Kiel Institute for the World Economy

About: Kiel Institute for the World Economy is a facility organization based out in Kiel, Germany. It is known for research contribution in the topics: Foreign direct investment & Productivity. The organization has 318 authors who have published 1909 publications receiving 42832 citations. The organization is also known as: Institut für Weltwirtschaft an der Universität Kiel.

Needs-Based Targeting or Favoritism? The Regional Allocation of Multilateral Aid within Recipient Countries

Abstract: SUMMARY The regional allocation of aid within recipient countries has been largely ignored. We use geocoded data on the location of aid projects financed by the World Bank and the African Development Bank within a sample of 27 recipient countries to assess the claim of donors that their aid targets needy population segments. We also assess whether political leaders in these countries direct aid funds to their home region. We do not find that the multilateral institutions take regional needs into account. Instead, favoritism appears to play an important role for location choices, in particular for physical infrastructure projects.

Soil degradation and agricultural sustainability: an overview from Iran

Abstract: During the past six decades, agriculture as a main sector in Iran’s economy has been affected by economic development, land-use policies, and population growth and its pressures. From the 1940s until 2010, the percentage of the total urban population of Iran increased from about 21 % to around 72 %. Urbanization, industrialization, and intensive cultivation have dramatically affected soil and water resources. The exploitation of groundwater has been increased around fourfold from the 1970s to the mid-2000s. Total water resources per capita reduced around 23 % from 1956 to 2008. The average annual decrease in the groundwater table in Iran during the last two decades is 0.51 m. In 2008, the groundwater table fell around −1.14 m in average in Iran. The average use of chemical fertilizers increased from around 2.1 million tons in 1990s to about 3.7 million tons in 2009. During that period, fertilizer use efficiency decreased from around 28 % to around 21 %. Approximately 77 % of the agricultural land under irrigation suffers from different levels of salinity. According to the quantification of four indices, such as soil erosion, fall in groundwater levels, salinity, and use of chemical fertilizer, that are directly related to agricultural land use, the results show that agricultural management in Iran needs special attention to reach sustainable conditions. The total cost of soil and water degradation and use of fertilizers in agriculture are estimated around than US $12.8 billion (about 157,000 billion IRRials)—approximately 4 % of the total gross domestic product (GDP) and approximately 35 % of the GDP of the agricultural sector in Iran.

The Impact of Trade and Economic Growth on the Environment: Revisiting the Cross-Country Evidence

Abstract: This paper explores the interrelations between economic growth, international trade and environmental degradation both theoretically and empirically. Panel data from developed and developing countries for the period of 1980 to 2003 is used and previous critique, especially on the econometric specification, is embedded. In particular, it is not assumed that there is a single link for all countries. Several environmental factors and one sustainability indicator are analyzed for the full sample, regions and income groups. The results indicate that there is an Environmental Kuznets Curve (EKC) for most pollutants, but with several reservations. None of the various hypotheses that concern the link between trade and environmental degradation can be entirely confirmed. If anything, there is modest support for the Pollution Haven Hypothesis (PHH). In addition, there are signs that trade liberalization might be beneficial to sustainable development for rich countries, but harmful to poor ones. However, a sustainable development path is particularly important for developing countries, as the poor are most exposed and vulnerable to the health and productivity losses associated with a degraded environment. Given that developing countries do not usually have the institutional capacities to set up the appropriate environmental policies, it is on developed countries to take the lead in addressing environmental degradation issues and assisting developing countries.

Outsourcing, foreign ownership, exporting and productivity: An empirical investigation with plant level data

Abstract: We investigate the impact of international outsourcing on productivity using plant level data for Irish manufacturing. Specifically, we distinguish the effect of outsourcing of materials from services inputs. Moreover, we examine whether the impact on productivity is different for plants being more embedded in international markets through exporting or being part of a multinational. Our results demonstrate that these distinctions can in general be important and are line with implications from the recent theoretical literature.

Does global liquidity drive commodity prices

Abstract: This paper tackles the question of whether a cross-sectional perspective on monetary policy is capable of explaining movements in global commodity prices. In this vein, we contribute to the rich literature on global liquidity in two different ways: on the one hand, to achieve a global series in terms of common monetary policy shocks, we propose a distinction between common and idiosyncratic factors across economies, as proposed by Bai and Ng (2004). Our second innovation stems from the consideration of a Markov-switching vector error correction model when analyzing time-varying short-run dynamics. Having identified the long-run structure which includes a proportional relationship between commodity prices and global liquidity in the first step, our results indeed show that the impact of a global liquidity measure on different commodity prices is significant and varies over time. One regime approximately accounts for times where commodity prices significantly adjust to disequilibria, while the second regime is characterized by either a weak or no commodity price adjustment. The fact that global liquidity also reacts to disequilibria in a specific regime demonstrates the two-way causality between monetary policy and commodity prices.