Institute of World Economics

Abstract Several major articles from the past decade and beyond conclude the impact of reforestation or afforestation on water yield is negative: additional forest cover will reduce and removing forests will raise downstream water availability. A second group of authors argue the opposite: planting additional forests should raise downstream water availability and intensify the hydrologic cycle. Obtaining supporting evidence for this second group of authors has been more difficult due to the larger scales at which the positive effects of forests on the water cycle may be seen. We argue that forest cover is inextricably linked to precipitation. Forest‐driven evapotranspiration removed from a particular catchment contributes to the availability of atmospheric moisture vapor and its cross‐continental transport, raising the likelihood of precipitation events and increasing water yield, in particular in continental interiors more distant from oceans. Seasonal relationships heighten the importance of this phenomenon. We review the arguments from different scales and perspectives. This clarifies the generally beneficial relationship between forest cover and the intensity of the hydrologic cycle. While evidence supports both sides of the argument – trees can reduce runoff at the small catchment scale – at larger scales, trees are more clearly linked to increased precipitation and water availability. Progressive deforestation, land conversion from forest to agriculture and urbanization have potentially negative consequences for global precipitation, prompting us to think of forest ecosystems as global public goods . Policy‐making attempts to measure product water footprints, estimate the value of ecosystem services, promote afforestation, develop drought mitigation strategies and otherwise manage land use must consider the linkage of forests to the supply of precipitation.

This is the first of five volumes reporting on the UNU-WIDER study on New Regionalism. It deals with the conceptions and meanings of two processes which probably will have a crucial influence on the s

Despite recent headlines about the ‘land rush’, scant empirical evidence implies that the debate is often theoretical and dominated by preconceived notions. To provide evidence that could better inform the debate, this paper focuses on three areas. First, we find that new land demand, which skyrocketed after the 2007/08 commodity price spike, remained at high levels, with a strong focus on Africa, and often countries with weak land rights protection. Some countries transferred large areas to investors, frequently locals, with limited benefits and in many cases negative impact due to weak processes and limited capacity. Second, complementing the focus on demand with an assessment of agro-climatic potential point towards major scope for productivity increase on currently cultivated areas and allows identification of countries where demand for land expansion may concentrate. Finally, comparative analysis of country policies highlights the need for recognition of existing rights, an emphasis on voluntary transfers, transparency, and thorough review of economic, social, and environmental viability as necessary—though by no means sufficient—conditions to reduce the likelihood of negative impacts.

This paper provides empirical evidence on the determinants of foreign activities of German banks. We use regionally disaggregated panel data for the years 1981–98 and distinguish foreign direct investment from total foreign assets of domestic banks, of their foreign branches and of their subsidiaries. Foreign activities are found to be positively related to demand conditions on the local market, foreign activities of German firms, and the presence of financial centers. This supports the hypothesis that German banks follow their customers abroad. Exchange rate volatility has some negative impact. EU membership and the abolition of capital controls seem to have exerted a greater influence on foreign assets than on FDI of German banks, thus weakly supporting the hypothesis that the two are substitutes.

Aims to outline a theoretical and methodological framework for the understanding, design, assessment and benchmarking of knowledge cities (KCs) based on social knowledge capital accounts as common ground for interdisciplinary work between KM and the established field of urban studies and planning. The evolution of urban regions throughout history is analyzed from the perspective of value systems. Under this perspective, the basic configuration of human urban settlements is seen to evolve as the forms of production of social value have done. Alternative concepts of KCs are then discussed, allowing the distinction of three stages of development. Based on this distinction, some critical levels of KC analysis as well as some specific dimensions of urban capital are identified. The requirements for a formal structure of KC capital system are then established as a criterion to identify and value the knowledge accounts of urban regions, specifically in the form of KBD indicators. A taxonomy of capital accounts for KCs – the core part of this work – is introduced and main categories described. Based on these capital accounts, the future of cities is perceived as carrying some critical discontinuities in developmental dynamics. Specifically some breaking points which seem to be implicit and embrionic in any third‐stage KC are discussed. KBD emerges as a disruptive approach that may contribute to overcome the exhaustion of the industrial city and therefore the inertial carry over of its decadence into the future and potentially leapfrog urban regions into the next‐level of communitary value systems.

This paper asks how important distance is as a determinant of international banking and whether distance has become less important over time. If technological progress has lowered information costs and if information costs increase in distance, the importance of distance should have declined. I use data on assets and liabilities of commercial banks from five countries (France, Germany, Italy, UK, and US) in 50 host countries for the years 1983–99 to test this hypothesis. Generally, I find that banks hold significantly lower assets in distant markets and that the importance of distance for the foreign asset holdings of banks has not changed.

FDI Firm-level evidence Foreign direct investment is an essential aspect of ‘globalization’ yet its empirical determinants are not well understood. What we do know is based either on poor data for a wide range of nations, or good data for the US and Swedish cases. In this paper, we provide evidence on the determinants of the activities of German multinational firms by using a newly available firm-level data set from the Deutsche Bundesbank. The specific goal of this paper is to demonstrate the relative role of country-level and firm-level determinants of foreign direct investment. We focus on three main questions: First, what are the main driving forces of German firms’ multinational activities? Second, is there evidence that sector-level and firm-level factors shape internationalization patterns? Third, is there evidence of agglomeration effects in the foreign activities of German firms? We find that the market access motive for internationalization dominates. Firms move abroad mainly to gain better access to large foreign markets. Cost-saving motives, however, are important for some manufacturing sectors. Our results strongly suggest that firm-level heterogeneity has an important influence on internationalization patterns – as stressed by recent models of international trade. We also find positive agglomeration effects for the activities of German firms that stem from the number of other German firms that are active on a given foreign market. In terms of lessons for economic policy, our results show that lowering barriers to the integration of markets and encouraging the formation of human capital can promote the activities of multinational firms. However, our results related to the heterogeneity of firms and agglomeration tendencies show that it might be difficult to fine-tune policies directed at the exploitation of synergies and at the creation of clusters of foreign firms. — Claudia M. Buch, Jörn Kleinert, Alexander Lipponer and Farid Toubal

For FDI to help alleviate absolute poverty and stimulate economic growth in developing countries, two conditions have to be met. First, developing countries need to be attractive to foreign investors. Second, the host‐country environment in which foreign investors operate must be conducive to favourable FDI effects with regard to overall investment, economic spillovers and income growth. This paper argues that it is more difficult to benefit from FDI than to attract FDI. The widely perceived concentration of FDI in few developing countries tends to obscure that, in relative terms, various small and poor countries are fairly attractive to FDI. Yet, the mobilisation of domestic resources remains by far, more important than attracting FDI for financing investment and stimulating economic growth. Furthermore, high inward FDI is no guarantee for poverty alleviation and positive growth effects. In particular, the empirical evidence suggests that host‐country conditions typically prevailing in poor countries, including weak institutions and an insufficient endowment of complementary factors of production, constrain the growth‐enhancing and poverty‐alleviating effects of FDI. The crux is that creating an environment in which FDI may deliver social returns will take considerable time exactly where development needs are most pressing.

Abstract\n In this paper we use entropy statistics to measure the synergies of knowledge exploration, knowledge exploitation, and organizational control in Hungary. We categorized the firms in terms of sub-regions, industrial sectors, and firm size. Configurational information among these distributions is the indicator of the synergy in the system. The results indicate that three regimes were generated in the Hungarian transition period with different dynamics: Budapest emerges as a knowledge-based innovation system; in the north-western regions, foreign-owned companies have induced a shift in knowledge-organization; while the system is organized in the southern-eastern regions in accordance with government expenditures.

This article provides estimates of the effect of statutory severance pay and notice on four labor market outcome indicators, closely following Lazear (1990) but correcting for errors in his dependent variables and covariates. Although we corroborate the directional influence of severance pay for three of the indicators, there is little to suggest that its contribution to rising unemployment is material. Also contrary to Lazear, longer notice appears to be associated with broadly favorable outcomes.

BACKGROUND: Limited, outdated, and poor quality data are available on the prevalence of tinnitus, particularly in Italy. METHODS: A face-to-face survey was conducted in 2014 on 2,952 individuals, who represented the Italian population aged 18 or more (50.6 million). Any tinnitus was defined as the presence of ringing or buzzing in the ears lasting for at least 5 min in the previous 12 months. RESULTS: Any tinnitus was reported by 6.2% of Italian adults, chronic tinnitus (i.e. for more than 3 months) by 4.8%, and severe tinnitus (i.e. which constitutes a big or very big problem) by 1.2%. The corresponding estimates for the population aged ≥45 years were 8.7, 7.4 and 2.0%, respectively. Multivariable analysis on population aged ≥45 years revealed that old age (odds ratio (OR) = 4.49 for ≥75 vs. 45-54 years) and obesity (OR = 2.14 compared to normal weight) were directly related to any tinnitus, and high monthly family income (OR = 0.50) and moderate alcohol consumption (OR = 0.59 for <7 drinks/week vs. non-drinking) were inversely related. CONCLUSIONS: This is the first study on tinnitus prevalence among the general Italian adult population. It indicates that in Italy tinnitus affects more than 3 million adults and is felt as a major problem by more than 600,000 Italians, mostly aged 45 years or more.

Vegetable-based diets have generally focused on their health benefits including negative associations with the serum cholesterol concentrations. The aim of this study was to investigate whether serum lipid concentrations are influenced by the amount of kimchi intake. For the study, 100 volunteers were assigned to 2 dietary groups, low (15 g/day, n=50) and high (210 g/day, n=50) kimchi intake, and were housed together in a dormitory for 7 days. Identical meals except with different amount of kimchi were provided and subjects were instructed to maintain their normal physical activity. Concentrations of fasting blood glucose (FBG), total glucose, total cholesterol and low density lipoprotein (LDL)-C significantly decreased in both groups after 7 days of kimchi intake, but the effects were dose dependent. Lipid lowering effects of kimchi were more profound in the subjects with total cholesterol and LDL-C level over 190 and 130 mg/dL, respectively, in both groups. FBG was significantly decreased in the high kimchi intake as compared to the low intake group (P=.003). In conclusion, greater consumption of kimchi improved FBG and serum total cholesterol in young healthy adults.

Cesarean section (CS) is the most common operative procedure performed in sub-Saharan Africa (SSA), accounting for as much as 80% of the surgical workload. In contrast to CSs performed in high-income countries, CSs performed in SSA are accompanied by high morbidity and mortality rates. This operation is the most important known variable associated with an increased probability of postpartum bacterial infection. The objective of this review was to assess surgical outcomes related to CS in SSA. PubMed (including Medline), CINAHL, Embase, and the World Health Organization's Global Health Library were searched without date or language restrictions. A total of 26 studies reporting surgical site-infection rates after CS were identified, representing 14,063 women from 14 countries. The vast majority (76.7%) of CSs performed were emergency operations. The overall CS rate for women included in this review was 12.4% (range: 1.0%-41.9%). Only 17 of 26 total studies reported a significant proportion of women receiving antimicrobials of any kind. The surgical site-infection rate was 15.6% and the wound-infection rate 10.3%.

This article investigates the differences in the application and impact of digital technologies between manufacturing subsidiaries and lead companies, the principal orchestrators of global automotive value chains. Utilising a dataset of 10 in-depth interviews with automotive industry actors, we analyse headquarters–subsidiary differences in the patterns of digitalisation-driven upgrading. A theoretical framework is offered that explains why the significant upgrading achievements of manufacturing subsidiaries deploying industry 4.0 technologies will not reduce the gap between lead companies and manufacturing subsidiaries in terms of value generation. We show that the concept of ‘industry 4.0’ is much narrower than that of ‘digitalisation’ and transition to smart factories is only part of the digital transformation story. Industry 4.0 technologies contribute to the upgrading of operations, and enable subsidiaries to take on production-related knowledge-intensive assignments (functional upgrading). Conversely, digitalisation serves lead companies’ strategic differentiation efforts, and facilitates achieving competitive advantage: the latter are crucial for value capture.

Abstract The occurrence of atopic dermatitis (AD), a chronic inflammatory skin disease, has been increasing steadily in children and adults in recent decades. In this study, we evaluated the ability of the lactic acid bacterium Weissella cibaria WIKIM28 isolated from gatkimchi, a Korean fermented vegetable preparation made from mustard leaves, to suppress the development of AD induced by 2,4-dinitrochlorobenzene in a murine model. Oral administration of W. cibaria WIKIM28 reduced AD-like skin lesions, epidermal thickening, and serum immunoglobulin E levels. Furthermore, the production of type 2 helper T (Th2) cytokines such as interleukin (IL)-4, IL-5, and IL-13 decreased in peripheral lymph node cells. Moreover, the intake of W. cibaria WIKIM28 increased the proportion of CD4 + CD25 + Foxp3 + regulatory T (Treg) cells in mesenteric lymph nodes (MLNs) and IL-10 levels in polyclonally stimulated MLN cells. In conclusion, the oral administration of W. cibaria WIKIM28 isolated from gatkimchi ameliorated AD-like symptoms by suppressing allergic Th2 responses and inducing Treg responses. These results suggest that W. cibaria WIKIM28 may be applicable as a probiotic for the prevention and amelioration of AD.

Journal Article INSTITUTIONAL COMPETITION VERSUS CENTRALIZATION: QUO VADIS EUROPE? Get access HORST SIEBERT, HORST SIEBERT Kiel Institute of World Economics Search for other works by this author on: Oxford Academic Google Scholar MICHAEL J. KOOP MICHAEL J. KOOP Kiel Institute of World Economics Search for other works by this author on: Oxford Academic Google Scholar Oxford Review of Economic Policy, Volume 9, Issue 1, SPRING 1993, Pages 15–30, https://doi.org/10.1093/oxrep/9.1.15 Published: 01 March 1993

This paper examines the impact of foreign aid on public sector fiscal behaviour in Cte d'Ivoire. A special interest is the relationship between aid, debt servicing and debt, given that Cte d'Ivoire is a highly indebted country. The theoretical model employed differs from those of previous studies by highlighting the interaction between debt servicing and the other fiscal variables. This model is estimated using 1975-99 time series data. Key findings are that the bulk of aid is allocated to debt servicing and that aid is associated with increases in the level of public debt.

Our paper is an attempt to define the contours of the right macroeconomic strategy for China.In a nutsheU, we believe that the package includes a decrease in saving, with a focus on private saving, an increase in the supply of services, in particular health services, and an appreciation of the RMB.This is why we refer to this strategy as a "three-handed approach": action on the fiscal and budgetary front, accompanied by currency revaluation.We start by asking how the Chinese economy got to where it is -what the strat- egy has been since the beginning of the reforms, and what the main characteristics of the economy are today.We then ask what is the desirable path for the future, and which are the main policy tradeoffs implied by such a path.Finally, we put the various pieces together to describe what we believe is a consistent policy package.

The German Federal Government has undertaken a series of particularly interesting policy experiments in the field of technology policy in recent years, a major policy innovation being the explicit recognition of regional clustering aspects in federal support programmes. The paper provides a categorization and assessment of these policy experiments and tries to shed some new light on two fundamental policy questions that are important beyond the German context: (i) can clusters be built by national government policy action? and (ii) is regionalization of technology policy a suitable means of achieving goals at the national level? We find that utilizing the regional level to boost national innovation and competitiveness can—under certain conditions explicated in the paper—indeed be seen as a promising means of achieving national goals. More specifically, we find that InnoRegio type programmes might be particularly useful in regions with distinctive structural problems such as the Central and Eastern European countries, whereas BioRegio type models might be a suitable means of policy‐making at the level of the European Union.

Drawing on interviews with ten Hungarian digital automotive technology providers, this paper investigates how digital transformation can assist factory economy digital entrepreneurs in their integration in the highly concentrated automotive global value chains (GVCs). We identified four mechanisms by which digital transformation can, in principle, produce opportunities for factory economies in progressing towards economy actors’ entrepreneurial integration in automotive GVCs, as follows. (1) New entrepreneurial opportunities in the digital realm; (2) Fine-slicing innovation and globalisation of R&D; (3) Ecosystem-type innovation collaboration; (4) Interaction-intensity of custom-tailored digital services provision. However, to realise the potential of these opportunities, a critical mass of capable digital entrepreneurs needs to be achieved: a long way to go for factory economies.