Privatisation and cross-border electricity trade: from internal market to European Supergrid?

he perspective European Supergrid would consist of an integrated power system network, where electricity demands from one country could be met by generation from another country. This paper makes use of a bi-linear fixed-effects model to analyse the determinants for trading electricity across borders among 34 countries connected by the European Supergrid. The key question that this paper aims to address is the extent to which the privatisation of European electricity markets has brought about higher cross-border trade of electricity. The analysis makes use of distance, price ratios, gate closure times, size of peaks and aggregate demand as standard determinants. Controlling for other standard determinants, it is concluded that privatisation in most cases led to higher power exchange and that the benefits are more significant where privatisation measures have been in place for a longer period.

Search engine liability for autocomplete suggestions: personality, privacy and the power of the algorithm

This article is concerned with the liability of search engines for algorithmically produced search suggestions, such as through Google’s ‘autocomplete’ function. Liability in this context may arise when automatically generated associations have an offensive or defamatory meaning, or may even induce infringement of intellectual property rights. The increasing number of cases that have been brought before courts all over the world puts forward questions on the conflict of fundamental freedoms of speech and access to information on the one hand, and personality rights of individuals— under a broader right of informational self-determination—on the other. In the light of the recent judgment of the Court of Justice of the European Union (EU) in Google Spain v AEPD, this article concludes that many requests for removal of suggestions including private individuals’ information will be successful on the basis of EU data protection law, even absent prejudice to the person concerned.

Euroland - The effect of Euro on international trade : Are there winners and losers in this ''Euro-game''?

This paper examines whether European Monetary Union (EMU) countries share fairly the effect of their membership in Eurozone (EZ) or whether are winners and losers in this ''Euro-game''. By using panel data of 27 European Union (EU) Member States for the period 2001-2012 in the context of a gravity model, we focus on estimating the Euro’s effect on bilateral trade and we detect whether this effect differs across the Member States of EZ. Two estimation methods are applied: Pooled OLS estimator and Fixed Effects estimator. The empirical results come to the conclusion that the individual country effects differ and are statistically significant, indicating that EMU’s effect on trade differs across the Member States of EZ. The overall effect of the Euro is statistically insignificant, regardless the estimation method, demonstrating that the common European currency may have no effect on bilateral trade.

Tourism, taxes and immiserization: A trade theoretic analysis

Many countries promote tourism as a device for earning foreign exchange and promoting domestic welfare and growth. In all these countries the non-traded goods (internationally not traded) are consumed by both domestic residents and tourists. It is well known that the relative price of non-traded goods and services is determined in the local market – hence the tourist demand results in monopoly power in trade for the host country. We use a very simple two-country model to demonstrate the specific nature of the offer curve and the trade equilibrium and the difficulties of taxation.

Section 46 of the Trade Practices Act-has the High Court made a "u-turn" on "taking advantage"?

Examination of High Court decisions on misuse of market power in regard to the element of "taking advantage" reveals inconsistency of application. Whilst being consistent regarding the need for a connection between the market power and the impugned conduct, the High Court has not been consistent regarding the degree of connection required. Two streams have developed, one supporting a high degree of connection, the other a lower degree before a firm is found to have "taken advantage" of its market power. Added to this has been the development of the "rational business explanation" which, it is argued, is either used as a defence to a s 46 action or is premised on the higher threshold of connection. Initially the high Court supported the lower threshold. In later decisions, whilst expressing support for the earlier decisions, in application the High Court favoured the higher threshold and at one point the rational business explanation. This trend appears to have been reversed with the most recent High Court decision which indicates substantive support for the earlier s 46 decisions.

Hanoi, Vietnam : representing power in and of the nation

Hanoi, like most capital cities, performs functions at three levels. It is home to its residents and provides local level services for them. But it also has a role as a city for all citizens of the Vietnamese state, performing capital city functions across the entire national territory as well as beyond national borders. Hanoi is especially interesting because of the uneasy way in which it has been forced to share power internally with Ho Chi Minh City in the south—Hanoi maintaining political and cultural sway but its rival becoming stronger in economic and demographic terms. Externally, it has struggled for recognition, having been regarded as capital of a weak political state open to the interventions of the Chinese, French, Americans and the Soviet Union. This paper argues that Hanoi's double vulnerability has made its rulers acutely aware of the need to demonstrate the city's power as a capital city—or at least to give the semblance of power—through urban planning and architectural design, the building of heroic monuments and the naming of city features after key historic events and people. Major events and projects have become an important way in which the Vietnamese government has sought to strengthen Hanoi's place—and hence its own—in the national consciousness. The regime also continues to push on with efforts to make a future Hanoi dominant both within the Vietnamese urban hierarchy and as the country's undisputed international metropolis.

Revisiting capital structure theory : a test of pecking order and static order trade-of model from Malaysian capital market

This study revisits the capital structure theory and test Pecking Order Hypothesis (POH) and Static Order Trade-off theory (STOT) using Malaysian Listed firms over a period from 1999 to 2002. The evidence from pecking order model suggests that the internal fund deficiency is the most important determinant that possibly explains the issuance of new debt in Malaysian capital market despite the lower predicting power.  While static trade off-model is not fit to explain the issuance of new debt issue in Malaysian capital market. This is an interesting findings that confirm the fact that Malaysian firms do not too much care about tax-shield benefit derive from employ both debt and non-debt tax-shield. The finn's size, which is used to neutralize the size effect, appears to provide some explanation for the variation in its capital structure policy choice; however asset structure and growth no evidence of static-order-trade-off is observed in Malaysian capital market.

A global knowledge economy? Biopolitical strategies in India and the European Union

This article critiques the notion of a cross-national convergence of institutional and policy responses to science-based technologies. The continued significance of institutional legacies is demonstrated through a comparative analysis of strategies for the biopharma industry in two radically different settings: India and the European Union (EU). Tensions are evident in both the EU ‘high’ route and the mixed strategy pursued in India. State promotion of biopharma is seen in India as a pathway to economic development, framed by a vision of India as a global power. Here, the ‘low’ route of cost advantages is combined with a ‘global’ rhetoric of innovation, modeled on US experience, and uneven forays into advanced R&D. The pursuit of product innovation was reinforced by India’s adoption of TRIPS-mandated intellectual property rights. In the EU, the aim is an integrated policy and regulatory approach to sustain and legitimize European integration, with the ultimate intent of overtaking the USA.

Motivation and social contexts : A crossnational pilot study of achievement, power, and affiliation motives

Previous research suggests that there is a relationship between social contexts (e.g., economic growth, engagement in wars) and motives within populations. In particular, high achievement motive is associated with subsequent economic growth, which in turn increases power motive. Increased national achievement and power motives have been argued to precede social changes that lead to decreased affiliation motives, and engagement in wars. The present study aimed to examine differences in achievement, power, and affiliation motives between 266 college students in China (a nation with sustained high economic growth) and 255 college students in the USA (a nation with previously strong but now slowing economic growth, and engaged in war). Analysis of personal strivings suggested that Chinese college students showed significantly higher levels of achievement motive than the American college students, but American college students showed significantly higher levels of affiliation motive than Chinese college students. Overall, males exhibited higher achievement motivation than females. No significant interaction effects were found for gender by location for any of the three motives. The findings are discussed in relation to previous research.

Does a currency union provide the answer?

Reviews the history of NZ's foreign exchange policy, explains how floating exchange rates work and considers the performance of the NZ dollar over the last 15 years. Discusses the effects of a volatile currency on exporters, particularly of agricultural products, and whether currency union with Australia is a suitable solution to the problem.

EU-India free trade negotiations threatening access to medicines

Indian firms are major global producers of relatively affordable generic medicines. Access to such drugs makes the difference between life and death for billions of people in the Global South. The Economist noted recently that ‘America should not use trade deals to swaddle drugmakers in excessive patent protections’. Nor should the European Union (EU) impose obstacles to the supply of generic drugs by Indian firms beyond those already mandated by the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement. Free trade negotiations between the EU (reported to be close to completion) constitute a clear threat to the role of India as the ‘pharmacy of the developing world’.

The Iraqi Federation of Oil Unions : protests and public power in post-Saddam Iraq

Since the democratic elections held across Iraq in 2005 and 2010 much attention has understandably been paid to the new Iraqi government. Unfortunately, it has become increasingly clear that much of Iraq’s political elite are practising the type of governance referred to in the literature on other Arab states alternatively as ‘liberalised autocracy’ (Brumberg, 2002), ‘semi-authoritarianism’ (Ottaway, 2003) or ‘pluralised authoritarianism’ (Posusney & Angrist, 2005). That is to say, that the Iraqi government actually utilises (and controls) nominally democratic mechanisms such as elections, media freedoms, political opposition and civil society as part of their strategy to retain power. This is perhaps best demonstrated via the nine month political stalemate that followed the March 2010 elections and PM Maliki’s refusal to step down despite having narrowly lost the election. Not surprisingly, the Iraqi people have become increasingly disillusioned and critical of their political leaders – hence the mass protests that have swept across Iraq in the context of the popular Arab Revolutions of 2010-11.

However, these latest Iraqi protests are only the most recent and overt sign of the hidden geographies that are agitating towards democracy in this deeply troubled and increasingly authoritarian state. Since the invasion of 2003, a complex array of political, religious and ethno-sectarian factions have formed civil society movements; uncensored news has been consumed across the nation; ordinary citizens have taken to the streets to protest key government decisions; and various local councils have been formed, deliberating on key decisions facing their immediate communities (Davis, 2004, 2007). Given this context, this chapter focuses on the specific case of the Iraqi Federation of Oil Unions (IFOU), Iraq’s largest and most powerful independent workers union. The IFOU has repeatedly taken the Iraqi government to task over their poor pay and the dangerous nature of their work, as well as the government’s initial kowtowing to US plans to privatise the entire Iraqi oil sector. To do this, the IFOU have utilised a variety of very democratic mechanisms including peaceful strikes and protests, media campaigns and political lobbying. Such moves have met with mixed results in Baghdad – at times the central government has pandered to the requests of IFOU, but it has also gone as far as issuing arrest warrants for its senior members. The IFOU therefore serve as an interesting example of public power in Iraq and may well pose one of the greatest challenges to rising authoritarianism there.

Free Trade Agreements and US Foreign Policy

The United States has completed numerous free trade agreements (FTAs), but the pattern of these agreements defies conventional explanations. Arguments that are based on domestic interests and economic gains cannot explain the comparative under-performance of US trade agreements. The pattern of US trade agreements is also inconsistent with explanations that focus on state power, which depict FTAs as a “reward” for loyal clients. This article finds a better explanation for the pattern of the United States’ FTAs by consideringthe systemic level of analysis, and in particular the dynamics of the international economic order. It illustrates that strong competition for bilateral trade agreements has resulted in patterns of agreements that the United States cannot easily dominate. This is not to say that the United States has no capacity to finalize trade agreements: the United States remains the world’s most influential nation-state, but the constraints of the international system necessarily limit the degree to which FTAs can serve the interests of US foreign economic policy. The recent evolution of international trade politics, however, indicates that smaller states are comparatively less vulnerable to pressure from great powers, such as the United States.

China's "South-South" trade with Southeast Asia: unequal exchange and combined and uneven development

China’s unprecedented emergence as an economic and political power has created a new geopolitical economy for semi-industrialised and developing economies in Southeast Asia. This paper examines China’s trade relationships with Thailand and Indonesia using the concepts of uneven and combined development (UCD) and unequal exchange. The mass of surplus value obtained through China’s trade with the developed economies has flowed into the considerable expansion in China’s imports from developing countries since 2000. China has maintained a consistent trade deficit with the latter. While the developing countries concerned have benefitted from this set of relationships, the extent to which they have done so has been determined by national strategies. In countries like Thailand – where manufacturing capital and a significant working class has emerged – exports expanded on the basis of mutually advantageous technologically and skills intensive goods. These are produced with a similar organic composition of capital as in China. The result has been a further consolidation of the hegemony of manufacturing capital. Indonesia, however, has a political system and economy long dominated by resource exploitation linked fractions of capital. The result has been a surge in primary goods exports. The current commodity price cycle has meant these goods exchange at prices above their value. The current looming price correction, however, may have negative repercussions. In the meantime, the concentration in raw materials exports is helping to prevent the emergence of a circuit of productive capital in manufacturing. The evidence from these contrasting cases suggests that the degree to which developing economies can benefit from China’s own historically unparalleled combined development remains highly contingent on the strength of the combined development possibilities and efforts within these other national social formations. Above all, there is the degree to which manufacturing sectors of capital can obtain hegemony.

Trade or investment? location decisions under regional integration

This paper studies the production and trade patterns that may arise between two different countries if plant location is introduced as a first step in the producers' decision making. A three-stage game is used: the first deals with location and the next two with capacity and final sales decisions. Demand and cost structures differ by country, and the latter contain specific elements related to the foreign operation. The structure of possible Nash-equilibria is examined and an analysis of the changes in the solution, if the countries engage in an integration process, is made. As in previous models, though global welfare gains may not be very high, single country ones may be considerable, due to changes in the location of the plants. However, even if full integration takes place, global Marshallian welfare may decrease. Conditions which determine a tendency towards multinationalisation are obtained. Assuming a move toward integration, conditions are also provided to characterize when exporting will be preferred to local production. The fact that producers may retain a certain discriminating power, notwithstanding the elimination of barriers to arbitrage, creates a tendency to locate production in the country where prices are higher. This explains why welfare gains may not be obvious. An empirical illustration, with real data from two MERCOSUL countries (Brazil and Argentina) illustrates the possible outcomes.