Regional Efficiency in the European Union

This paper examines existing disparities in technical efficiency levels across the European regions over the period 1986–2002. The results reveal that technical efficiency is not randomly distributed across space in the European setting. On the contrary, the different tests performed highlight the presence of positive spatial autocorrelation and spatial heterogeneity in the distribution under consideration. In fact, we have detected several regional clusters characterized by similar efficiency levels distinguishing them from the rest of the sample. Nevertheless, the estimates carried out show the existence of a process of regional convergence in terms of technical efficiency during the study period. Our findings also reveal that factors such as the regional stock of capital per worker or the patterns of productive specialization are relevant in explaining the changes in technical efficiency experienced by the European regions between 1986 and 2002.     

Regional polarization in the European Union

This paper examines the level and evolution of polarization in regional per capita income in the European Union between 1977 and 1999. In this analysis, non-parametric estimation techniques are combined with the calculation of various polarization measures. The results obtained suggest a decrease in regional polarization in the European context during the period analysed, as a consequence of various factors, at times working in opposite directions. The findings also reveal the existence of discrepancies between the evolution of polarization and regional inequality. Finally, the analysis carried out highlights the importance of the role played by the national component and the spatial dimension in the formation of homogeneous groups of regions linked by similar development levels in the distribution under study.     

Industrial Heritage Tourism and Regional Restructuring in the European Union

This paper explores the current trend among traditional industrial regions in Europe to launch initiatives in the field of 'industrial heritage tourism'. Increasingly, restoring and exploiting former industrial sites for touristic purposes is regarded as a useful strategy for regional renewal. After having discussed its background and categories, we argue that, theoretically, industrial heritage tourism could be an interesting 'new combination' for industrial areas in the European service economy. In practice, however, its effects for regional restructuring might be limited. Therefore, we suggest to re-use Europe's industrial heritage also for other economic activities than only tourism.     

Regional Exchange Rate Indexes for the United States

In this paper we construct exchange rate indexes for the nine U.S. Bureau of the Census regions. The results indicate there are nontrivial differences between them and an identically created overall U.S. exchange rate index. The national index is cointegrated with only two of these regional indexes, and in a Granger sense, it is causing one regional index. In addition, our results indicate that two of the regional exchange rate indexes are interchangeable with the national index. These results show that researchers investigating how exchange rate changes affect regional exports or regional economic growth should be cautious in making inferences based upon a national exchange rate index.     

The United States and Extraterritoriality

Book reviewed in this article:
Eileen P. Scully, Bargaining with the State From Afar: American Citizenship in Treaty Port China, 1844–1942     

Spatial Organization of Fortune Global 500 Corporations in China: An Empirical Study of Multinationals from Japan,the United States,and European Union

Using data on investments in China from Fortune Global 500 multinational corporations (MNCs) based in Japan, the United States, and European Union over a three-decade period, the authors document the gradual expansion of MNCs in China both functionally and geographically. Statistical analysis suggests the existence of significant intra-firm clustering as a result of sequential investments, as well as country-of-origin agglomeration in the case of MNCs from Japan. Disaggregated analysis, however, reveals that functional and cross-functional mutual avoidance (e.g., intra- and inter-firm competition) in the location of MNC subsidiary firms tends to mitigate country-of-origin agglomeration effects. Journal of Economic Literature, Classification Numbers: D200, D800, G320, L200. 5 tables, 5 figures, 68 references.     

The United States, The United Nations and Iraq: 'Multilateralism of a kind'

Much is made of the need for any second war against Iraq (following Desert Storm of 1991) to be sanctioned by a resolution of the UN Security Council, approved necessarily by all five Permanent Members. Yet only two of the five, the USA and the UK, show any enthusiasm for renewed war in the Persian Gulf; and British policy is undeniably following rather than leading American actions on the diplomatic and military fronts. What are the sources of this American policy? Some critics say oil; the latest arguments of proponents invoke humanitarian concerns; somewhere between the two are those who desire ‘regime change’ to create the economic and political conditions in which so‐called western political, economic and social values can flourish. To understand the present crisis and its likely evolution this article examines American relations with Iraq in particular, the Persian Gulf more generally and the Middle East as a region since the Second World War. A study of these international relations combined with a critical approach to the history of American actions and attitudes towards the United Nations shows that the United States continues to pursue a diplomacy blending, as occasion suits, the traditional binaries of multilateralism and unilateralism—yet in the new world‐wide ‘war on terrorism’. The question remains whether the chosen means of fighting this war will inevitably lead to a pyrrhic victory for the United States and its ad hoc allies in the looming confrontation with Iraq.