How can small and young agencies cope and target cross border cartels? This paper explores the related challenges and puts forward a pragmatic tool to break down international cooperation barriers. Given the efforts of the ICN in seeking ways and means to operationalise cross-border cooperation in investigation of cases as well as those of selected UNCTAD member States in trying to trigger the international measures section of the UN Set on Competition, this brief contribution attempts to strengthen the ICN framework for non-confidential information sharing between competition agencies by incorporating specific key elements that are provided by the section F.4 related to voluntary consultations so as to address effectively the harmful effects of international cartels in emerging markets.
The summer 2016 saw some of the key emerging economies change their position on services negotiations at the WTO, which may prove instrumental in bringing services back to the WTO, via The Trade in services Agreement (TiSA). While TiSA parties have discussed critical mass based multilateralization for a while, another approach may prove to be more viable - "incrementalism" and "quasi-multilateralization". This hybrid legal form of negotiated outcomes would entail a long-term, multilayered approach integrating TiSA into the GATS/WTO framework at a time that may see TiSA’s silver lining materialize. TiSA could help re-invigorate services negotiations at the WTO and conceptualize legal forms that embody coexistence and transmission between frameworks.
This article explores the intersections between the global tax reform launched by the Organization for Economic Co-operation and Development (OECD) and the Group of 20 (G20) to tackle base erosion and profit shifting (BEPS) on the one hand, and international rules on trade in services, mostly – the General Agreement on Trade in Services (GATS) under the World Trade Organization (WTO) on the other hand. The GATS entered into force in 1995 to expand trade in services. It covers all measures affecting trade in services, including direct taxation. While the GATS leaves policy space for WTO Members to adopt measures to ensure the effective imposition of direct taxes and to conclude agreements among themselves to avoid double taxation, its negotiators could hardly have envisaged the depth and breadth of the current BEPS reform package, as shown by a recent WTO dispute. This paper provides a systematic analysis of concurrent application of the GATS and the BEPS Package and recommends that WTO Members take actions to avoid potential conflict in applying both sets of rules.
We develop a model of foreign direct investment (FDI) in which financially liquid foreign firms acquire liquidity-constrained target firms. Using a large dataset of emerging-market acquisitions, we find evidence supporting three central predictions of the model: (i) firms in external finance dependent and intangible sectors are more likely to be targets of foreign acquisitions; (ii) these targets have ownership structures with larger foreign stakes; (iii) these effects are most prominent in countries with low levels of financial development. The regression evidence indicates that liquidity is at least as economically important as technology- or trade-related motives for FDI in emerging-market economies.
A surprisingly large number of countries have been able to finance a significant fraction of domestic investment using foreign finance for extended periods. While many of these episodes are in low-income countries where official finance is more important than private finance, this paper also identifies a number of episodes where a substantial fraction of domestic investment was financed via private capital inflows. That said, foreign savings are not a good substitute for domestic savings, since more often than not episodes of large and persistent current account deficits do not end happily. Rather, they end abruptly with compression of the current account, real exchange rate depreciation, and a sharp slowdown in investment. Summing over the deficit episode and its aftermath, growth is slower than when countries rely on domestic savings. The paper concludes that financing growth and investment out of foreign savings, while not impossible, is risky.
Recent attempts to connect the current ‘next billion’ to the Internet in places such as sub-Saharan Africa have not met expectations. In places where Internet infrastructure has come online and prices have gone down, the expected consequent increase in uptake was not observed. I develop a framework that incorporates language in the the two-sided markets framework, viewing differences as transaction costs. As a result of the cross-side network effects, it is difficult to isolate the causal effect of one on the other. The exogenous introduction of the Setswana language interface on the South African Google Search website was a spillover of the development of that interface for the Botswanan Google website. This exogenous improvement in the accessibility of Setswana-language content has resulted in a substantial increase in the number of native Setswana speakers coming online and owning personal computers. This is turn has also led to increased usage of the Setswana language online. This adoption appears to also lead to improvements in employment.
