Services trade and domestic regulation

This paper argues that regulatory measures affect the fixed cost of entering a market as well as the variable costs of servicing that market. Moreover, differences in regulation among countries often imply that firms have to incur entry costs in every new market. Indicators of regulatory intensity and heterogeneity are introduced in a gravity model and their impact on market entry and subsequent trade flows estimated for total services, business services and financial services. It is found that regulatory heterogeneity has a relatively large negative impact on both market entry and subsequent trade flows. Further, regulatory barriers have a negative effect on the local services sectors’ export performance. Finally it is found that regulations that aims at correcting market failure can have a positive impact on trade. It is concluded that services trade liberalization and regulatory reforms are complementary in creating competitive services markets.Trade in services; regulation; GATS; fixed trade costs

The Role of FDI in Economic Development

This paper deals with two questions: First, what are the determinants of foreign direct investment (FDI)? Second, what is the role of FDI in economic development? In order to provide some answers to these questions, we draw upon the existing theoretical and empirical literature as well as insights derived from five country studies that we have conducted. Important location advantages include a stable social, political and economic environment, liberal trade policies, and geographical proximity to large and growing economies. On the host country effects of FDI, we conclude that while FDI is not necessary to achieve economic development, the entry of foreign firms may play an important role in adding technology and competition to the host economies. However, foreign entry may lead to a loss in market shares, and thereby a loss in profits, for local firms. This problem is likely to be more important if foreign entry takes place in markets shielded from the competitive pressures of international trade.

Patterns of foreign direct investment in poor countries

This paper introduces endogenous adoption costs for productive assets in a Ramsey type growth model with international capital flows. There are two classes of productive assets: owner-specific and location-specific. Adoption costs are an increasing function of the level of technology embodied in the investor's owner-specific assets and a declining function of the host country's location-specific assets. In this setting the observed pattern of international capital flows is consistent with diminishing returns to capital. Further, our model predicts the sectoral allocation of investment and output observed in the South

Liberalization of trade in services and choice of technology in the Norwegian petroleum sector

The petroleum sector is a service-intensive industry. The quality, price and availability of services are therefore important for the productivity level in the petroleum sector. This paper analyzes how intermediate inputs contribute to productivity in the Norwegian petroleum sector and discusses how technical progress and changes in the international trade regime affect productivity and vertical relations between oil companies and their suppliers. It is shown that in a small market, tailor-made inputs and dose vertical relations between the oil companies and their suppliers are the preferred and most cost-effective technology. As the market expands, the relative cost of tailor-made inputs increases, and at one critical point becomes less cost-effective than standardized inputs. A policy implication of the analysis is that the NORSOK policy of enhancing standardization needs to be complemented with a more open market in order to achieve its objectives. The analysis is particularly relevant for oil-related producer services, since this is the market for intermediate inputs that is the least open

Tolv år etter høgskolereformen – en statusrapport om FOU i statlige høgskoler

På oppdrag fra Kunnskapsdepartementet har NIFU STEP utarbeidet en rapport om ulike sider ved FOU-virksomheten ved statlige høgskoler; stillingsstruktur, FOU-profil, tidsbruk, deltakelse i oppdrags- og programforskning, publiseringsaktivitet, forskningssamarbeid, internasjonal kontakt og forskningsvilkår. I tillegg er Universitetet i Stavanger inkludert i undersøkelsen. Basert på en spørreskjemaundersøkelse belyser rapporten utviklingen over tid og sammenligner med tilsvarende data fra en tidligere undersøkelse ved universiteter og vitenskapelige høgskoler

Effekter i mottakerlandene av norske petroleumsinvesteringer med hovedvekt på Angola

Denne rapporten ser på hvordan norske petroleumsinvesteringer kan bidra til industriutvikling og en jevnere inntektsfordeling i mottakerlandet. Videre ser vi på i hvilken grad norske petroleumsinvesteringer kan være en positiv faktor når det gjelder sosial utvikling, menneskerettigheter, helse, miljø og sikkerhet. Studien konsentrerer seg om norske investeringer i Angola. Offshore petroleumsvirksomhet er kapitalintensiv og teknologisk krevende. Derfor blir den lett en enklave i land der det ikke finnes en godt utviklet industribase og kvalifisert arbeidskraft. Petroleumsinntektene utgjør en svært høy andel av eksportinntektene og offentlig sektors inntekter samtidig som sektoren skaper relativt få lokale arbeidsplasser. Petroleumsinntektene blir dermed i utgangspunktet konsentrert på få hender. Petroleumssektoren har derfor lett for å føre til høy inntektsvekst i utbyggingsperioden, men lite utvikling. Dette kan motvirkes ved at det blir ført en bevisst utjevningspolitikk og ved at makroøkonomiske virkemidler blir tatt i bruk som hindrer overoppheting i økonomien og som skaper rom for utvikling i privat sektor i fastlandsøkonomien. Dette er vanskelig generelt, og få oljeeksporterende utviklingsland har lykkes med det. I Angola er det knapt mulig under de rådende forhold med borgerkrig og fravær av fungerende institusjoner. Rapporten understreker at oljeselskapene kan bidra med kunnskapsoverføring til lokalt ansatte og det lokale statsoljeselskapet. Dessuten kan og bør de bidra til at Angolas ressurser blir utvunnet på en mest mulig effektiv og miljøvennlig måte. Landets sosiale og økonomiske utvikling er imidlertid lokale myndigheters ansvar. Norske myndigheter kan eventuelt bidra med teknisk og økonomisk bistand, men det blir understreket at det bør være en klar rollefordeling mellom myndighetene og oljeselskapene

The internationalization of small firms: The relationship between the global mindset and firms’ internationalization behavior

Some firms in internationally oriented industries are internationalized while other comparable firms in the same sector or industry do not. Observing this difference in strategic behavior among small firms led us to consider how differences in CEOs’ attitudes, international orientation, and mindset might explain it. Therefore, this study adopts a cognitive perspective on management to explore the formation of the global mindset and the relationship between the global mindset of small-firm decision makers and their firms’ internationalization behavior. A theory-based conceptual model and measurement instrument are developed and—using structural equation modeling—the model is estimated based on empirical data from crosssectional samples of small Norwegian and Portuguese firms. The study finds: (1) a strong causal relationship between the global mindset and firms’ internationalization behavior; (2) the combination of the findings and substantive theory indicates that the main driver of firms’ internationalization operates through the global mindset. This study also covers the factors that strongly influence the formation of a global mindset, especially the decision makers’ work experience and personal characteristics in termsof propensity to interdisciplinary collaboration, cognitive flexibility, and networking capability. Based on these findings, suggestions are made for policies that can foster the internationalization of small firms.info:eu-repo/semantics/publishedVersio