The Distribution Dynamics of Output Multipliers in Scotland 1998–2007

In an input-output context the impact of any particular industrial sector is commonly measured in terms of the output multiplier for that industry. Although such measures are routinely calculated and often used to guide regional industrial policy the behaviour of such measures over time is an area that has attracted little academic study. The output multipliers derived from any one table will have a distribution; for some industries the multiplier will be relatively high, for some it will be relatively low. The recentpublication of consistent input-output tables for the Scottish economy makes it possible to examine trends in this mdistribution over the ten year period 1998-2007. This is done by comparing the means and other summary measures of the distributions, the histograms and the cumulative densities. The results indicate a tendency for the multipliers to increase over the period. A Markov chain modelling approach suggests that this drift is a slow but long term phenomenon which appears not to tend to an equilibrium state. The prime reason for the increase in the output multipliers is traced to a decline in the relative importance of imported (both from the rest of the UK and the rest of the world) intermediate inputs used by Scottish industries. This suggests that models calibrated on the set of tables might have to be interpreted with caution.

The Black Box of Business Dynamics

Research in business dynamics has been advancing rapidly in the last years but the translation of the new knowledge to industrial policy design is slow. One striking aspect in the policy area is that although research and analysis do not identify the existence of an specific optimal rate of business creation and business exit, governments everywhere have adopted business start-up support programs with the implicit principle that the more the better. The purpose of this article is to contribute to understand the implications of the available research for policy design. Economic analysis has identified firm heterogeneity as being the most salient characteristic of industrial dynamics, and so a better knowledge of the different types of entrepreneur, their behavior and their specific contribution to innovation and growth would enable us to see into the ‘black box’ of business dynamics and improve the design of appropriate public policies. The empirical analysis performed here shows that not all new business have the same impact on relevant economic variables, and that self-employment is of quite a different economic nature to that of firms with employees. It is argued that public programs should not promote indiscriminate entry but rather give priority to able entrants with survival capacities. Survival of entrants is positively related to their size at birth. Innovation and investment improve the likelihood of survival of new manufacturing start-ups. Investment in R&D increases the risk of failure in new firms, although it improves the competitiveness of incumbents.

Drug innovation, prices and health

This article tries to reconcile economic-industrial policy with health policy when dealing with biomedical innovation and welfare state sustainability. Better health accounts for an increasingly large proportion of welfare improvements. Explanation is given to the welfare losses coming from the fact than industrial and health policy tend to ignore each other. Drug s prices reflecting their relative relative effectiveness send the right signal to the industry rewarding innovation with impact on quantity and quality of life- and to the buyers of health care services.The level of drug s public reimbursement indicates the social willingness to pay of the different national health systems, not only by means of inclusion, or rejection, in the basket of services covered, but especially establishing the proportion of the price that is going to be financed publicly.Reference pricing for therapeutic equivalents as the upper limit of the social willingness to pay- and two-tiered co-payments for users (avoidable and inversely related with the incremental effectiveness of de drug) are deemed appropriate for those countries concerned at the same time with increasing their productivity and maintaining its welfare state. Profits drive R&D but not its location. There is no intrinsic contradiction between high productivity and a consolidated National Health Service (welfare state) as the European Nordic Countries are telling us every day.

L'équité d'accès aux ressources en eau : fin ou moyen d'amélioration de l'efficacité de l'irrigation ? : la gestion des ressources en eau dans l'état du Gujarat (Inde) dans la perpective de la political ecology

La thèse présentée ici est le résultat d'une étroite collaboration avec une ONG indienne, AKRSP(I), intervenant dans le développement de l'irrigation au Gujarat depuis plus de 25 ans. Un SIG prototype a été mis en oeuvre et nous permet de proposer ime analyse spatiale et quantitative de l'action de cette ONG ainsi qu'une réflexion plus générale sur les leviers de mise en valeur et de gestion des ressources en eau à des fins agricoles. On peut souligner trois principaux enseignements: Les perspectives d'application des SIG au sein des ONG sont manifestes. Les exigences des bailleurs de fonds peuvent néanmoins faire obstacle à leur développement car, indi-rectement, ils favorisent la mise en oeuvre de SI voués à la justification plutôt qu'à la planification et au suivi des programmes d'actions. Ce résultat soulève la question de la pertinence de l'encadrement, des critères d'évaluation et de la conditionnalité de l'aide publique au développement. Les ONG ont un fort potentiel pour participer à la mise en valeur des ressources en eau en Inde et aider à relever le défi agro-démographique indien, en particulier dans les zones marginales où les services étatiques sont en retrait. Les stratégies d'action basées principalement sur l'application des instruments économiques et techniques doivent cependant être modifiées. Nous montrons qu'elles favorisent une inégalité d'accès aux ressources qui débouche sur une efficacité limitée des pratiques d'irrigation, sur un plan agro-technique. Ces résultats soulignent la nécessité de poursuivre une réflexion critique des discours et solutions dominants en matière de gestion des ressources en eau. Deux pistes d'amélioration sont avancées: 1. considérer l'équité d'accès comme un moyen d'optimiser la gestion de la ressource (limiter le volume d'eau par agriculteur pour encourager les choix de cultures irriguées peu consommatrices et l'adoption des technologies d'économie d'eau), 2. prêter attention à l'ordre dans lequel les différents instruments de gestion disponibles sont employés afin de les articuler dans un séquençage temporel pertinent. La Political Ecology apparait comme un cadre conceptuel très pertinent pour engager cette réflexion critique. Elle permet d'intégrer différentes échelles d'asymétries de pouvoirs à la compréhension des situations et des blocages observables localement : inégalités de capabilités et forces socio-politiques à l'échelle locale, politiques agro-industrielles (coton) et jeux d'alliances politiques des castes à l'échelle nationale, discours et conflits idéologiques ou orientations stratégiques des bailleurs de fonds à l'échelle internationale... Notre recherche empirique contribue modestement au développement de cette Political Ecology de la mise en valeur et de la gestion des ressources en eau. - The present research is based on a close collaboration with an indian NGO, AKRSP(I), which is active in the development of irrigation facilities in Gujarat for the past 25 years. We built a GIS prototype providing quantitative and spatial datas to analyse the NGO intervention and propose a general reflection about water resources development and management issues. Three main findings may be emphasized : The potential of GIS within the workings of an NGO is obvious, as an information ma-nagement tool as much as for developing analytical capacity. However, financial backers expectations may not favour a relevant development of this technology. Indirectly, they promote Information Systems built to justify rather than to plan or monitor action pro¬grammes. This raises the question of stricter framework, conditionality criters and stan¬dardised assessment indicators surrounding official development assistance. There is strong potential that NGOs can assist with the improvement of water resources in India. They can help in overcoming Indian demographic-related agricultural challenges, especially in marginal rural areas neglected by state services. However, intervention strategies mainly based on technical and economic management tools has to be adapted. We found that they lead to inequitable access and distribution of water resources what induces a low efficiency of irrigation practices from an agro-technical point of view. These results underline the need to go further in criticizing dominant ideas and guidelines regarding water resources management. We suggest two other options : 1. to consider equitable access has a tool to improve the effective use of water for agricul¬tural purposes (limiting the volume of water available per farmer would encourage them to adopt low water consumption crops and water saving technics), 2. to consider more carefully the order of use of the various management tools available and to structure them in a relevant sequence. Here, Political Ecology seems to be a relevant conceptual framework to enter into such a critical reflection, integrating different levels and scales of political asymmetries at the core of environmental issues. Indeed, the understanding of regional water situations and social stumbling blocks needs not only to consider local capabilities and socio-political inequities, but also agro-industrial policy (e.i. cotton) and caste political alliances at a national scale, as well as ideological and narrative struggles or strategical orientations of financial backers at an international level. Our empirical research modestly contributes to the development of such a Political Ecology of water resources development and management.

When supply travels far beyond demand: Causes of oversupply in Spain’s transport infrastructure

Spain’s transport infrastructure policy has become a paradigmatic case of oversupply and of mismatch with demand. The massive expansion of the country’s transport infrastructure over the last decade has not been a response to demand bottlenecks or previously identified needs. For this reason, the intensity of use today on all interurban modes of transport in Spain falls well below that of other EU countries. This paper analyzes the institutional and regulatory factors that have permitted this policy, allowing us to draw lessons from the Spanish case that should help other countries avoid the pitfalls and shortcomings of Spanish policy.

When supply travels far beyond demand: Causes of oversupply in Spain’s transport infrastructure

Spain’s transport infrastructure policy has become a paradigmatic case of oversupply and of mismatch with demand. The massive expansion of the country’s transport infrastructure over the last decade has not been a response to demand bottlenecks or previously identified needs. For this reason, the intensity of use today on all interurban modes of transport in Spain falls well below that of other EU countries. This paper analyzes the institutional and regulatory factors that have permitted this policy, allowing us to draw lessons from the Spanish case that should help other countries avoid the pitfalls and shortcomings of Spanish policy.

Transnational private authority and the participation of workers' organizations in the regulatory space surrounding the employment relationship

Most corporate codes of conduct and multi-stakeholder sustainability standards guarantee workers' rights to freedom of association and collective bargaining, but many authors are sceptical about the concrete impact of codes and standards of this kind. In this paper we use Hancher and Moran's (1998) concept of 'regulatory space' to assess the potential of private transnational regulation to support the growth of trade union membership and collective bargaining relationships, drawing on some preliminary case study results from a project on the impact of the International Finance Corporation's (IFC) social conditionality on worker organization and social dialogue. One of the major effects of neoliberal economic and industrial policy has been the routine exclusion of workers' organizations from regulatory processes on the grounds that they introduce inappropriate 'political' motives into what ought to be technical decision-making processes. This, rather than any direct attack on their capacity to take action, is what seems best to explain the global decline in union influence (Cradden 2004; Howell 2007; Howe 2012). The evidence we present in the paper suggests that private labour regulation may under certain conditions contribute to a reversal of this tendency, re-establishing the legitimacy of workers' organizations within regulatory processes and by extension the legitimacy of their use of economic and social power. We argue that guarantees of freedom of association and bargaining rights within private regulation schemes are effective to the extent that they can be used by workers' organizations in support of a claim for access to the regulatory space within which the terms and conditions of the employment relationship are determined. Our case study evidence shows that certain trade unions in East Africa have indeed been able to use IFC and other private regulation schemes as levers to win recognition from employers and to establish collective bargaining relationships. Although they did not attempt to use formal procedures to make a claim for the enforcement of freedom of association rights on behalf of their members, the unions did use enterprises' adherence to private regulation schemes as a normative point of reference in argument and political exchange about worker representation. For these unions, the regulation was a useful addition to the range of arguments that they could deploy as means to justify their demand for recognition by employers. By contrast, the private regulation that helps workers' organizations to win access to regulatory processes does little to ensure that they are able to participate meaningfully, whether in terms of technical capacity or of their ability to mobilize social power as a counterweight to the economic power of employers. To the extent that our East African unions were able to make an impact on terms and conditions of employment via their participation in regulatory space it was solely on the basis of their own capacities and resources and the application of national labour law.

Responses to a crisis: FASA-Renault in Spain during the 1970s

[cat] Aquest treball analitza la trajectòria de l’empresa FASA-Renault durant la dècada dels setanta del segle XX. Aquest període compren els primers anys de la crisis experimentada per l’economia i la industria espanyola entre 1974 y 1985. A nivell extern, l’economia espanyola es va veure afectada per dos xocs en el preu del petroli. A nivell intern, la industria de l’automòbil es va veure afectat per un decret governamental: es tractava de l’anomenat decret “Ford”, aprovat l’any 1972, el qual facilitava l’establiment de Ford a Espanya. Aquest decret va tenir greus conseqüències per a SEAT, el principal productor espanyol. Entre 1972 y 1980 la producció de SEAT es va reduir en una tercera part i la seva situació financera va esdevenir insostenible. Per contra, en aquest període FASA-Renault va esdevenir el principal productor ubicat a Espanya (la seva producció es va multiplicar per 3,5 durant els anys setanta) i en líder de ventes en el mercat espanyol (la seva penetració es va incrementar del 23 al 36%). El principal objectiu del treball es analitzar els factor que expliquen l’èxit de FASARenault durant els anys setanta.

Responses to a crisis: FASA-Renault in Spain during the 1970s

[cat] Aquest treball analitza la trajectòria de l’empresa FASA-Renault durant la dècada dels setanta del segle XX. Aquest període compren els primers anys de la crisis experimentada per l’economia i la industria espanyola entre 1974 y 1985. A nivell extern, l’economia espanyola es va veure afectada per dos xocs en el preu del petroli. A nivell intern, la industria de l’automòbil es va veure afectat per un decret governamental: es tractava de l’anomenat decret “Ford”, aprovat l’any 1972, el qual facilitava l’establiment de Ford a Espanya. Aquest decret va tenir greus conseqüències per a SEAT, el principal productor espanyol. Entre 1972 y 1980 la producció de SEAT es va reduir en una tercera part i la seva situació financera va esdevenir insostenible. Per contra, en aquest període FASA-Renault va esdevenir el principal productor ubicat a Espanya (la seva producció es va multiplicar per 3,5 durant els anys setanta) i en líder de ventes en el mercat espanyol (la seva penetració es va incrementar del 23 al 36%). El principal objectiu del treball es analitzar els factor que expliquen l’èxit de FASARenault durant els anys setanta.

When supply travels far beyond demand: Causes of oversupply in Spain’s transport infrastructure

Spain’s transport infrastructure policy has become a paradigmatic case of oversupply and of mismatch with demand. The massive expansion of the country’s transport infrastructure over the last decade has not been a response to demand bottlenecks or previously identified needs. For this reason, the intensity of use today on all interurban modes of transport in Spain falls well below that of other EU countries. This paper analyzes the institutional and regulatory factors that have permitted this policy, allowing us to draw lessons from the Spanish case that should help other countries avoid the pitfalls and shortcomings of Spanish policy.

Beyond pure public and pure private management models: Partial privatization in the European airport industry

The use of private funding and management is enjoying an increasing trend in airports. The literature has not paid enough attention to the mixed management models in this industry, although many European airports take the form of mixed public-private companies, where ownership is shared between public and private sectors. We examine the determinants of the degree of private participation in the European airport sector. Drawing on a sample of the 100 largest European airports, we estimate a multivariate equation in order to determine the role of airport characteristics, fiscal variables, and political factors on the extent of private involvement. Our results confirm the alignment between public and private interests in partially privatized airports. Fiscal constraints and market attractiveness promote private participation. Integrated governance models and the share of network carriers prevent the presence of private ownership, while the degree of private participation appears to be pragmatic rather than ideological.

When supply travels far beyond demand: Causes of oversupply in Spain’s transport infrastructure

Spain’s transport infrastructure policy has become a paradigmatic case of oversupply and of mismatch with demand. The massive expansion of the country’s transport infrastructure over the last decade has not been a response to demand bottlenecks or previously identified needs. For this reason, the intensity of use today on all interurban modes of transport in Spain falls well below that of other EU countries. This paper analyzes the institutional and regulatory factors that have permitted this policy, allowing us to draw lessons from the Spanish case that should help other countries avoid the pitfalls and shortcomings of Spanish policy.

When supply travels far beyond demand: Institutional and regulatory causes of oversupply in Spain’s transport infrastructure

Spain’s transport infrastructure policy has become a paradigmatic case of oversupply and of mismatch with demand. The massive expansion of the country’s transport infrastructure over the last decade has not been a response to demand bottlenecks or previously identified needs. For this reason, the intensity of use today on all interurban modes of transport in Spain falls well below that of other EU countries. This paper analyzes the institutional and regulatory factors that have permitted this policy, allowing us to draw lessons from the Spanish case that should help other countries avoid the pitfalls and shortcomings of Spanish policy. Based on our analysis, we also discuss policy remedies and suggest reforms in different regulatory areas, which could help improve the performance of Spain’s infrastructure policy.

Regulation of Port Charges in Spain: Global versus Local Competition

This article examines the determinants of traffic volumes and the revenues per tonne generated by Spain’s port authorities. The interest of the study lies on the strong differences between port authorities in a context of strict regulation but that provides some scope for price competition. We find that port charges influence the amount of traffic that a port is able to generate. Furthermore, we find clear evidence of local price competition and report mixed results for global competition. Revenues per tonne are higher in ports operating more international regular lines and with multinational terminal operators, while they are lower in ports with nearby competing facilities and where the market share of the dominant shipping firm is high.

Entry Regulation Asymmetries and Gasoline Competition in a Mixed Motorway Network

Regulatory and funding asymmetries in the Spanish motorway network produce huge differences in the structure of gasoline markets by motorway type: free or toll. While competition is encouraged among gas stations on free motorways, the regulations for toll motorways allow private concessionaires to auction all gas stations to the same provider, thereby limiting competition and consolidating market power. This paper reports how this regulatory asymmetry results in higher prices and fewer gas stations. Specifically, we show that competition is constrained on toll motorways by the granting of geographical monopolies, resulting in a small number of rivals operating in close proximity to each other, and allowing gas stations to operate as local monopolies. The lack of competition would seem to account for the price differential between toll and free motorways. According to available evidence, deregulation measures affecting toll motorway concessions could help to mitigate price inefficiencies and increase consumer welfare.