International Economics Commons^™

Cartelizing Taxes: Understanding The Oecd's Campaign Against Harmful Tax Competition, Andrew P. Morriss, Lotta Moberg

Andrew P. Morriss

Formed in 1961 to promote global economic and social well-being, the Organisation for Economic Co-operation and Development (OECD) has become the collective voice of rich countries on international tax issues. After an initial focus on improving commerce through addressing double taxation issues, the organization shifted to a focus on restricting tax competition and increasing automatic exchanges of tax information. In this paper we analyze the reasons for this shift in policy focus. After describing the history of the OECD's work on taxation, we examine the OECD's project against "harmful tax competition" as it has played out since its launch in …

Endogenous R&D And Intellectual Property Laws In Developed And Emerging Economies, Aniruddha Bagchi, Abhra Roy

Abhra Roy

The incentive of providing protection of intellectual property has been analyzed, both for an emerging economy as well as for a developed economy. The optimal patent length and the optimal patent breadth within a country are found to be positively related to each other for a fixed structure of laws abroad. Moreover, a country can respond to stronger patent protection abroad by weakening its patent protection under certain circumstances and by strengthening its patent protection under other circumstances. These results depend upon the curvature of the R&D production function. Finally, we investigate the impact of an increase in the willingness-to-pay …

Perspectives On The Global Financial Crisis From Emerging Managers And Public Policy Makers [Full Version], James L. Grant

James L. Grant

This manuscript attempts to capture the perspectives of emerging managers and public policy makers as evinced in the perspectives of graduate students and others who were enrolled in my newly developed course on the global financial crisis—first offered in the 2010 Harvard Summer Economics Program—at a time when students were engaged in the midst and aftermath of the most severe U.S. and worldwide recession since the Great Depression of the early 1930s. The many perspectives gathered on the causes, consequences, remedies, and perhaps more importantly, a glimpse at student thoughts, concerns, and worries at the time—have been collected from the …

Subsidizing Non-Polluting Goods Vs. Taxing Polluting Goods For Pollution Reduction, Robert S. Main

Robert S. Main

Pigovian taxes on polluters are politically unpopular, but subsidies for non-polluting sources are politically attractive. This paper presents a linear demand and supply model and numerical example to explore the trade-offs between taxing polluting sources of a good versus subsidizing non-polluting sources of the same good. While the model (along with the associated numerical example) shows the optimality of Pigovian taxes, it also shows how much welfare is reduced if subsidies for nonpolluters are employed instead. Further, it shows the optimal tax, given any level of subsidy and the optimal subsidy, given any level of tax.

Can A Unilateral Carbon Tax Reduce Emissions Elsewhere?, Joshua Elliott, Don Fullerton

Don Fullerton

One country or sector that tries to reduce greenhouse gas emissions may fear that other countries or sectors will get a competitive advantage and increase emissions. Computable general equilibrium (CGE) models such as Elliott et al (2010a,b) indicate that 15% to 25% of abatement might be offset by this “leakage.” Yet the Fullerton et al (2012) simple two-sector analytical general equilibrium model shows an offsetting term with negative leakage. In this paper, we use a full CGE model with many countries and many goods to measure effects in a way that allows for this negative leakage term. We vary elasticities …

Does Foreign Aid Reduce Tax Revenue? Further Evidence, John Thornton

John Thornton

A common criticism of foreign aid is that it reduces domestic tax effort. Empirical research on the issue has been hampered by the failure to tackle endogeneity issues effectively. We use measures of geographical and cultural distance to donor countries as instrumental variables to uncover the causal effect of aid on tax revenue in a panel of 93 countries. The tax to GDP ratio is found to decrease following aid inflows. This reduction in tax effort is statistically and economically significant; a one SD increase in aid causes a 0.52 percentage point drop in the tax-to-GDP ratio. The results indicate …

The (Small) Blessing Of Foreign Aid: Further Evidence On Aid's Impact On Democracy, John Thornton

John Thornton

In an empirical contribution to the literature of foreign aid, we estimate the impact of foreign aid on democracy in a panel of 93 developing economies during 1971–2010. We find that foreign aid promotes democracy, with the result robust to different estimation methodologies and control variables and to instrumenting for foreign aid.

Tackling Undeclared Work In Croatia And Four Eu Candidate Countries, Colin C. Williams, Marijana Baric, Piet Renooy

Colin C Williams

No abstract provided.

Leakage, Welfare, And Cost-Effectiveness Of Carbon Policy, Kathy Baylis, Don Fullerton, Daniel H. Karney

Don Fullerton

We extend the model of Fullerton et al (2012) to explore cost-effectiveness of unilateral climate policy in the presence of leakage. We ignore the welfare gain from reducing greenhouse gas emissions and focus on the welfare cost of the emissions tax or permit scheme. Whereas that prior paper solves for changes in emissions quantities and finds that leakage maybe negative, we show here that all cases with negative leakage in that model are cases where a unilateral carbon tax results in a welfare loss. With positive leakage, however, a unilateral policy can improve welfare.

The Evolution Of Environmental And Labour Productivity Dynamics, Massimiliano Mazzanti

Massimiliano Mazzanti

No abstract provided.

Import Decisions And Firm Performance - An Empirical Analysis For The Netherlands, Henk Lm Kox

Henk LM Kox

This paper investigates the relation between import decisions and productivity performance for Dutch firms. Importer productivity premiums appear to be larger than those for exporting firms. In the perspective of recent trade theory this indicates that trade costs for importers are at least as important as they are for exporting firms. For import starters I find evidence that ex ante productivity-based self selection is important. This also points in the direction of considerable sunk trade costs for firms that engage in direct imports.

Unleashing Competition In Eu Business Services, Henk Lm Kox

Henk LM Kox

Dynamic Market Selection In Eu Business Services, Henk Lm Kox, George Van Leeuwen

Henk LM Kox

Human Capital Formation And Economic Development In Pakistan: An Empirical Analysis, Muhammad Irfan Chani, Mahboob Ul Hassan, Muhammad Shahid

Muhammad Irfan Chani

This study investigates the casual relationship between economic development and formation of human capital in Pakistan. Based on endogenous growth theory, this study empirically tests the standard growth model consisting of gross domestic product (GDP) per capita as a dependent variable and human capital formation, investment in physical capital and labor force as independent variables. Autoregressive distributive lag (ARDL) bound testing approach to cointegration is used to check the long-run equilibrium relationship between the variables included in the model. For checking the causal relationship between economic development and human capital formation, pair-wise Granger causality test is used for time series …

Some Socio Economic Determinants Of Fertility In Pakistan: An Empirical Analysis, Muhammad Irfan Chani, Muhammad Shahid, Mahboob Ul Hassan

Muhammad Irfan Chani

This study aims to investigate the role that various socioeconomic factors like female education, urbanization and female labour force participation play in determining fertility of women in Pakistan. ARDL bound test approach to cointegration is used to analyze the long-run relationship of the variables by using the data for the period from 1980 to 2009. The empirical results show that there exists a long-run as well as short-run relationship between fertility and urbanization, female labour force participation and female education in Pakistan. The analysis indicates there is a negative relationship between all 3 determinants with fertility. Female education and urbanization …

Export Decisions Of Services Firms Between Agglomeration Effects And Market-Entry Costs, Henk Lm Kox

Henk LM Kox

Malnutrition, Child Health, And Water Quality: Is There A Role For Private Sector Participation In South Asia?, Katrina Kosec

Katrina Kosec

Cartelizing Taxes: Understanding The Oecd’S Campaign Against “Harmful Tax Competition”, Lotta Moberg, Andrew P. Morriss

Andrew P. Morriss

Formed in 1961 to promote global economic and social well-being, the Organisation for Economic Co-operation and Development (OECD) has become the collective voice of rich countries on international tax issues. After an initial focus on improving commerce through addressing double taxation issues, the organization shifted to a focus on restricting tax competition and increasing automatic exchanges of tax information. In this paper we analyze the reasons for this shift in policy focus. After describing the history of the OECD’s work on taxation, we examine the OECD’s project against “harmful tax competition” as it has played out since its launch in …

Cartelizing Taxes: Understanding The Oecd’S Campaign Against “Harmful Tax Competition”, Lotta Moberg, Andrew P. Morriss

Andrew P. Morriss

Formed in 1961 to promote global economic and social well-being, the Organisation for Economic Co-operation and Development (OECD) has become the collective voice of rich countries on international tax issues. After an initial focus on improving commerce through addressing double taxation issues, the organization shifted to a focus on restricting tax competition and increasing automatic exchanges of tax information. In this paper we analyze the reasons for this shift in policy focus. After describing the history of the OECD’s work on taxation, we examine the OECD’s project against “harmful tax competition” as it has played out since its launch in …

Waste Delinking, Convergence And Spatial Effects, Massimiliano Mazzanti

Massimiliano Mazzanti

No abstract provided.

Endogenous R&D And Intellectual Property Laws In Developed And Emerging Economies, Aniruddha Bagchi, Abhra Roy

Aniruddha Bagchi

An Analysis Of Different Approaches To Women Empowerment: A Case Study Of Pakistan, Amatul R. Chaudhary, Muhammad Irfan Chani, Zahid Pervaiz

Muhammad Irfan Chani

A Retrospective Evaluation Of Elements Of The Eu Vat System - Final Report, Stuart Adam, David Philips, Stephen Smith, Leon Bettendorp, Stefan Boeters, Henk Lm Kox, Bas Straathof, Kasper Stuut

Henk LM Kox

Compliance Costs And Dissimilarity Of Vat Regimes In The Eu, Henk Lm Kox

Henk LM Kox

Impacts Of Social Upbringing On Family Integration In Military Life In Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

In a country on the eve of losing one third of its land, 80% of potential natural resources and 75% of external exports value, economic future seems gloomy. Many opinions were given for economic solutions after the Southern Sudan secession. However, that does not support a theoretical framework that those are the only reasons for the expected economic collapse. Our theory here is that such collapse already happened because of economic mismanagement, corruption and hoarding initiated by the calls for empowerment and carried out by the regime's members. Such acts extended to the banks, economic institutions and randomized privatization. The …

Impacts Of Formal Financing On The Development Of The Sudanese Agricultural Sector, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

The agricultural sector of Sudan is faced by many problems. In the irrigated schemes, the government who officially owns most of them there are entrenched managerial problems that brewed for more than six decades. Moreover, the privatization policies of those schemes provoked many outcries and protests. Large schemes like Gezira have collapsed, this year 2011, only 10% of its over one million hectares were cultivated. The rainfed farming is not different with lack of machineries, shortages of available labor and high priced agricultural inputs, it is not expected to fare better than the irrigated schemes. However, even if those problems …

Impacts Of Sudan Macroeconomic Policy On Agriculture, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

The crisis of Southern Sudan and eminent secession in 9 July 2011 is a nightmare to the Sudanese national economy. The dependence on oil revenue that controlled the country for the past 11 years and negligence of the other real economy's economic sectors, agriculture and industry severely threatens the country. That is not only with diminished returns but with also with economic nightmarish economic catastrophe, famine and internal implosion. Short-sightedness on utilizing the oil money that bubbled the economy atrophied the real economic sectors and disabled it from responding to secession consequences of parting with 75% of revenues from oil …

Effects Of Social Edification And Family Integration In Military Life In Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The Sudanese army human components are unique in its composition. That is reflected in the country's political and social life. The independence of 1956 means fifty five of turmoil and turbulences. Democratically elected governments controlled the country for only ten years while the military institution's coup de etats took the rest. This paper studies the impacts of social upbringing on the families, military or civilians in order too shed lights on why all military, seemingly are possessed by the illusion of grasping power. The military seems built into the Sudanese society in superior form, i.e., above the law. Thus if …

Challenges Of Formal Social Security Systems In Sudan, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

The present paper discusses issues of challenges of social security systems in Sudan. Following parameters advanced by ILO and UNCOSOC, those systems are analyzed. The conclusions focus on their applicability that faces axial difficulties mainly presented in the state of institutional interregnum facing the country. Moreover, it is important to revisit aspects of social cohesion that serves greater role in traditional social security in the Sudan.

Analysis Of The Impact Of Cash Out-Flow From The Banking Sector On The Sudanese Economy, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

Sudan as an example of LDCs the banking sector has been suffering from the problem of cash outflow over the last three decades, generating the following impacts: Loss of banking sector of its role of financial inter-mediation, cash scarcity in the banking sector, large government borrowings from unreal source of finance, thus, more inflation. The research attempts to specify the main determinants of cash outflow from the banking sector in Sudan (during the period 1972-2001). Hence, those revealing the major impacts of the cash outflow on the economic activity and rates of inflation. The research hypotheses were: (1) the Banks …