Horizontal and Vertical Interdependence in the Multinational Subsidiary Networks. ACES Working Paper No. 7, July 2008

Existing theoretical studies have predicted that a multinational firm's location choices are interdependent across countries. Little has, however, been done to test the hypothesis at individual subsidiary level. This paper uses a detailed French multinational subsidiary dataset and estimates how a firm's decision to invest in a foreign country is not only conditional on the characteristics of that country but also the firm's existing subsidiary network Using a structural spatial econometric model, the paper finds evidence of both horizontal and vertical interdependence in multinationals' location decisions. The results indicate that while multinational firms have little incentive to duplicate their production in countries with low bilateral trade costs, they are motivated to build a vertical subsidiary network in these countries ~ especially when the countries have complementary comparative advantages.

Inflation and Unemployment In EMU and the United States. ACES Working Papers No. 10, 2008

The original purpose of this paper was to see why the Phillips Curve numbers seem to be so much worse for the EMU countries than the United States since EMU was began operation in 1990. The problem is that there is no evidence of a Phillips curve relationship in EMU or in the United States during this seventeen year period. As can be seen in Figures 1 and 2, it just is not there. In about half the years unemployment and inflation moved in the opposite direction, as Phillips would predict, but in other half of the years they moved in the same direction. This may be a matter of time lags, with unemployment lagging inflation, but it seems clear that the Phillips curve is a poor tool for explaining these year to year outcomes in Europe or the United States.

Labor Market Policy Decentralization in Germany, the United Kingdom and Italy - Dynamics and Reasons. ACES Working Papers No. 5, 2008

This article argues that welfare-to-work or activation policies, which have been adopted across a range of OECD countries during the last two decades, do not only have led to changes in the substance of the welfare state but also to transformations in its institutional configuration. This institutional transformation includes the spatial reconfiguration of the welfare state, which has given new roles to the supra-national, national, and sub-national levels of government as well as private actors in the management and creation of labor market policies. By bringing institutions into these debates, this article seeks to expand the literature on welfare-to-work and activation as to date authors working on this topic have said very little about the degree, types, and reasons for the spatial re-configuration of welfare-to-work policies across different states. To fill a gap in the literatures on changes in the welfare state and its territorial configuration in particular, we compare trends in the re-configuration of welfare-to-work policies in Italy, Germany and the United Kingdom. We find that there is a cross-national trend, when it comes to the institutional effects of the implementation of activation. These trends bear a tension between decentralization and centralization, as both central and sub-national levels of government have acquired new responsibilities to implement the activation paradigm.

The role of cultural attributes in inequality. ACES Working Paper No. 1, 2008

This paper used cross country data in order to identify the variables that determine the inequality and poverty within countries. The main result is that culture differences have a significant role in the explanation of inequality and poverty differences between countries. Other interesting results are that globalization above a certain level contributes to inequality and poverty, and that inequality and poverty have an inverse U relation in relation to literacy.

Explaining Euroskepticism as a function of regional representation. ACES Working Papers No. 3, August 2008

Recent scholarship has suggested that nation-states will gradually fade away in favor of regions and super-regions as the main actors within a European Union characterized by strong regional identities. At the same time, recent developments have shown that citizen support for European integration is essential for any future development of the Union. The puzzle inspiring this paper is the finding that the greatest support for the EU increasingly stems from minority nationalist regions seeking to bypass their central states to achieve their policy goals at the EU level. This paper empirically tests this suggestion, while shedding light on the relationship between the quality of representation of regional interests at the EU level and positive citizen attitudes towards the EU. In particular, it finds two explanations for cross-regional variation in the relationship between Euroskepticism and representation: (1) a cultural explanation, embodied by a difference in the nature and quality of representation between regions that are linguistically distinctive and regions that are not; and (2) an institutional explanation, embodied by a difference in the nature and quality of representation between regions from federal and non-federal member states. The paper uses an eclectic methodological approach, first utilizing multivariate regression analysis, estimating logistic and ordinal logit models that help explain variation in Euroskepticism at the regional level. The results are then complemented by the findings of in-depth elite interviews of regional representatives - more specifically the directors of a selection of the many regional information offices present in Brussels. This paper takes the study of Euroskepticism to a new level, as most previous scholarly work has focused on explanations at the individual or at the member state level. At the same time it strengthens the notion of a growing importance of a "Europe of the regions."

US bilateral regional agreements: The negative welfare effects of multiplicity in country of origin rules - A new methodology. ACES Working Papers No. 2, 2008

The intent of this paper is to present a formal methodology for estimating rules of origin requirements. Section II of the paper presents the concept of the ROO. Earlier attempts to capture the costs of ROO are presented in Section III. Our suggested methodology relying on the tariff equivalents literature is presented in Section IV.

Is the "Dubai model" a new paradigm for growth and investment strategies for oil-based economies? Case study: Eurasia. ACES Working Papers No. 8, 2008

The first part of the paper addresses the theoretical background of economic growth and competitive advantage models. Although there is a whole set of research on a relationship between foreign direct investments and economic growth, little has been said on foreign direct investments and national competitive advantage with respect to economic growth of oil and gas abundant countries of Middle East and Central Asia. The second part of our paper introduces the framework of the so-called "Dubai Model" in detail and outlines the key components necessary to develop sustainable comparative advantage for the oil-rich economies. The third part proceeds with the methodology employed to measure the success of the "Dubai Model" in the UAE and in application to other regions. The last part brings the results and investigates the degree to which other oil and gas countries in the region (i.e. Saudi Arabia, Kuwait, Qatar, Iran) have adopted the so-called "Dubai Model". It also examines if the Dubai Model is being employed in the Eurasian (Central Asian) oil and gas regions of Kazakhstan, Azerbaijan, Turkmenistan and Uzbekistan. The objective is to gauge if the Eurasian economies are employing the traditional growth strategies of oil-rich non-OECD countries in managing their natural resources or are they adopting the newer non-traditional model of economic growth, such as the "Dubai Model."

Society's level of literacy: A cross cultural study. ACES Working Papers No. 4, 2008

In this study, the relationship between the country's level of literacy and its national culture will be explored. Cultural differences effect the way that people think and react. Culture is "the value shared amongst distinctive social groups and classes" (Soley and Pandya 2003, 206). House, et al. (2004, 57) define culture as "shared motives, values, beliefs, identities, and interpretations or meanings of significant events that result from common experiences of members of collectives and are transmitted across age generations." Dutch anthropologist Geert Hofstede (1991) considers culture to be "the collective programming of the mind. Culture is a stem of collectively held values" (Hofstede 1981, p. 240).

EU's response to Burma/Myanmar. ACES Working Papers (student research grant), August 2009

This paper so far includes documentation on the timeline of relations between the EU and Burma/Myanmar.

The Italian Parliament and the EU: a slow and gradual Europeanization. ACES Working Papers, August 2009

In this paper we discussed how the literature traces a growing involvement of the national parliaments in EU policy-making. Three phases can be distinguished: limited or no involvement was the trend until the 1980s; after the Single Act (SEA, 1987), national parliaments started to be interested in European affairs and to set up specialized committees; following the Maastricht Treaty (TUE, 1992), the involvement of national parliaments in EU affairs became a response to the question of "democratic deficit" in the EU (Norton, 1995). The growing number of policies dealt with at the EU level, the consequently increased influence of EU law in national legislations, the new powers of the Union: all of these worked together to push national legislators to seek a scrutiny role in the drafting of EU legislation. According to Laprat (1995: 1), once the TUE was formally approved, a more parliamentary climate prevailed. In more recent years, national parliaments have distinguished themselves for their increased role in the scrutiny of EU legislation (Raunio and Hix, 200I: !52); more specialized MPs sit in the committees on EU affairs; the amount of work for EU specialists has increased. Also, parliamentary scrutiny, initially only optional and ex post, is now increasingly ex ante and/or mandatory (Maurer and Wessels, 2001: 425-475).

Italy and the EU in historical perspective. ACES Working Papers, August 2009

This paper will deal with relations between Italy and the European Communities in a historical perspective. It will take into consideration both exogenous and endogenous variables. As regards the exogenous, relations with the United States are of particular relevance. As for the endogenous, the focus will be on the way political parties have perceived the process of European integration. Here, one can distinguish three periods: from the origins to the late 1970s; from the late 1970s to the mid 1990s and from the mid 1990s to today. The first period was characterized by the opposition of the left to European and Atlantic integration, on the basis of ideological contraposition; the second witnessed a shared consensus by all political parties on integration - especially European; in the latest period, domestic political divisions at times lead parties to oppose European integration.

Strategic knowledge serendipity and arbitrage & intellectual venture capitalists: An emerging breed of knowledge entrepreneurs; and Part II: Global and Local (GloCal) knowledge logistics for innovation and competitiveness. ACES Working Papers, August 2009

Strategic Knowledge: While entrepreneurship may occur as a natural result of personal drive, it occurs most often, most robustly and is most sustainable in an environment designed to encourage it. Potential entrepreneurs become active entrepreneurs when the conditions are most supportive of their commercial opportunities and their business thus helping channel the two key qualities they exhibit as individuals obsessed maniacs and clairvoyant oracles (Carayannis, GWU Lectures, 2000-2005) and (Carayannis et at, 2003a) towards the generation of sustainable wealth. So far, entrepreneurial scholars who turn into intellectual venture capitalists by founding knowledge-driven companies remain one of the least explored specie in the territory of entrepreneurship. GloCal: The increasing engagement of firms within global knowledge and production networks and their ability to source knowledge globally as well as locally (GloCally), for the development of innovation capacities will shape the future of UK's knowledge resources and its role in the global economy. Practices such as off-shoring R&D activities are widely adopted, creating challenging, and not very well understood, issues related to cross-country and inter-firm knowledge and technology flows. We seek to address the internationalisation and networking of research and innovation activities, including the roles and strategies of enterprises, universities, research centres, governments in a cross-country and inter-sectoral way, to assess the impact and the implications for sustaining and enhancing the competitiveness of UK firms and other British knowledge producers and users.

Assessing US and EU Foreign Targeting Arab Youth: Lessons from Morocco. ACES Working Papers (progress report), August 2009

As stated in the opening sentence of the proposal submitted for the ACES grant in 2009, the research that this seed grant is supporting is ambitious and large in scale. The primary goal is to produce a book-length study that assesses the priorities and impact of European and American foreign aid targeting youth in the Middle East and North Africa (MENA). To date, the research undertaken with the support of the grant has helped in providing some preliminary data for a) testing few hypotheses, b) fine-tuning the research design; and c) pointing to the direction where more conceptual and ethnographic research should be undertaken.

Enhancing European Cooperation in Financial Supervision and Crisis Management. ACES Working Papers, August 2009

To overcome the regulatory pitfalls, regulatory capacity and resources in financial markets governance need to be enhanced, not only at national but also at global levels. In order to shed light on policy issues and agendas in international financial policy cooperation, this paper focuses on the case of European financial integration and regulations. The analysis of policy developments at the European level in coordinating differing national interests, supervisory systems, and practices among EU member states highlights fundamental elements of global financial regulatory cooperation.

Sustaining international competitive advantage through capability renewal: the case of CEMEX. ACES Working Papers, August 2009

In this paper we do not enter in the dispute of whether a new theory is needed to explain the factors that make it possible for EMNEs to give their initial steps beyond their home markets. Rather, we are interested in finding out how some of these firms have been able to sustain their international competitive edge for decades allowing them to become major players in their industry at the global level.