North American Economy Research Articles

Reducing Poverty: The Prospects of Islamic Finance in Africa

African economics are largely influenced by the forces of what Ali Mazrui term as African Triple Heritage where the impact of Western Christianity and Islamic heritages swim alongside the indigenous African heritage thereby having a large degree of impact on overall socio-economic development in the region. It is obvious that economic models that worked effectively well in the West or the middle-east fails when copied and pasted in Africa raising more questions rather than solving socio-economic and political issues. If neo-liberal models fail, how then will any other system succeed? State-led development approach which helped Japan, South Korea and Taiwan to move closer to Western European and North American economics crumbled especially when the structural adjustment programme was introduced. As China now tries to aggressively push her unique style of developing African countries via direct investments; South Africa in the same vein spread her investments more in the African continent; then – emerges Islamic banking and finance which broadens its scope in Africa and taking advantage of the massive Muslim market in the continent. Islamic finance as embedded in the Islamic economic system now swells from the Sudanese desert to oil-rich Nigeria; from fast developing South Africa to Kenya; and from Tanzania to the city of the Pharos – Egypt. Will Islamic finance make any difference in Africa? Can it solve the challenges of poverty which breaks the African socio-economic fabric? Or will it be just another system that will only push up countries’ GDP and GNI while benefiting a few?

In pursuit of leverage: The evolution of Canadian trade and investment policies in an increasingly multipolar world

Structural changes in the North American and global economies since 2000 have contributed to gradual shifts in Canada's international economic policies. Although the United States remains Canada's primary trading partner, underlying economic and political factors are leading Canadian governments to integrate the previously US-centered focus of these policies within a broader global framework. This article explores these trends through comparative and intermes- tic policy lenses within a broader global framework. Canadian policies in North America must increasingly accommodate the multi-dimensional character of trade and investment links and the trans-governmental institutions that have evolved to broker differences among the governments of major economies. The shifting focus of US and Canadian trade and economic policy discussions outside of North America are contributing to decentralized approaches to international governance in which both countries pursue tactically selective approaches to selective issue clusters, with varying degrees of cooperation reflecting the relative convergence or divergence of their national interests and priorities.

AWWA's Engineering and Construction Division

The nation's infrastructure is recognized as a lynchpin in maintaining the North American economies and their competitive advantage and standard of living. Nowhere is this more apparent than in the water industry. Industry practitioners are acutely aware of assets' values that are the backbone of providing customers with safe and reliable water supplies.

To promote the Interest and Security of the North West Company

While the traditionally-known elements of the War of 1812 deserve recognition, they are not the whole story. The British fought to save the Canadas from conquest by the Americans, but they also strove to save and expand the territorial base of the fur trade, a vital element in the British North American economy, a goal shared by the North West Company. Since Fort William was located in Upper Canada and many NWC actions took place in Upper Canada, the roles of both the Company and the Fort are an integral part of Ontario history. This article examines actions at Sault Ste. Marie, the roles of the schooners Nancy and Perseverance, the development of Yonge Street and the route from Lake Simcoe to Wasaga, the struggle to maintain the fur trade canoe route between Fort William and Montreal, NWC involvement in the taking of Prairie du Chien and the decision made to take Astoria from the American Fur Company which led to British rule over the Columbia Department on the Pacific coast.

Reflections and projections

Purpose – This editorial reflects on 25 years of AAAJ and on the interdisciplinary accounting movement and its future direction. It emphasises the Editors' commitment to encouraging the application of a broad range of theories and research methodologies as well as their ongoing support for diversity as a defining feature of AAAJ. This includes the wider community, which includes the APIRA conference attendees, Special Issue editors and the many individuals who have all played an important part in AAAJ's 25 years. The Editors continue to urge interdisciplinary accounting researchers to undertake innovative research and be both original and creative, thereby avoiding a narrowness that is an increasing feature of North American economics based accounting research. The important role of academic researchers is highlighted in not simply observing, but also engaging in and constructing an enabling accounting. The purpose here is to reflect on the past and to look towards the future.Design/methodology/approach –...

Neoliberal Globalization, NAFTA, and Migration: Mexico's Loss of Food and Labor Sovereignty

This article explores the way in which Mexico's countryside was affected by the country's economic integration to its northern neighbors since the start of the North American Free Trade Agreement (NAFTA). Mexico's political technocracy placed its bet for economic growth on the comparative advantage of cheap labor, a losing bet: Mexico's asymmetrical integration into the North American economy, combined with neoliberalism, had a detrimental impact on its food self-sufficiency, its labor sovereignty, and substantially increased its out-migration rates. The article explores the relationship between food self-sufficiency and labor sovereignty in this process. The main thesis is that food self-sufficiency is a condition for a country to enjoy “labor sovereignty”—the ability of each nation to provide with living wages for a vast majority of the population. Of the three NAFTA nations, Mexico is the least self-sufficient, and hence the one that expels the largest rate of migrants.

The North American economy during and after the economic crisis: The model of global accumulation

It has become common to listen to arguments that great transformations of the economic-institutional system will happen, that it will be similar to what happened after the Great Depression of 1929 and the crisis of 1974–1975. There are essentially two reasons for such perception: the depth of the present international economic crisis and the impossibility of sustaining an accumulation model which, as is said, has been supported by the financial sector and its profit. This paper compares, in addition to the crises, the accumulation models in which the three previous crises exploded. Attention is paid not only to the global character of the present crisis, but also to the meaning of the present crisis within the context of globalization.

An India–China FTA

In a recent visit to India the Chinese president, Hu Jintao, proposed closer economic relations between China and India, possibly a India–China free trade area (FTA). These two economies have been experiencing rapid growth during the last couple of decades and in recent years trade between these two nations has grown spectacularly. This article analyzes the implications of a possible India–China FTA on trade flows, real output and investment both at the aggregate and industry levels in India, China, the rest of Asia, the North American and European economies using a multi-sector, multi-region dynamic computable gen-eral equilibrium (CGE) model. Our simulation results suggest that the overall economic gains to India and China would be modest. The distribution of the economic gains, however, depends on the speed of elimination of the bilateral tariffs. China gains more if the tariffs are eliminated immediately, whereas India gains more from gradual liberalization. India’s exports to China could expand by almost 57 per cent, while imports from China could increase by over 240 per cent implying an increased bilateral trade deficit. Output in each sector in India would increase. Sectors such as clothing, leather, textiles and motor vehicles and parts would gain the most in India.

Does Canada Have an India Strategy? Why it Should and What Both Sides Can Gain from Comprehensive Talks

After years of an economic relationship that can be described fairly as cool, Canada and India have begun negotiating a Comprehensive Economic Partnership Agreement (CEPA). Canada’s main interests in the CEPA are to secure transparency and non-discrimination for Canadians in the Indian economy, to take advantage of the efficiencies available from Indian information technology services providers, and to gain greater access to both the Indian and wider Asian markets using India as a platform for regional operations. For India, the strategic priority could be to gain greater access to the US market through Canada, given that a comprehensive US-India bilateral free trade agreement does not seem to be in the cards. A negotiation with Canada could be a second best route to this objective as a strategic signal of India’s potential importance to the North American economies.

Measurement of Real Income in the System of National Accounts: An Application to North American Economies

This paper makes use of both output and income statistics derived from the System of National Accounts to examine performance in the three North American countries. In doing so, the paper follows recommendations contained in the System of National Accounts 1993 (SNA 1993) for calculating aggregate real income statistics such as gross national income (GNI) and gross national disposable income (GNDI) rather than aggregate real gross domestic product (GDP), in order to demonstrate the utility of alternate measures for analyzing aggregate economic performance and the standard of living. To move from estimates of GDP to estimates of GNI and GNDI, adjustments are made for changes in relative prices, referred to as a “trading gain” (the combined effect of changes to the terms of trade and changes in the ratio of traded goods prices to non-traded goods prices), and for current account entries other than the trade balance. The paper compares real output and income measures for Mexico, the United States, and Canada. Differences between the GDP and GNDI estimates illustrate the extent to which non-production factors, such as relative price changes, can influence the economic performance of a nation, either as compared to that of other nations or in terms of a nation’s ability to purchase the goods and services its citizens consume. They also illustrate the benefit of using more than one measure when comparing economic performance across countries.

Twenty-one years of social and environmental accountability research: A coming of age

This study extends upon previous research into the profile and direction of social and environmental accounting research, analysing and critiquing 21 years of contemporary research in social and environmental accounting published particularly in four leading interdisciplinary accounting research journals covering the period 1988–2002 inclusive. It reflects upon selected seminal papers on the field, and presents an empirical analysis of SEA publication that updates Parker's (2005) findings. The prospect of a sharing of the territory between critical and managerialist approaches is envisaged, along with the application of multiple theoretical lenses. Social and environmental research show signs of more recent balancing between these two subject areas, while recent shifts in methodological approaches are increasingly emphasising the employment of content analysis/statistical relationships research and case/field/action/ethnograpic research. National practices/comparisons and regulations are leading topic areas occupying researchers. External disclosure, attitudinal studies and theoretical framework papers also attracted significant attention. The paper also overviews emerging research in three non-Anglo-Saxon countries and identifies leading and emerging scholars in the field. The SEA field exhibits considerable momentum, but is found to be largely driven by research and publishing infrastructure outside North American economics focussed research communities.

Chinese accession to the WTO: Economic implications for China, other Asian and North American economies

This paper, using a dynamic, multi-sector and multi-country Computable General Equilibrium (CGE) model, analyses the combined economic impact of China's accession to the World Trade Organization (WTO) and the removal of tariff and non-tariff barriers on textiles and apparel by the industrialized countries in China and North America and other major economies. The combined impacts of these two policy initiatives are studied in detail on trade flows, real output, employment and investment both at the aggregate and industry levels in China, the U.S., Canada and other countries/regions. The simulation results suggest that China's real gross domestic product (GDP) would increase by over 2 percent, mainly due to a large increase in the output of textiles and apparel industries. India too would gain considerably in these two industries from the removal of the trade barriers. Textiles and apparel industries will face considerable adjustment challenges in North America particularly in the U.S. and Canada, implying output and employment losses ranging between 20 and 30 percent. However, the output and employment gains in other North American industries will be more than offset the losses in textiles and apparel industries. Bilateral trade between China and North American economies would increase between 15 and 20 percent, but over all economic gain would be modest. Asian economies will also experience significant increase in trade with China and the output impacts are positive but modest.

North American Responses to the Global Downturn

The North American economies are expected to recover pre-crisis levels of output earlier than most of their European counterparts. The resilience of these economies is partly a reflection of factors underlying the trend rate of capacity growth. Population projections in North America are favourable for medium-term growth prospects, partly due to policies that tend to encourage highly skilled inward migration. At the same time, the US is one of few countries that maintained strong productivity growth during the downturn (at a significant cost in terms of employment), allowing an increase in US productivity levels relative to the other major economies. In addition, the relatively rapid recovery expected in the North American economies reflects more aggressive fiscal policies in the US and Canada than in most European economies, as well as credit easing undertaken by the Federal Reserve, which has kept corporate borrowing costs low relative to levels in the UK and Euro Area. Canada and Mexico have also benefitted from the recovery in the oil price, which eases budgetary pressures in particular.

The Growing of Ramsey's Growth Model

Frank Plumpton Ramsey (1903–1930) was a Cambridge mathematician who made important contributions not only to philosophy, mathematics, logic, and probability, but also to economics. Ramsey made two major contributions to economics, both published in the Economic Journal in 1927 and 1928, which became popular only in the 1950s and 1960s. In both cases, economists portrayed Ramsey as a sleeping giant: a mathematician who had almost no impact on the economics profession prior to 1950 because his mathematical analysis was out of the reach of the typical economist of his time. My goal in this article is to understand how Ramsey's growth model became part of the neoclassical literature on economic growth in the 1950s and 1960s and how Ramsey became a sacred predecessor of this field. In order to better understand the stabilization of Ramsey's growth model in postwar economics, I conduct a JSTOR search and consult a few book references. Based on this dataset, I conclude that Ramsey was in fact “awake” in the economic growth literature pre-1950. I discuss as well the main economists who transported Ramsey from the Cambridge milieu of the 1920s to the North American economics of the postwar period.

Integration of the North American Economy and New-Paradigm Globalization

Since the dawn of human civilization, the cost of moving goods, people, and ideas has forced the geographical bundling of economic activity. Before the days of easy shipping, communities were obliged to consume what they could make. The gradual reduction of shipping costs, with acceleration from roughly 1850 onward, meant that factories did not have to be near consumers, and competitive pressures pushed production toward the most efficient locations. This first “unbundling” brought about many wonders of the modern world. Nations (and regions within nations) started to specialize in the production of certain goods. Large cities arose and the concentration of talent and know how fostered further innovation and scale economies; the Industrial Revolution was born along with the rise of mass intranational and international trade. Up to the mid-1980s, unbundling operated at the level of factories or even whole industries since it was economical to keep all manufacturing stages in close proximity.

Regulation of Canadian Capital Markets in the 1990s: The United States in the Driver's Seat

This Article looks at the regulatory techniques that were adopted in a small but developed market, Canada, in response to the increasing integration of the North American economy and internationalization of capital markets. One of the most comprehensive experiments was the Multijurisdictional Disclosure System (MJDS) implemented in Canada and the United States in 1991. Based on principles of reciprocal recognition, the MJDS in fact created greater pressures for harmonization of the two regulatory regimes and, on the Canadian side, prompted regulatory innovations which attempted to keep Canadian markets in the global game.

Shaping the Future of the North American Economic Space

Canada faces challenges to its living standards and economic position that the events of September 11, 2001, exacerbated. Although made-in-Canada efforts are required to improve our productivity performance, access to the US market is essential but less assured than it was. Paradoxically, a window of opportunity is now open because of the United States' current openness to its friends and neighbors. Canada should decide how to take advantage of this opportunity. With power so dispersed in the US political system and with the Bush administration's exclusive focus on homeland security and defense, only a Big Idea will succeed, one that addresses US objectives while creating new economic opportunities for Canada. This Commentary explores three such ideas - each of which would be a step toward removing remaining bilateral economic barriers. One idea is a customs union, which could be created by adopting a common tariff or a common external trade policy toward the rest of the world, allowing free circulation of goods and services within the common area. A second idea is a common market, which would free up the movement of people and flows of capital and technology, and common institutions could administer common standards, regulations, and policies that must be harmonized throughout the economic space. The third idea is a pragmatic strategic bargain that Canada would initiate to achieve its objectives. Canadian initiatives would be required in areas of interest to the United States, specifically border security, immigration, and defense. Energy security is another key area where Canada should build on its existing strengths. In exchange for these initiatives, Canada should seek customs-union- and common- market-like arrangements that achieve deeper integration but recognize deep attachments to political independence and distinctive national institutions. As part of the package, Canada should seek to eliminate troublesome barriers to people, trade, and foreign direct investment. Negotiations would be needed to curb US trade remedy laws that continue to harass softwood lumber producers; strengthen dispute settlement mechanisms; and develop the much-delayed common competition policy needed for industries that support growing North American production networks.

NAFTA‐ization: Regionalization and Domestic Political Adjustment in the North American Economic Area

AbstractEuropeanization is an example of initial bargains between states leading to ongoing political adjustment within the states. In this article I apply the concept to NAFTA and look at two of its member states, finding that despite the low level of institutionalization, NAFTA has set in motion new forms of political organization and behaviour, and new demands for political action. This is especially marked in Mexico, and in certain sectors. It is also clearly visible in the changing patterns of cross‐border bureaucratic communication. The main conclusions are that: (1) even in a lightly institutionalized regional trade agreement, the institutional, legal and civil society capacity of less‐developed members is strengthened; (2) despite the absence of a formal process of policy or institutional development and the lack of legislative instruments, NAFTA has begun a hidden process of domestic adjustment in technical and specialized areas; and (3) like the EU, pressures to expand and strengthen NAFTA have emerged as a result of the initial agreement as well as extraneous factors. These conclusions may offer lessons to the study and practice of regional organizations elsewhere.

Review: Politics in North America

POLITICS IN NORTH AMERICA Redefining Continental Relations Edited by Yasmeen Abu-Laban, Radha Jhappan, and Francois Rocher Peterborough, ON: Broadview, 2008. 502pp. $46.95 (ISBN 978-1-55111-642-6)The various authors of this volume of readings attempt to describe North American politics and economics within a regional focus. It is one of a number of recent efforts to fashion a new arena of study based on the member countries of the North American free trade agreement and it is clearly the best attempt to date. The readings provide an overview of many aspects of the three countries, including their historical origins, political cultures, their institutional similarities and differences, and their experience in a number of areas of social policy. The defining context is that of NAFTA and how it constrains and shapes the politics and economics of the three countries.In broad terms, the readings focus on five aspects of democratic experience. The first is the role of the state and how it has evolved in the three countries. Second is the impact of forces associated with globalization and their impact on the sovereignty of NAFTA countries, especially Mexico and Canada. Third, the authors discuss the state of democracy and the legitimacy of existing institutional structures in the member states. Fourth, the authors discuss recent developments in the emergence of a sense of community (or lack thereof) among the member states of NAFTA. Fifth, the readings focus on the evolving state of respect for human rights among the member countries. It is in this last area of analysis that this book makes its greatest contribution. In particular, the emphasis on the differing experiences of the indigenous peoples of the three countries without sacrificing attention to most of the usual areas of comparison is welcome.The contributions to this edited volume are generally of good quality, especially those in the first two parts. The overall view of NAFTA and its role in North American politics as presented by the various authors is largely negative. NAFTA is seen to be a force undermining national sovereignty, limiting the rights of minorities, and reinforcing the constraints imposed by neoliberal free market orthodoxy on the social policy landscape of all three countries. The greater emphasis on the consequences for minorities based on gender, colour, income, and sexual orientation, as well as for the indigenous peoples - all of whom are potential beneficiaries of an activist state leads to a political perspective on the NAFTA trade regime that is largely pessimistic. …

Ports, Politics and the Pacific Gateway: Consequences for Regional Development in Western Canada

Much has been said in recent years about the need to wean Canada off its economic dependency on the United States. The rapprochement of the North American economies after the signing of the Free Trade Agreement (FTA) in 1989 and the North American Free Trade Agreement in 1994 has been followed by moments of introspection and concern about just how much our economy is tied to our neighbour to the south. The Pacific Gateway Strategy (PGS) is one potential answer to this dilemma. The purpose of the symposium is to bring together practitioners and scholars to discuss issues that pertain to the impact of the PGS on northern communities, particularly those in the provincial north.