One of my favourite development economists, Daron Acemoglu, has a new paper out. Acemoglu is generally of the view that a country’s level of wealth can be traced back to the country’s institutional development. In a fascinating earlier paper he argued that the institutions set up by European colonists are a major predictor of the …
Category Archive: International economics
Permanent link to this article: http://www.tvhe.co.nz/2007/08/22/democracy-and-growth/
Aug 20 2007
Product diversity and development
Tim Harford’s latest Undercover Economist column covers some interesting research on industrial development. The paper examines the type of products that countries produce, and the way that a country’s ‘manufacturing portfolio’ changes over time. The key finding is that countries tend to develop by producing similar products to those that they already produce. This makes …
Permanent link to this article: http://www.tvhe.co.nz/2007/08/20/product-diversity-and-development/
Aug 08 2007
Import substitution, good or bad?
Free exchange and Dani Rodrik have both made intelligent posts on the issue of import substitution. Free exchange sticks to the common line that import substitution is bad, Dani says that there is evidence that it is good. I know very little about any of this, but I’m going to say something anyway. As far …
Permanent link to this article: http://www.tvhe.co.nz/2007/08/08/import-substitution-good-or-bad/
Aug 06 2007
There is no such thing as a free lunch
A column in the Sunday Star Times actually discussed an interesting issue this weekend; how the biofuel revolution will lead to higher food prices. They are exactly right, you increase the demand for corn, and the price of corn will increase. Now corn is a substitute for other foods, so the demand for other foods …
Permanent link to this article: http://www.tvhe.co.nz/2007/08/06/there-is-no-such-thing-as-a-free-lunch/
Jul 30 2007
A little bit of risk is a dangerous thing
So, our dollar has fallen 5% against the US, and 8% against the yen in the last few days. While some people may think that the prospect of no more interest-rate hikes is the driver, the truth is that market participants have become a bit more risk-averse. A little bit of wobblying in the US …
Permanent link to this article: http://www.tvhe.co.nz/2007/07/30/a-little-bit-of-risk-is-a-dangerous-thing/
Jul 26 2007
A Strict Application of “Kiwi Made” Actually Hurts Our Exporters
While I am all for supporting the domestic economy, I think that a strict interpretation of the requirements for a good to be labelled “Made in New Zealand” actually harms our exporters. People get upset when they find out that something that is “Made in New Zealand” is manufactured using inputs purchased from another country. …
Permanent link to this article: http://www.tvhe.co.nz/2007/07/26/a-strict-application-of-kiwi-made-actually-hurts-our-exporters/
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