Defending and renewing multilateralism: Estonia and Norway in the UN Security Council
This project will explore possibilities to enhance Estonian-Norwegian bilateral cooperation in promoting multilateral cooperation and a rules-based global order in the framework of the United Nations ...
Brunei Darussalam: How to Build an Investment Climate for Renewable Energy?
Brunei Darussalam has yet to make major progress in renewable energy and become an attractive destination for investors. Only 0.05% of Brunei’s electricity came from renewable energy sources, while 99.95% was based on fossil fuels. In 2014, the country set a renewable energy target of 10% in the power generation mix by 2035. To reach the target, it needs to increase the share of renewables by 0.66% every year from 2020 to 2035. The country still needs to adopt a regulatory regime to scale up the development of renewable energy, particularly solar energy, which is more abundant than wind energy. We propose five actions to build the investment climate for renewable energy in Brunei Darussalam: prioritise renewable energy in the governance system; adopt and implement key legislation; mobilise domestic investors; improve market entry for foreign investors.
Impact of Digital Technologies and the Fourth Industrial Revolution on Trade In Services
Digital technologies are cutting trade costs for services, turning more services from non-tradables into tradables, and putting trade in services on a stronger relative growth path than trade in goods. Digital enablement of services depends on inputs of cross-border data flows, which are themselves growing exponentially. The shift to the digital economy has intensified during the COVID-19 pandemic as goods producers connect with customers via online platforms, and services like health, education, and entertainment are delivered online. Purchasing services offshore is not far behind, so e-service trade will likely continue to accelerate. However, regulatory frameworks are lagging, putting productivity gains at risk. We offer eight recommendations to the Group of Twenty (G20) leaders to start shaping a trade policy agenda for a digital future. For every nation to reap the benefits of the Fourth Industrial Revolution, sustained openness to international services trade, investment, and data flows is essential.
Africa, Tax and the Digital Economy
Are the giant tech companies paying their fair share of taxes? Challenges facing African countries in the digital economy.
China’s EU policy in the pandemic era: A new normal?
During the pandemic era, media reports and leaks indicate a growing assertiveness from China towards the EU. Is this a sign of a new normal in China's EU policy of something else entirely? To devise an appropriate response, the EU should contrast this perceived assertiveness with China's long-term interests. In all, assertive behavior undermines Chinese policy goals, which hints that there may be other considerations guiding these Chinese representatives.
Gender and Labour Market Adjustment to Trade: The Case of India
Standing at 24% in 2018, India’s female labour force articipation is only half of the global average (48%). At the same time, India has one of the widest gender wage gaps in the world and women are less likely to be employed in the formal sector compared to men. This study focuses on the role of international trade as a source of increased competitive pressure in domestic markets, and how it affects relative wages and formal employment between men and women. Using the Revealed Symmetrical Comparative Advantage index, sectors of comparative advantage and disadvantage are identified and matched on Indian labour force surveys that contain information on sectoral employment and earnings. We find that sectors of comparative advantage in services have the lowest gender wage gap, with women earning 24% less than their male counterpart, while women in manufacturing earned on average 40% less than male workers. The Oaxaca-Blinder decomposition shows that the total gender wage gap in sectors of comparative advantage in services are minor while it is quite substantial in manufacturing, regardless of the comparative advantage. The study concludes that trade goes hand in hand with a smaller gender wage gap in the services sectors as it allows women to leverage their skills better than in manufacturing.
Responsible Innovation and Happiness: A New Approach to the Effects of ICTs (HAPPY)
The project intends to contribute to the responsible innovation literature by carrying out a set of conceptual and empirical studies on the socio-economic effects of ICTs, considering positive impacts...
Telecommunications: the underlying transport means for services exports
This paper analyses the role of telecommunications as a means of transport for services exports with a focus on computer and other business services in India. Telecommunications are typically dominated by major suppliers which need to be regulated and exposed to competition to fulfil their role. This paper notes that India took sweeping unilateral reforms in the telecommunications sector in the 1990s but has been reluctant to bind reforms in international trade agreements. It goes on to show that India is lagging as compared to other lower middle-income countries on international measures of connectivity, and that connectivity is strongly related to timely adjustment of policy to changing market conditions and technology. Second, using gravity estimates, it has been found that connectivity is an important driver for trade in computer and other business services. In particular, broadband connectivity significantly reduces the rate at which exports fall off with distance and extends the reach of exports to distant markets.
Make or buy: offshoring of services functions in manufacturing
About 40% of employment in manufacturing is in services functions. This paper develops a measure of narrow outsourcing: the matching of services functions that are performed by workers who are inside manufacturing firms to the same services functions that are provided by outside suppliers. Narrow outsourcing is entered into labour demand functions where labour is classified by business functions. The impact of narrow offshoring on manufacturing labour demand is small on average but depends strongly on the complexity of the value chain, the policy environment, and ICT maturity. The IT and R&D functions are most sensitive to offshoring.