Trade integration between Eastern and Western Europe: Politics follows the market

This paper examines to what extent Eastern Europe trade reorientation towards the West has been driven by market forces versus policies for regional integration. Hierarchical cluster analysis based on bilateral trade intensity reveals the convergence of regional trade structures to the pre-World-War II pattern. Estimates of the expected trade pattern of Eastern Europe with a gravity model predict continuing rising importance of the EU. Furthermore, the assessment of the welfare implications of preferential access to EU markets shows that beneficial effects of trade expansion are likely to outweigh possible distortions. Hence integration policies follow the facts created by the market.

A Social Accounting Matrix for Bolivia Featuring Formal and Informal Activities

This paper describes the construction of a Social Accounting Matrix (SAM) for Bolivia for the year 1997. Three distinctive features render the SAM a useful starting point for distributional analyses. First, production in the agricultural and services sectSAM, structural adjustment programs, poverty, income distribution, Bolivia

Dividing up an Inheritance Successfully – Significant International Variations Surprising Results of an Internet Experiment

Ultimatum bargaining game, experimental economics, fairness and economic rationality

Assessing proposals for a transatlantic free trade area.

Initiatives to reduce transatlantic trade barriers or to harmonize trade-related domestic policies in the EU and the US appear regularly on the agenda of policy makers. The last decade saw also considerable steps in transatlantic economic cooperation focusing on special aspects. In February 2002, a new call for a study on the benefits of a transatlantic free trade area (TAFTA) was made by the President of the EU Council to facilitate further liberalization schemes. This article examines recent developments in transatlantic economic policies, discusses changes in approaches in transatlantic regionalism and presents estimates of the economic consequences of transatlantic liberalization. Given the expected small benefits of a TAFTA and the induced costs for multilateral liberalization negotiations, the article discusses alternatives to TAFTA and argues for a multilateral approach, eventually being accompanied by some sort of open regionalism.Außenhandelsliberalisierung; Freihandelszone; EU-Staaten; USA;

TAFTA: fuelling trade discrimination or global liberalisation?

This paper analyses the prospects and problems of a Transatlantic Free Trade Area (TAFTA) between the European Union and the United States. Possible economic reasons for the proposal of TAFFA such as the intensity of bilateral trade and a strong interdependence in investment flows and the similarity of the EU and the US in their factor endowment and tariff structure are examined. There are cases shining favourably on the idea, but the implementation of TAFTA will imply substantial costs due to the internal and external consequences. The main problem of a free trade area between the two most important economic blocs is the impact on the multilateral approach of trade liberalisation. The authors suggest a Transatlantic Liberalisation Initiative (TALI) as an alternative to TAFTA. Under TALI, the EU and the US should accelerate their implementation of their Uruguay Round commitments and liberalise in areas that are not yet covered by WTO agreements. This should be done under the Most-Favoured Nation clause and would be a strong motivating force for multilateral liberalisation. In addition, TALI could be a forerunner in reducing market segmentation and in establishing a semiinternal market between Europe and America.Transatlantic Free Trade Area,regional integration,European Union,multilateral liberalisation,United States

The Economics of Medical Tourism A Case Study for the USA and India

The objective of this paper is to demonstrate a simple Ricardian model of international trade for health care industries of the USA and India. Our motivation is to illustrate that specialization and free trade result in gains from international trade. We will shed some light on the economics of outbound as well as inbound medical tourism. By adopting the model of comparative advantage to the costs of medical surgeries, we will show that trade between our two model countries – India and the USA – is beneficial to both of them. By specializing on the type of surgery they are most efficient in producing, it will enhance the well being of both nations. Numerical examples and graphical presentations help to support our arguments. In addition, we will lift some of the more restrictive assumptions. By including transportation costs, barriers of trade as well as a larger variety of surgical services, the central message of the beneficial effect of specialization still remains, even though the general picture becomes slightly blurred. There is evidence for support of a more multi-polar international system of trade in medical services.medical tourism, Ricardian model, comparative advantage, international trade, gains from trade

Southern enlargement of the European Union and capital account liberalization: Lessons for Central and Eastern Europe

The integration of the central and eastern European countries into the international capital markets has been and will be determined by the process of European Union (EU) integration. Our analysis shows that southern and eastern European countries already appear to be surprisingly similar regarding FDI flows from EU members. The central and eastern European countries, however, are likely to attract increased portfolio flows in the years to come. We argue that membership alone in a regional arrangement like the EU is neither sufficient for sustained capital inflows nor is it the guarantee for increased investment activities. Rather, domestic economic policy has to change in accordance: Liberalization matters, not only membership.Capital Account Liberalization,European Union Enlargement,Capital Flows,Eastern Europe,Economic Growth

Franchise-Systeme in der öffentlichen Verwaltung

Im Sinne des New Public Managements und des Neuen Steuerungsmodells sollen erfolgreiche Managementstrukturen aus der Privatwirtschaft von der öffentlichen Verwaltung übernommen bzw. adäquat eingeführt und die überkommenen Strukturen der öffentlichen Verwaltung abgelegt werden. Die vorliegende Arbeit beschäftigt sich mit einer neuen Alternative, bestimmte öffentliche Leistungen pflichtgerecht zu erstellen bzw. der staatlichen Gewährleistungspflicht für bestimmte Leistungen nachzukommen: Franchising (Business Format Franchising) Das Franchising ist eine vertikale Kooperation selbständiger Unternehmen. Es besitzt Eigenschaften, die der Natur der öffentlichen Leistungserbringung teils sehr ähnlich sind. Im Mittelpunkt steht die gleichförmige Bereitstellung eines Leistungsbündels unabhängig von dem zuständigen/jeweiligen Leistungshersteller/Systempartner, dem Erfüllungsort und dem Erfüllungszeitpunkt. Die Standardisierung von Waren und Dienstleistungen ist für das Franchising eine Basis des Erfolgs, für die öffentliche Verwaltung eine Verpflichtung im Sinne der Gleichbehandlung der einzelnen Kunden. In den Franchise-Systemzentralen wird täglich neues Know-how für und mit den Franchise-Partnern entwickelt, um am Markt bestehen zu können. Konzepte und Prozesse werden nur einmal entwickelt, erprobt, standardisiert und auf die Partner transferiert. Das Franchising bietet die Chance, durch Wettbewerb, Kooperationen und neu geschaffenen Lieferanten-/Kundenbeziehungen Effizienz- und Effektivitätsvorteile zu generieren. Im Rahmen dieser Arbeit wird aufgezeigt wie die Franchise-Organisation, die „Königsklasse der Vertriebsorganisationen“, in der öffentlichen Verwaltung eingeführt sowie aufgebaut werden könnte und wie man sich die Vorteile eines solchen Systems zu Nutzen machen kann. Dabei werden sechs verschiedene Modelle, abhängig von der „Spezifität“ und der „Strategischen Relevanz“ einer öffentlichen Leistung (Leistungsbündel), auf- und vorgestellt

Effizienz oder Verteilungsgerechtigkeit - Welche Position nehmen Menschen tatsächlich ein? Ergebnis eines bundesweiten Feldexperimentes: starke Aversion gegenüber Ungleichverteilungen!

Ultimatum Bargaining Game, Homo Oeconomicus, Verteilungsgerechtigkeit, Experimente