and the introduction of artificial intelligence technologies in customs control processes. [ABSTRACT FROM AUTHOR]

A tectonic shift in the global economic prowess became obvious around the turn of the last century. Three decades of macroeconomic reforms, sustained growth and global integration have turned China into a future economic power of global magnitude, with unmatched breadth of resources and a robust manufacturing sector. Significance of the Chinese economy has radically increased and it has traversed from the periphery of the global economy to the core. For all appearances, this progress is likely to continue in the foreseeable future. China has grown to be the fourth largest economy in the world in a short time span and the third largest trader. Events like dawning of an economic superpower occur once in several generations. China is endeavoring to make a new niche for itself in the global economy as well as formulate a new role. [ABSTRACT FROM AUTHOR]

Abstract: While a number of crises in emerging markets generated widespread contagion in financial markets during the 1990s, more recent crises (notably, in Argentina) have been mostly contained within national borders. This has led some observers to wonder whether contagion might have become a feature of the past, with financial markets now better discriminating between emerging countries with good and bad fundamentals. Available data suggest that the main channels that contribute to transmitting financial crises across countries are – if anything – even stronger today than in the 1990s. Moreover, anticipation by international investors may help to explain the near-absence of contagion in the context of the Argentine crisis. This paper argues that a prudent working assumption is that financial contagion has not vanished. [Copyright &y& Elsevier]

This paper analyzes the possible effects of a customs union between Ukraine and the European Union. The GTAP multi-country simulation model of Purdue University’s Center for Global Trade Analysis is applied. The welfare measure evaluated is the change in equivalent variation (EV). As all incomes in the model accrue to a representative household, EV fully assesses possible welfare benefits for Ukraine from bilateral tariff elimination on trade with the EU. As the model includes Ukraine in the aggregated “Former Soviet Union” region (FSU), EV is estimated for the FSU and then disaggregated on the industry level proportionally to trade shares. The results of our simulations suggest that Ukraine’s EV is particularly sensitive to the inclusion of the agricultural sector into a customs union. Due to the highly protected nature of this sector within the EU, Ukraine would be better off if agriculture were excluded from liberalization. If this scenario is assumed, Ukraine’s monetary gain would be in the order of $40 million. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract: Which variables determine whether a country chooses an open or protected market? It has been argued that economic downturn leads to a higher propensity for protectionism. We find for seven Latin American countries in the second half of the 20th century that declining GDP motivated the opening wave, especially during the 1980s. Moreover, inequality could play a role, either in favor of “opening”, as Stolper–Samuelson models would predict, or in favor of closing, as recent empirical studies found that open periods were associated with higher inequality. Using anthropometric indicators, we find that inequality in general tended to motivate “closing”, whereas inequality did not stimulate opening. [Copyright &y& Elsevier]

This paper offers an empirical evaluation of the economic effects of the European Structural and Cohesion aids received by Spain in the period 1989 through 2006 amounting to a total of almost €100 billion at 1999 prices. To that end, we use the HERMIN-Spain model. Our results suggest that these EU packages have contributed significantly to Spanish economic growth having increased the levels of income and promoting real convergence with the most advanced economies of the Union. The successive aid programmes produced an average increase of almost 0.4 percentage points in the real annual growth rate of the Spanish economy with respect to the situation that would have ensued without the European grants. This translates into an average increase in per capita income of €638 each year (at 1999 prices) over the entire period, and of €1027 per capita if we refer to the period 2000 through 2006. Without the structural aids, in 2006, the Spanish per capita income index relative to the average for EU-15 would be, ceteris paribus, almost 6 percentage points lower. The paper ends with a simulation of the likely consequences due to the reduction in structural and cohesion grants suffered by many Spanish regions that will cease to belong to the Objective 1 club after 2007 as a result of their natural or statistical convergence. [Copyright &y& Elsevier]

We develop a general equilibrium model of an emerging market economy where productivity growth differentials between tradable and non-tradable sectors result in an equilibrium appreciation of the real exchange rate—the so-called Balassa-Samuelson effect. The paper explores the dynamic properties of this economy and the welfare implications of alternative policy rules. We show that the real exchange rate appreciation limits the range of policy rules that, with a given probability, keep inflation and exchange rate within predetermined numerical targets. We also find that the B–S effect raises by an order of magnitude the welfare loss associated with policy rules that prescribe active exchange rate management. [ABSTRACT FROM AUTHOR]

This paper provides new evidence on the determinants affecting cross-border acquisitions in a small open economy such as that of Greece. Specifically, our paper tests two sets of hypotheses: Firstly, factors stemming from industrial organization (IO) theory, such as market structure indicators of takeover targets, positively affect the decision of a foreign Transnational Corporation (TNC) to enact a takeover in Greece. Secondly, factors stemming from integration and trade theory, such as openness of targets, increase their significance in the development of international takeovers, due to the active participation of the country in the European integration process. Using a statistical model of “international vs. national targets” and an original data set of 229 targets during the 1989–1998 period, the paper finds, most importantly, that market structure indicators such as market share of targets have a positive effect on the acquisition decision of foreign TNCs. Also, some control variables such as firm size and liquidity of targets are found to be statistically significant. This specific pattern of foreign target characteristics is because cross-border acquisitions, which have been emerging as a new generation of FDI after the integration of Greece into the European Union (EU), are surprisingly still inclined to prefer the market-seeking motive to the efficiency-seeking motive. [ABSTRACT FROM AUTHOR]

The ‘coordinate plane of global governance’ developed in this paper describes the trade-off between static gains and dynamic losses associated with international policy harmonization. A simple model illustrates how potential gains result from producing positive international spill-overs, whereas potential losses come from restricted systems competition between national policy regimes. The solution to this model allows identifying the cut-off level between policies suitable for global harmonization and policies which should better not be centralized. An application of the concept to selected policy fields illustrates its relevance for decision-making on global governance. [ABSTRACT FROM AUTHOR]

The paper presents a framework to explore the trade-off between pro-authority and pro-efficiency foreign trade policy. The former is exemplified by the tributary foreign trade system in Imperial China, while the latter by the government-supervised private foreign trade. In the Song Dynasty (960–1276), a strong external enemy compelled the monarchy to choose a pro-efficiency trade policy to finance the army, whereas during the early Ming Dynasty (1368–1644) when China was strong a pro-authority trade policy was favoured. During the late Ming, as the dynasty weakened, accompanied by external threats and internal mismanagement, the imperial government once again chose a pro-efficiency trade policy. [ABSTRACT FROM AUTHOR]

Abstract: The conjecture that democracy discourages foreign direct investment (FDI) has been widely refuted in empirical studies. However, we find support of this view. We distinguish between civil and political liberties and propose that multinational firms tend to invest in countries with low civil but with high political liberties. We show that the negative relationship between civil liberties and FDI is hump-shaped. A threshold level of civil liberties exists, below which repression of civil liberties is associated with more FDI. The results are explained by different economic motives for FDI in different groups of countries. [Copyright &y& Elsevier]

Abstract: Much of the literature on international environmental agreements (IEAs) uses static models, although most important transboundary pollution problems involve stock pollutants. The few papers that study IEAs using models of stock pollutants do not allow for the possibility that membership of the IEA may change endogenously over time. In this paper we analyse a simple infinite-horizon version of the static model of self-enforcing IEAs, in which damage costs increase with the stock of pollution, and countries decide each period whether to join an IEA. Using a quadratic approximation of the value function of the representative country we show that there exists a steady-state stock of pollution with corresponding steady-state IEA membership, and that as the stock rises towards steady state the IEA membership falls. Moreover, we find that the greater is the cost of damage, and hence the greater are the potential gains from cooperation, the smaller is the membership of a self-enforcing IEA. [Copyright &y& Elsevier]

Three main features characterize the international financial integration of China and India. First, while only having a small global share of privately-held external assets and liabilities, these countries are large holders of official reserves. Second, their international balance sheets are highly asymmetric: both are “short equity, long debt.” Third, China and India have improved their net external positions over the last decade although neoclassical models would predict them to be net borrowers. We argue that domestic financial policies are key to understanding these patterns and the future role of China in the international financial system. [ABSTRACT FROM AUTHOR]

Recent rounds of GATT and later WTO have advocated widespread tariffication, meaning that existing non-tariff barriers be converted into import equivalent tariffs. From an economic point of view, the effects of such tariffication are not entirely clear. The paper presents a trade model with monopolistic competition to examine the welfare effects of tariffication. The ranking of pre- and post-tariffication welfare crucially depends on the nature of the initial trade barrier and the tariff tool applied. Tariffication using a specific (ad valorem) tariff results in the same (reduced) welfare level compared to an initial sold quota, whereas welfare is increased (the same) compared to an initial shared quota. [ABSTRACT FROM AUTHOR]

Abstract: During the past half century multilateral trade liberalization has reduced tariffs to historically low levels. The Received Theory of trade policy, based solely on terms-of-trade externalities between national governments, offers an explanation that has become the conventional wisdom among international trade theorists. This paper uses a simple version of the Grossman–Helpman Protection-for-Sale Model (a central example of the Received Theory) to examine the consistency of the implications of this theory with actual trade policy. The conclusion is that the theory is dramatically inconsistent with reality. Furthermore, terms-of-trade externalities — the central component of the Received Theory — are the sole cause of this inconsistency. Empirical work seeming to confirm the Protection-for-Sale model actually does not do that, but instead offers support for a generic political-economy view of trade policy. [Copyright &y& Elsevier]

Abstract: There are two opposing views on global imbalances: The “traditional” view, which regards the imbalances as a threat to global economic and financial stability, and the “new paradigm” view, which considers that they are the natural consequence of economic and financial globalization. In terms of their policy implications, the traditional view focuses on monetary and fiscal policy decisions in the United States that need to be urgently reversed to avoid an abrupt unwinding of the imbalances involving a sell-off of dollar assets, a sharp increase in U.S. interest rates, and a hard landing for the global economy. By contrast, the new paradigm view considers that the imbalances will be resolved smoothly through the normal functioning of markets. This paper argues that an abrupt unwinding of imbalances is highly unlikely and advances a number of arguments in support of the new paradigm view. [Copyright &y& Elsevier]

Abstract: In the new millennium two developments have dominated the international economic situation: the persistence of high oil price and, consequently, the worsening of the U.S. trade deficit. In this paper I argue that it is possible to set forth an alternative explanation of U.S. trade deficit mainly considering a possible microeconomics missing link, taking in account the “twin nature” of the U.S. trade deficit and conjecturing that U.S. trade deficit can be explained as the result of a convergence of the Chinese and U.S. long run interest, in order to obtain a less energy intensive long run growth. So, I set forth the idea that the U.S., as the future exporter of the New Clean Technology, is a very attractive feature for China and this is a possible answer to the question: “Why should China continue to accumulate dollar reserves?” [Copyright &y& Elsevier]

A perception of declining EU competitiveness has intensified calls for structural reforms within the EU. This paper examines recent evidence on changes in relative EU competitiveness and considers the observed changes in relation to the evolving competitive environment facing EU firms. Our analysis suggests that recent declines in EU competitiveness reflect changes (or lack thereof) within the EU in response to an evolutionary “Third Step” in the process of EU integration: global market integration. Starting from the mid-1990s, we find that the EU began to face unprecedented increases in external sources of competition. The rising competition from external sources and declining export market competitiveness created pressures for EU firms to alter their organizational and product market strategies to meet the challenge of a globally integrating market. While many leading EU firms have responded to this challenge, most EU firms remain hampered by anachronistic EU product and labor market regulations that have inhibited adjustments that could better restore the competitiveness of EU based firms. In particular, our analysis points to labor market rigidities and limited growth in the services sector as factors limiting adjustment to the realities of a global market. The growing calls for structural reforms therefore reflect the rising external competitive pressures on EU firms as they attempt to respond to growing global competition. [ABSTRACT FROM AUTHOR]

Abstract: This paper presents evidence for a common global pattern in the movement of inequality in national structures of pay, over the years 1963 to 1999. We find a worldwide pattern of declining inequality from 1971 until 1980, followed by a long and sharp period of increasing inequality from 1981 through the end of the century. The existence of a global pattern suggests that the study of inequality, long associated with the disparate effects of technology, trade in local or national labor markets and with national policy choices, would be better treated as a branch of a global macroeconomics, associated with the breakdown of Bretton Woods in 1971–73 and with the onset of the global debt crisis in 1981–82. The work is based on data sets developed by the University of Texas Inequality Project. [Copyright &y& Elsevier]

This lecture examines whether financial globalization is beneficial to developing countries by first examining the evidence on financial development and economic growth and concludes that financial development is indeed a key element in promoting economic growth. It then asks why if financial development is so beneficial, it often does not occur. It then goes on to examine whether globalization, particularly of the financial kind, can help encourage financial and economic development and argues that it can. However, financial globalization does not always work to encourage economic development because it often leads to devastating financial crises. The issue is thus not whether financial globalization is inherently good or bad, but whether it can be done right. [ABSTRACT FROM AUTHOR]

As an informal grouping without headquarters, permanent staff or legal powers, the world’s major industrialized countries must rely on other actors, in particular international organizations, to manage global problems. This article examines how the Group of Eight contributes to global governance by cooperating with international organizations in the cases of debt relief and the fight against terrorist finance. It shows that the G8 draws on international institutions with the aid of government networks and argues that this cooperation is stronger, the greater the Group’s concentration of relevant power and the more important it considers the institutions’ resources. [ABSTRACT FROM AUTHOR]

The article argues that critics of globalization are mistaken in their criticism of this world economic development. According to the author, the concerns that globalization has generated negative social effects are unjustified. The author asserts that globalization has enabled parents to send more children to primary schools than to farm work.

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In this paper Chinese foreign invested enterprises (FIEs) are employed as prototypes to generate a model of how transnationals can transfer both tacit and explicit knowledge between their units as well as between FIEs and the parent organization. We propose that successful intra-organization knowledge transfer depends upon: (1) collective creation of knowledge as intellectual and social capital available throughout the organization; (2) trust-based collaboration among geographically dispersed entities that form the transnational organization; and (3) the willingness and ability of organizational units to use that knowledge. The paper further proposes that organizational knowledge should ideally flow in multiple directions, providing learning opportunities for both investing and host organizations. Implications for transfer of best practices, a specific form of tacit knowledge, are also offered. [ABSTRACT FROM AUTHOR]

Keywords: F02; F60; H12; Z18 EN F02 F60 H12 Z18 210 211 2 07/03/20 20200701 NES 200701 Basri and Hill ([1]) ask the question whether the recent global trend of authoritarian populism has influenced Southeast Asian countries. If the authoritarian populism in the advanced countries is triggered by stagnant growth, unemployment, and social discontent with globalization, then an easy explanation is that the Southeast Asian countries do not have those socio-economic conditions. In Basri and Hill ([1]), authoritarian and populism are mentioned in one breath. [Extracted from the article]

Keywords: F02; F60; H12; Z18 EN F02 F60 H12 Z18 212 213 2 07/03/20 20200701 NES 200701 In recent years, one can see the emergence of a radically different economic policy paradigm, whose key characteristics include a rise of illiberalism, anti-globalization movements, populism, economic nationalism and the emergence of democratically elected authoritarian leaders, particularly President Donald Trump. It was the first time ever in Thailand that a political party had come close to winning an absolute majority in a national election, and with support from a number of other parties, Thaksin formed a government with a two thirds majority. Using his business marketing experience, Thaksin's populist policy platform was clearly spelt out, and the electorate knew exactly what they were going to get: 30 Baht per visit health care for all, a three-year debt moratorium for farmers, and one million baht per village revolving fund, among others. [Extracted from the article]

Keywords: F02; F60; H12; Z18 EN F02 F60 H12 Z18 235 236 2 07/03/20 20200701 NES 200701 Basri and Hill ([1]) summarize Indonesia's trajectory over two decades, from the Soeharto era to the democratic era, regarding economic policy-making. Although the current account deficit has become a tough challenge, a stable and manageable inflation rate and declining unemployment and poverty rates provide stability in Indonesia's economy. [Extracted from the article]

Abstract: In this paper we pursue the work started jointly with R. Goodwin in the 1990s. Goodwin’s later work went very much in the direction of modelling Schumpeter’s insights into structural and technological transformations in the context of disaggregated models while allowing for non-full employment outcomes and macroeconomic cyclical patterns to develop alongside these transformations. In a series of papers we have followed up this work for closed and open economies, drawing out in particular the implications of structural transformations for macro-distributional dynamics and effective demand problems. This has been analysed for advanced and catching-up economies and their interdependencies on the global stage. We shall review our modelling efforts in this respect and trace these back to Goodwin’s life-long preoccupation with synthesising disaggregated (linear) modelling with macro-dynamic analysis. [Copyright &y& Elsevier]

Without intending to do so, China has in recent years played a major role in East Asia's economic integration. It has done so mainly through the production and supply chain networks it has spun across the region. This paper argues that given the developmental trends in the Chinese economy, the Chinese government should pursue a more active strategy towards a broader and more balanced economic integration with the region. The emergence of a multi-track production structure, increased importance of domestic consumption and the services sector, together with faster integration of the domestic economy, will fundamentally change China's trade and investment relationships with the rest of East Asia and necessitate a review of China's economic integration strategy. The paper also argues that ASEAN can play a useful role in facilitating the region-wide integration process. (Edited by Xiaoming Feng) [ABSTRACT FROM AUTHOR]

This paper analyses the effects of trade openness on budget balances by distinguishing the effects of natural openness from those of trade policy. Revealed indicators of natural openness and trade policy are computed. Using GMM-system estimator, the econometric analysis focuses on 66 developing countries over 1974–98. The results show that trade openness increases a country's exposure to external shocks. This enforces the negative impact on budget balances of terms of trade instability. Additionally, trade openness influences budget balances through several other channels: corruption, income inequalities, etc. Then natural openness and trade policy have opposite effects: the former deteriorates budget balances whereas the latter enhances them. [ABSTRACT FROM AUTHOR]

Abstract: Arguments for a positive link between trade and per-capita income are often met with the counterargument that “there is more to life than income”—the implication being that trade improves income, but degrades “quality of life.” In this paper, we attempt to address this counterargument by examining the impact of trade on countries’ social developments as measured by the Human Development Index (HDI)—a composite measure of education, literacy, and income published by the United Nations Development Programme. Utilizing a generalized method of moments (GMM) procedure in a panel data framework, we find that increases in trade are positively associated with future increases in social welfare. [Copyright &y& Elsevier]

Abstract: In this paper I use a large multi-country data set to analyze the determinants of abrupt and large “current account reversals.” FS [Copyright &y& Elsevier]

We highlight the seeming emergence globally of a non–WTO; a patchwork quilt of regional and bilateral trade management arrangements dealing with issues well beyond what the WTO covers and reflecting a wider and different set of concerns. In particular, we discuss recent regional trade and economic partnership agreements of a group of large population, developing economies (BRICSAM: Brazil, Russia, India, China, South Africa, ASEAN, and Mexico). Perhaps 50 out of 300 agreements that exist worldwide involve BRICSAM countries; most are recently concluded and will be implemented over the next few years. They exist along with extensive bilateral investment treaties, mutual recognition agreements, and other country to country (or region) arrangements. This paper aims to document and characterize the agreements and analyze their possible impacts. Agreements differ in specificity, coverage and content. In some treaties there are detailed and specific commitments, but these also co–exist with seemingly vague commitments and (at times) opaque dispute settlement and enforcement mechanisms. No overarching bloc–wide strategies seem to exist but whether these represent an emerging structure for newly negotiated reciprocity and trade management or instead largely limited content diplomatic initiatives which co–exist alongside significant WTO (World Trade Organisation) disciplines is the issue. [ABSTRACT FROM AUTHOR]

This paper deals with NATO’s ability to contribute to the war on terrorism. The paper highlights the difficulties that the organization has encountered in dealing with a threat that is entirely different from the one that the organization was created to deal with. The paper discusses NATO’s new policies, al Qaeda’s transformation since 9/11, and the nature of terrorism. The paper suggests that although NATO has drafted a number of new antiterrorist policies they are all premised on the idea of fighting a war against terrorism as if terrorism were a well defined military enemy. We conclude by arguing that the organizational behavior demonstrated by NATO is consistent with what Graham Allison and Philip Zelikow predict in their organizational process model and that many of the difficulties encountered by NATO in the war against terrorism are due to the nature of the organization. [ABSTRACT FROM AUTHOR]

The welfare effects of trade integration with endogenous production technology are examined in a monopolistic competition framework. In addition to explaining industry location, trade patterns and accompanying effects on local welfare, the analysis highlights the endogenous change in the costs of supervising fragmented production when economies open up to trade. By regarding fragmentation as a skill-intensive activity, factor proportions (rather than size) strongly affect the international distribution of gains from trade. Nevertheless, albeit not generally, for a wide range of parameter values, even a skill-poor country can participate in the gains—despite loss of industry. [ABSTRACT FROM AUTHOR]

This paper focuses on the requirements and features of a successful monetary union on the basis of the optimum currency area theory, the “logical roadmap” for integration as proposed by Balassa as well as the economic and institutional framework of the European Economic and Monetary Union (EMU). The analysis suggests that monetary union is contingent upon high economic integration and strong political commitment. However, political union is not an ex-ante requirement. Outside factors such as systemic shocks and globalization seem to speed up the pooling of sovereignty in the economic domain. A firm commitment to stability-oriented monetary and fiscal policies is a precondition for gaining credibility and trust within and outside a monetary union. Last, but not least, convergence criteria, fiscal rules and strong institutions are necessary to help ensure and monitor the participants’ compliance. However, the European experience is not a blueprint for regional integration that can be directly and entirely applied to other regions. [ABSTRACT FROM AUTHOR]

The issues of enlargement, the Lisbon Agenda, and economic development are important not only to new European Union (EU) member states but impact all 25 countries. EU membership may help the new members to foster long-term economic growth through increased credibility, effective use of structural funds, a better framework for economic growth, and entry into the European Monetary Union (EMU). The economic growth of all member states can be strengthened if the reforms related to the main goals of the Lisbon Agenda are completed. Action must be taken both at the member-state level and at the Community level. At the member-state level it is necessary to assure fiscal consolidation and deregulation. At the Community level the preservation of the Stability and Growth Pact, completion of the single market, especially in the service sector, and enforcement of limits on public aid are of the greatest importance. [ABSTRACT FROM AUTHOR]

In common descriptions of the world trading system, MFN and national treatment embody the principle of non-discrimination. Reciprocity is mostly regarded as a remnant of mercantilist trade policy. This paper argues that reciprocity is the more fundamental constitutional rule, because it reflects the unanimity principle enabling countries to identify Pareto-improving changes of trade policy. I reconstruct the implicit constitution of world trade by applying some methodology of positive constitutional economics. A major result is that in the Uruguay round a fundamental constitutional change took place from general reciprocity to “status quo reciprocity”, which entails the possibility of Pareto-deteriorating institutional changes. [ABSTRACT FROM AUTHOR]

In the literature on European monetary integration Germany and Italy are mostly strongly contrasted. However, this paper argues that there were important similarities between the policy paradigms in these two countries, in particular if a broader historical perspective is adopted. This work analyses the policy paradigms towards European monetary integration in Italy and Germany. Moreover, it contextualises these paradigms into the national institutional setting: while Germany was characterised by power sharing institutions, Italy featured power fragmentation (something which also affected the economic performance of both countries). There were significant differences between the policy paradigms of foreign policy-makers and economic policy-makers. Foreign policy makers, in both countries, under the influence of a European federalist vision, were strongly in favour of European monetary integration. These beliefs of foreign policy decision makers were crucial in charting EMU policy at history-making moments. The pro EMU policy paradigms of foreign policymakers contrasted, during most of the period covered, with the more sceptical beliefs of economic policy makers. In both countries, economic policy-makers, at different moments, had doubts whether enough “convergence” had been reached to make a more stable exchange rate system sustainable. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

A growing body of evidence suggests that China's emergence is having differential effects on Asia's advanced and developing countries. The region's advanced countries are benefiting from the existence of a large and rapidly growing Chinese market for their capital goods, components and technology, whereas its developing countries compete head to head with China in third markets. These facts create additional challenges for late-industrializing Asian countries seeking to catch up with the region's industrial leaders. In turn, the emergence of an Asian core and periphery will not encourage the development of a cohesive Asian economic and political bloc. Asian regionalism will be open regionalism in order to prevent regional initiatives from giving rise to costly trade diversion. Efforts to promote Asian financial development and integration are unlikely to come at the expense of the region's financial links with the rest of the world. An early move toward a common exchange rate regime with the associated common monetary stance will be problematic. And, in the absence of these common policies, pressure for the development of powerful regional institutions to formulate the common monetary stance will be at best modest. [ABSTRACT FROM AUTHOR]

China's gradual integration with the global market is responsible for exceptional rates of economic growth and for the substantial sociopolitical stability enjoyed by the country over the past decades. Nevertheless, the choice to increasingly adhere to the competitive dynamic of the market has thrown up a battery of problems for China's leadership, as increasing affluence has favored the pluralization and diversification of social interests. In a country where the existence of divergent and competing social claims has traditionally been regarded as a grave threat to stability, marketization, whereas on the one hand acting as a source of political legitimacy, has, on the other, paved the way for a potentially more strained relationship between relevant corporative interests and the central government. By studying China's recent development from the complementary perspectives of the “horizontal” and “vertical” forms of decentralization and devolution, this paper aims to highlight the tensions with which China has had to contend since its adoption of reform and opening-up policies in the late 1970s. It aims also to suggest how the Chinese leadership's instinct for continued social control has cut against market reform just enough to effect a process of controlled macroeconomic integration that has been more successful than wholesale resistance or immediate unquestioning acceptance would have been. [ABSTRACT FROM AUTHOR]

This paper discusses macroeconomic and monetary policy making at the European Commission in the 1960s. The Commission, in its analysis, focused strongly on economic imbalances in the Community, as they could threaten the common market project. In order to strengthen the system of economic governance of the Community, the Commission advocated an improved monetary cooperation, in line with the internal logic of the integration process. This contrasted with the view of the central bankers, who took the international monetary system as the framework for their analysis. This paper shows the ascent of the Commission as an actor in the monetary area, notwithstanding the relatively limited provisions of the European Economic Community Treaty. [ABSTRACT FROM AUTHOR]