International Economic Law and Policy Blog: Location Subsidies for Solar Panel Production
Aided by at least $43 million in assistance from the government of Massachusetts and an innovative solar energy technology, Evergreen Solar emerged in the last three years as the third-largest maker of solar panels in the United States.
But now the company is closing its main American factory, laying off the 800 workers by the end of March and shifting production to a joint venture with a Chinese company in central China. Evergreen cited the much higher government support available in China.
...
China’s real advantage lies in the ability of solar panel companies to form partnerships with local governments and then obtain loans at very low interest rates from state-owned banks.
Evergreen, with help from its partners — the Wuhan municipal government and the Hubei provincial government — borrowed two-thirds of the cost of its Wuhan factory from two Chinese banks, at an interest rate that under certain conditions could go as low as 4.8 percent, Mr. El-Hillow said in August. Best of all, no principal payments or interest payments will be due until the end of the loan in 2015.
By contrast, a $21 million grant from Massachusetts covered 5 percent of the cost of the Devens factory, and the company had to borrow the rest from banks, Mr. El-Hillow said.
Banks in the United States were reluctant to provide the rest of the money even at double-digit interest rates, partly because of the financial crisis. “Therein lies the hidden advantage of being in China,” Mr. El-Hillow said.
Showing posts with label Labour. Show all posts
Showing posts with label Labour. Show all posts
Monday, January 17, 2011
Friday, January 14, 2011
Immigrant integration in Federations
Forum of Federations - Global Dialogue
government within seven federations. It will also explore the degree to which policies and responsibilities have changed as the issue of immigrant integration has risen on the public agenda during the past decade.
Although the concept is defined in various ways, this project focuses on immigrant integration as the means to allow newcomers to participate in the economic, social and civic life of the host country. This is viewed as a two-way process: acquiring these capacities is the responsibility not only of newcomers but also the host society and its institutions. The project will focus on policy instruments to encourage immigrant integration in three categories: legal/political, economic and civic/cultural.
Activities
A workshop of the project collaborators was held in Berlin on February 22, 2010. Three additional events involving a number of those involved in the project were co-sponsored with local partners: a conference on “Immigrant Integration in Switzerland” in Bern on February 24 and 25, 2010 (with the Federal Office for Migration); a workshop on “Immigration Policies in Spain” in Barcelona on March 26, 2010 (with Institut d'Estudis Autonòmics); and a conference in Brussels on November 29 and 30, 2010.
A further event, a conference on “Immigrant Integration and Canadian Federalism: Exploring the Issues,” will be held in Toronto on January 28, 2011.
The project will lead to the publication of a comparative volume, which will include a policy-oriented concluding chapter written by the co-directors
government within seven federations. It will also explore the degree to which policies and responsibilities have changed as the issue of immigrant integration has risen on the public agenda during the past decade.
Although the concept is defined in various ways, this project focuses on immigrant integration as the means to allow newcomers to participate in the economic, social and civic life of the host country. This is viewed as a two-way process: acquiring these capacities is the responsibility not only of newcomers but also the host society and its institutions. The project will focus on policy instruments to encourage immigrant integration in three categories: legal/political, economic and civic/cultural.
Activities
A workshop of the project collaborators was held in Berlin on February 22, 2010. Three additional events involving a number of those involved in the project were co-sponsored with local partners: a conference on “Immigrant Integration in Switzerland” in Bern on February 24 and 25, 2010 (with the Federal Office for Migration); a workshop on “Immigration Policies in Spain” in Barcelona on March 26, 2010 (with Institut d'Estudis Autonòmics); and a conference in Brussels on November 29 and 30, 2010.
A further event, a conference on “Immigrant Integration and Canadian Federalism: Exploring the Issues,” will be held in Toronto on January 28, 2011.
The project will lead to the publication of a comparative volume, which will include a policy-oriented concluding chapter written by the co-directors
Sunday, January 2, 2011
Can trade in services offer an alternative to migration?
Can trade in services offer an alternative to migration? vox - Research-based policy analysis and commentary from leading economists
High unemployment among the young and low skilled is fuelling anti-immigration sentiments across the OECD. This column argues that, in Western Europe, demographic trends are such that demand for many workers will exceed supply. It proposes a framework that enables the temporary movement of services providers, a policy that could address Europe’s labour needs while placating public resistance.
Recently released data show that the US population has increased 9.7% since 2000, reaching almost 309 million (US 2010 Census). While low by US standards, this growth rate far exceeds European rates. Europe is facing a demographic dilemma. Low fertility rates and increased life expectancy mean that labour forces are shrinking as dependency ratios are rising.
Declining youth populations imply this is not a temporary pattern but a reflection of long-term trends. The implications for labour markets, welfare policies, and fiscal balances are significant. In contrast to Europe, southern Mediterranean countries have a temporary bulge in their young working-age populations. They will complete their demographic transition within one generation, but current excess labour supply is creating social and economic challenges.
Current demographic trends suggest that the EU will face a severe labour shortage over the next decade while Mediterranean countries will continue to experience significant growth in their labour forces (Figure 1). The recession is reducing migration incentives somewhat and economic growth and demographic transitions in developing nations will reduce long-run pressures to migrate (Hatton and Williamson 2009). But in the short to medium term, the diverging labour market trends in the EU and its neighbours imply substantial incentives for migration
High unemployment among the young and low skilled is fuelling anti-immigration sentiments across the OECD. This column argues that, in Western Europe, demographic trends are such that demand for many workers will exceed supply. It proposes a framework that enables the temporary movement of services providers, a policy that could address Europe’s labour needs while placating public resistance.
Recently released data show that the US population has increased 9.7% since 2000, reaching almost 309 million (US 2010 Census). While low by US standards, this growth rate far exceeds European rates. Europe is facing a demographic dilemma. Low fertility rates and increased life expectancy mean that labour forces are shrinking as dependency ratios are rising.
Declining youth populations imply this is not a temporary pattern but a reflection of long-term trends. The implications for labour markets, welfare policies, and fiscal balances are significant. In contrast to Europe, southern Mediterranean countries have a temporary bulge in their young working-age populations. They will complete their demographic transition within one generation, but current excess labour supply is creating social and economic challenges.
Current demographic trends suggest that the EU will face a severe labour shortage over the next decade while Mediterranean countries will continue to experience significant growth in their labour forces (Figure 1). The recession is reducing migration incentives somewhat and economic growth and demographic transitions in developing nations will reduce long-run pressures to migrate (Hatton and Williamson 2009). But in the short to medium term, the diverging labour market trends in the EU and its neighbours imply substantial incentives for migration
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