Capturing gains by relocating global production networks: the rise of Chongqing’s notebook computer industry, 2008–2014

In 2008 a new notebook manufacturing cluster was established in Chongqing in western China. By 2013 it accounted for some 25% of world output by volume. Chongqing’s ability to attract this manufacturing supply chain was driven by several factors that permitted strategic coupling: the existence of complex networks of cooperation and economies external to the firm but internal to contemporary global production networks; changed conditions in southeast and east China; and the creation by Chongqing Municipal People’s Government with central state support of hard and soft infrastructures and externalities that drove down logistic and production costs and permitted constant product innovation.     

The Genesis of Economic Cooperation in the Stories of Joseph: A Constitutional and Institutional Economic Reconstruction

Abstract

The paper analyzes in constitutional and institutional economic terms Joseph’s economic policies, such as changes to property rights arrangements for farming, the introduction of a barter tax on crop production, and the multi-layered bureaucratic hierarchies of Egypt. Utilizing Buchanan’s approach to constitutional economics, I argue that these policies lowered attack/defense costs as they arise, when a group attempts to escape from the natural distribution state (the “war of all”, as Hobbes called it). A key thesis is that this encouraged interacting parties, already on the grounds of selfinterested choice, to engage in societal contracting out of the “war of all,” thereby reaping mutual gains.

Complementary to this strand of analysis, I have drawn on other institutional economic concepts, particularly those that were introduced by Williamson, and by North and Weingast. The paper argues in this respect that Joseph’s policies credibly and more reliably guaranteed property rights, which in turn lowered transaction costs of the interacting parties, i.e. Egypt and Israel. This ultimately yielded mutual gains and high economic performance for the society depicted in Genesis. In this way, cooperation was generated in economic terms.     

Differences in hi‐tech immigrant earnings and wages across Canadian cities

This paper examines the relative earnings and wages of immigrants working in the hi‐tech sector in Canada's cities. Between 1990 and 2000, a sizeable earnings advantage of immigrants over nonimmigrants employed in the hi‐tech sector evaporated, and this change was most noticeable in the largest cities. We use population census microdata to examine the geographical dimensions of this shift. After controlling for individual characteristics, we show that immigrants in the largest and tech‐intensive cities earn significantly less relative to nonimmigrants than those in midsized and smaller cities. We also present results comparing the hi‐tech immigrant wage and earnings gap for the five largest Canadian cities. The findings are consistent with the notion that geographic differences are an important component of the overall earnings gap between immigrants and nonimmigrants.