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Trade and Domestic Effects of the Offshore Assembly Provision in the U.S. Tariff.
Abstract
In June 2009 a new financial supervisory framework for the European Union (EU) was endorsed, consisting of a macro- and a micro-prudential pillar. The latter is composed of a Steering Committee, a supranational layer and a network of national supervisory authorities at the bottom, de facto establishing a complex multiple principals-multiple agents network. This paper focuses on the network of national agencies. Starting from an analysis of supervisory architectures and governance arrangements, we assess to what extent lack of convergence could undermine efficient and effective supervision. The main conclusion is that harmonization of governance arrangements towards best practice would better align supervisors' incentive structures and, hence, be beneficial for the quality of supervision.
... Elements of the NIEO included (i) additional preferential market access to developed-country markets, (ii) changes in international primary commodity markets to reduce price volatility and declines, (iii) increased foreign aid, (iv) technology transfer, and (v) revision of the international monetary system to finance the recurring deficits. Finger and Kreinin (1976) provide a critical assessment of the arguments that were made in favor of the NIEO, noting that many of the instruments that were proposed would be ineffective or counter-productive (see also Bhagwati, 1977 and Corden, 1979). As is the case with the debates on preferences that continue to this day, many of the concerns that underpinned the effort to create a NIEO continue to prevail—in particular devising stronger international mechanisms to help countries benefit from trade, the transfer of financial resources and technology (know how) to developing countries, and what is now called the need for " policy coherence. ...
... " The scheme therefore eliminates " stimulus for investment and expanded exports. " Finger (1975, 1976) assesses a complementary preferential trade scheme that predates the GSP and has continued to be applied by both the EU and US as part of their customs regimes: outward processing (EU) or offshore assembly (US). Under such customs regimes goods that originate in the EU or US are shipped abroad for processing and pay only tariffs on the value added by the processing when re-imported. ...
... He also stated that the observed production fragmentation undermines the assumptions of Vernon's (1966) concept of product life cycle in terms of international expansion of companies, because companies can sell new and advanced goods at the beginning in their home economies, while at the same time they can relocate various production processes associated with the production of these goods to less developed-countries. International production fragmentation in the United States, as indicated by Finger (1976), was additionally stimulated by customs regulations dating back to the 1930s. These were so-called offshore assembly provisioning (OAP) thanks to which the tariff on certain imported goods applies only to the value added in foreign assembly. ...
In this book, Radlo increases understanding of offshoring, outsourcing and international production fragmentation, and explains the impact of this phenomenon on the economies and enterprises.
Key features include a comprehensive theoretical explanation of offshoring and outsourcing at both macroeconomic and microeconomic level, as well as an explanation of practical consequences of the mentioned phenomenon for the development of the global economy, national economies, concrete industries and enterprises. Unlike other publications, which are often characterized by narrow management or a macroeconomic approach to the analysis of offshoring and outsourcing, Radlo's text offers real insight into the global impact of production fragmentation.
... Il trasferimento all'estero della produzione per procurarsi vantaggi di costo è un fenomeno che gli Stati Uniti sperimentano già a partire dagli anni '60. Attorno alla metà degli anni '70 anche paesi europei come Regno Unito, Germania e Danimarca cominciano a rilocalizzare importanti quote di attività manifatturiere(Finger, 1976;1977). ...
This article investigates the process of international relocation in the apparel and footwear
industry in the Veneto region, reporting the results of an empirical survey on a group
of firms involved in production relationships with developing countries. The research offers
two different contributions: one is the accomplishment of a detailed map of the countries
and the products involved in international contracting of Veneto’s firms, and the other is
the highlighting of the specific organization of product cycles associated with relocation
processes. A particular attention is given to the consequences of these processes on the labour
force employed in domestic firms. The international transfer involves almost exclusively
manufacturing activities, while native firms concentrate and reinforce their business
around initial and final high value-added phases, which require higher and different skills
as regard to manufacturing, and typically involve employee figures. Relocating firms show
a labour force structure much more shifted toward employee roles than other firms of the
same sector and size. International contracting with developing countries seems to be the
condition which allows the development of major investments in knowledge and professional
skills at home, obtaining better wages as well.
... When the United States imports products that are assembled abroad, the OAP exempts from duty that portion of the US.imported final product that can be attributed to U.S. components. The general finding in this area, as demonstrated by Finger (1976) and Mendez (1993), is that the OAP has increased the activity of US. parts industries at the same time that it has reduced the activities of U.S. assemblers.' ...
... When the United States imports products that are assembled abroad, the OAP exempts from duty that portion of the US.imported final product that can be attributed to U.S. components. The general finding in this area, as demonstrated by Finger (1976) and Mendez (1993), is that the OAP has increased the activity of US. parts industries at the same time that it has reduced the activities of U.S. assemblers.' ...
... Several studies addressed outward processing trade directly (e.g. McMillan et al. (1999), Finger (1976). However, when looking at the preferential trade literature as a whole, it mostly analyzes preferences from a pure trade theory viewpoint, typically addressing questions about welfare changes associated with changes in tariff levels, trade flows, and the terms of trade in the context of trade liberalization. ...
A dynamic profit maximization model with adjustment costs of capital is implemented to study US outward processing trade in apparel under the Caribbean Basin Initia-tive. The model is used to determine the role of foreign investment in the short and long runs and to simulate outcomes due to the introduction of the Trade and Develop-ment Act of 2000 and the elimination of Multi-Fiber Agreement quotas. Econometric estimation verifies the importance of foreign capital and adjustment costs as deter-minants of apparel outward processing trade flows. The transitional dynamics as well as long-run costs and benefits of these trade policy changes are then evaluated. According to the simulations, while outward processing trade expands with preferen-tial trade arrangements, policies typically require five years to be fully effective, and competition in freer markets could reverse the benefits realized under preferences.
... In this closely knit context the outsourcing of some of the productive and trade activities abroad becomes the focal point of the policies followed by firms in order to face competition on international markets. The shift of manufacturers towards countries with lower labour costs was underlined by some experts at the beginning of the 70s and especially involved countries with relatively high labour costs such as USA, Germany, Sweden, Denmark, U.K. (Adam, 1971; Finger 1976; 1977). Over the last decades the capacity of manufacturing firms to slice the production cycle without incurring high diseconomies has given large impetus to production globalisation and has driven firms in countries, like Italy, with salaries lower than those in the USA and Northern Europe, to look for lower production costs abroad. ...
Over the last twenty years globalisation has brought about a sharp increase in the real and financial integration of the worldwide economy. In this closely knit context, the outsourcing of some of the productive and trade activities abroad has become one of the focal points of the policies followed by businesses in order to handle competition at worldwide level. In the 80s Italian clothing and footwear firms faced the increased competition in the international markets by outsourcing to domestic subcontractors and in the 90s transferred much of the previous outsourcing abroad, in countries with low labour costs, mainly in Eastern Europe, North Africa and East Asia. This paper is aimed to assess the impact of the offshoring strategy on firms. performance. It is based on a survey delivered to a group of 70 final producers, operating in the Veneto, that during the 90s began to manage production on a global scale. Direct investments, subcontracting and partnerships that materialize in product manufacturing abroad are considered as forms of international outsourcing. On this basis, by combining direct observations with balance sheets data, and data on employment stock at the firm's level, the impact of the offshoring decision is evaluated. The study shows the importance of production management along the global value chain in giving new competitivity to the Veneto traditional sector.
... When the United States imports products that are assembled abroad, the OAP exempts from duty that portion of the US.imported final product that can be attributed to U.S. components. The general finding in this area, as demonstrated by Finger (1976) and Mendez (1993), is that the OAP has increased the activity of US. parts industries at the same time that it has reduced the activities of U.S. assemblers.' ...
... Since the 90s, the European clothing market has experienced a massive process of restructuring. There are several causes: from the modest growth of consumption caused by the stagnating income of Western countries in most recent years, to the appreciation of the Euro over the Dollar that refrained European exports and to the strong competition coming from low wage countries, particularly China after the abolition of clothing quotas (Adam 1971; Finger 1976 Finger -1977 Baden 2000; Graziani 2001). The consequences for the richer European countries have been a growing import of garments and the loss of hundreds of thousands of jobs in the domestic textile and clothing industry. ...
The paper investigates the change in strategy of the Benetton Group, since the mid nineties, in face of the severe intensive competition in the international fashion market. New competitors, in particular the European brands Zara, Mango and H&M, have challenged the Benetton position in the Italian and the European clothing market and have pushed the Group towards cost reduction through globalization of his suppliers. Benetton is a vertically integrated producer that controls (in different ways) the whole value chain from textile raw materials to the sales to the consumers. Till 2000 Benetton made part of its production in its own factories and through a wide network of domestic sub-contractors, mainly specialized in sewing. Now Benetton has drastically moved to a new strategy, abandoning Italy and organizing production around a dual supply chain: close locations (East Europe and North Africa) for quick production and far away locations (Asia) for more standardised products. The paper discusses also the redefinition of competences for the Treviso clothing district, where Benetton traditional sub-contractors have been in few years, drastically curtailed. Benetton restructuring marks the transition to a new network of competences between agents in the district.
... Dagli anni novanta l'industria dell'abbigliamento europea ha subito un forte processo di ristrutturazione. Le cause sono molteplici: dalla modesta crescita dei consumi dovuta al ridimensionamento del potere di acquisto dei salari, alla perdita di competitività legata all'apprezzamento dell'euro sul dollaro e all'elevata concorrenza dei produttori localizzati in paesi a basso costo del lavoro, soprattutto in Asia (Adam, 1971; Finger, 1976; 1977; Baden, 2000; Graziani, 2001)Gereffi, 2005 ) di avere fornitori rapidi e affidabili. Di conseguenza, il sistema organizzativo è diventato più complesso perché richiede di dedicare molte risorse al design (per progettare un numero elevato di modelli), al controllo e alla gestione di catene del valore lunghe (Abecassis-Moedas, 2006). ...
This paper investigates the strategy changes of the Benetton Group who have been facing severe intense competition in the international fashion market since the mid nine-ties. New competitors, in particular the European brands Zara, Mango and H&M, have challenged the Benetton position in the Italian and European clothing market, pushing the Group from Ponzano towards adopting politics of cost reduction through globalisation of its suppliers. Benetton has always been considered a vertically integrated producer which controls (in different ways) the whole value chain from textile raw materials to consumer sales. Until 2000, Benetton produced its goods in its own factories and through a vast network of national sub-contractors mainly specialising in the sewing phase. Today, Benetton has drastically changed its strategy, almost completely abandoning Italy with a chain of value organised around a dual supply chain: fast productions are delegated to closer locations (Eastern Europe and Northern Africa) while locations further afield are commissioned for more standardised products and accessories (Asia). This article also discusses the impact these choices of productive de-localisation abroad have made on the Treviso apparel district, where Benetton's traditional subcontractors have been drastically curtailed. Benetton restructuring marks the transition to a new net-work of competences between agents.
... In the post World War II economy, the shift of manufacturing towards countries with low labour costs began, according to some scholars, at the beginning of the 70s, 3 and at first involved countries with high labour costs such as the USA, Germany, Sweden, Denmark, and the U.K. (Ádám, 1971;Finger 1976;1977). Italy and Spain entered the process much later in the early nineties, in response to the increased competition from firms that had already outsourced to low cost countries, and in the context of a more liberal international setting. ...
This paper studies the evolution of the Italia industrial districts in the era of globalization. Italian districts are no longer self-contained systems of small firms where firms' competitiveness is the result of physical proximity, connected to foreign markets at the initial and the final stage of the production and distribution activity. Internationalization is analysed in the three classical forms of trade flows, foreign direct investments and foreign subcontracting. The conclusion discusses the consequences of sourcing production abroad for industrial districts. The loss of productive competences and practical knowledge, the reduction of employment and the change in the social climate that characterize the district. As a result of internationalization the final firms make profits in far away territories and the firm’s profitability is no more linked to the workers well being
... Only a few studies addressed outward processing trade directly (e.g. McMillan et al. (1999) and Finger (1976)). The literature on foreign direct investment studies the incentives to implement investments abroad and examines welfare changes resulting from operations of multinationals (e.g. ...
A dynamic profit maximization model with adjustment costs of capital is implemented to study US outward processing trade in apparel and to examine the effects of preferential trade policies in the long and short runs. The model is used to determine the role of foreign investment and to simulate outcomes due to the introduction of the Trade and Development Act of 2000 and the elimination of Multi-Fiber Agreement quotas in selected Caribbean countries. The transitional dynamics as well as long-run costs and benefits of these trade policy changes are evaluated. While outward processing trade expands with preferences under the Caribbean Basin Initiative, policies typically require five years to be fully effective, and competition in freer markets could reverse the benefits realized under preferential trade.
... When the U.S. imports products, which are assembled abroad, the OAP exempts from duty that portion bf the U.S. imported final products that is attributable to U.S. components. The general finding in this area, as demonstrated by Finger (1976) and Mendez (1993), is that the OAP has increased the activity of U.S. parts industries at the same time that it has reduced the activities of U.S. assemblers.7 Grossman (1982) shows that the OAP may actually cause intra-industry trade in homogenous products, as domestic and foreign producers may perceive differential input costs. ...
This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection as well as empirical evidence on the effects of patent rights. Then, the second part considers the international aspects of IPR protection. In summary, this paper draws the following conclusions from the literature. Firstly, different patent policy instruments have different effects on R&D and growth. Secondly, there is empirical evidence supporting a positive relationship between IPR protection and innovation, but the evidence is stronger for developed countries than for developing countries. Thirdly, the optimal level of IPR protection should tradeoff the social benefits of enhanced innovation against the social costs of multiple distortions and income inequality. Finally, in an open economy, achieving the globally optimal level of protection requires an international coordination (rather than the harmonization) of IPR protection.
chapter about internationalization of Italian small firms footwear, garment etc
Chapter 4 dealt with per capita levels for the total imports of the 23 industrialized countries. The current chapter focused on per capita manufactured imports for these same countries, in part because of the great importance that such products have had in international trade. The import levels of non-manufactured goods (raw materials) are also briefly analyzed in order to provide a basis for comparisons between the two types of products. Were countries active importers for both kinds of products, for one but not the other, or for neither? The chapters that follow will focus on more detailed analyses of particular kinds of manufactured goods in an effort to understand the role of the industrialized countries as markets in even greater depth.
The discussion in this chapter continues from the previous chapters where the line of discussion follows that since the formation of the WTO, the international trade pattern has been progressing in the direction of free trade and has by and large been competitive and based on efficiency; nevertheless it is more beneficial to the multinationals. This has raised new forms of trade related issues that can be compared with benefits of several types, and one such is comparing the benefit obtained by multinationals, with the subsidies defined under the SCM Agreement.
Japanese foreign direct investment is felt by some analysts to require a special approach because it exhibits several characteristics which differ from US outward investment. These may be characterised as follows (Ozawa, 1979b).1.
A later take off of outward investment, dating from the mid 1960s in the case of Japan.
2.
A clustering of Japanese direct investment in Asia and Latin America rather than in advanced economies.
3.
The different industrial structure of Japanese investment which is concentrated in relatively labour intensive or technologically standardised products such as textiles, metal products, unsophisticated electrical goods and chemicals.
4.
The type of investment characterised in (3) and (2) above is carried out by small- and medium-sized manufacturers, who account for a high proportion of Japanese FDI.
5.
The proportion of Japanese investment in extractive ventures is higher than any other industrialised country.
6.
Japanese firms are deemed to be more responsive to the formation of joint ventures with host country firms than are US and other source country firms.
7.
Group investment, where a number of Japanese firms, usually trading companies, often with help from Government agencies participate jointly as a common form of foreign investment. As a result external sources of funds are called upon to finance FDI (see also Ozawa. 1979a)
There is now a large literature on the growth of manufactured exports by LDCs, especially on the performance of the NICs (the newly industrialising countries).2 This paper reviews this literature and presents some data on the recent experience. There is so much written in this area, however, that this survey cannot hope to be exhaustive. It concentrates on certain themes that are likely to be of direct interest to policy-makers and students concerned with this area, and mainly on works, published and unpublished, that have appeared in the past five years or so.
'A Handbook of Industrial Districts is a very well-organized and structured collection of scientific works on the theory of industrial districts. © Giacomo Becattini, Marco Bellandi and Lisa De Propris 2009. All rights reserved.
The concurrent international fragmentation of production structures and regionalisation of world trade suggests the need for research into the links between these processes. In this paper we develop a method allowing us to gauge the bilateral element of vertical specialisation and hence make headway into capturing its nature and evolution with particular emphasis on the regional aspect of this phenomenon. We decompose vertical specialisation into backward and forward linkages and find that, on aggregate, the nature of these linkages varies significantly according to the position of a country in the value chain. In addition, we find a statistically significant correlation between these linkages and changes in productivity growth suggesting a possible link between this process and economic growth. Where regionalism is concerned we find marked differences between European, North American and Asian vertical specialisation. Where the former two tend to be more inward oriented, the latter remains highly dependent on European and North American demand. NCCR TRADE Working Papers are preliminary documents posted on the NCCR Trade Regulation website ( ) and widely circulated to stimulate discussion and critical comment. These papers have not been formally edited. Citations should refer to a "NCCR Trade Working Paper", with appropriate reference made to the author(s).
Developing countries have highlighted the importance of examine the interlink ages between trade, debt and finance in an effort to find sustainable solutions to these challenges within the context of the multilateral trading system. This paper analyzes what actions could be taken in the context of the WTO Doha negotiations to assist countries to benefit from deeper trade integration. It discusses the policy agenda that confronts many developing countries and identifies a number of focal points that could be used both as targets and as benchmarks to increase the likelihood that WTO negotiations will support development. To achieve these targets a number of negotiating modalities are proposed for both goods and services-related market access issues, as well as rule making in regulatory areas. Developing countries must approach WTO negotiations with a firm view of their national priorities, and seek to ensure that multilateral obligations will assist in and not detract from, the realization of development objectives. For the development community this implies priority should be given to strengthening the capacity to identify national priorities and to analyze the cost and benefits of proposed agreements in light of those priorities.
This paper analyzes the actions that could be taken in the context of the WTO Doha negotiations to assist countries in benefiting from deeper trade integration. It discusses the policy agenda faced by many developing countries and identifies a number of focal points that could be used both as targets and as benchmarks to increase the likelihood that the WTO negotiations will support development. To achieve these targets a number of negotiating modalities are proposed both for goods and services-related market access issues, as well as rule making in regulatory areas. Developing countries must approach the WTO negotiations with a firm view of their national priorities, and seek to ensure that multilateral obligations will assist in, and not detract from, the realization of development objectives. For the development community this implies that the priority should be given to strengthening the capacity to identify national priorities and to analyze the cost and benefits of the proposed agreements in light of those priorities.
Modern policy-oriented analysis of trade issues in developed countries focuses mainly on five sets of questions. This chapter discusses the differences in the levels of protection among industries. The industry and economy wide effects of trade liberalization on economic welfare, trade, output, employment and the distribution of income are discussed, and the effectiveness of the government policies are introduced for the purpose of assisting the economic adjustment to increased import. The chapter also discusses the economic effects of discriminatory tariff arrangements such as customs unions and the generalized system of preferences. The economic impact of specific nontariff measures, such as quantitative restrictions, preferential government purchasing policies, export, domestic subsidies, countervailing duties, dumping and antidumping duties, and domestic content requirements are reviewed. The chapter further discusses institutional arrangements and policies that maintain order in the international trading system and in the management of trade-policy conflict. Representative studies are cited with a view to establishing the main research results and suggesting issues on which further research is needed.
Zusammenfassung Mögliche Handelseffekte einer Aufhebung der Bestimmungen der Vereinigten Staaten über die Offshore-Montage. — Die Autoren
untersuchen, wie eine Aufhebung der amerikanischen Bestimmungen über die Offshore-Montage den Außenhandel der USA und die
Exporteinnahmen ausländischer Montagefirmen beeinflussen würde. Diese Wirkungen werden für 19 disaggregierte Produktgruppen
geschätzt. Es wird ein Modell des internationalen Handels à la Armington mit unvollständiger Substitution benutzt, wonach
die amerikanischen Konsumenten innerhalb einer Produktgruppe zwischen den Gütern aus verschiedenen Ländern unterscheiden können.
Als Ergebnis zeigt sich, daß eine Aufhebung der amerikanischen Bestimmungen über die Offshore-Montage wenig dazu beitragen
würde, die ausländische Konkurrenz für amerikanische Montagefinnen zu verringern. Sie würde aber erhebliche nachteilige Wirkungen
auf die amerikanischen Exporteure von Zwischenprodukten und auf die Exporterlöse von Montagefirmen in Entwicklungsländern
haben.
The Scheme is designed to encourage the maximum use of Australian made fabrics which are cut or knitted to shape in Australia (Textiles, Clothing and Footwear Development Authority, 1993, p. 4).
When an Australian firm sets up production in South East Asia, it often attracts criticism because it means losing jobs to low-cost labour in the region. However, our study shows that such criticism is not wholly justified. For many firms, offshore production is critical to establishing a long-term position as an insider in the market and therefore is critical to exports from an Australian base.
Different methods have been used to determine origin, but none has proved totally unsatisfactory, and none is likely to do so.
ABSTRACT This paper uses the concept of the manufacturing process cycle as a heuristic device for the analysis of the evolutionary development of manufacturing activities and their establishment in export enclaves in less developed nations. The manufacturing process cycle focuses on labor, technology and organizational factors and their interaction with product and factor market conditions as major influences on the evolution of manufacturing industries. The establishment of manufacturing industries in export enclaves is considered in this evolutionary framework by providing a conceptual model that includes both labor differentiation and organizational capability variables in a production function specification. Spatial differentiation is also considered, to determine the timing of locational shifts and its relation to the most important characteristics of manufacturing activities in export enclaves.
The present paper develops a moral hazard model applied to a multinational firm (MNF)'s decision between foreign direct investment (FDI) and international subcontracting. We compare the results of the moral hazard model, characterized by the fact that the MNF is not able to control operations performed by the subcontractor firm, with the traditional model, which considers symmetric information. We conclude that the uncertainty associated with the subcontractor firm's behaviour, in spite of increasing the preference of the MNF to engage in FDI, does not change the optimal decision, which continues to be to subcontract. The exception occurs in the case that the subsidiary stands as more efficient than the subcontractor firm.
In June 2009 a new financial supervisory framework for the European Union (EU) was endorsed, consisting of a macro- and a micro-prudential pillar. The latter is composed of a Steering Committee, a supranational layer and a network of national supervisory authorities at the bottom, de facto establishing a complex multiple principals-multiple agents network. This paper focuses on the network of national agencies. Starting from an analysis of supervisory architectures and governance arrangements, we assess to what extent lack of convergence could undermine efficient and effective supervision. The main conclusion is that harmonization of governance arrangements towards best practice would better align supervisors' incentive structures and, hence, be beneficial for the quality of supervision.
Zusammenfassung Das Potential für beidseitig vorteilhafte Zollverhandlungen zwischen den Vereinigten Staaten und fortgeschrittenen EntwicklungslÄndern.
— Dieser Aufsatz versucht, das Potential für beidseitig vorteilhafte Zollsenkungen zwischen den Vereinigten Staaten und einer
Auswahl ihrer grö\ten Handelspartner unter den EntwicklungslÄndern zu bestimmen. Ein partielles DreiLÄnder-Gleichgewichtsmodell
wird benutzt, um die direkten und indirekten Wirkungen auf den Au\enhandel abzuschÄtzen, wenn die ZollsÄtze bei den Gütern
gesenkt Єrden, für die jedes Land Hauptlieferant ist. Diese SchÄtzungen bestÄtigen die bedeutenden potentiellen Vorteile von
Zollsenkungen; jedoch zeigt eine eingehende Produktanalyse, da\ die Mehrheit der in Betracht kommenden Güter von amerikanischen
Politikern bereits als »import-sensibel« angesehen wird.
Published studies that use trade statistics from at least as early as the 1960s document the remarkable increase in international production sharing that is reflected in unusually high growth rates for the exchange of components or partially assembled manufactured goods. In its most recent form, production sharing involves the development of specialized and (often) labor-intensive activities within vertically integrated international manufacturing industries. As an example, electronic semiconductors, valves, tuners, and other components are now assembled for multinational firms in places like Mexico, Malaysia, or the Philippines. Parts of clothing and leather goods are assembled in Jamaica and the Dominican Republic for reexport to the U.S. market; one estimate by the World Bank (1994b) puts the value of assembly exports from the Caribbean at over US$3 billion. Among the many other industries in which major parts of a production process were transferred abroad are the television and radio receiver industry, the sewing machine industry, the calculator and other office equipment industry, the electrical machinery industry, the power and machine tools industry, the typewriter industry, and the camera and watch industries (USUC 1996).
Los procesos de deslocalizaci�n al extranjero de partes del proceso productivo en la industria del calzado est�n motivados por la b�squeda de la reducci�n del coste del trabajo. Las empresas del mueble se han internacionalizado para realizar un control sobre la adquisici�n de su materia prima, la madera. Las empresas de la refrigeraci�n, en su avance hacia el Este, miran al mercado rumano por su potencialidad de venta, y desde �ste a otros mercados. El presente trabajo retoma una serie de investigaciones basadas en el an�lisis de una treintena de empresas, teniendo por objeto analizar el grado de interacci�n entre las empresas italianas y las rumanas a lo largo de la cadena de producci�n, as� como valorar los principales cambios sucedidos en la gesti�n de las cadenas globales del valor. Se dar� cuenta de las discusiones acerca de los cambios en la organizaci�n de los procesos productivos y la gesti�n de las relaciones entre las empresas en las diversas fases de la cadena de producci�n. Por fin, sobre la base de estas experiancias se criticar� a la teoria de las cadenas del valor propuesta por Gereffi, Humphrey y Sturgeon.
Nonreciprocal trade preferences and provisions in the GATT/WTO that allow developing countries greater leeway to retain or use protectionist policies are two of the central planks of so-called special and differential treatment (SDT) for developing countries in the multilateral trading system. The authors survey the literature on the rationales, institutional features, and economic effectiveness of SDT. A large literature has emerged on SDT in the past 50 years, by both proponents and opponents. They summarize a number of key contributions on the subject, with a special emphasis on the evaluation of the impact of SDT, especially preferential market access. The issue of SDT has become very topical again, following a period during which it was viewed as an outdated concept for the multilateral trading system. The authors therefore devote attention as well to a number of recent contributions that discuss (1) whetherthere is a continued need for SDT, and (2) how this might be designed from both a development (recipient) objective and from the perspective of the trading system more generally. A major theme of the survey is that most of the issues that are debated today were already being discussed in the 1960s. The authors conclude that those who questioned the value of unilateral preferences have proven to be prescient.
In June 2009 a new financial supervisory framework for the European Union (EU) was endorsed, consisting of a macro- and a micro-prudential pillar. The latter is composed of a Steering Committee, a supranational layer and a network of national supervisory authorities at the bottom, de facto establishing a complex multiple principals-multiple agents network. This paper focuses on the network of national agencies. Starting from an analysis of supervisory architectures and governance arrangements, we assess to what extent lack of convergence could undermine efficient and effective supervision. The main conclusion is that harmonization of governance arrangements towards best practice would better align supervisors' incentive structures and, hence, be beneficial for the quality of supervision.
This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection as well as empirical evidence on the effects of patent rights. Then, the second part considers the international aspects of IPR protection. In summary, this paper draws the following conclusions from the literature. Firstly, different patent policy instruments have different effects on R&D and growth. Secondly, there is empirical evidence supporting a positive relationship between IPR protection and innovation, but the evidence is stronger for developed countries than for developing countries. Thirdly, the optimal level of IPR protection should tradeoff the social benefits of enhanced innovation against the social costs of multiple distortions and income inequality. Finally, in an open economy, achieving the globally optimal level of protection requires an international coordination (rather than the harmonization) of IPR protection.
In June 2009 a new financial supervisory framework for the European Union (EU) was endorsed, consisting of a macro- and a micro-prudential pillar. The latter is composed of a Steering Committee, a supranational layer and a network of national supervisory authorities at the bottom, de facto establishing a complex multiple principals-multiple agents network. This paper focuses on the network of national agencies. Starting from an analysis of supervisory architectures and governance arrangements, we assess to what extent lack of convergence could undermine efficient and effective supervision. The main conclusion is that harmonization of governance arrangements towards best practice would better align supervisors' incentive structures and, hence, be beneficial for the quality of supervision.
This note investigates the empirical properties of identities commonly used by empiricists in international trade. The analysis suggests that traditional applications of the identities to empirical problems are invalid, but that a modified procedure may be useful.
This paper analyzes what actions could be taken in the context of the WTO Doha negotiations to assist countries to benefit from deeper trade integration. It discusses the policy agenda that confronts many developing countries and identifies a number of focal points that could be used both as targets and as benchmarks to increase the likelihood that WTO negotiations will support development. To achieve these targets a number of negotiating modalities are proposed for both goods and services-related market access issues, as well as rule making in regulatory areas. Throughout the analysis reference is made to the work of J. Michael Finger, whose numerous writings in this area have not only greatly influenced the thinking of policymakers and researchers on the interaction between trade policy, economic development and the GATT/WTO trading system, but also provide a model for how to pursue effective policy research. Keywords: Trade policy, economic development, international negotiations, WTO JEL: F13, F35, O19 World Bank Policy Research Working Paper 2851, June 2002 The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org. Email: Bhoekman@worldbank.org. Prepared for "The Political Economy of ...
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