The Dark Side of Transfer Pricing: Its Role in Tax Avoidance and Wealth Retentiveness

In conventional accounting literature, ?transfer pricing? is portrayed as a technique for optimal allocation of costs and revenues amongst divisions, subsidiaries and joint ventures within a group of related entities. Such representations of transfer pricing simultaneously acknowledge and occlude how it is deeply implicated in processes of wealth retentiveness that enable companies to avoid taxes and facilitate the flight of capital. A purely technical conception of transfer pricing calculations abstracts them from the politico-economic contexts of their development and use. The context is the modern corporation in an era of globalized trade and its relationship to state tax authorities, shareholders and other possible stakeholders. Transfer pricing practices are responsive to opportunities for determining values in ways that are consequential for enhancing private gains, and thereby contributing to relative social impoverishment, by avoiding the payment of public taxes. Evidence is provided by examining some of the transfer prices practices used by corporations to avoid taxes in developing and developed economies

Urbanization and international trade and investment policies as determinants of noncommunicable diseases in Sub-Saharan Africa

There are three dominant globalization pathways affecting noncommunicable diseases in Sub-Saharan Africa (SSA): urbanization, trade liberalization, and investment liberalization. Urbanization carries potential health benefits due to improved access to an increased variety of food imports, although for the growing number of urban poor, this has often meant increased reliance on cheap, highly processed food commodities. Reduced barriers to trade have eased the importation of such commodities, while investment liberalization has increased corporate consolidation over global and domestic food chains. Higher profit margins on processed foods have promoted the creation of ‘obesogenic’ environments, which through progressively integrated global food systems have been increasingly ‘exported’ to developing nations. This article explores globalization processes, the food environment, and dietary health outcomes in SSA through the use of trend analyses and structural equation modelling. The findings are considered in the context of global barriers and facilitators for healthy public policy.Department of HE and Training approved lis

China, the G20 and the International Investment Regime

China has become a major home country for outward foreign direct investment (FDI) flows. As a result, the country is increasingly concerned with protecting its outward FDI and facilitating the operations of its firms investing abroad and creating a strong universal international investment law and policy regime. This article reviews briefly the emergence of China as an outward investor. It continues with an analysis of some policy issues related to the rise of FDI from emerging markets. A brief discussion of issues central to the future of the international investment law and policy regime follows, before focusing on several outcomes that could be pursued under China’s G20 leadership: non-binding shared principles that could outline the architecture of a universal framework on international investment; an international support program for sustainable investment facilitation; and the creation of an additional intergovernmental platform that would allow for a continued systematic intergovernmental process to discuss the range of issues related to the governance of international investment, preferably paralleled by an informal, inclusive and result-oriented consensus-building process that takes place outside intergovernmental settings

Oil and Cocoa in the Political Economy of Ghana-EU Relations: Whither Sustainable Development?

Oil and cocoa represent strategic export commodities for the Ghanaian economy, prioritised within the Ghana Shared Growth and Development Agenda. This article examines these sectors in the context of Ghana’s relations with the European Union (EU). Notably, the EU constitutes the most important market for Ghanaian exports. The European Commission, moreover, has pledged to tangibly assist private sector development in Ghana, with particular reference to the UN Sustainable Development Goals (SDGs). Through its focus on oil and cocoa, the article problematises certain aspects of EU aid and trade interventions with respect to normative SDG development pledges

Do Futures Benefit Farmers?

Simulations are used to analyze welfare and market- and farm-level effects of making futures available to producers of a storable commodity. Key features of the model are the explicit consideration of dynamic impacts due to inventories, and of aggregate market effects associated with futures adoption by some producers. Application to the natural rubber market shows that futures availability can lead to sizable market- and farm-level effects. Futures availability enhances consumer welfare, reduces nonadopter welfare, and yields important welfare gains for adopters when their market share is small and welfare losses when they account for a sufficiently large market share. Copyright 2009, Oxford University Press.

China as Chimney of the World: The Fossil Capital Hypothesis

What has caused the early 21st-century emissions explosion in China? Driving a global explosion, it appears to stand in some relation to processes of globalization, but these links have mostly remained unexplored. This article revisits some established frameworks for understanding the connection between globalization and environmental degradation and argues that they are insufficient for explaining the Chinese explosion. A new hypothesis is outlined, called "the fossil capital hypothesis." It proposes that globally mobile capital will tend to relocate production to countries with cheap and disciplined labor, but only through the accelerated consumption of fossil energy. Via three specified "effects," the inflow of global capital will therefore set off massive increases in CO2 emissions. The hypothesis is applied in a brief analysis of developments in China between 2001 and 2008, and in other Asian countries after the Chinese strike wave in 2010