FDI and the labour market: a review of the evidence and policy implications

This paper presents a series of results concerning the labour-market impact of inward foreign direct investment (FDI) in the UK. The paper demonstrates that one of the crucial impacts of FDI is to increase wage inequality and the use of relatively more skilled labour in the domestic firms. This result is found to be a combination of two effects. First, the entry by a multinational enterprise (MNE) increases the demand for skilled workers in an industry or region, thus increasing wage inequality. Second, technology spillovers occur from foreign to domestic firms. As a result of these spillovers, relative demand for skilled workers increases in the domestic firms, further contributing to aggregate wage inequality and skill upgrading. The paper also considers how FDI impacts upon skill shares by productivity differentials between foreign and domestic firms. Finally, the policy implications of this are discussed, from the perspective of regional development, and the likely effectiveness of attracting FDI to reduce structural unemployment.

Innovation, intellectual property and economic growth

What drives innovation? How does it contribute to the growth of firms, industries, and economies? And do intellectual property rights help or hurt innovation and growth? Uniquely combining microeconomics, macroeconomics, and theory with empirical analysis drawn from the United States and Europe, this book introduces graduate students and advanced undergraduates to the complex process of innovation. By addressing all the major dimensions of innovation in a single text, Christine Greenhalgh and Mark Rogers are able to show how outcomes at the microlevel feed through to the macro-outcomes that in turn determine personal incomes and job opportunities. In four sections, this textbook comprehensively addresses the nature of innovation and intellectual property, the microeconomics and macroeconomics of innovation, and economic policy at the firm and macroeconomic levels. Among the topics fully explored are the role of intellectual property in creating incentives to innovate; the social returns of innovation; the creation and destruction of jobs by innovation; whether more or fewer intellectual property rights would give firms better incentives to innovate; and the contentious issues surrounding international treaties on intellectual property.

The politics of the new Germany

The Politics of the New Germany takes a new approach to understanding politics in the post-unification Federal Republic. Assuming only elementary knowledge, it focuses on debates and issues in order to help students understand both the workings of Germany's key institutions and some of the key policy challenges facing German politicians. Written in a straightforward style by four experts, each of the chapters draws on a rich variety of real-world examples. Packed with boxed summaries of key points, a guide to further reading and a range of seminar questions for discussion at the end of each chapter, this book highlights both the challenges and opportunities facing policy-makers in such areas as foreign affairs, economic policy, immigration, identity politics and institutional reforms. The book also takes a bird's-eye view of the big debates that define German politics over time, regardless of which party happens to be in power. It pinpoints three key themes that have characterised German politics over the last sixty years; reconciliation, consensus and transformation. Table of Contents: Introduction 1. Germany and the Burden of History 2. Germany’s Post-War Development, 1945-1989 3. Towards German Unity? 4. A Blockaded System of Government? 5. The Party System and Electoral Behaviour: The Path to Stable Instability? 6. Economic Management: The End of the German Model? 7. Citizenship and Demographics: A Country of Immigration? 8. The Reform of the Welfare State? 9. Germany and the European Union: A European Germany or a German Europe? 10. Foreign and Security Policy: A New Role for the Twenty-First Century? 11. Conclusion

In search of a sustainable success strategy in the Chinese chemical industry

The Chinese chemical industry is facing fierce competition and changing market dynamics due to the change in the country's economic policy. Its government has applied administr.ttive actions rather than simply relying on the market to address the changing dynamics. It has attempted to privatise government-owned enterprises by corporatisation coupled with industrial restructuring. This paper uses a case study of Peony Printing Ink Co Ltd, a state-owned chemical enterprise, to illustrate the effectiveness of developing internal competences to improve long-term operational performance rather than the adoption of a privatisation approach.

Success strategies in the Chinese chemical industry: a survey and case study investigations

The chemical industry in China is facing fierce competition and exposure to market forces as a result of changes in the country's economic policy. The Chinese government has applied administrative actions rather than simply relying on market forces to address the changing dynamics. It has attempted to privatise state-owned chemical enterprises (SOCEs) by corporatisation, coupled with industrial restructuring by merging individual state-owned enterprises into groups. Based on a quantitative survey in combination with case studies of two Chinese chemical enterprises, this paper concludes that in this industry building competences is more effective than privatisation and restructuring to improve performance.

‘O convergence, where art thou?’ Regional growth and industrialization in Italy

This paper shows that the Italian economy has two long-run equilibria, which are due to the different level of industrialization between the centre-north and the south of the country. These equilibria converge until 1971 but diverge afterwards; the end of the convergence process coincides with the slowing down of Italy's industrialization policy in the South. In this paper we argue that to address this problem effectively, an economic policy completely different from that in place in needed. However, such a policy is unlikely to be implemented given the scarcity of resources and the short run nature of the political cycle.

Lay perceptions of type 2 diabetes in Scotland:bringing health services back in

The growing prevalence of type 2 diabetes is placing Scottish health services under considerable strain. Consequently, diabetes services are undergoing a major process of reorganisation, including the devolvement of routine diabetes care/diabetic review from secondary to primary healthcare settings. This qualitative study was devised to explore newly diagnosed type 2 diabetes patients' perceptions of their disease and the health services they receive at a time when this restructuring of services is taking place. The sample comprised 40 patients resident in Lothian, Scotland, who had diverse experiences of services, some receiving GP-based care only, others having varying contact with hospital diabetes clinics. In-depth interviews were undertaken with patients, three times at six monthly intervals over 1 year, enabling their experiences to be tracked at critical junctures during the post-diagnostic period. Disease perceptions and health service delivery were found to be mutually informing and effecting. Not only did (different types of) health service delivery influence the ways in which patients thought about and self-managed their disease, over time patients' disease perceptions also informed their expectations of, and preferences for, diabetes services. We thus argue that there is a need for a reconceptualisation within the medical social sciences to take into account the context of healthcare and the economic/policy factors that inform health service delivery when looking at patients' disease perceptions. We also discuss the logistical and ethical challenges of drawing upon patients' perspectives, preferences and views in the design and delivery of future health services. © 2004 Elsevier Ltd. All rights reserved.

University ranking as social exclusion

In this article we explore the dual role of global university rankings in the creation of a new, knowledge-identified, transnational capitalist class and in facilitating new forms of social exclusion.We examine how and why the practice of ranking universities has become widely defined by national and international organisations as an important instrument of political and economic policy. We consider how the development of university rankings into a global business combining social research, marketing and public relations, as a tangible policy tool that narrowly redefines the social purposes of higher education itself. Finally, it looks at how the influence of rankings on national funding for teaching and research constrains wider public debate about the meaning of ‘good’ and meaningful education in the UK and other national contexts, particularly by shifting the debate away from democratic publics upward into the elite networked institutions of global capital. We conclude by arguing that, rather than regarding world university rankings as a means to establish criteria of educational value, the practice may be understood as an exclusionary one that furthers the alignment of higher education with neoliberal rationalities at both national and global levels.

Governance in contemporary Germany:the semisovereign State revisited

Throughout the 1970s and 1980s, West Germany was considered to be one of the world’s most successful economic and political systems. In his seminal 1987 analysis of West Germany’s ‘semisovereign’ system of governance, Peter Katzenstein attributed this success to a combination of a fragmented polity, consensus politics and incremental policy changes. However, unification in 1990 has both changed Germany’s institutional configuration and created economic and social challenges on a huge scale. This volume therefore asks whether semisovereignty still exists in contemporary Germany and, crucially, whether it remains an asset in terms of addressing these challenges. By shadowing and building on the original study, an eminent team of British, German and American scholars analyses institutional changes and the resulting policy developments in key sectors, with Peter Katzenstein himself providing the conclusion. Together, the chapters provide a landmark assessment of the outcomes produced by one of the world’s most important countries. Contents: 1. Introduction: semisovereignty challenged Simon Green and William E. Paterson; 2. Institutional transfer: can semisovereignty be transferred? The political economy of Eastern Germany Wade Jacoby; 3. Political parties Thomas Saalfeld; 4. Federalism: the new territorialism Charlie Jeffery; 5. Shock-absorbers under stress. Parapublic institutions and the double challenges of German unification and European integration Andreas Busch; 6. Economic policy management: catastrophic equilibrium, tipping points and crisis interventions Kenneth Dyson; 7. Industrial relations: from state weakness as strength to state weakness as weakness. Welfare corporatism and the private use of the public interest Wolfgang Streeck; 8. Social policy: crisis and transformation Roland Czada; 9. Immigration and integration policy: between incrementalism and non-decisions Simon Green; 10. Environmental policy: the law of diminishing returns? Charles Lees; 11. Administrative reform Kluas H. Goetz; 12. European policy-making: between associated sovereignty and semisovereignty William E. Paterson; 13. Conclusion: semisovereignty in United Germany Peter J. Katzenstein.

The politics of the new Germany

The Politics of the New Germany continues to provide the most comprehensive, authoritative and up-to-date textbook on contemporary German Politics. The text takes a new approach to understanding politics in the post-unification Federal Republic. Assuming only elementary knowledge, it focuses on a series of the most important debates and issues in Germany today with the aim of helping students understand both the workings of the country's key institutions and some of the most important policy challenges facing German politicians. For this second edition, the content has been comprehensively updated throughout, augmented by additional factboxes and data, and features new material on: •Grand coalition •Lisbon treaty •Constitutional court •Financial crisis •Reform of social policy •Afghanistan. Written in a straightforward style by three experts, each of the chapters draws on a rich variety of real-world examples. In doing so, it highlights both the challenges and opportunities facing policy-makers in such areas as foreign affairs, economic policy, immigration, identity politics and institutional reform. The book also takes a bird’s-eye view of the big debates that have defined German politics over time, regardless of which political parties happened to be in power. It pinpoints three key themes that have characterised German politics over the last sixty years; reconciliation, consensus and transformation. The book is a comprehensive, yet highly accessible, overview of politics in 21st Century Germany and should be essential reading for students of politics and international relations, as well as of European and German studies.

Measuring business growth:high-growth firms and their contribution to employment in the UK

The Measuring Business Growth report is a comprehensive look at UK business growth over the past decade. It makes a powerful case that a small number of high-growth businesses are responsible for the lion's share of job creation and prosperity. It is the counterpart to Business Growth and Innovation, which considers the wider benefits of growth businesses, their socio-economic impact, and the relationship between growth and innovation. This has significant implications for the direction of economic policy. It suggests that focusing attention on growing businesses and promoting excellence, far from being an elitist policy, gives rise to widespread job creation and prosperity.

Did mass privatisation really increase post-communist male mortality?

A recent article in the Lancet, by David Stuckler, Larry King and Martin McKee, investigated anew the fluctuations in adult male mortality rates that have come to characterise the so-called post-communist mortality crisis. Adopting a cross-country, time-series perspective the authors examined how the economic policy strategies of the 1990s impacted upon observed fluctuations in mortality. They conclude that the adoption of a strategy of rapid (mass) privatisation contributed to the adverse mortality trends. We subject that finding to closer scrutiny using the same data from which the Stuckler et al claim stems. We find that their claim that mass privatisation adversely affected male mortality trends in the post-Communist world does not stand up to closer examination. It is not supported empirically and is at odds with what we know about both transition in the post-communist world and about health trends over time in this region.

The value of intellectual property to firms and society

Economists view intellectual property rights (IPRs) as policy tools for encouraging innovation, but they recognize that they can also inhibit competition. There are many types of IPRs and institutions concerned with their administration. We begin by outlining how these complex and varied rights are supposed to work and how they interact with other characteristics of firms and markets. We then survey the available literature on patents, trade marks, and copyright to assess the value of these IPRs to firms and the costs to firms of acquiring and defending their rights. The paper concludes with suggestions for topics requiring further research to inform public policy better.