tag:blogger.com,1999:blog-8566036031670722613.post8680729076529882491..comments2018-11-06T00:48:53.265-08:00Comments on Graph of the Week: Small Countries Stablize by Exporting High-TechPatrick Rhodeshttp://www.blogger.com/profile/14874894005290887213noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-8566036031670722613.post-6175123766870503632012-04-26T12:51:06.517-07:002012-04-26T12:51:06.517-07:00That is a great paper, but sorely in need of graph...That is a great paper, but sorely in need of graphs! I like the published formulas.dezert1https://www.blogger.com/profile/01201701558271990438noreply@blogger.comtag:blogger.com,1999:blog-8566036031670722613.post-90848066334193645052012-04-25T15:29:42.603-07:002012-04-25T15:29:42.603-07:00https://secure.um.edu.mt/__data/assets/pdf_file/00...https://secure.um.edu.mt/__data/assets/pdf_file/0013/44122/resilience_index.pdf<br /><br />Sorry Patrick,,, had a brain bubbletierzabrownhttps://www.blogger.com/profile/10259141419409322346noreply@blogger.comtag:blogger.com,1999:blog-8566036031670722613.post-43385201140031626682012-04-24T15:24:19.822-07:002012-04-24T15:24:19.822-07:00Do you have the link?Do you have the link?dezert1https://www.blogger.com/profile/01201701558271990438noreply@blogger.comtag:blogger.com,1999:blog-8566036031670722613.post-20792680604254358422012-04-23T16:27:37.811-07:002012-04-23T16:27:37.811-07:00Hey Patrick, hope you are well.... Here is a coll...Hey Patrick, hope you are well.... Here is a college paper written by economic students at the University of Malta. It speaks on the effects of these four aspects namely macroeconomic stability,<br />microeconomic market efficiency, governance and social development. Enjoytierzabrownhttps://www.blogger.com/profile/10259141419409322346noreply@blogger.comtag:blogger.com,1999:blog-8566036031670722613.post-72058788714415084512012-04-21T13:37:55.897-07:002012-04-21T13:37:55.897-07:00I hear ya - loud and clear. This article was simpl...I hear ya - loud and clear. This article was simply to illustrate that small countries are growing due to foreign investment coupled with high-tech exports, thus ensuring they stay viable. Without foreign investors and the accompanying technology that comes with it, they (the small countries) are typically stuck, so they don't have much of a choice. The workers in those countries can either continue to not work at the 'high-tech' factories or take a job there - either way they are no worse off.<br /><br />There are downsides for the U.S. as you mention and perhaps that should be a future article on this site. The companies mentioned in the article (Intel and GlaxoSmithKline) are huge and employ tens of thousands here in the U.S. as well as abroad. In order to keep jobs here, the barriers to starting a small business must be lowered (I know this from first-hand experience), then those that think jobs should stay here can create them.<br /><br />In other words, more small businesses and less huge ones will definitely level the playing field.dezert1https://www.blogger.com/profile/01201701558271990438noreply@blogger.comtag:blogger.com,1999:blog-8566036031670722613.post-32816294564039107192012-04-20T08:41:41.336-07:002012-04-20T08:41:41.336-07:00Patrick, what U.S. corporations are investing in t...Patrick, what U.S. corporations are investing in those countries? And when they do, how does it impact the U.S. workers? Exporting jobs/outsourcing by Transnationals/Multinationals generates globalized profits for their CEOs and loss of U.S. jobs. Also what are the workers being paid in those Transnational workshops? What are the regulations on those TNs--like Environmental, Health & Safety, Taxes, etc?? <br /><br />For more info. check out the Executive PayWatch website: www.PayWatch.org <br />Discussion referenced with graphs and sources. <br />Justification for CEO profiteering per their view is based on entitlement, claiming it's their imput that makes success. Well...what about the workers who actually produce the product?Sgt. Pepperhttps://www.blogger.com/profile/07648546166312012972noreply@blogger.comtag:blogger.com,1999:blog-8566036031670722613.post-33228146000011716382012-04-19T17:35:23.155-07:002012-04-19T17:35:23.155-07:00I do not have information on the IFSC tax policies...I do not have information on the IFSC tax policies ... I do see now your reference to 'end products' ... my point was Dell motivated many in the Industry to follow their lead by locating operations in Ireland, either as a full service assembly/supply chain hub or just as a supply chain hub. Dell was the 800 Lb Gorilla (so to speak) ... they were big enough to single handedly impact chart movements in Ireland. (As a "sanity check" to my hypothesis: Chart Poland against Ireland - beginning in 2006 - and see if the two sets of data diverge)Warm regards, Rayray double uhttps://www.blogger.com/profile/04643634234178730397noreply@blogger.comtag:blogger.com,1999:blog-8566036031670722613.post-22844245401860535932012-04-19T09:11:36.920-07:002012-04-19T09:11:36.920-07:00Well-thought out comments. I'll address a coup...Well-thought out comments. I'll address a couple of the issues separately:<br /><br />Bermuda: the World Data Bank has absolutely no data on that country with regards to high-tech exports, so that's why they weren't included. Unfortunately, when doing 'data journalism', my charts/graphs (and corresponding insights) are only as good as the data I use. In this case, the World Data Bank is fantastic, but even they cannot gather data from all countries (imagine trying to get numbers from N. Korea!). If you have a solid data source - where the data is actually downloadable, testable and analyzed for errors - then please direct me to it.<br /><br />Material benefits: If unemployment goes down in a country, then I can only surmise that money must be coming in. What those citizens then choose to do with that money remains up to them. Further, since unemployment is going down in these countries, then it follows that the locals are being employed. I do not know which jobs inside of these companies they are getting, of course. That would change constantly and require an investigation. That being said, I absolutely see your point of view - these jobs are not in control of the locals and therefore do not control their own destines/salaries/happiness in that context. It's one thing to see a statistic that says jobs are up, it's something else entirely to actually be there and see the working conditions.dezert1https://www.blogger.com/profile/01201701558271990438noreply@blogger.comtag:blogger.com,1999:blog-8566036031670722613.post-60643405658527749892012-04-19T08:56:38.685-07:002012-04-19T08:56:38.685-07:00Excellent comments - thank you for your detailed i...Excellent comments - thank you for your detailed insight into the factors surrounding Ireland. Question: why did the IFSC phase out tax incentives?<br /><br />In response to the building and shipping in Ireland, I mentioned that exports didn't 'necessarily' mean final products. That was an attempt to ensure an understanding that not all exports are final products.dezert1https://www.blogger.com/profile/01201701558271990438noreply@blogger.comtag:blogger.com,1999:blog-8566036031670722613.post-84298427972965467202012-04-19T08:15:22.191-07:002012-04-19T08:15:22.191-07:00The problem with this approach is that, these coun...The problem with this approach is that, these countries aren't exporting; they're middling: acting as domicile tax havens for large foreign corporations. These countries are really middlers; the products aren't made with indigenous resources, so they aren't exports, and they're not consumed domestically, so they're not imports. Costa Rica exports bananas, a product which the citizens (with a good deal of foreign control, even so) make. You didn't include the granddaddy of all, Bermuda, where I've been. The Bermudian citizen doesn't participate in these "export" activities; they must be content to "serve" the ex-pat foreigners who get all that money. Whether the Bermuda citizen is happy with the bargain is very much up in the air these days. You can follow the story, on-line, in their newspaper, The Royal Gazette. I expect that these other island nations, more or less, conduct the same debate.<br /><br />Do the citizens of these nations get any material benefit from the bargain? Better health care? Better housing? Better schooling? Access to professional employment in these activities? From what I saw in Bermuda, no. These activities use up land and water, both in limited supply on islands, to little or no benefit to citizens; well except landlords. <br /><br />Such deals are with the devil. As soon as XYZ Corporation manages to extort a better deal from some other island nation, off it goes. The same thing, very same, happens here in the USofA with professional sports franchises: they extort cost free arenas with the promise of wonderful jobs for many citizens. Doesn't happen, and soon enough, off the teams go to yet more gullible cities/states. The solution, following Malthus and Ehrlich, is for such island nations to stop having so many damn kids (that's a paraphrase from Paul Theroux). There's no future in being a temporary tax haven.Robert Younghttps://www.blogger.com/profile/09056808374481236610noreply@blogger.comtag:blogger.com,1999:blog-8566036031670722613.post-41238177717092557132012-04-18T16:18:25.898-07:002012-04-18T16:18:25.898-07:00Ireland is tricky business ... the IFSC (Ireland F...Ireland is tricky business ... the IFSC (Ireland Financial Services Centre) debuts 1987 to lure foreign investors with 10% corp tax rates ... Dell opens in 1991 ... Dell integrates some of their portfolio Asia supply chain partners into Ireland via acquisition of Ireland Companies of through relocation to Ireland ... 1993 Gateway Computers also opens in Ireland ... it is noteworthy that Dell had many imitators as the benchmark for an Industry ...hence, many Tech Companies follow Dell into Ireland. Note the uptick on the chart. Some 8 years later ... Gateway exits Ireland in 2001 ...IFSC phases out tax incentives until they are all phased out by 2008 ... Dell exits at end of 2008 and relocates to Poland. It is likely the drawdown didn't happen overnight ... the IFSC started to phase out incentives beginning in 2003 and the chart notes a gradual decline beginning in 2007. It is also worth noting that your data may need additional scrutiny around the following area: Ireland did build and export Dell's and Gateway's ... however, it is more likely that they were the Shipping Hub to Europe for High Tech built in Asia which was exported to Ireland to a Supply Chain Hub and then on-forwarded to Europe. The IFSC made Ireland a very attractive destination as a Finance Hub as well as a Shipping Hub.ray double uhttps://www.blogger.com/profile/04643634234178730397noreply@blogger.com