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on European Economics |
| By: | Linda Goldberg |
| Abstract: | The accession countries to the euro area are increasingly binding their economic activity, external and internal, to the euro area countries. One aspect of this phenomenon concerns the currency invoicing of international trade transactions, where accession countries have reduced their use of the US dollar in invoicing international trade transactions. Theory predicts that the optimal invoicing choices for accession countries depend on the composition of goods in exports and imports and on the macroeconomic fluctuations of trade partners, both bearing on the role of herding and hedging considerations within exporter profitability. These considerations yield country-specific estimates about the degree of euro-denominated invoicing of exports. I find that the exporters of some accession countries, even in their trade transactions with the euro zone and other European Union countries, might be pricing too much of their trade in euros rather than in dollars, thus taking on excessive risk in international markets. |
| JEL: | F3 F4 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11653&r=eec |
| By: | Oscar Bajo; Antonio Gómez (Departamento de Economía-UPNA) |
| Abstract: | In this paper we provide an empirical assessment of two of the measures proposed in the context of the European Single Market, namely, easing the provision of domestic and foreign services, and modifying the rules of public procurement, for the case of Spain. We build and simulate a computable general equilibrium (CGE) model, which incorporates three particular features: (i) increasing returns to scale and a noncompetitive price rule; (ii) sectoral export demand functions; and (iii) equilibrium unemployment according to a matching function approach. |
| Keywords: | Computable general equilibrium, European Single Market, Spanish economy |
| JEL: | D58 F15 F17 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:nav:ecupna:0503&r=eec |
| By: | Stefano Federico; Gaetano Alfredo Minerva (SEMEQ Department - Faculty of Economics - University of Eastern Piedmont) |
| Abstract: | Using data from U±cio Italiano dei Cambi and Istituto Nazionale di Statistica, we empirically assess the impact of Italy's outward foreign direct investment (FDI) on local employment growth between 1996 and 2001 for 12 manufacturing industries. We find that FDI towards advanced countries is associated with faster local employment growth, relatively to the national industry average. Local areas whose ¯rms invest more towards developing countries show instead an employment performance in line with the national industry average; only for two industries the relationship turns out to be negative. |
| Keywords: | Foreign direct investment; agglomeration; employment growth |
| JEL: | C21 F21 F23 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:upo:upopwp:102&r=eec |
| By: | Michael C. Burda (Humboldt-University Berlin); Michael Kvasnicka (Humboldt-University Berlin) |
| Abstract: | Temporary help services (THS) offer firms an additional option for flexible adjustment of employment levels. In addition, THS can facilitate new employment for both labor market entrants and job losers. This survey examines the economic significance, the changing regulatory framework, and the recent development of the THS sector in Germany. Declining wages and rising employment shares in THS are suggestive of a safety valve for the primary labor market, especially for unskilled workers. High markups charged by THS firms despite declining relative compensation of THS workers suggest a high shadow price for this form of labor input. Nevertheless, the coincidence of low and falling wages, small sector size, combined with low inflow rates and high overall fluctuation point to supply rather than demand bottlenecks as an explanation for the sector’s overall modest size. |
| Keywords: | Zeitarbeit, temporary agency work, temporary help employment, flexible employment forms |
| JEL: | J |
| Date: | 2005–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpla:0510004&r=eec |