Asymmetric and nonlinear dynamics in trade flows sustainability: Serbia and Romania

The research examines the sustainability of trade flows for two European post-communist economies: Serbia and Romania. We analysed two nonlinear forms of the relationship between exports and imports that cannot be explained by frequently applied linear model specifications. Newly developed nonlinear autoregressive distributed lag approach revealed the asymmetric and nonlinear long-run equilibrium between Serbian exports and imports. Nonlinearity tests indicated and the SETAR model specification confirmed threshold nonlinearity form in the Serbian trade flows pattern. Serbian trade flows still approach its sustainable equilibrium but the development pattern is promising. The results for Romania revealed another nonlinear form of the relationship between exports and imports, indicating a dependent cointegration. The paper provides robust results and supports the hypothesis that the relationship between exports and imports can be nonlinear and symmetric.

Dynamics of resilience–equity interactions in resource-based communities

Despite the growing focus on understanding how to build resilience, the interaction between resilience and equity, particularly in the context of power asymmetries like those in communities reliant on resource-based industries, or resource-based communities, is not well understood. Here we present a stylized dynamical systems model of asymmetric resource access and control in resource-based communities that links industrial resource degradation, community well-being, and migration in response to economic and resource conditions. The model reveals a mechanism of collapse due to these dynamics in which over-extraction and resource degradation trigger irreversible population decline. Regulating resource extraction can increase resilience (in the sense of persistence) while also shifting the sustainable equilibrium and the implications for equity. Resilience does not guarantee equity at equilibrium, and this misalignment is more pronounced in the transient interactions between short term equity and long term resilience. The misalignment between resilience and equity demonstrates how equity considerations change the policy design process in important ways.

Trade and Economic Integration in BRICS

This chapter examines the existing pattern in the area of trade and economic integration among the BRICS countries which was tended to be neglected and to which there have been few original or significant contributions until now. The research results indicate the presence of the long-run sustainable equilibrium relationship between Foreign Direct Investment (FDI), trade and economic growth. It is thus important that policymakers have to remove obstacles to FDI inflows and improve the respective absorptive capacity of national economies in order to maximize positive growth effects. This study also discusses how China performed well through attracting FDI inflows and maintained trade balance.

Sustainable Equilibrium Index (SEI): A Measure to Analyze the Systemic Dependences in Territorial Development

<p><em>Regional prosperity not only depends on economic issues but also in social and environmental aspects. Achieving a sustainable growth path in the long term implies “coherence” in the advancement of these three dimensions (avoiding potential imbalances threatening that path). Here the notion of “sustainable” competitiveness arises. In this context, the objective of this paper is to demonstrate, through a quantitative methodology, that the coherence of economic, social and environmental dimensions is in fact at the core of regional prosperity and regional gap. To do so, the paper analyses the systemic interdependencies between these three fields using a quantitative methodological approach: the Sustainable Equilibrium Index (SEI). The results include the overall estimates for the SEI in each Spanish region as well as a detailed decomposition of the index by economic, social and environmental fields. Finally, recommendations are made to consider SEI as a metric for the upcoming RIS3 strategies.</em></p>

Accountability Agreements for Ontario Universities: The Balancing Character of a Policy Instrument

This paper demonstrates how the choice of instrument facilitates acceptance of a new accountability requirement in the Ontario university sector as it helps balance the government’s need for control with the universities’ need for independence. The instrument, conceptualized as an agreement, embodies the negotiated character of the relationship between government and universities, and conveys the idea to different actors that their needs are met. Despite the promises of the instrument, when objectives are ambiguous, uncertainty is pervasive, and negotiation is limited, the increase in government control is minimized and the changes in university autonomy are negligible, thus suggesting that symbolic and rhetorical compliance may be the sustainable equilibrium between governments and governed. Nonetheless, some level of transformation is observed in the sector as the new tool contributes to strengthening priority alignment, highlighting the value of sharing stories, and increasing acceptance of reporting requirements.

AN EVALUATION OF CONSTITUTIONAL CONSTRAINTS ON CAPITAL TAXATION

This paper investigates the desirability of constitutional constraints on capital taxation in an environment without government debt and where benevolent governments have limited commitment. In our setup, governments can choose proportional capital and labor income taxes subject to the constitutional constraint but cannot commit to an actual path of taxes. First, we explore a form of constitutional constraint: a constant cap on capital tax rates. In our quantitative exercise, we show that a three percent cap on capital taxes provides the highest welfare at the worst sustainable equilibrium. However, such a cap decreases welfare at the best sustainable equilibrium (both because it constrains feasibility and because it tightens the incentive compatibility constraint). Second, we identify a form of constitutional constraint that can improve all sustainable equilibria. That constraint features a cap on capital taxes that increases with the level of capital.

Trade and Economic Integration in BRICS

This chapter examines the existing pattern in the area of trade and economic integration among the BRICS countries which was tended to be neglected and to which there have been few original or significant contributions until now. The research results indicate the presence of the long-run sustainable equilibrium relationship between Foreign Direct Investment (FDI), trade and economic growth. It is thus important that policymakers have to remove obstacles to FDI inflows and improve the respective absorptive capacity of national economies in order to maximize positive growth effects. This study also discusses how China performed well through attracting FDI inflows and maintained trade balance.

Foreign Direct Investment, Trade and Economic Growth: A New Paradigm of the BRICS

<p class="zhengwen"><span lang="EN-GB">The present study begins by surveying broadly supports the assertion that regional integration in the case of the BRICS is not adequately paid attention except with very few original or significant contributions. This research examines the existing pattern in the areas of trade and investment with a view to locate in the development context. It was also essential to make a theoretical investigation on literature of trade along with the empirical one. The survey broadly supports the frequent, through usually undocumented, assertion that BRICS was an area had tended to neglect and to which they had made few if any original or significant contributions. Alongside, this study panel data on BRICSs, where the results confirm that foreign direct investment (FDI), trade and economic growth indicate the presence of long-run sustainable equilibrium relationship between them. It is thus important that policymakers to remove obstacles to FDI inflows and improve the respective absorptive capacity in order to reap maximize positive growth effects. This study also discussed that how China performed well through attracting FDI inflows and maintained trade balance. </span></p>

Braucht Deutschland einen Kapazitätsmarkt für eine sichere Stromversorgung?

The current political debate on the Energiewende in Germany is no longer focused on economic and ecological aspects. Instead, concerns regarding security of supply become more and more relevant. Though current risks for security of supply are mainly driven by the situation in transmission systems, policy debate is driven by the economic situation of plant operators and the provision of generation adequacy. On this background, many stakeholders claim the introduction of capacity mechanisms. The article shows that such decision should not be made in a purely national context, but requires strong European coordination. There is no clear evidence that the current energy-only market design will not deliver adequate investments in generation. However, a sustainable equilibrium requires stable and predictable boundary conditions for energy markets and a general acceptance of price peaks. A strategic reserve is proposed as an easy-to-implement, short-term and reversible means to guarantee security of supply while wellfounded political decisions on future market design can be taken.