Log in
In the early 2000s the increasing Chinese, Brazilian, Indian and South African multinational enterprise investments into advanced economies were greeted with genuine concern by policy makers in these emerging economies, where the fear was that this was a prelude to disinvestment and relocation to advanced economies. Many of these policy makers and their advisors went to the United Nations Conference on Trade and Development (UNCTAD) for guidance, which in turn harnessed the specialist expertise of University of Reading professors John H Dunning (joined Reading in 1964, now deceased) and Rajneesh Narula (at Reading since 2004).
Narula and Dunning wrote a key report, which transformed UNCTAD's technical assistance programme and reassured emerging market policy makers that this pattern of MNE investment was entirely predictable and not a prelude to disinvestment. The policy response in these countries was duly moderated.
Research by Surrey's Centre for International Macroeconomic Studies (CIMS) has had significant impact on monetary policy in several emerging economies.
This case study highlights impact in Nigeria and Pakistan. Both are important emerging economies: Nigeria is the second largest economy in Africa and ranks 30th by world GDP (adjusted for purchasing power parity), while Pakistan ranks 27th; yet GDP per capita is relatively low in both.
Since 2008, Surrey research has: (1) led to the establishment of a new Centre for Survey Research at the State Bank of Pakistan, collecting data that have directly influenced the Bank's monetary policy; (2) steered reform of the macroeconomic models used by the State Bank and the Central Bank of Nigeria; and (3) helped develop a new approach to monetary policy Nigeria.
Following the global economic crisis of 2007, the question of how macroeconomic policies could be used to ameliorate its consequences has come to the fore. Research led by Professor Patrick Minford at Cardiff Business School (CBS) has promoted a shift in policy in the UK in a classical direction and away from the Keynesian demand management approach. CBS researchers from the Julian Hodge Institute of Applied Macroeconomics (JHIAM) have shown through economic modelling how a series of measures, for example, clear monetary rules which target inflation, could benefit the UK economy. The research has also been used both directly and indirectly, via MPs and intermediaries, to inform policy debates around such major issues as Britain's membership of the European Union (EU), as well as contributing to the wider public debate.
University of Glasgow research, undertaken in collaboration with the Universities of Exeter and Oxford, directly influenced the Government decision to create the Office for Budget Responsibility (OBR). The Conservative Party cited the research as part of the rationale for the creation of such a fiscal body in its policy paper in 2008; the research was subsequently presented to the Strategy Unit of the Cabinet Office, No.'s 10 and 11 Downing Street and the Institute of Government throughout 2008 and 2009. The proposal was implemented by the coalition government in 2010, with the research team then using the findings to advise a Treasury Select Committee as well as the Bank of England on the appropriate remit, expectations and functions of the newly-created OBR.
Research conducted at UCL on innovation and innovation systems in Central and Eastern European countries is rooted in a neo-Schumpeterian perspective rather than in mainstream transition perspectives. This research has impacted policy process and analysis through the lead researcher's extensive participation in high-level advisory activities for international organisations (World Bank, European Commission, UN Economic Commission for Europe, etc.) and national governments in Central and Eastern Europe (Czech Republic, Belarus, Ukraine, Slovakia, Slovenia). This led to significant changes in research policy and funding, e.g. a new call within the European Union's FP7 programme and changed innovation strategies in Slovenia and Belarus.
This case study describes how an economic and statistical analysis of tax policy undertaken by Chris Heady has been used to inform fiscal policy decisions, both in the UK and overseas.
The research has had a direct impact on public policy, informing HM Treasury's decision in 2011 to increase the main rate of value added tax and accelerate the reduction in the rate of corporation tax. It has also had a broader impact through contributing to the government's understanding of the role of tax policy in promoting growth, and through informing public understanding of the issue.
In addition to its significance to UK public policy, the research has had international reach as it has been presented for discussion by the international tax community and international organisations.
A series of empirical research studies, underpinned by economic theory, explored enterprise support and urban settlement structure. The research contributed significantly to the evidence base used by East Midlands Development Agency (EMDA) in developing their Regional Economic Strategy (RES), and was key in shaping two of the Strategic Priorities. More generally, the research-based recommendations informed EMDA policy development, in particular, the £290 million Single Programme investment set out in the RES. The research also helped shape county councils' support for enterprise, innovation and business. More recently, the research has informed the shape of regional economic development beyond the regional development agencies into new government policy through the new Local Enterprise Partnerships; for example Lincolnshire's £14 million investment in broadband.
Research by Christopher Pissarides and his LSE colleague Rachel Ngai has led to official acceptance by European Union (EU) policy-makers that a major source of new jobs will be sectors that provide services to the general public, notably healthcare and low-skill domestic services. The European Commission was initially hostile to this view, preferring the emphasis of the EU's so-called `Lisbon strategy' on job creation in advanced technology industries. But the Commission's Growth Survey 2012 indicates that it has now adopted Pissarides' approach, and at the `Jobs for Europe' summit in September 2012 he was invited to deliver a keynote speech on the same platform as the `three Presidents' (of the Commission, the European Council and the European Parliament). His policy recommendations — including the need for better incentives for the `marketisation' of activity in the care and unskilled services sectors — are now part of the official EU agenda on job creation. He has also advised national governments, including in his native Cyprus, where he was appointed president of the government's Economic Policy Council in 2013.
International evidence suggests that small firms provide the main source of new jobs in almost all economies. Policy support can be important in fostering and facilitating SME growth. Dr Kevin Mole, Professor Stephen Roper and Professor David Storey have helped the UK government and regional economic development agencies to develop, implement and evaluate new policy initiatives for supporting SME growth. Building on the UK research, and partnering with the Organisation for Economic Co-operation and Development (OECD), Professor Roper has shaped SME policy development and evaluation in the Western Balkans as countries have sought to upgrade their SME support regimes and align their policy frameworks to those of the European Community.
Chang's research has covered a wide range of public policy, including industrial policy, trade policy, privatisation, and agricultural policy, as well as theories of state intervention. By successfully challenging the then prevailing orthodoxy on economic development, his research has had significant influence on the actions of many national governments, multilateral institutions (e.g., the UN, the World Bank) and NGOs (e.g., Oxfam). Chang's research has also had substantial impact on public debate concerning economic policies, especially but not exclusively those regarding development issues. He has had two best-selling mass-market books (together sold 1.15 million copies as of December 2012) and gained worldwide media exposure for his views.