Publications
Why do firms import via merchants in entrepôt countries rather than directly from the source?
An increasing share of world trade happens indirectly via merchants in third countries, so-called entrepôts. This article uses an exhaustive and highly disaggregated dataset for Norwegian firms’ import transactions to study the motives for importing through such merchants rather than directly from the source country. I first show that transactions via entrepôts are much smaller than transactions from the source. I then study which factors are associated with the probability of importing indirectly. Source country characteristics – especially high trade barriers and unfavourable geographical locations – are important when time-invariant unobserved heterogeneity is not controlled for. When controlling for this, however, firm- and product-level characteristics stand out as the main drivers. Smaller and less productive firms more often import via entrepôts, especially when importing product-source combinations that are relatively unimportant in their total imports and when importing products with low price dispersion and high value-to-weight ratios. The results are in line with theories suggesting that merchants facilitate trade by offering reduced fixed trade costs for firms that trade through them. As such, they may help smaller and less productive firms to import.
Mekanismer for screening av utenlandske investeringer. Oversikt over et utvalg land
Etter tusenårsskiftet har åpne økonomier i økende takt satt i gang prosesser for å vurdere risikoen av utenlandsinvesteringer. Bakgrunnen for dette er økende grad av investeringer fra mindre transparente økonomier, frykt for svekket konkurranse blant internasjonale aktører, samt teknologiske endringer som kan gjøre stater mer utsatte. Dette har blant annet fått EU til å vedta en regulering som etablerer et rammeverk for screeningmekanismer (Regulation (EU) 2019/452). Utviklingen de seneste årene - og særlig i løpet av COVID-19 pandemien - er at slike mekanismer ekspanderer, blir mer detaljerte og permanente, og omfatter større deler av økonomien, med lavere terskelkriterier og dermed et økende antall transaksjoner som screenes.
Using satellite data and machine learning to study conflict-induced environmental and socioeconomic destruction in data-poor conflict areas: The ca...
This paper studies socioeconomic and environmental changes in the neighboring areas Bangladesh-Myanmar border from 2012 to 2019, thus covering the period before and after the 2017 Rakhine conflict in Myanmar and outflux of refugees across the border to Bangladesh. Given the scarcity and costliness of traditional data collection methods in such conflict areas, the paper uses a novel methodological model based on very-high-resolution satellite imagery, nighttime satellite imagery, and machine-learning algorithms to generate reliable and reusable data for comparative assessment of the impacts of the Rakhine conflict. Assessments of welfare and environmental risks using this approach can be accurate and scalable across different regions and times when other data are unavailable. Key findings are: the general livelihood situation has worsened and income sources shrunk in Rakhine; forced migration damaged the ecologically fragile regions in the two countries; the destruction of aquaculture wetland ecosystems is observed in Rakhine; the deforestation rate reached 20% in Rakhine and 13% on the Bangladeshi side of the border. The results can provide guidance to policymakers and international actors as they work to repatriate the victims of the conflict in Rakhine and minimize the conflict’s security and environmental consequences. The methodology can be applied to other data-poor conflict and refugee areas in the world.
How climate insecurity could trigger more conflict in Somalia
Climate change effects such as droughts, flash floods, erratic rainfall, disruption to the monsoon seasons, strong winds, cyclones, sandstorms, dust storms and increased temperature are being experienced across Somalia. These effects are affecting livelihoods, and contributing to local grievances and community tensions.
How climate insecurity could trigger more conflict in Somalia
Climate change effects such as droughts, flash floods, erratic rainfall, disruption to the monsoon seasons, strong winds, cyclones, sandstorms, dust storms and increased temperature are being experienced across Somalia. These effects are affecting livelihoods, and contributing to local grievances and community tensions.
Swiss-EU Relations With a Focus on the Current Situation
Michael Ambühl has negotiated several Swiss-EU agreements and presents here (with co-author Lara Lenz) an overview of recent developments in the relationship, that has been under pressure because the EU has demanded a more EEA-like arrangement. See also discussion at NUPI webinar (scroll down to find link). In 1992, Swiss voters rejected an accession to the European Economic Area (EEA). Among different reasons for this were institutional and sovereignty questions, such as the dynamic adoption of new EU legislation, and the Swiss Government announcement of the EEA being a training camp for a future EU membership. Instead of the multilateral EEA approach, Switzerland chose a bilateral approach with Bilateral Agreements I and II, which were signed in 1999 and 2004, respectively. The two packages regulate aspects of the economic, political, and cultural landscapes and benefit both parties with legal certainty and market access in selected policy sectors. About ten years ago, the EU expressed its desire for an Institutional Framework Agreement (IFA) with Switzerland to protect the homogeneity of the internal market, to remove legal barriers, and to introduce a more efficient dispute settlement procedure. The draft of the negotiation result (not initialed) presented in 2018 raised three concerns about which the Swiss Government sought clarification from the EU: wage protection, state aid, and the Citizens Rights Directive. These three issues continue to be central concerns for many Swiss voters because these rules could potentially create social or economic problems. Without acceptable clarification on these points from the EU, there is a considerable risk that the Swiss people could reject the IFA in a future referendum, which would put Switzerland and (to a lesser extent, of course) the EU in a difficult situation. To avoid such a consequence, Switzerland must exercise caution. If a satisfactory solution cannot be reached, Switzerland must consider alternatives to a premature submission of the IFA to avoid legal uncertainty during an interim period. Regardless of the upcoming bilateral developments, Switzerland, at the heart of Europe, traditionally has a positive relationship with the EU. These friendly relations are all the more important when considering today’s challenges, in which Switzerland can show solidarity with Brussels and support the larger-scale European goals of promoting peace, democracy, and human rights in the world.
Deepfake - Når ein ikkje lenger kan tru på det ein ser og høyrer
(Op-ed in Norwegian) Deepfakes have the potential to contribute to politically motivated violence, sabotage elections, and weaken diplomatic relations.
How climate insecurity could trigger more conflict in Somalia
Climate change effects such as droughts, flash floods, erratic rainfall, disruption to the monsoon seasons, strong winds, cyclones, sandstorms, dust storms and increased temperature are being experienced across Somalia. These effects are affecting livelihoods, and contributing to local grievances and community tensions.
Governance, Social Policy, and Political Economy: Trends in Norway’s Partner Countries
In 2017–2018, NUPI (the Norwegian Institute of International Affairs) headed a project where political economy analyses were undertaken in eleven of Norway’s partner countries. These analyses were published as eleven separate reports. The reports focused on power relations and political developments in the partner countries, but they also analyzed the nature of governance. After the publication of the World Bank’s Worldwide Governance Indicators for 2019, the MFA approached NUPI and requested that we summarize the findings of this report for Norway’s eleven partner countries and assess these findings in light of the political economy analyses. We were also asked to investigate whether there were any connections between the nature and quality of governance on the one hand, and the nature of social policies and the human rights situation on the other. This report presents the findings of this assessment of the governance scores in the light of the above-mentioned political economy analyses. The report is structured as follows: Firstly, after briefly describing the governance indictors used by the World Bank, we summarize the eleven countries’ scores on the various governance indicators. Secondly, we assess the evolution of governance in the eleven countries, by comparing the scores in the 2019 report with those from 2011. Thirdly, we summarize the findings of the political economy analyses of the eleven countries and discuss how they fit with the governance scores. Finally, we present the eleven countries’ expenditure on social policies, as reported in the ILOs World Social Protection Report, and the human rights situation for the partner countries, and then describe how these findings relate to the governance scores.
Bastionforsvaret og Russlands militærmakt, Et utdatert trusselbilde?
Russlands potensielle etablering av Bastionforsvaret er forankret i inneværende langtidsplan (LTP) som Forsvarets dimensjonerende scenario for en eventuell stormaktskonflikt. Kombinasjonen av våpenteknologisk utvikling og den russiske militærmaktens vesentlige reduksjon siden konseptet ble utviklet har imidlertid medført en manglende evne, og tilsynelatende vilje, til å implementere og opprettholde dets omfattende forsvarssoner. En diskusjon om Bastionforsvarets fortsatte relevans for norsk forsvars- og strukturplanlegging er dermed på overtid.