Bokanmeldelse: Globalisering, næringslokalisering og økonomisk politikk

Political Priorities and Economic Interests in Russian-Latvian Relations

The paper focuses on interaction of political and economic aspects in Russian-Latvian relations. During the most of the 1990´s, the relationship was dominated by the «conflict manifestation,» which could be witnessed during the protracted Russian troop withdrawal and mutually irreconcilable positioning over NATO expansion and status of Russian-speaking population. However, in the context of EU enlargement and «economisation» of Russian foreign policy, economic factors may play an increasingly important role in Russian-Latvian relations. It is possible to discover a complex web of links and economic interdependence between economic actors in both Russia and Latvia. This especially refers to transit as Latvian ports remain among the major routes of Russian exports, primarily oil, to Western Europe. Yet, certain interests of particular economic groups in Russia as well as economic and political priorities of Russian government generally, in the region and domestically will have influence, not necessarily favourable, on further development of this economic interdependence.

Meet Me Halfway but don't Rush : Absorptive capacity and strategic R&D investment revisited

In this paper, we analyse how R&D investment decisions are affected by R&D spillovers between firms, taking into consideration that more R&D investment improves the ability to learn from competing firms - the so-called absorptive capacity effect of R&D. The model in this paper is an extension of d’Aspremont and Jacquemin (1988), where they show that exogenous R&D spillovers reduce the incentive to invest in R&D when firms compete in a Cournot duopoly. Our model treats R&D spillovers as endogenous, being a function of absorptive capacity effects. Contrary to earlier studies, we show that absorptive capacity effects do not necessarily drive up the incentive to invest in R&D. This only happens when the market size is small or the absorptive capacity effect is weak. Otherwise firms will actually chose to cut down on R&D. Furthermore, absorptive capacity effects also increase the critical rate of spillovers that determines whether participating in research joint ventures leads to lower or higher R&D investment. Finally, we show that strong learning effects of own R&D are not necessarily good for welfare. Moreover, if the market size is large, welfare will be at its highest when the learning effect is small.

The Europeanisation of Norway's Security Identity

In this working paper Pernille Rieker looks into the relationship between the European integration process and changes in Norway’s national security identity. Has the dominant national discourse on security changed since the early 1990s? If so, how are these changes related to the recent acceleration of the European integration process? And to what extent are such European influences on national security identities related to formal membership in the EU? While there is reason to believe that a Europeanisation of national security policies has taken place, the question is whether we may speak of a profound change in identity, or merely an instrumental adaptation to external changes. Several researchers have studied the influence of this participation on national institutions and policies; less attention, however, has been given to the Europeanisation of Norway’s security identity. This paper is an attempt to fill this gap.

Firms' export decisions - fixed trade costs and the size of the export market

This article presents two models of international trade under monopolistic competition. In increasing returns sectors firms face fixed, in addition to variable, trade costs, therefore both exporters and non-exporters may coexist. While nonexporters benefit from access to large domestic markets, exporters benefit from access to large foreign markets. Consequently, a small country has a higher share of exporting firms than a large one. In contrast to standard models, increasing returns sectors turn out more open in small countries than in large ones, and small countries may be net exporters of such commodities, despite the disadvantage of a smaller home market.

Linking Issues : Should one bargain over two issues simultaineously or separately?

International negotiations on trade (e.g. GATT and TRIPS) have typically been of the packageform, and different issues have therefore been linked to each other. Trade issues have not been linked to e.g. environmental agreements in negotiations, however. This paper studies the outcome of linked bargaining, where two issues are simultaneously negotiated over by two countries. We notice that there always exist gains from linkages in bargaining, and that such linking will always occur in equilibrium if there is a pre-stage where the countries are bargaining over the agenda. The outcome under linked bargaining is compared with the outcome under separate negotiations, and the circumstances where a country will gain or lose from linking are characterized. The results help us to understand different countries’ preferences for linkages in bargaining.

Recent Advances in Growth Theory. A Comparison of Neoclassical and Evolutionary Perspectives

Research on economic growth has experienced remarkable progress the last decade. The neoclassical perspective has benefited from development of new mathematical methods and new approaches to market structure, economics of scale and spillover effects. At the same time evolutionary theories on economic development have appeared, partly competing but also complementary to neoclassical theorising. In this paper, the development of the two perspectives on economic growth is reviewed and they are compared with each other. Despite evident differences there seems to be convergence between the two traditions. The two perspectives therefore do not belong to different paradigms in the Kuhnian sense and they can hardly be categorised as two isolated research programmes in the sense of Imre Lakatos. Evolutionary and neoclassical growth economics draw inspiration from similar sources, they are overlapping and to some extent complementary. The two traditions also interact with each other.

Local Elites meet Foreign Corporations : The Examples of Iran and Azerbaijan

Oil companies have jumped on the bandwagon of promotion of democracy and human rights, but without sufficient expertise in local conditions. What works in one country may backfire in another. Azeri democrats want the oil industry to stop propping up the Aliev regime and talk to them instead, but for an Iranian democratic politician, support from Western oil companies is the kiss of death. However, in both countries democrats call for more transparency.

Elite perceptions of ethical problems facing the Western oil industry in Iran

The hybrid of democratic and theocratic institutions of revolutionary Iran is now over twenty years old, and is undergoing challenge. An elected president with popular legitimacy but no control of the means of coercion is endeavouring to open up and liberalise, but is being opposed by the conservatives with theocratic vetoes, newspaper closures and street violence. Part One of this report looks at the diarchy of President Khatami and Supreme Leader Khamenei, their legitimacies, their ‘minimalist’ strategies, and their common interest in restraining their wilder supporters from provoking chaos or civil war. The report then considers the elements of ‘civil society’ resulting from deep structural change in Iran: demography and education, the role of women and the free press. Finally, this part considers the journalistic comparison of Khatami with Gorbachev, and finds that although both are/were attempting limited reform of a faltering system of which they were themselves a part, no Iranian Yeltsin has yet emerged. Part Two of the report is the results of in-depth interviews with 14 prominent reformers. They are optimistic about the prospects for long-term change; all the conservatives can do is postpone change or perpetrate a bloodbath, they cannot put the clock back. Our sample tended to consider the oil companies a bad influence. However, they made a sharp distinction between American companies, which they thought more ethical and transparent, and the secretive European, Arab and Japanese companies. Asked what the oil companies should do to promote democratic developement, the interviewees emphasised transparency above all.

Keeping the peace together? Joint Russian-Western peace operations in the Commonwealth of Independent States

The purpose of this report is to discuss the conditions for future multinational peace operations in the Commonwealth of Independent States, including both Russian and Western forces. The aim and scope of this study are based on a positive attitude to challenges in general, in other words, a will to see opportunities and solutions instead of obstacles and insolvable problems. Problem: What are the possible options for multinational peace operations including Russian and Western forces in the Commonwealth of Independent States? I will focus on investigating possibilities for CPOs in the CIS area. Content: The report will consist of an initial discussion focusing on various Russian approaches that influence thinking on combined peace operations. The focus on Russia is an inevitable consequence of my West/NATO origin, but in order to give a more balanced view of the problem it will also be necessary to look at some other factors influencing this potential co-operation. Further, I will discuss three generic options for combined peace operations in the Commonwealth of Independent States. The main goal of this study is a detailed discussion of various possible scenarios for future Russian-Western co-operation in the field of peace-keeping on the territory of the former Soviet Union. In order to place the topic in a proper context the author takes a closer look at various political, mental, historical and not least purely technical determinants limiting the potential scope of the joint peace-keeping. The study contains a detailed analysis of international (UN), Western (NATO, Canada) and Russian peace-keeping terminology. It also discusses the importance and relevance of various international frameworks determining the field, the scope and the geographical dimension of the potential Russian-Western co-operation, as well as the practical experience from the joint peace-keeping missions in the former Yugoslavia. The study gives a good insight in the history and practice of joint Russian-Western peacekeeping efforts. It also outlines and analyses various practical and political challenges linked with development of this relatively new and still challenging field of co-operation between Russia and the West. As such, it is relevant for both theoreticians of peace-keeping and for those who work with peace-keeping in the field.