Free vs. Restricted Immigration: Bilateral Country Study

This paper tests the differential effects of the generosity of the welfare state under free migration and under policy-controlled migration, distinguishing between source developing and developed countries. We utilize free-movement within the EU to examine the free migration regime and compare that to immigration into the EU from two other groups, developed and developing source countries, to capture immigration-restricted regimes. We standardize cross-country education quality differences by using the Hanushek-Woessmann (2009) cognitive skills measure. We find strong support for the "magnet hypothesis" under the free-migration regime, and the "fiscal burden hypothesis" under the immigration-restricted regime even after controlling for differences in returns to skills in source and host countries

Impact of investment policies on German direct investment in developing countries : an empirical investigation

By using better data on German foreign direct investment (FDI) than previous studies, the author found that: (i) developing countries might attract more FDI flows by easing investment restrictions or implementing incentives - but the effect of incentives could be modest and does not justify costly subsidies; (ii) a source country's policy instrument (public garantees) is an important determinant of German FDI outflows to developing countries - a factor that has been overlooked in the past, and (iii) industrial countries can substantially encourage their companies to invest in developing countries by offering public garantees. The case of Germany has shown that the actual costs involved are very low, as defaults are rare. Thus once it is decided that public support should be used to direct more FDI to developing countries, source countries'policies might be more effective than host countries'policies especially if the latter involve high foregone tax revenues.Environmental Economics&Policies,Economic Theory&Research,Foreign Direct Investment,ICT Policy and Strategies,Poverty Assessment

Worker Remittances and Capital Flows to Developing Countries

Worker remittances constitute an increasingly important mechanism for the transfer of resources from developed to developing countries, and remittances are the second-largest source, behind foreign direct investment, of external funding for developing countries. Yet, literature on worker remittances has so far focused mainly on the impact of remittances on income distribution within countries, on the determinants of remittances at a micro-level, or on the effects of migration and remittances for specific countries or regions. The focus of this paper is thus on four questions: First, how important are worker remittances to developing countries in quantitative terms? Second, what are the determinants driving worker remittances? Third, how volatile are worker remittances to developing countries? Fourth, are remittances correlated to other capital flows? --remittances,capital flows,developing countries

What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows

Non-traditional source countries of FDI play an increasingly important role, notably in developing host countries. This raises the question of whether the determinants of FDI differ systematically between traditional and non-traditional source countries. We perform Logit and Poisson Pseudo Maximum Likelihood estimations drawing on UNCTAD's database on bilateral FDI flows, including various emerging and developing countries as sources of FDI outflows. We find that economic geography variables are more relevant for FDI from non-traditional sources, while non-traditional investors appear to be as risk adverse as traditional investors. Access to raw materials represents a less important driving force of FDI from non-traditional sources. The differences are less pronounced for other types of FDI. --FDI flows,types of FDI,source-host country pairs,location choices,gravity-type models

The determinants of United Kingdom student visa demand from developing countries

This paper analyzes the demand for UK educational services by international students through investigating the demand for student visas to the UK from 89 developing countries covering the period 2001 to 2008. The substantive findings of this research are that bilateral exchange rates matter more than per capita income in the source country in driving the volume of applications. An analysis of the country-specific fixed effects suggests a higher demand for visa applications from Muslim countries, from countries sharing a common language with the UK, and from countries geographically proximate to the UK. Political stability within developing countries and their formal human capital levels are also found to be important factors

Global Warming and Agriculture: Impact Estimates by Country

How will global warming affect developing countries, which rely heavily on agriculture as a source of economic growth? William Cline asserts that developing countries have more at risk than industrial countries as global warming worsens. Using general circulation and agricultural impact models, Cline boldly examines 2070-99 to forecast the effects of global warming and its economic impact. This detailed study: * outlines existing studies on the agricultural impact of climate change; * estimates projected changes in temperature, precipitation, and agricultural capacity; and * concludes with policy recommendations. * Cline finds that agricultural production in developing countries may fall between 10 and 25 percent, and if global warming progresses unabated, India's agricultural capacity could fall as much as 40 percent. Thus, policymakers should address this phenomenon now before the world's developing countries are adversely and irreversibly affected.

Brain Drain in the Age of Mass Migration: Does Relative Inequality Explain Migrant Selectivity?

Brain drain is a core economic policy problem for many developing countries today. Does relative inequality in source and destination countries influence the brain-drain phenomenon? We explore human capital selectivity during the period 1820-1909.We apply age heaping techniques to measure human capital selectivity of international migrants. In a sample of 52 source and five destination countries we find selective migration determined by relative anthropometric inequality in source and destination countries. Other inequality measures confirm this. The results remain robust in OLS and Arellano-Bond approaches. We confirm the Roy-Borjas model of migrant self-selection. Moreover, we find that countries like Germany and UK experienced a small positive effect, because the less educated emigrated in larger numbers.international migration, labor markets, human capital, economic history

Changing fish trade and demand patterns in developing countries and their significance for policy research

Trends for major fisheries products are evaluated for the past two decades, using aggregate annual data. Major changes have been propelled by income growth, changes in preferences and health concerns about meat in developed countries, leading to increased consumption of high-valued fisheries items such as shell and filet fish. Developing countries, especially East Asia, are rapidly increasing consumption of lower valued fishery items, and fish-culture is becoming an increasingly important source of food and exports. Developed countries accounted for 85 percent of net world fish imports in 1994, mostly at the high end of the value spectrum, from about twenty countries. In the ten years preceding 1993, the net value of fisheries exports from developing countries went from less than a third of net developing country exports of sugar, beverage crops and tropical specialty products combined, to a level exceeding that total. While real fish prices have remained relatively stable since 1970, real beef prices have declined by 300 percent, suggesting that a rally in meat prices would further accentuate the shift to fish. Current evidence suggests a 15 percent relative strengthening of fish prices to beef through 2020.Fisheries Economic aspects Developing countries. ,Fish-culture. ,Prices. ,Exports. ,

Informal Taxation

Informal payments are a frequently overlooked source of local public finance in developing countries. We use microdata from ten countries to establish stylized facts on the magnitude, form, and distributional implications of this "informal taxation." Informal taxation is widespread, particularly in rural areas, with substantial in-kind labor payments. The wealthy pay more, but pay less in percentage terms, and informal taxes are more regressive than formal taxes. Failing to include informal taxation underestimates household tax burdens and revenue decentralization in developing countries. We propose a simple model of information and enforcement constraints that parsimoniously explains the patterns in the data.

GLOBALIZATION, NEOLOBERALISM AND LABOUR

The paper discusses the issue of globalization from the perspective of employment and labour. It argues that it is the ideological basis of policy prescriptions advanced in support of globalization, rather than the increasing global interdependence, that is the real source of controversy and anxiety over globalization. The paper discusses the impact of the neoliberal policies on economic growth, employment, and income distribution, and examines the issue of labour market rigidities from the perspective of industrial as well as developing countries. It argues that developing countries face conflicting pressures: the new liberal policies prescribe liberalization of labour markets, while the organized labour in the industrial countries is pushing for higher labour standards in developing countries. The paper concludes with a section containing ideas on how the process of globalization may be humanized, so that the gains from the growth in incomes and trade are more widely shared within as well as across countries in an increasingly interdependent world.