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Foreign direct investment (FDI) represents an increasingly important dimension of international economic integration with global FDI flows growing faster than output over the past two decades. FDI is a particular form of investment, as it transfers knowledge as well as finance that may otherwise be unavailable in the domestic economy. This paper uses firm-level data to identify FDI spillovers across countries, sectors and time. The analysis suggests that knowledge-related spillovers from FDI vary considerably across sectors. Services industries enjoy the strongest productivity-enhancing effects of FDI, particularly through backward linkages. There is no strong evidence of horizontal productivity spillovers at the aggregate level. The results also indicate a significant and positive correlation between the degree of trade openness and output when measuring the impact of foreign presence in the domestic economy. A positive interaction is found between trade liberalisation and productivity spillovers. Thus, trade liberalisation can be seen as an important component of any reform package designed to help countries maximise the benefits of FDI.

After a review of the literature, this paper concludes that there is potential for significant “spillover effects” from FDI into host countries. However, it identifies some limitations of this potential to do with the stock of human capital, the interest in local firms of promoting skills transfer and the competition environment. The authors suggest comparing conditions and effects between regions, particularly between East Asia and Latin America where transfer in the former has been more consistent than in the latter. They propose, further, that an analysis of the type of FDI flowing to different regions and countries could provide clues to the potential for maximising the gains to local skills accumulation. Finally, studies are needed which examine the nature of skills provided by FDI, and ways in which training institutions, business schools, for example, can complement in-service training by firms in FDI host countries ...

During the 1960s and 1970s, foreign direct investment (FDI) and the activities of multinational enterprises (MNEs) in less developed countries (LDCs) were generally viewed unfavourably, often being considered exploitative and as leading to worsening labour market conditions and job losses. However, there was a gradual shift in perception during the 1980s and 1990s, with increasing recognition of positive features of FDI such as technological spillovers and the increase in demand for domestic industry. Hence many countries, including LDCs, have introduced measures such as favourable tax treatment for foreign firms in order to attract FDI2. Against this background, FDI flows to LDCs have grown rapidly, increasing from 0.9 per cent of LDCs’ combined GDP in 1990 to a peak of 4.1 per cent in 1999, before declining slightly to 3.3 per cent in 2003 (World Bank, 2005). This article surveys the theoretical and empirical literature that describes the role of FDI in the economic growth of LDCs, and extracts its policy implications.

The experience of newly-industrialised countries suggests the need for an analysis in which the pattern of comparative advantage is not set in stone but is potentially flexible, and in which less developed countries can develop and converge in both income and economic structure to industrial economies. The pattern of trade and development in the world economy clearly shows the key role played by history: cumulative causation has created concentrations of industrial activity in particular locations and left other areas more dependent on primary activities. By changing the attractiveness of countries as a base for manufacturing production, trading arrangements can potentially trigger or postpone industrial development. At the same time, cut-throat bidding war to attract FDI may have unintended negative consequences on recipient countries if they lead governments to offer excessive fiscal and financial subsidies and to disregard the protection of the investment and of workers’ rights ...

This paper proposes a novel method for identifying and visualising key employment obstacles that may prevent individuals from participating fully in the labour market. The approach is intended to complement existing sources of information that governments use when designing and implementing activation and employment-support policies. In particular, it aims to provide individual and household perspectives on employment problems, which may be missed when relying on common labour-force statistics or on administrative data, but which are relevant for targeting and tailoring support programmes and related policy interventions. A first step describes a series of employment-barrier indicators at the micro level, comprising three domains: work-related capabilities, financial incentives and employment opportunities. For each domain, a selected set of concrete employment barriers are quantified using the EU-SILC multi-purpose household survey. In a second step, a statistical clustering method (latent class analysis), is used to establish profiles and patterns of employment barriers among individuals with no or weak labour-market attachment. A detailed illustration for two countries (Estonia and Spain) shows that “short-hand” groupings that are often highlighted in the policy debate, such as “youth” or “older workers”, are in fact composed of multiple distinct sub-groups that face very different combinations of employment barriers and likely require different policy approaches. Results also indicate that individuals typically face two or more simultaneous employment obstacles suggesting that addressing one barrier at a time may not have the intended effect on employment levels. From a policy perspective, the results support calls for carefully sequencing activation and employment support measures, and for coordinating them across policy domains and institutions.

In the aftermath of the financial and economic crisis, large shares of working-age individuals in Estonia either did not work or only to a limited extent. By 2013, several years after the start of the labour-market recovery, 18% were still without employment during the entire year, and a further 13% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates how the empirical results can inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Estonia were low skill levels, health limitations and limited work experience. Financial disincentives, care responsibilities and scarce job opportunities were less widespread overall, although important barriers for some groups. A notable finding is that almost one third of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation.

In the aftermath of the financial and economic crisis, large shares of working-age individuals in Ireland either did not work or only to a limited extent. As the labour-market recovery gathered pace during 2013, 32% were without employment during the entire year, and a further 14% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates how the empirical results can inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Ireland were limited work experience, low skill levels, and scarce job opportunities. Although financial disincentives, health problems and care responsibilities were less widespread overall, they remained important barriers for some groups. A notable finding is that just under 40% of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation.

In the aftermath of the financial and economic crisis, large shares of working-age individuals in Italy either did not work or only to a limited extent. As the employment rate bottomed out in 2013, 32% were without employment during the entire year, and a further 7% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates the use of these empirical results to inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Italy were limited work experience, low education and skill levels, and scarce job opportunities. Although financial disincentives, health limitations and care responsibilities were less widespread overall, they remained important barriers for some groups. A striking finding is that more than half of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation.

In the aftermath of the financial and economic crisis, large shares of working-age individuals in Lithuania either do not work or only to a limited extent. By 2013, several years after the start of the labour-market recovery, 21% were still without employment during the entire year, and a further 11% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates how these empirical results can inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Lithuania were health limitations, limited work experience, and scarce job opportunities. Although financial disincentives and care responsibilities were less widespread overall, they remained important barriers for some groups. A notable finding is that just over one third of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation.

.In the aftermath of the financial and economic crisis, large shares of working-age individuals in Portugal either did not work or only to a limited extent. As the employment rate bottomed out in 2013, 29% were without employment during the entire year, and a further 10% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates how these empirical results can inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Portugal were low education/skills, a lack of recent work experience, scarce job opportunities and health problems. Financial disincentives and care responsibilities were less widespread overall, although important barriers for some groups. A striking finding is that 45% of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation.

In the aftermath of the financial and economic crisis, large shares of working-age individuals in Spain either did not work or only to a limited extent. As the employment rate bottomed out in 2013, 30% were without employment during the entire year, and a further 15% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates how these empirical results can inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Spain were a lack of work experience, low education and skill levels, and scarce job opportunities. Although financial disincentives, health limitations and care responsibilities were less widespread overall, they remained important barriers for some groups. A striking finding is that 45% of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation.

Although Australia’s labour market escaped the dramatic negative impact of the global financial economic crisis seen in other OECD countries, a substantial share of working-age Australians either did were not working or worked only to a limited extent as the global recovery gathered pace between 2013 and 2014. The paper extends a method proposed by Fernandez et al. (2016) to measure and visualise employment barriers of individuals with no or weak labour-market attachment, using household micro-data.

The most common employment obstacles in Australia are limited work experience, low skills and poor health. A notable finding is that almost one third of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of policy approaches that focus on subsets of these employment obstacles in isolation. A statistical clustering approach points to seven distinct groups, each characterized by unique profiles of employment barriers that call for different configurations of activation and employment-support policies.

This paper is a follow-up study to Trade and Structural Adjustment: Embracing Globalisation (OECD 2005) which identified policies for successful trade-related structural adjustment. It draws further policy implications through the analysis of three sectors which were not specifically/fully covered in the initial report: agriculture (tobacco and coffee), telecommunications and...
This publication was prepared to support the overall work of the OECD Health Care Quality Indicators Project in developing a set of indicators that can be used to raise questions for investigation concerning the quality of care across countries. It provides a manual to facilitate cross national comparisons of indicators for patient safety through the provision of detailed practical advice on calculating each indicator in a selected set of Patient Safety Indicators (PSI) utilising national hospital administrative databases...
This paper, together with five other background studies, is a part of a broader research programme addressing trade and structural adjustment issues in non-member economies which was conducted as a follow-up to Trade and Structural Adjustment: Embracing Globalisation (OECD, 2005) which identified policies for successful trade-related structural adjustment. This paper revisits and elaborates on specific parts of these policy recommendations with a view to reassessing their applicability to developing countries. The five background studies; a comparison study comparing East Asia and Latin America and four country case studies (Chile, Ecuador, the Philippines and Thailand), which were conducted as a part of this project, form the basis for the analysis, supplemented by existing literature. The report consists of 4 main sections; The first section provides an introduction and the second section provides an overview of the liberalisation experiences of the four countries. In the third section, some of the ?recommendations in OECD (2005) are revisited with a greater focus on developing countries, covering such issues as i) trade and investment policies, ii) macroeconomic policy, iii) social safety nets and labour market policies, iv) policies to facilitate export response, v) institutional frameworks and regulatory and competition environment, vi) role of multilateral cooperation and regional and bilateral initiatives, and vii) broad based approach to reforms. The fourth section concludes.
French
This paper is the first of four country case studies which is a part of a broader research programme addressing trade and structural adjustment issues in non-member economies which was conducted as a follow-up to Trade and Structural Adjustment: Embracing Globalisation (OECD, 2005) which identified policies for successful trade-related structural adjustment. This paper studies the trade liberalisation experience of Chile from 1973 onward. The report consists of 5 main parts; Part 1 provides the introduction, part 2 looks at the trade liberalisation in Chile which was implemented in three phases, (1) initial trade reforms (1973-84), (2) trade reform after a temporary policy reversal(1985-89) and (3) after 1990. Part 3 looks at the evolution and structure of exports and imports, and Part 4 looks at sectoral developments in the copper industry, agrofood industry, wood and wooden products industry and the textiles and clothing industry. Part 5 concludes with lessons learnt. The experience of Chile shows that trade reform has been essential for realigning the incentive structures in Chile. A stable macroeconomic environment, trade reform starting with the elimination of quantitative restrictions, introduction of flat tariffs, coherent exchange rate policy, sound institutional framework, rule of law, mild promotion of exports, use of foreign capital, and relatively flexible labour market policies have been important factors in Chili's successful trade liberalisation experience.
French
This paper is the second of four country case studies which is a part of a broader research programme addressing trade and structural adjustment issues in non-member economies which was conducted as a follow-up to Trade and Structural Adjustment: Embracing Globalisation (OECD, 2005) which identified policies for successful trade-related structural adjustment. This paper studies the trade liberalisation experience of Ecuador from the 1970s onwards. The report consists of 5 main sections; Section 1 provides the introduction, while section 2 provides an overview of Ecuador?s economic reforms from the 1970s onwards until the 2000s. Section 3 looks at the structural changes in the economy and trade dynamics behind the changes. Section 4 takes a closer look at structural adjustment in four sectors, the cut-flowers, processed tuna, cereals, and textiles and clothing. Section 5 concludes with lessons learnt. Ecuador provides a case of a country whose trade liberalisation and other structural reforms have led to mixed results. While trade liberalisation has improved resource allocations, macroeconomic instability, incomplete reforms, weak institutions and relatively restrictive (but also highly informal) labour markets have made it difficult for Ecuador to reap the full benefits of trade liberalisation.
This paper is the fourth of four country case studies which is a part of a broader research programme addressing trade and structural adjustment issues in non-member economies which was conducted as a follow-up to Trade and Structural Adjustment: Embracing Globalisation (OECD, 2005) which identified policies for successful trade-related structural adjustment. This paper studies the trade liberalisation experience of Thailand from the 1970s. The report consists of 6 main sections; Section 1 provides the introduction, while section 2 provides an overview of Thailand's growth experiences. Section 3 takes a closer look at the trade liberalisation and investment policies in Thailand: Thailand's initial trade regime and three phases of trade liberalisation: (1) initial tariff reforms (1982-84), (2) comprehensive tariff reform and its reversal with the Asian financial crisis (1993-), and (3) post crisis reforms (1999-) are studied. Section 4 looks at the changes in the investment and trade structure, while section 5 takes a closer look at structural adjustment in three sectors, the automotive and auto-parts sector, textile and clothing, and the telecom services sector. Section 6 concludes with lessons learnt. Thailand's experience confirms that a sound macroeconomic environment, sustainable public finances, a relatively stable political and economic environment, flexible labour markets and reliable infrastructure are crucial for economic growth. It provides an example of gradual trade liberalisation, and demonstrates the benefits of openness to international trade and foreign investment in correcting distortions in the economy.
French
This paper is the second of four country case studies which is a part of a broader research programme addressing trade and structural adjustment issues in non-member economies which was conducted as a follow-up to Trade and Structural Adjustment: Embracing Globalisation (OECD, 2005) which identified policies for successful trade-related structural adjustment. This paper studies the trade liberalisation experience of the Philippines from the 1980s. The report consists of 7 main parts; Part 1 provides the introduction, part 2 looks at the economic policies in the Philippines from the 1970s, and part 3 takes a general look at the general structure of the economy. Part 4 takes a closer look at the trade liberalisation in the Philippines which was implemented in three phases, (1) initial trade reforms (1981-88), (2) second phase (1991-93) and (3) third phase (1994-96). Part 5 takes an overview of the structural adjustments which took place in manufacturing and agriculture, with Part 6 taking a closer look at four sectors, electronics, food processing, cement, and business process outsourcing sectors. Part 7 concludes with lessons learnt and opportunities and challenges for further liberalisation. Despite considerable liberalisation including in trade policy since the 1980s, the Philippines economy posted only lacklustre performance initially. After a growth period in the 1990s and the Asian crisis, it is only in the recent past that some of the reforms are starting to pay off. The importance of a stable political and macroecnomic environment, need for appropriate exchange rates, need for early elimination of quantitative restrictions in trade reform, early deregulation on FDI are some of the lessons learnt. While challenges remain, better results are expected in the future if complemented with further reforms.
French
It is in every country's interest that the deployment of carbon-change-mitigation technologies (CCMTs) be accomplished at the lowest possible cost to society and that their diffusion be rapid. Reducing barriers to trade is one way to accomplish that, especially given that it is unlikely that every country will become proficient in the production of every CCMT. This study provides a preliminary assessment of the significance of tariff and non-tariff barriers to trade in a representative selection of CCMTs chosen from among those that have been identified by the IPCC and the IEA as having a large economic potential for mitigation, are globally traded, and can be easily adapted to national circumstances. Those examined in the report include: (a) technologies, such as gas-fired reciprocating engines, used in the co-production of both process (or district) heat and electric power (CHP); (b) technologies, such as pipes and meters, used in the production and delivery of heating and cooling at the scale of a city district (DHC); (c) technologies that harness solar energy to heat water or heat or cool the air in buildings (SHC); and (d) relatively energyefficient electric motors and related systems. The study finds that trade in CCMTs faces higher tariffs in some non-OECD countries than in OECD countries. Judging from information provided by exporters in response to a questionnaire, non-tariff measures are common, and in some countries are acting as barriers to trade. Overcoming some of the general measures that impede trade will take time. However, the problems that lax enforcement of intellectual property rights, cumbersome customs-clearance procedures and non-transparent government procurement create for trade in CCTMs should be regarded as providing additional reasons for importing countries to address these issues urgently. Finally, importers may need, at the same time, to examine their domestic policies in order to address behind-the-border impediments to the diffusion of CCMT technologies.
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