Trade, outsourcing and skilled to unskilled wage bill ratio in CEECs manufacturing

In this paper we investigate whether the outsourcing process in recent years induced a change in wage and employment inequalities between skilled and unskilled workers in the Czech Republic, Hungary and Poland. The outsourcing process is proxied by trade in intermediates and FDI. We analyse the three countries separately and further disentangle the impact of trade in parts and components from that of trade in primary and processed commodities. The main result is that outsourcing from Western to Eastern Europe exerted a different effect on each of the three CEECs. In all countries there is a specialisation in the export of unskilled intensive intermediates and this effect is driven relatively more by parts and components. The latter are also the main force behind the negative effect of intermediate imports in Poland. In this country the increased growth of final goods export exerts a skill biased impact. On the contrary, in Hungary it is the import of parts and components to be skill biased. In the Czech Republic, although intermediate imports are not significant, there is evidence of a positive effect of imported processed goods

The dynamics of French public debt: Paths for fiscal consolidations

We analyze possible targets for the French debt-to-GDP ratio with a small model. The role of the US and German GDP growth, prices of raw materials, ECB monetary policy, and domestic policy is analyzed in the debt dynamics. We find that external conditions, together with policies to stimulate growth and to generate a government surplus, play a fundamental role in the French fiscal consolidation.Debt to GDP Ratio, French Economy, International Factors

Non-stationary inflation and panel estimates of the n ew Keynesian Phillips curve for Australia

This paper uses a recent panel method of Russell and Banerjee (2008) to estimate the new Keynesian Phillips curve for Australia. Our estimates show that while the hybrid new Keynesian Phillips curve and backward looking conventional Phillips curve are well determined, estimates of the Phillips curve with the pure forward looking expectations are unsatisfactory.Panel data estimates, new Keynesian Phillips curve, Australia and Unit roots in the rate of inflation.

The dynamics of Spanish public debt and sustainable paths for fiscal consolidation

This paper analyses possible patterns for the Spain debt-to-GDP ratio with a small macroeconomic model. The role of international macroeconomic variables (such as the US and French GDP growth rates, prices of raw materials, ECB monetary policy stance) and domestic policy instruments is analyzed in the debt dynamics. We find that external conditions, together with policies aimed to stimulate the growth and fulfilling Maastricht restrictions on deficit, play a fundamental role for fiscal consolidation in Spain and help to reach a sustainable pattern.Debt to GDP Ratio, Spain Economy, International Factors, SUR

Competitiveness in the European Economy

This book deals with the relationship between the competitiveness of countries in Europe and the analysis of macroeconomic imbalances. It focuses mainly on a European analysis, along with special studies of the German economy, which is rarely considered to be a cause for the current crisis. The book also compares Germany with Italy, providing a comparative perspective on structural reforms. The first part of this book analyses macroeconomic imbalances based on a new framework from the analysis of the flow of founds rather than balance of payments, and presents an alternative measure of unit labour cost comparisons to investigate the relationship between imbalances and competitiveness. The second part is dedicated to the analysis of the trade performance of Germany and Italy and the sustainability of the German model in the EMU. The third part describes the reform policies implemented by Germany and their effect on imbalances; this includes wage moderation, the labour market reforms and weak labour demand. The final part explores the regional inequalities within Germany and Italy, providing useful lessons regarding fiscal federalism and regional banking developments. In conclusion, a big part of the problems within the Euro Area are generated by the use of a wrong framework of analysis, where the EMU is considered as a fixed exchange rate regime and not a single country. This book provides an alternative view which holds at the core the relationship between sectors. It is stressed throughout the book that the German behaviour has contributed to the rise of imbalances between countries due to its growth model, not suitable for a big developed country in a currency union. This book also finds that stressing banking integration within countries helps to reduce regional inequalities, which has important implications for the management of Europe’s future banking union and macroeconomic imbalances

Technological catching up, quality of exports and competitiveness: a sectoral perspective

We analyze the relationship between Central and Eastern European countries (CEEC) industry-level competitiveness and technological catching up induced by economic integration with European Union (EU) economies. A theoretical dynamic setup is developed in which high-skill firms gain market share in 'quality dominated' markets, whereas low-skill firms face price competition for their exports. We run econometric estimations for bilateral trade between CEEC and EU economies over 2000-2007. We first test the assumption that the unit value ratio is a good proxy for quality in trade and then use the fitted unit value ratio to estimate the role of preference for quality in CEEC market share changes. Estimations support the results of the theoretical model

Bank-based or Market-based financial sources: which is better for the EU?

This paper examines the relationships between the financial structure and the economic performance of non-financial corporations in the European Union (EU). The analysis covers the 1999-2018 period, thus allowing us to consider both the different cyclical phases and the process of enlargement of the EU and the Euro Area (EA). We investigate how the relative weight of market-based and bank-based finance affects the real performances of non-financial corporations across countries. Our results indicate that market-based finance is more effective than bank-based finance in supporting the growth of gross value added and investments of these corporations. Our findings hold when considering a break for the financial crisis (2008-2009), and are confirmed via a panel VAR specification. They may suggest a need to pursue a new balance between markets and intermediaries in the EU and EA by strengthening the role of the non-banking segments of financial markets

A field-scale remediation of residual light non-aqueous phase liquid (LNAPL): chemical enhancers for pump and treat

The remediation of petroleum-contaminated soil and groundwater is a challenging task. The petroleum hydrocarbons have a long persistence in both the vadose zone and in the aquifer and potentially represent secondary and residual sources of contamination. This is particularly evident in the presence of residual free-phase. Pump-and-treat is the most common hydrocarbon decontamination strategy. Besides, it acts primarily on the water dissolved phase and reduces concentrations of contaminants to an asymptotic trend. This study presents a case of enhanced light non-aqueous phase liquid (LNAPL) remediation monitored using noninvasive techniques. A pilot-scale field experiment was conducted through the injection of reagents into the subsoil to stimulate the desorption and the oxidation of residual hydrocarbons. Geophysical and groundwater monitoring during pilot testing controlled the effectiveness of the intervention, both in terms of product diffusion capacity and in terms of effective reduction of pollutant concentrations. In particular, non-invasive monitoring of the reagent migration and its capability to reach the target areas is a major add-on to the remediation technique. Most of the organic contaminants were decomposed, mobilized, and subsequently removed using physical recovery techniques. A considerable mass of contaminant was recovered resulting in the reduction of concentrations in the intervention areas

Non-stationary inflation and panel estimates of the n ew Keynesian Phillips curve for Australia

This paper uses a recent panel method of Russell and Banerjee (2008) to estimate the new Keynesian Phillips curve for Australia. Our estimates show that while the hybrid new Keynesian Phillips curve and backward looking conventional Phillips curve are well determined, estimates of the Phillips curve with the pure forward looking expectations are unsatisfactory

Non-stationary inflation and panel estimates of the n ew Keynesian Phillips curve for Australia

This paper uses a recent panel method of Russell and Banerjee (2008) to estimate the new Keynesian Phillips curve for Australia. Our estimates show that while the hybrid new Keynesian Phillips curve and backward looking conventional Phillips curve are well determined, estimates of the Phillips curve with the pure forward looking expectations are unsatisfactory