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.
The impact of climate change on Africa’s peace and security
The gradual rise in global temperatures, irregular rainfall and floods have indirect, complex and coherent implications for peace and security. On March 9 2021, the African Union (AU) Peace and Security Council met at state level to discuss these challenges. The Peace and Security Council presented various recommendations concerning climate and security. This op-ed is based on the communique published after the meeting and presents opportunities for how the African Union, together with regional economic communities/regional mechanisms, member states and others, can work together to strengthen efforts surrounding climate and security challenges.
The Impact of Climate Change on Peace and Security in Somalia: Implications for AMISOM
The February 2021 mandate renewal for the African Union Mission in Somalia (AMISOM) is an opportunity to review what we know about climate change and security in Somalia, and to consider what governments and multilateral organisations can do to improve the way they manage climate related security risks. Research finds no direct causal relationship between climate and conflict but has identified multiple pathways through which climate-related change interacts with political, social, and environmental stresses to compound existing vulnerabilities and tensions. These factors combined can undermine development gains, impact the dynamics of ongoing violence and disrupt fragile peace processes. Additional pressures, such as COVID-19, compound the risk and makes a country like Somalia even more vulnerable to shocks and setbacks, as the recent political crisis shows.
Informal taxation and community-driven development: Evidence from south-central Somalia
We are excited to announce that this semester’s fourth seminar in our Tax for Development Webinar Series with Vanessa van den Boogaard and Fabrizio Santoro (both at the International Centre for Tax and Development) presenting the study "informal Taxation and community-driven development: Evidence from south-central Somalia".
How states manage international censure: Norway's response to criticism of its Child Welfare Services
When states are criticised, they normally recognise, reject or counter the critique. Yet they could listen to and contain criticism without directly rejecting or recognising it. Using criticism of Norway’s Child Welfare Services as an example, Kristin Haugevik and Cecilie Basberg Neumann show that diplomatic containment can prevent conflict accelerating and then damaging bilateral relations
Much Ado About Very Little? Migration-Linked Development Assistance — the Cases of Poland and Norway
In response to the migration management crisis that peaked in Europe in 2015-2016, the EU institutions and some European states promised to address the “root causes of migration”, with development assistance seen as an important tool in that respect. By comparing the development cooperation policies of Poland and Norway, this paper shows how the development-migration nexus has been implemented in practice by new and traditional donors alike. Despite important differences at the rhetorical level, neither state has substantially changed their development cooperation to link it directly to migration interests. This demonstrates the limited usefulness of the “root causes of migration” approach.
How do journalists in the Middle East cope with political pressure?
All over the world, media-owners and lobbyists use journalists and the media as political tools for their own ends. How do journalists cope with this? A NUPI project has examined this issue in Tunisia and Lebanon.
The Future of Africa-UK Relations Post-Brexit
The United Kingdom has left the European Union as part of a momentous effort to redefine the UK's role in the world - with tremendous consequences for its global partners, including many of the countries in Africa. How do African countries view their relationship with the UK? What will be the future of Africa-UK relations after Brexit?
Restructuring state power in Sudan
Developing post-conflict economic policies in Sudan remains a significant challenge for the Sudanese transitional government and the international community. This article argues that understanding the conflict, its costs and the progress made during the current peace agreement are essential for advancing policy reforms in Sudan. The Sudanese transitional government has attempted to implement reforms, but little progress has been made because the civilian elements operate outside of the existing state power. The previous regimes policies sustained conflict(s) through both passive and active enablement of the Sudanese security forces, which means that the restructuring of state power is essential to place Sudan on the right course towards sustained democracy. This article posits that addressing structural reforms in Sudan means establishing control over the economy, defense, and security sectors.
Globale Storbritannia? Britisk utenrikspolitikk etter brexit
Lecture about Brexit and the implications for British, European and Norwegian foreign policy.