On the competitive position of Eastern German manufacturing: Why is catching-up so slow?

Seven years after the transition from plan to market, it is hard to summon up much enthusiasm for the results of active restructuring of the eastern German economy. Although companies have made considerable efforts to reach the efficiency level of their western German counterparts, the gap is still large. In our paper, we provide a selective and interpretative account of the restructuring process in eastern German manufacturing. We start with modelling some economic relations which can be considered crucial in the restructuring process: ownership status and overall performance, sectoral and regional specialization, gross output and value added, investment and productivity, and wages and employment. In search of adjustment failures, we examine these relations by comparing the performance of eastern German with that of western German enterprises. Finally, we discuss the key policy question of how to overcome the difficulties. Without an about-face in wage policy, it will be difficult to shift the balance from wage convergence to efficiency convergence.

Stringency and Distribution in the EU Emissions Trading Scheme –The 2005 Evidence

With the release of the verified emissions for installations covered by the EU Emissions Trading Scheme for the first trading year 2005 we are able to compare actual emissions and allowances for each installation. Based on data available for 24 Member States as of January 2007, this paper uses a thorough data analysis for about 9,900 installations to investigate evidence on three issues: first, the stringency of the total allocation cap and allocation differences both among the Member States and a selection of emission intensive sectors; second, the distribution of the size of installations; and third, the spread of allocation discrepancies and possible allocation biases regarding the size of installations.Emission Trading, EU Emissions Trading Scheme, Climate Policy

Corporate restructuring and export performance in the transition process: The case of Eastern Germany

Economic restructuring in the transition from plan to market concerns the way enterprises try to achieve competitive advantage. Therefore, enterprises have to decide where to compete, that is to say with which product they should enter which markets, and how to compete, that is by which strategy they could succeed. During the seven years since unification, the eastern German economy has undergone considerable structural changes. However, the outcome is a poor market specialization: industries which sell their products mainly in local markets have remarkably increased their share in total output, while industries producing for world-wide markets have lost importance. Sailing into the safe harbour of local markets may be the need of the moment for many companies. But it is a dangerous strategy. In the long run, it may prove to be a trap without any escape. The paper provides a selective and interpretative account of the restructuring process in eastern German manufacturing. It starts with the given constraints - exchange rate and wage convergence - which constitute the wrong model for opening up a closed economy. It presents some stylized facts revealing a strong vertical differentiation between eastern and western German producers - with respect to product quality and product markets as well as with respect to technological and organizational environment. As a result, the division of labour between the eastern German economy and the rest of the world tends to be an inter-industry type rather than an intra-industry one. Finally, the paper turns to the key policy question of how to overcome these difficulties. It scrutinizes the main arguments for and against government's trade promotion towards eastern German enterprises.

Characteristics of exporting and non-exporting firms in Austria

In this study we provide detailed evidence on the importance and performance of exporters compared to non-exporters in Austrian manufacturing, based on firm level data. The results are in line with those found in other studies pointing towards the exceptional role of exporting firms with respect to various size and performance measures. We provide both descriptive as well as econometric evidence on these ‘export premia’ along these lines and further present a brief comparison with results found for other countries. Our findings however also suggest the existence of quite large differences across industries with respect to the export premia which deserves further attention.export premium, heterogenous firms, trade

Determining effective criteria on sustainable development of fluting paper making industry

Fluting paper industry seems to be significant from environmental view point. Accordingly, study on sustainable development criteria in this sector of Iran’s industry is regarded as a national necessity. The intent of the current study is to determine and prioritize the indices affecting sustainable development of Iran’s fluting paper industry by benefiting from Analytical Hierarchy Process (AHP) method. After the conducted investigations, 55 indices were identified and categories in eight general groups namely, technical & human, cultural-social, economic, materials & products, rules and regulations, environmental, infrastructure and sale & marketing . Analytical Hierarchy Process was applied in the form of adjusting and distributing questionnaires among professional experts. Results show that the highest priorities for attaining sustainable development in this industry respectively belong to sub-criteria of economic stability increase in the country, a continuous relation between university and industry, privatization, training man force, paper recycling, foreign investment, increasing productivity and reducing greenhouse gas emissions

The Global Effects of Subglobal Climate Policies

Individual countries are in the process of legislating responses to the challenges posed by climate change. The prospect of rising carbon prices raises concerns in these nations about the effects on the competitiveness of their own energy-intensive industries and the potential for carbon leakage, particularly leakage to emerging economies that lack comparable regulation. In response, certain developed countries are proposing controversial trade-related measures and allowance allocation designs to complement their climate policies. Missing from much of the debate on trade-related measures is a broader understanding of how climate policies implemented unilaterally (or subglobally) affect all countries in the global trading system. Arguably, the largest impacts are from the targeted carbon pricing itself, which generates macroeconomic effects, terms-of-trade changes, and shifts in global energy demand and prices; it also changes the relative prices of certain energy-intensive goods. This paper studies how climate policies implemented in certain major economies (the European Union and the United States) affect the global distribution of economic and environmental outcomes, and how these outcomes may be altered by complementary policies aimed at addressing carbon leakage.cap-and-trade, emissions leakage, border carbon adjustments, output-based allocation, general equilibrium model

The Swedish Model

The main characteristics of ‘the Swedish model’ are arguably related to the country’s knowledge-intensive industry and its advanced welfare state. The purpose of this paper is to discuss the historical development of these two features of the Swedish economy. The first part looks at industrial development, highlighting both the reasons for the rapid industrialization in the late 19th century and the subsequent shift from raw materials to human capital and knowledge as the main competitive advantages. The second part turns to the development of welfare state, stressing the gradual increase in benefits and coverage as well as the emphasis on universal rather than means-tested benefits. The final part suggests some policy conclusions for today’s developing countries and emerging economies.Sweden, industrialization, welfare state

Treatment of pulp and paper mill effluent using low cost adsorbents: An overview

In the present review, the suitability of adsorption process using low cost adsorbent for the treatment of pulp and paper mill effluent has been discussed. It is clear that adsorption processes are appropriate for the removal of recalcitrant compounds such as surfactants and pesticides, among others biodegradable or non-biodegradable compound present in pulp and paper mills effluents. The importance of the  adsorption is to improvement of the  removal of various physico- chemical (biological oxygen demand (BOD), chemical oxygen demand (COD), colour, suspended solids, lignin), heavy metals (Cu, Cr, Fe, Zn, Ni and Mn etc) organochlorine compounds, all recalcitrant pollutant, reduce toxicity, enhance colour removal by using different cost effective adsorbents. The effective use of the different adsorbents developed from different adsorbent media such as activated carbon, agriculture by product and industrial wastes and sludge as adsorbents  for the removal of different pollutants from the various processes and operations of pulp and paper mill as potential alternatives to different treatment process and received widespread attention. Adsorption necessity is a novel treatment option to improve the efficiency of removal within the discharge limits of wastewaters into the receiving bodies without causing any damage of the environment. However, still there is a need to find out the practical usefulness of such low cost adsorbent at industrial scale with the special reference to metals