Productivity, demand and the home market effect

The causality between international trade and industrialization is still ambiguous. We consider a model of international trade with the Home Market Effect - with differences in income and productivity between sectors and between countries - in order to identify additional channels for determining the effects of international trade on industrialization. Introducing non-homothetic preferences and differences in productivity aids in the interpretation of any apparent paradoxes within international trade, such as the commercial relations between more populated countries like China and India and large economies such as the U.S. Population size, demand composition and productivity levels constitute the three main channels for determining the effects of international trade. Interactions among these channels define the results obtained in terms of industrialization, while welfare levels are always higher in relation to autarky.

La política comercial de Estados Unidos en el marco de la Organización Mundial del Comercio. Discurso vs. comportamiento con relación a prácticas anticompetitivas

El objetivo principal de esta monografía es identificar cuáles son las razones que justifican las contradicciones entre el discurso y el comportamiento de Estados Unidos en el marco de la Organización Mundial del Comercio, particularmente con relación a prácticas anticompetitivas derivadas del programa de protección a la agricultura del país. Para ello se analizan el interés nacional y los elementos de la seguridad nacional a partir de los cuales éste se ha construido. También se evalúan los procesos de formulación de política comercial y las interacciones entre los representantes políticos, las asociaciones de productores y el sector privado para mostrar como este comportamiento contradictorio corresponde a la legitimización de un interés particular.

Dimensiones geopolíticas del TLC andino con Estados Unidos. Algunas hipótesis para iniciar una reflexión (Tema Central)

El artículo analiza las dimensiones geopolíticas del Tratado de Libre Comercio de Estados Unidos con los países andinos. Se trata de establecer si en la región andina la geopolítica estadounidense determina el ritmo del comercio o si el comercio es el objetivo principal de los norteamericanos, y para ello se plantean tres preguntas centrales que articulan el desarrollo del artículo: ¿qué implicancias geopolíticas tiene o tendría el TLC andino con Estados Unidos?, ¿de qué forma éste se articula a la estrategia de seguridad estadounidense en los Andes?, y finalmente, ¿qué proceso lleva la voz cantante, si la política de seguridad o las negociaciones comerciales, si el Plan Colombia o el TLC?

El Acuerdo de Libre Comercio de las Américas después de Quebec: situación del juego y pasos siguientes (Tema Central)

A partir de un recuento desde sus inicios, la autora examina el proceso de negociación del Acuerdo de Libre Comercio de las Américas. El artículo analiza cómo los países latinoamericanos comenzaron a liberalizar sus regímenes de comercio e inversión y a aplicar reformas para promover la integración económica mundial. Robert describe la estructura y organización de las negociaciones del ALCA, especifica las competencias y roles de los grupos y comités de negociaciones y, finalmente, presenta un informe del progreso de las mismas, al haberse cumplido sus dos fases iniciales.

Corea y Ecuador: hacia la complementación económica (Otros Temas)

El artículo señala que una relación comercial entre Corea y Ecuador sería viable si los dos países concilian sus potencialidades, en búsqueda de una complementación económica. El autor señala que el país sudamericano, con una alta tasa de crecimiento, puede aprovechar el interés que tiene un país asiático competitivo y eficiente de socializar su experiencia en desarrollo para pasar de una economía agrícola a una globalizada. Hace una revisión de las relaciones diplomáticas entre los dos Estados y se concentra en establecer el alcance y efectos que una relación comercial podría generar. Se concluye, finalmente, en que existe una serie abierta de oportunidades de cooperación económica que deben ser exploradas por coreanos y ecuatorianos.

Identifying appropriate construction procurement strategies

The origins of the various procurement methods in construction are considered, followed by a discussion of the circumstances for which each procurement system is best suited. The likely future development sin management-based methods are discussed in the context of current research, showing that co-ordination of trade and specialist contractors , more flexible contracting, constructive conflict management and a potential polarization of views about project management in the industry are likely.

Orographic precipitation in the tropics: large-eddy simulations and theory

Recent radar and rain-gauge observations from the island of Dominica, which lies in the eastern Caribbean sea at 15 N, show a strong orographic enhancement of trade-wind precipitation. The mechanisms behind this enhancement are investigated using idealized large-eddy simulations with a realistic representation of the shallow trade-wind cumuli over the open ocean upstream of the island. The dominant mechanism is found to be the rapid growth of convection by the bulk lifting of the inhomogenous impinging flow. When rapidly lifted by the terrain, existing clouds and other moist parcels gain buoyancy relative to rising dry air because of their different adiabatic lapse rates. The resulting energetic, closely-packed convection forms precipitation readily and brings frequent heavy showers to the high terrain. Despite this strong precipitation enhancement, only a small fraction (1%) of the impinging moisture flux is lost over the island. However, an extensive rain shadow forms to the lee of Dominica due to the convective stabilization, forced descent, and wave breaking. A linear model is developed to explain the convective enhancement over the steep terrain.

El Nino-mean state-seasonal cycle interactions in a multi-model ensemble

The modelled El Nino-mean state-seasonal cycle interactions in 23 coupled ocean-atmosphere GCMs, including the recent IPCC AR4 models, are assessed and compared to observations and theory. The models show a clear improvement over previous generations in simulating the tropical Pacific climatology. Systematic biases still include too strong mean and seasonal cycle of trade winds. El Nino amplitude is shown to be an inverse function of the mean trade winds in agreement with the observed shift of 1976 and with theoretical studies. El Nino amplitude is further shown to be an inverse function of the relative strength of the seasonal cycle. When most of the energy is within the seasonal cycle, little is left for inter-annual signals and vice versa. An interannual coupling strength (ICS) is defined and its relation with the modelled El Nino frequency is compared to that predicted by theoretical models. An assessment of the modelled El Nino in term of SST mode (S-mode) or thermocline mode (T-mode) shows that most models are locked into a S-mode and that only a few models exhibit a hybrid mode, like in observations. It is concluded that several basic El Nino-mean state-seasonal cycle relationships proposed by either theory or analysis of observations seem to be reproduced by CGCMs. This is especially true for the amplitude of El Nino and is less clear for its frequency. Most of these relationships, first established for the pre-industrial control simulations, hold for the double and quadruple CO2 stabilized scenarios. The models that exhibit the largest El Nino amplitude change in these greenhouse gas (GHG) increase scenarios are those that exhibit a mode change towards a T-mode (either from S-mode to hybrid or hybrid to T-mode). This follows the observed 1976 climate shift in the tropical Pacific, and supports the-still debated-finding of studies that associated this shift to increased GHGs. In many respects, these models are also among those that best simulate the tropical Pacific climatology (ECHAM5/MPI-OM, GFDL-CM2.0, GFDL-CM2.1, MRI-CGM2.3.2, UKMO-HadCM3). Results from this large subset of models suggest the likelihood of increased El Nino amplitude in a warmer climate, though there is considerable spread of El Nino behaviour among the models and the changes in the subsurface thermocline properties that may be important for El Nino change could not be assessed. There are no clear indications of an El Nino frequency change with increased GHG.

Dirty tariffication revisited: The EU and sugar

It is widely believed that a number of countries, including the EU, engaged in dirty tariffication during the Uruguay Round of trade talks. This article examines the EU’s record on sugar and finds little evidence to substantiate the claim. However, world prices increased between the base period (1986-88) and the date of implementation (1995), and so tariffication resulted in an increase in the tax that would have been charged on sugar imports into the EU. As well, the Special Safeguard provisions meant that a substantial additional levy could be charged.

Testing temperature-induced proteomic changes in the plant-associated bacterium Pseudomonas fluorescens SBW25.

Traits used by bacteria to enhance ecological performance in natural environments are not well understood. Recognizing that the saprophytic plant-colonizing bacterium Pseudomonas fluorescens SBW25 experiences temperatures in its natural environment significantly cooler than the 28°C routinely used in the laboratory, we identified proteins differentially expressed between 28°C and the more environmentally relevant temperature of 14°C. Of 2102 protein isoforms, 32 were temperature responsive and identified by mass spectrometry. Seven of these (OmpR, MucD, GuaD, OsmY and three of unknown function, Tee1, Tee2 and Tee3) were selected for genetic and ecological analyses. In each instance, changes in protein expression with temperature were mirrored by parallel transcriptional changes. The fitness contribution of the genes encoding each of the seven proteins was larger at 14°C than 28°C and included two cases of trade-offs (enhanced fitness at one temperature and reduced fitness at the other – mucD and tee2 deletions). The relationship between the fitness effects of genes in vitro and in vivo was variable, but two temperature-responsive genes – osmY and mucD – contribute substantially to the ability of P. fluorescens to colonize the plant environment.

Understanding UK construction professional services exports: definitions and characteristics

Services are very important to the UK balance of trade; a surplus has been recorded for trade in services every year since 1966. Construction professional services exports (CPS), which cover architecture, engineering and surveying (AES), have also increased, contributing over £3bn to the UK trade balance in 2007. The changing environment of construction professional services exports complicates the validity of the characteristics and definitions of services as described in the research literature and official export statistics. Through semi-structured interviews undertaken with large consulting engineers and a round-table discussion with industry and government representatives, the research found that the impact of globalisation and the changes in the construction business environment, such as increasing foreign ownership and changing forms of procurement, are not fully reflected in the official statistics. There have also been rapid changes in technology, procurement and methods of delivery which have impacted exporting AES firms and a more appropriate set of characteristics is needed to better reflect the project-specific and knowledge-intensive nature of AES firms.

The small open-economy New Keynesian Phillips Curve: empirical evidence and implied inflation dynamics

In this paper we apply GMM estimation to assess the relevance of domestic versus external determinants of CPI inflation dynamics in a sample of OECD countries typically classified as open economies. The analysis is based on a variant of the small open-economy New Keynesian Phillips Curve derived in Galí and Monacelli (Rev Econ Stud 72:707–734, 2005), where the novel feature is that expectations about fluctuations in the terms of trade enter explicitly. For most countries in our sample the expected relative change in the terms of trade emerges as the more relevant inflation driver than the contemporaneous domestic output gap.

A novel approach to national technological accumulation and absorptive capacity: aggregating Cohen and Levinthal

The paper develops a more precise specification and understanding of the process of national-level knowledge accumulation and absorptive capabilities by applying the reasoning and evidence from the firm-level analysis pioneered by Cohen and Levinthal (1989, 1990). In doing so, we acknowledge that significant cross-border effects due to the role of both inward and outward FDI exist and that assimilation of foreign knowledge is not only confined to catching-up economies but is also carried out by countries at the frontier-sharing phase. We postulate a non-linear relationship between national absorptive capacity and the technological gap, due to the effects of the cumulative nature of the learning process and the increase in complexity of external knowledge as the country approaches the technological frontier. We argue that national absorptive capacity and the accumulation of knowledge stock are simultaneously determined. This implies that different phases of technological development require different strategies. During the catching-up phase, knowledge accumulation occurs predominately through the absorption of trade and/or inward FDI-related R&D spillovers. At the pre-frontier-sharing phase onwards, increases in the knowledge base occur largely through independent knowledge creation and actively accessing foreign-located technological spillovers, inter alia through outward FDI-related R&D, joint ventures and strategic alliances.

Quantitative genetic divergence and standing genetic (co)variance in thermal reaction norms along latitude

Although the potential to adapt to warmer climate is constrained by genetic trade-offs, our understanding of how selection and mutation shape genetic (co)variances in thermal reaction norms is poor. Using 71 isofemale lines of the fly Sepsis punctum, originating from northern, central, and southern European climates, we tested for divergence in juvenile development rate across latitude at five experimental temperatures. To investigate effects of evolutionary history in different climates on standing genetic variation in reaction norms, we further compared genetic (co)variances between regions. Flies were reared on either high or low food resources to explore the role of energy acquisition in determining genetic trade-offs between different temperatures. Although the latter had only weak effects on the strength and sign of genetic correlations, genetic architecture differed significantly between climatic regions, implying that evolution of reaction norms proceeds via different trajectories at high latitude versus low latitude in this system. Accordingly, regional genetic architecture was correlated to region-specific differentiation. Moreover, hot development temperatures were associated with low genetic variance and stronger genetic correlations compared to cooler temperatures. We discuss the evolutionary potential of thermal reaction norms in light of their underlying genetic architectures, evolutionary histories, and the materialization of trade-offs in natural environments.

Improving EU biofuels policy? Greenhouse gas emissions, policy efficiency, and WTO compatibility

Both the EU’s Renewable Energy Directive (RED) and Article 7a of its Fuel Quality Directive (FQD) seek to reduce greenhouse gas (GHG) emissions from transport fuels. The RED mandates a 10% share of renewable energy in transport fuels by 2020, whilst the FQD requires a 6% reduction in GHG emissions (from a 2010 base) by the same date. In practice, it will mainly be biofuels that economic operators will use to meet these requirements, but the different approaches can lead to either the RED, or the FQD, acting as the binding constraint. A common set of environmental sustainability criteria apply to biofuels under both the RED and the FQD. In particular, biofuels have to demonstrate a 35% (later increasing to 50/60%) saving in life-cycle GHG emissions. This could be problematic in the World Trade Organization (WTO), as a non-compliant biofuel with a 34% emissions saving would probably be judged to be ‘like’ a compliant biofuel. A more economically rational way to reduce GHG emissions, and one that might attract greater public support, would be for the RED to reward emission reductions along the lines of the FQD. Moreover, this modification would probably make the provisions more acceptable in the WTO, as there would be a clearer link between policy measures and the objective of reductions in GHG emissions; and the combination of the revised RED and the FQD would lessen the commercial incentive to import biofuels with modest GHG emission savings, and thus reduce the risk of trade tension.