By Andrew Hughes Hallett, 2013


Many commentators have criticised the strategy used to finance regional governments such as the Scottish Parliament – both the block grant system and the limited amount of fiscal autonomy devised in the Scotland Act of 2012. This lecture sets out to identify what level of autonomy or independence would best suit a regional economy in a currency union, and also the institutional changes needed to sustain those arrangements. Our argument is developed along three lines. First, we set out the advantages of a fiscal federalism framework and the institutions needed to support it, but which the Euro-zone currently lacks. The second is to elaborate a model of fiscal federalism where comprehensive powers of taxation and spending are devolved (an independent Scotland and the UK remain constituent members of the EU and European economy). Third, we evaluate the main arguments for the breakup of nations or economic unions with Scotland and the UK as leading examples.

We note that greater autonomy may not result in increases in long run economic growth rate, but it does imply that enhancing the fiscal competence and responsibility of regional governments would result in productivity gains and hence higher levels of GDP per head. That means the population is permanently richer than before, even if ultimately their incomes continue to grow at the same rate. It turns out that these improvements can be achieved through devolved tax powers, but not through devolved spending powers or shared taxes.

By Jahangir Alam


This research aims at analysing how the EU and its major trade partner countries in Asia are economic interdependent by using various data obtained from different sources. We have collected data from different sources such Statistical Yearbook, Web Sites of EU and Asian Countries, etc., and compiled in different tables to find out the trade relationship between EU and each country. Then we analyse the economic interdependence between the EU and its Asian trade partners from several aspects such as how the import and export influences each other in EU and those countries. The study has set up an Input-Output model for general use for the potential researchers. This research presents some papers and research reports about the economic interdependence between the EU and its major trade partners in Asian and gives some suggestion that will be benefit to investors and traders.

By Yuan-Ching Chang, 2005


The trade-conflict model claimed that trade reduces conflict. This paper extends the trade-conflict model to incorporate the foreign aid and tariff effects. The theoretical propositions supported by proofs are as follows: trade and foreign aid reduce conflict and tariff increases conflict. The empirical tests show that trade reduces conflict between states and the causality from trade to conflict remains. Foreign aid directly decreases conflict. The marginal effect of foreign aid in reducing conflict is greater than that of trade. However, the foreign aid is much smaller in magnitude than trade and trade is more important than aid in affecting international relationships. In addition, the foreign aid effect is greater for non-trading partners than trading partners. Foreign aid increases trade, and thereby indirectly decreases conflict since trade reduces conflict. However, the indirect effect of foreign aid decreasing conflict will be smaller than the direct effect. Tariffs, if over a critical level, will increase conflict.

By Marius-Razvan Surugiu and Camelia Surugiu, 2015


International trade has an important share in GDP in different countries. Various companies from different countries are
looking for new growth opportunities beyond their home country borders. Due to international trade, important sectors of
the economies can be stimulated, such as transport and ICT sectors. Thus, international trade can be important for business,
due to profits growth prospects, reduced dependence on known markets, business expansion, etc. The increase of
international trade over the years has been a result of the globalization process. Thus, both consumers and companies can
now choose from a wider range of products and services. Also, globalization refers to the interdependence between
countries arising from the integration of different aspects of the economy, such as trade. International trade can stimulate
economic growth of countries that are now so interconnected. Currently, globalization cannot be ignored by businesses, due
to the opportunities offered by foreign markets.