Foreign Aid Linked to Infrastructure and/or Pollution Abatement

This paper studies the macroeconomic effects of a permanent increase in foreign aid in a model that takes into account environmental quality. We develop a dynamic equilibrium model in which both public investment in infrastructure and environmental protection can be financed using domestic resources and international aid programs. The framework considers four scenarios for international aid: untied aid,aid fully tied to infrastructure, aid fully tied to abatement, and aid equally tied to both types of expenditures. We find that the effects of the transfers may depend on (i) the structural characteristics of the recipient country (the elasticity of substitution in production and its dependence on environment and natural resources) and on (ii) how recipient countries distribute their public expenditure. These results underscore the importance of these factors when deciding how and to what extent to tie aid to infrastructure and/or pollution abatement.

Investment prospects in inshore trawling in Nigeria

Commercial trawling for finfish in Nigeria's inshore water is a recent activity. Intensive industrial trawling started when the Federal Government distributed trawlers to viable fishermen cooperatives during the Third National Development Plan Period (1975-80). Hitherto, industrial fisheries development in the country focused on the assessment of the potential fish stock on Nigeria's continental shelf and measures to increase artisanal production. As a result of increasing demand for fish and shortage of foreign exchange to import fish, measures to increase fish supply leaned towards industrial exploitation of the fisheries potentials of Nigeria's continental shelf. Based on this background, this paper examines the investment prospects of trawling for fish in inshore waters. The fisheries potentials of the inshore zone of Nigeria are identified. Catch efficiency and profitability of inshore trawling are estimated. Measures that can safeguard the longterm interest of the trawling industry are recommended

Direito do investimento e inovação tecnológica: o histórico regulatório da transferência de tecnologia no Brasil em face das cláusulas de proteção dos acordos bilaterais de investimentos (BITs)

A regulação direta ou indireta da transferência de tecnologia pelo Brasil desde o final da década de 50 do século XX nem sempre foi devidamente compreendida. O uso da tributação, com efeitos fiscais e extrafiscais, teve reflexos sobre a atuação do INPI e do Banco Centra do Brasil (BACEN) que permanecem até os dias de hoje, mas tinham como fundamento uma política industrial específica e a limitação dos seus efeitos no balanço de pagamentos do país. O Brasil nunca se fechou totalmente aos investidores estrangeiros, mas sempre utilizou limitações setoriais, posteriormente o registro do ingresso do capital estrangeiro e, por muito tempo, o desincentivo à sua saída por medidas limitadoras ou proibitivas de remessas de dividendos e royalties, até mesmo com o uso da extrafiscalidade. Como o país apenas recentemente realmente prioriza de forma geral a pesquisa e desenvolvimento (P&D) tecnológico, o que resulta em pouca tecnologia gerada internamente, os royalties devidos pelo uso da tecnologia das empresas transnacionais sempre foram objeto de crítica e, consequentemente, medidas limitadoras. Essa atuação regulatória representa um risco político aos investidores, com os acordos bilaterais de investimentos (BITs) sendo os tratados internacionais mais utilizados para afastá-lo. O Brasil, porém, apesar de ter assinado diversos deles, não possui nenhum em vigor. O confronto entre as cláusulas de proteção dos BITs e a política regulatória sobre a transferência de tecnologia e investimento estrangeiro que durante muito tempo vigorou no país representa um caso concreto extremamente interessante para avaliar a aplicação desses tratados e eventuais medidas que os violam, auxiliando, ainda, a compreensão de algumas das medidas regulatórias que permanecem em vigor.

The Iranian Foreign Policy in the Persian Gulf Region under the Rule of President Hassan Rouhani: Continuity of Change

Although Iran borders with many states and has direct access to the Caspian Sea as well as the Indian Ocean, the Persian Gulf region seems to be the most vital area to its security and prosperity. Yet since the 70’s Iran’s relations with the Arab states in the region have been rather strained and complex. The main reason for that had been the success of the Islamic revolution in 1979 which later resulted in a new dimension of Sunni-Shia rivalry. Moreover, post-revolutionary Iranian authorities also intended to maintain the regional hegemony from the Imperial State of Iran period. As a result, successive Iranian governments competed for hegemony in the Persian Gulf with the littoral Arab states which consolidated their regional positions due to close links and intensive cooperation with the West especially with the United States. Despite some political and economic initiatives which were undertaken by President Mahmoud Ahmadinejad, this rivalry was also evident between 2005–2013. The main aim of this article is to find out whether Iranian foreign policy towards the Arab states in the Persian Gulf region has undergone any significant changes since Hassan Rouhani became the President of the Islamic Republic of Iran in August 2013. According to Mohammad Reza Deshiri, the Iranian foreign policy after 1979 can be divided into so-called waves of idealism and realism. During dominance of idealism values and spirituality are more important than pragmatism while during the realistic waves political as well as economic interests prevail over spirituality. Iranian idealism is connected with export of revolutionary ideas, Shia dominance as well as the restoration of unity among all muslims (ummah). On this basis both presidential terms of Mahmoud Ahmadinejad can be classified as ‘waves of idealism’, albeit some of his ideas were very pragmatic. The question is if Hassan Rouhani’s foreign policy represents a continuity or a change. Is the current Iran’s foreign policy towards the Persian Gulf region idealistic or rather realistic? The main assumption is that there will be no Arab-Iranian rapprochement in the Persian Gulf without a prior normalization of political relations between Iran and the West especially the United States.

A direct physiological trade-off between personal and social immunity

1. Recent work shows that organisms possess two strategies of immune response: personal immunity, which defends an individual, and social immunity, which protects other individuals, such as kin. However, it is unclear how individuals divide their limited resources between protecting themselves and protecting others.
2. Here, with experiments on female burying beetles, we challenged the personal immune system and measured subsequent investment in social immunity (antibacterial activity of the anal exudates).
3. Our results show that increased investment in one aspect of personal immunity (wound repair) causes a temporary decrease in one aspect of the social immune response.
4. Our experiments further show that by balancing investment in personal and social immunity in this way during one breeding attempt, females are able to defend their subsequent lifetime reproductive success.
5. We discuss the nature of the physiological trade-off between personal and social immunity in species that differ in the degree of eusociality and coloniality, and suggest that it may also vary within species in relation to age and partner contributions to social immunity.

Infrastructure and the Architectures of Modernity in Ireland 1916-2016

At the formation of the new Republic of Ireland, the construction of new infrastructures was seen as an essential element in the building of the new nation, just as the adoption of international style modernism in architecture was perceived as a way to escape the colonial past. Accordingly, infrastructure became the physical manifestation, the concrete identity of these objectives and architecture formed an integral part of this narrative. Moving between scales and from artefact to context, Infrastructure and the Architectures of Modernity in Ireland 1916-2016 provides critical insights and narratives on what is a complex and hitherto overlooked landscape, one which is often as much international as it is Irish. In doing so, it explores the interaction between the universalising and globalising tendencies of modernisation on one hand and the textures of local architectures on the other.

The book shows how the nature of technology and infrastructure is inherently cosmopolitan. Beginning with the building of the heroic Shannon hydro-electric facility at Ardnacrusha by the German firm of Siemens-Schuckert in the first decade of independence, Ireland became a point of varying types of intersection between imported international expertise and local need. Meanwhile, at the other end of the century, by the year 2000, Ireland had become one of the most globalized countries in the world, site of the European headquarters of multinationals such as Google and Microsoft. Climatically and economically expedient to the storing and harvesting of data, Ireland has subsequently become a repository of digital information farmed in large, single-storey sheds absorbed into anonymous suburbs. In 2013, it became the preferred site for Intel to design and develop its new microprocessor chip: the Galileo. The story of the decades in between, of shifts made manifest in architecture and infrastructure from the policies of economic protectionism, to the opening up of the country to direct foreign investment and the embracing of the EU, is one of the influx of technologies and cultural references into a small country on the edges of Europe as Ireland became both a launch-pad and testing ground for a series of aspects of designed modernity.

Understanding what drives the purchase decision in pension and investment products

The aims of this paper are to first seek an understanding of consumer decision-making when purchasing pension and investment products, and second to ascertain how this decision-making affects the consumer's choice of distribution route. The study employed both focus groups and postal questionnaire survey methods based on the framework of a classical decision-making model that investigated problem recognition, information search, evaluation tools used and post-purchase. The findings show that the decision-making process experience differed to a lesser or greater degree depending on the distribution route. The majority of respondents had recognised the need to make a purchase decision long before seeking information. Younger respondents on all incomes believed that they must make some pension provision for themselves as opposed to relying on the government's retirement provision. Many changed channels for information searches, but tended to settle with the Independent Financial Adviser (IFA). The two main evaluation tools for pension and investment were found to be the ‘charges’ and ‘historic fund performance’. The vast majority of respondents reiterated their worry that the outcomes would not be known until retirement. In terms of analysis by the level of ‘financial literacy’, respondents who scored in the upper quartile were more inclined to be on a higher income, less inclined to evaluate on charges and more proactive in discussing the investment strategy of their pension fund. Respondents who scored in the lower quartile had opposite results. One of the implications of these findings is that the younger respondents’ recognition of pension savings favours the government's intention to reverse the existing balance of pension distribution. The other main implication is that the findings will be of help to managers in appreciating the dominance of the IFA channel by providing an explanation of why consumers choose this route, and, additionally, can assist direct marketing managers in identifying customers who will be more likely to use multichannel or single-channel shoppers. It can also help the marketing manager increase the usage of different channels by addressing the factors driving the purchase decision and distribution choice.

Social welfare with a foreign competitor

In this paper, we consider a mixed market in which a state-owned welfare-maximizing public (domestic) firm competes against a profit-maximizing private (foreign) firm. We suppose that the domestic firm is less eflScient than the foreign firm. However, the domestic firm can lower its marginal costs by conducting cost-reducing R&D investment. We examine the impacts of entry of a foreign firm on decisions upon cost-reducing R&D investment by the domestic firm and how these affect the domestic welfare.

Privatization and entry of a foreign firm with demand uncertainty

We investigate the effects of trade with a foreign firm and privatization of the domestic pubUc firm on an incentive for the domestic firm to reduce costs by undertaking R&D investment, under demand uncertainty. We suppose that the domestic firm is less efficient than the foreign firm. However, the domestic firm can lower its marginal costs by conducting cost-reducing R&D investment. We examine the impacts of entry of a foreign firm, and the effects of demand uncertainty, on decisions upon cost-reducing R&D investment by the domestic firm and how these affect the domestic welfare.

Avaliação da eficiência energética e optimização de uma unidade de trigeração

Portugal é um país dependente da energia do exterior, devido à elevada percentagem de consumo de energia a partir de fontes primárias, como por exemplo o gasóleo. Para colmatar este cenário, têm vindo a criar-se incentivos para o uso de energias renováveis e para intensificação de medidas de eficiência energética, como os sistemas de cogeração, de forma a tornar os processos industriais nacionais mais autónomos e mais competitivos. O presente trabalho, centra-se na determinação do potencial térmico disponível na central de trigeração da empresa Monteiro, Ribas-Indústria, SA, com a finalidade de identificar a quantidade de energia não utilizada, com vista ao aproveitamento dessa mesma energia nos processos mais problemáticos da empresa. Verificou-se que a água líquida era a fonte de maior energia não aproveitada, representando cerca de 30%, relativamente à energia disponível na água de refrigeração que é de 1890 kW. Assim, perante este facto, fez-se um estudo em dois setores autónomos da empresa, o setor dos revestimentos e o setor dos componentes técnicos da borracha. Pretendeu-se propor medidas para melhorar os seus processos produtivos, aproveitando essa energia. Para o efeito foi projetado um permutador de calor de placas com necessidade energética de 131,4 MWh, no setor dos revestimentos e um permutador compacto no setor de produção de placas de borracha, necessitando de uma energia de 335,2 MWh. Face à energia disponível na central de trigeração, de 161,9 MWh, verifica-se que esta apenas poderá ser aproveitada no setor dos revestimentos. Para tornar este objetivo real, a empresa Monteiro, Ribas- Indústria, SA necessitaria de efetuar um investimento no total de 49.390€. Além disso, foi contabilizado o rendimento das caldeiras da central térmica e da cogeração, ambas pelo método direto, apresentando estas os valores de 72% e 42%, respectivamente.

Value creation in the nursing home real estate investment market - A case study

The underlying thesis examines the value drivers of direct investments in nursing home real estate in Germany. A survey among investors and operators is conducted in order to identify significant value drivers. Moreover, based on survey results, a framework for assessing German nursing home real estate is developed. This is applied in a case-study about the set-up of a nursing home value-add fund which will demonstrate the value creation process of redeveloping an existing nursing home real estate portfolio. Through a concluding analysis the sources of value creation, sensitivities and future prospects of direct investing into German nursing home real estate are concluded.

A DYNAMIC FRAMEWORK FOR THE RELATIONS BETWEEN FOREIGN EXCHANGE RATES, SAVINGS AND INVESTMENTS

The Meese-Rogoff forecasting puzzle states that foreign exchange (FX) rates are unpredictable. Since one country’s macroeconomic conditions could affect the price of its national currency, we study the dynamic relations between the FX rates and some macroeconomic accounts. Our research tests whether the predictability of the FX rates could be improved through the advanced econometrics. Improving the predictability of the FX rates has important implications for various groups including investors, business entities and the government. The present thesis examines the dynamic relations between the FX rates, savings and investments for a sample of 25 countries from the Organization for Economic Cooperation and Development. We apply quarterly data of FX rates, macroeconomic indices and accounts including the savings and the investments over three decades. Through preliminary Augmented Dickey-Fuller unit root tests and Johansen cointegration tests, we found that the savings rate and the investment rate are cointegrated with the vector (1,-1). This result is consistent with many previous studies on the savings-investment relations and therefore confirms the validity of the Feldstein-Horioka puzzle. Because of the special cointegrating relation between the savings rate and investment rate, we introduce the savings-investment rate differential (SID). Investigating each country through a vector autoregression (VAR) model, we observe extremely insignificant coefficient estimates of the historical SIDs upon the present FX rates. We also report similar findings through the panel VAR approach. We thus conclude that the historical SIDs are useless in forecasting the FX rate. Nonetheless, the coefficients of the past FX rates upon the current SIDs for both the country-specific and the panel VAR models are statistically significant. Therefore, we conclude that the historical FX rates can conversely predict the SID to some degree. Specifically, depreciation in the domestic currency would cause the increase in the SID.

Essays in open economy macroeconomics with borrowing frictions

Cette thèse comporte trois essais en macroéconomie en économie ouverte et commerce international. Je considère tour à tour les questions suivantes: sous quelles conditions est-il optimal pour un pays de former une union économique? (essai 1); l'augmentation de la dispersion transversale des avoirs extérieurs nets des pays est-elle compatible avec une dispersion relativement stable des taux d'investissement? (essai 2); le risque de perte de marché à l'exportation du fait de l'existence des zones de commerce préférentiel joue t-il un rôle dans la décision des pays exclus de négocier des accords commerciaux à leur tour? (essai 3). Le premier essai examine les conditions d'optimalité d'une union économique. Il s'intéresse à une motivation particulière: le partage du risque lié aux fluctuations du revenu. Dans la situation initiale, les pays ont très peu d'opportunités pour partager le risque à cause des frictions: les marchés financiers internationaux sont incomplets et il n'y pas de mécanisme pour faire respecter les contrats de crédit entre pays. Dans ce contexte, une union économique apparait comme un arrangement qui pallie à ces frictions entre les pays membres seulement. Cependant, l'union dans son ensemble continue de faire face à ces frictions lorsqu'elle échange avec le reste du monde. L'arbitrage clé dans le modèle est le suivant. D'un coté, l'intégration économique permet un meilleur partage du risque entre pays membres et la possibilité pour le partenaire pauvre d'utiliser la ligne de crédit du partenaire riche en cas de besoin. De l'autre coté, l'union peut faire face à une limite de crédit plus restrictive parce que résilier la dette extérieure est moins coûteux pour les membres l'union. De plus, le fait que le partenaire pauvre peut utiliser la limite de crédit du partenaire riche génère une externalité négative pour ce dernier qui se retrouve plus fréquemment contraint au niveau des marchés internationaux des capitaux. En conformité avec les faits observés sur l'intégration économique, le modèle prédit que les unions économiques sont relativement peu fréquentes, sont plus susceptibles d'être créées parmi des pays homogènes, et généralement riches. Le deuxième essai porte sur la dispersion des avoirs extérieurs nets et la relation avec la dispersion des taux d'investissement. Au cours des récentes décennies, la dispersion croissante des déséquilibres extérieurs et les niveaux record atteints par certaines grandes économies ont reçu une attention considérable. On pourrait attribuer ce phénomène à une réduction des barrières aux mouvements internationaux des capitaux. Mais dans ce cas, il est légitime de s'attendre à une augmentation de la dispersion au niveau des taux d'investissement; ceci, parce que le financement des besoins en investissements constitue une raison fondamentale pour laquelle les pays échangent les capitaux. Les données indiquent cependant que la dispersion des taux d'investissement est restée relativement stable au cours des récentes décennies. Pour réconcilier ces faits, je construis un modèle d'équilibre général dynamique et stochastique où les pays sont hétérogènes en raison des chocs idiosyncratiques à leurs niveaux de productivité totale des facteurs. Au niveau des marchés internationaux des capitaux, le menu des actifs disponibles est restreint à une obligation sans risque et il n'y a pas de mécanisme pour faire respecter les contrats de crédit entre pays. A tout moment, un pays peut choisir de résilier sa dette extérieure sous peine d'exclusion financière et d'un coût direct. Ce coût direct reflète les canaux autres que l'exclusion financière à travers lesquels les pays en défaut sont pénalisés. Lorsque le modèle est calibré pour reproduire l'évolution de la dispersion transversale des avoirs extérieurs nets, il produit une dispersion relativement stable des taux d'investissement. La raison principale est que les incitations que les pays ont à investir sont liées à la productivité. Avec l'intégration financière, même si les opportunités d'emprunt se sont multipliées, les incitations à investir n'ont pas beaucoup changé. Ce qui permet de générer une dispersion accrue de la position des avoirs extérieurs nets des pays avec une dispersion relativement stable des taux d'investissement. Le troisième essai analyse un aspect de l'interdépendance dans la formation des accords commerciaux préférentiels: j'examine empiriquement si le risque de diversion des exportations en faveur des pays membres des zones de commerce préférentiel est un facteur déterminant dans la décision des pays exclus de ces accords de négocier un accord à leur tour. Je construis un indicateur qui mesure le potentiel de diversion des exportations auquel font face les pays et estime un modèle probit de formation des zones de commerce préférentiel créées entre 1961 et 2005. Les résultats confirment que les pays confrontés à un plus grand potentiel de détournement des échanges sont plus susceptibles de former une zone de commerce préférentiel à leur tour.

Political Parties and Foreign Aid

The influence of partisan politics on public policy is a much debated issue of political science. With respect to foreign policy, often considered as above parties, the question appears even more problematic. This comparison of foreign aid policies in 16 OECD countries develops a structural equation model and uses LISREL analysis to demonstrate that parties do matter, even in international affairs. Social-democratic parties have an effect on a country's level of development assistance. This effect, however, is neither immediate nor direct. First, it appears only in the long run. Second, the relationship between leftist partisan strength and foreign aid works through welfare state institutions and social spending. Our findings indicate how domestic politics shapes foreign conduct. We confirm the empirical relevance of cumulative partisan scores and show how the influence of parties is mediated by other political determinants.

The Transatlantic Trade and Investment Partnership (TTIP)

The United States of America and the European Union are currently negotiating a Transatlantic Trade and Investment Partnership (TTIP). It is one of the most ambitious free trade and investment initiatives, going much further than eliminating tariffs. TTIP mainly aims at reducing “non-tariff barriers”. While tariffs on goods have been imposed with an eye to foreign competition, most of the non-tariff barriers are the laws and regulations that are the result of social struggles for the protection of consumers and workers. It is therefore certain that TTIP will impact workers. This volume provides a preliminary assessment of the likely consequences for labor by: - providing an overall introduction to the TTIP negotiations; -assessing the reliability of the studies claiming employment gains; - highlighting specific problematic proposals such as the investor-to-state dispute settlement mechanism; - presenting the position of organized labor from both sides of the Atlantic. / Among the contributors are Stefan Beck (Kassel), Lance Compa (Ithaca, New York), Pia Eberhardt (Brussels) and Werner Raza (Vienna).