Andre Sapir

Andre Sapir
Université Libre de Bruxelles | ULB · European Center for Advanced Research in Economics and Statistics (ECARES)

PhD

About

259
Publications
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Publications

Publications (259)
Article
In 1999, when they joined the euro, Belgium and Italy were almost identical in two respects. Both had public debts equal to 110 percent of GDP and their GDP per capita were identical. Today the situation is very different in the two countries. This paper looks at the evolution of public debt in Belgium and Italy since 1990 and uses the debt dynamic...
Article
The EU is a relatively open economy and has benefited from the global multilateral system. We argue that the EU should defend its strategic interests with three steps. First, it should collaborate with partners around the world in defence of multilateralism. Second, it should establish deeper economic relations with emerging economies. Collaboratio...
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In a series of recent disputes arising under the TBT Agreement, the Appellate Body has interpreted Article 2.1 to provide that discriminatory and trade-distortive regulation could be permissible if based upon a ‘legitimate regulatory distinction’. In its recent compliance decision in the US–Tuna II dispute, the AB reaffirmed its view that regulator...
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We examine how uncertainty affects firms' internationalization choices. We begin by unveiling a new empirical regularity: using a unique dataset that allows us to study the dynamics of firms' exports and foreign direct investments (FDI) in individual destinations, we show that most firms serve a market via exports before investing there. To rationa...
Article
Misalignments of real exchange rates continue to be the most visible and painful symptom of asymmetric shocks within the Eurozone. An important factor behind such misalignment is the difference in national wage formation and bargaining systems, especially between core and periphery members. This column argues that all members need to have instituti...
Article
Preferential trade agreements (PTAs) are en vogue both as policy tool, as well as research subject. We do not beg to differ. In this article, inspired by the behaviour of the European Union (EU), we ask whether the proliferation of PTAs and the negotiation of mega-regionals, like the Trans-Atlantic Trade and Investment Partnership (TTIP) between th...
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The EU banking system has reached a size where it is likely to give a negative contribution to economic growth and to increase risk taking, in the form of banks’ default risk and of likelihood of financial crises. Moreover, being heavily bank-dependent, the EU financial system is associated with a more volatile supply of credit and lower economic g...
Article
The European regulatory landscape has changed profoundly in the wake of the Crisis. This chapter presents two of the main supervisory innovations: the European Systemic Risk Board (ESRB) and the Single Supervisory Mechanism (SSM). The way macroprudential regulation is organised within each and the consequences of the creation of the SSM for the ESR...
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This special issue aims to shed light on the multi dimensional aspects of economic integration among the world’s vast, distinct, and two adjacent regions on the continental scale: that is, Asia and Europe. Distinguished researchers weave various strands of economic integration between Asia and Europe that are sometimes seemingly intangible but spec...
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Ce rapport sur les interdépendances économiques et sociales entre la Wallonie et Bruxelles s’inscrit dans cette volonté de faire progresser l’entrepreneuriat dans notre région. Bruxelles est une métropole dont l’hinterland se situe spatialement en grande partie en Wallonie. Pour continuer à se développer, les deux composantes ont besoin l’une de l’...
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Bela Balassa's Theory of Economic Integration, published fifty years ago, is a remarkable, yet little known book. This essay reviews developments in the economic literature and in the process of European integration since the book's publication, showing that it was incredibly prescient. It anticipated by more than twenty years the modern literature...
Article
With the completion of the single European market and the full liberalization of capital markets two separate trilemmas emerged in the early 1990s: a monetary trilemma between free capital movements, fixed exchange rates, and national monetary autonomy; and a financial trilemma between free capital movements, financial stability, and national finan...
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POLICY CHALLENGE We propose limited fiscal union, including the creation of a euro-area finance ministry, with a minister with veto rights over national budgets that could threaten euro-area sustainability. The ministry would also assess the liquidity and solvency of governments facing difficulties, and provide support to illiquid but solvent gover...
Book
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This report examines how the international monetary system (IMS) might evolve and the implications of different scenarios for the euro area over the next fifteen years.After the collapse of the Bretton Woods system forty years ago, the IMS gradually developed into its present state, a hybrid mix of exchange-rate flexibility, capital mobility and mo...
Book
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The euro-area crisis has exposed deep deficiencies in the governance of European Economic and Monetary Union. However, crisis prevention in, and surveillance of, the euro area are not only the responsibility of European authorities. As members of the International Monetary Fund, all euro-areacountries are also subject to regular bilateral IMF surve...
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The euro area‘s sovereign debt crisis continues though significant steps have been taken to resolve it. This paper proposes a comprehensive solution to the crisis based on three pillars: a plan to restore banking sector soundness in the whole euro area, a resolution of sovereign debt crisis -including a revision of EU assistance facilities and a re...
Chapter
Introduction There is growing concern about preferential trade agreements (PTAs) and the role they should play within the multilateral trading system. This concern stems from both their increasing number and their ever-broader scope. During the period 1948–94, the General Agreement on Tariffs and Trade (GATT) received 124 notifications of PTAs, of...
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It is often alleged that PTAs involving the EC and the US include a significant number of obligations in areas not currently covered by the WTO Agreement, such as investment protection, competition policy, labour standards and environmental protection. The primary purpose of this study is to highlight the extent to which these claims are true. The...
Article
We describe a simple model in which domestic firms decide whether to serve a foreign market through exports or horizontal foreign direct investment (FDI). This choice involves a trade-off between the higher variable trade costs associated with exports and the higher fixed set-up costs associated with establishing foreign subsidiaries. Crucially, fi...
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The financial crisis exposed Europe’s inadequacy in developing an effective banking resolution framework that could bring together national authorities and set guidelines for their coordination. The European Commission, through its assessment of state aid cases, managed to avoid single market distortions and mitigate moral hazard. This Policy Contr...
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For well over a decade many observers had warned that the European Union was ill-prepared in case of a financial storm because its market integration far outpaced its policy integration. This situation was well known to policy-makers but it was hoped that financial crises would wait until policy integration occurred. The reality turned out differen...
Book
This Bruegel Blueprint argues that Europe should take the lead in defining a solution to the problem of excessive public debts and create a European Crisis Resolution Mechanism (ECRM).The authors, Francois Gianviti, Anne O. Krueger, Jean Pisani-Ferry, André Sapir and Jürgen von Hagen, present the rationale for such a mechanism in the euro area an...
Article
We test the hypothesis that universities are more productive when they are both more autonomous and face more competition. Using survey data, we construct indices of university autonomy and competition for both Europe and the United States. We show that there are strong positive correlations between these indices and multiple measures of university...
Article
The financial crisis exposed Europe's inadequacy in developing an effective banking resolution framework that could bring together national authorities and set guidelines for their coordination. The European Commission, through its assessment of state aid cases, managed to avoid single market distortions and mitigate moral hazard. This Policy Contr...
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Full-text available
Innovation is key to the future of Europe. This Policy Contribution, written together by Mathias Dewatripont, Solvay Brussels School of Economics and Management; Bruno van Pottelsberghe and Andre Sapir, Senior Fellows at Bruegel and professors at ULB; and Reinhilde Veugelers, senior fellow at Bruegel and professor at Katholieke Universiteit Leuven,...
Article
The crisis in Greece presents an extraordinary test for the euro, but also an opportunity to strengthen, and apply more diligently, existing procedures governing the economic and monetary Union. This Policy Brief authored by Bruegel Director Jean Pisani-Ferry, Senior Fellow Andre Sapir and Resident Fellow Benedicta Marzinotto emphasises the need fo...
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Two of the four issues in this Appellate Body Report concerned the proper scope of Article 21.5 DSU compliance panel proceedings; the other two issues concerned the Appellate Body's review of the Panel's use of evidence. On the Article 21.5 issues, the Appellate Body essentially ruled that an Article 21.5 compliance proceeding could evaluate the WT...
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This report examines the impact of the economic crisis on the countries of central and eastern Europe (CESEE) and draws out the main policy lessons. Until the crisis hit, CESEE countries had been pursuing a distinctive model of growth and catch-up through integration with the European Union, although not all countries had achieved the same level of...
Book
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This Blueprint looks in detail at all the provisions of all the PTAs signed by the EC or the US and other WTO members. Henrik Horn, Petros C. Mavroidis and André Sapir find that Europe and the US have adopted different approaches to PTAs; however, both powers may also be seeking to project their priorities.
Article
Cet article propose des recommandations qui apparaissent comme etant prioritaires pour le developpement economique de la Wallonie et de Bruxelles. Il met l’accent sur des strategies souhaitables, quel que soit le scenario institutionnel retenu pour l’avenir du pays.Il commence par brievement enumerer les problemes specifiques de ces regions : (i) f...
Book
These Memos, addressed to the next Commission President and to the new European commissioners, are written by Bruegel Scholars and edited by Senior Research Fellow André Sapir and focus on key economic aspects of EU policy-making. The new Commission will enter office at a challenging time for Europe, the EU and the Commission itself. The crisis ha...
Article
Jean Pisani-Ferry and Andr� Sapir believe that the euro has proved attractive as a fair-weather currency for countries and investors well beyond its borders. But it still remains to be seen if its governance is strong enough for it to succeed as a stormy-weather currency. The authors already detect, howevever, that the crisis shows the euro-area go...
Article
Director Jean Pisani-Ferry and Senior Fellow Andr� Sapir provide an in-depth examination of the the banking crisis in the European Union, starting with a discussion of the pre-crisis banking landscape and including an assessment of the management of the crisis and the lessons learned going forward. The authors argue that the EU was institutionally...
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The system of multilateral rules and institutions that constitute the global economic governance regime trails the rapid transformation of the world economy. That system needs to adapt to geopolitical changes and to a growing number and diversity of participants in global economic integration, and must coexist with regionalism and market-led govern...
Book
Since the introduction of the Shanghai ranking of the worldâ??s universities it has been clear that European universities are underperforming. This blueprint discusses the potential explanations and points at different reform priorities for higher education in Europe.
Book
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This report surveys the economic performance of the euro area and gives recommendations about six policy challenges of major importance for the future of EMU.
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Why could political incentives be different during election times? This article provides answers to this question using a career-concern model of political cycles. The analysis in the article is also relevant to understanding other agency relationships in which an important part of compensation is decided on infrequently.
Article
Jean Pisani-Ferry, Andr� Sapir and Jakob von Weizs�cker have put together a programme which combines an immediate budgetary stimulus by all EU countries with country-specific measures via the implementation of four concrete steps: 1. Budgetary boost 2. Reform commitment 3. Enforcement and 4. Prudent borrowing.
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Summary. Recently published international rankings indicate that the performance gap between European and American universities is large and, in particular, that the best European universities lag far behind the best American universities. The country performance index we construct using the Shanghai ranking confirms that, despite the good performa...
Article
North Korea's famine was in significant part a product of state failure, and unleashed an unintended grassroots process of marketization. Reforms undertaken in 2002 are more usefully interpreted as a response to this development than as a pro-active attempt to improve efficiency, and the government’s stance remains ambivalent. The economy is prog...
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The author argues against the introduction of social clauses in trade agreements on both ethical and economic grounds. It is maintained that poor labour standards are just one of the many aspects of poverty, and that social clauses are more likely to reinforce the problem than solve it. The author examines how the relationships between trade libera...
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Little progress has been made since the creation of the WTO on expanding and deepening the coverage of services liberalization commitments. This paper identifies and discusses five hypotheses that may explain the absence of dynamism: (i) technological changes allowing ever more services to be traded cross-border unaffected by policy; (ii) strong in...
Chapter
Few issues have stirred as much controversy since the launch of the euro as the Stability and Growth Pact (SGP). To its supporters the pact is the cornerstone of the rules governing the single currency, which must be upheld to ensure monetary stability and economic growth. To its detractors the pact is “a nuisance”, whose strict application is detr...
Book
The European Union is the worldâ??s largest economic entity, with half a billion people and a gross domestic product slightly larger than the United States. It is the largest exporter, the largest foreign aid donor, the largest source of foreign investment, and a magnet for migrants. But its decision-making powers are often fragmented and ineffecti...
Book
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In this Blueprint, Bruegel Resident Fellows Zsolt Darvas, Jean Pisani-Ferry, Andre Sapir and their co-authors Torbjörn Becker, Daniel Daianu, Vladimir Gligorov, Michael A Landesmann, Pavle Petrovic, Dariusz K. Rosati and Beatrice Weder di Mauro argue that in view of the depth of integration in Europe, the development model of the central, eastern a...
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In 2005, shortly after taking office, the Barroso Commission replaced the failed Lisbon process initiated in 2000 (Lisbon 1) by a new one (Lisbon 2) which gave centre stage to the National Reform Programmes (NRPs). A year later, in a paper written at the request of the Austrian Presidency, Jean Pisani-Ferry and I critically reviewed the new process...
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Andr� Sapir puts forward some comments and recommendations about the Lisbon Methodology (LIME) Working Group. This Policy Contribution was presented at the first meeting of LIME'S Working Group on 1 February 2007.
Article
Based on a survey of European universities, this policy brief states that despite the good performance of some countries, Europe as a whole trails the US by a wide margin. The reason is two-fold. First, Europe invests too little in higher education. Second, European universities suffer from poor governance, insufficient autonomy and often perverse...
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During the ‘Golden Age’ that lasted until the mid-1970s, Europe witnessed a "public finance" phase, when the three sides of Musgrave’s triangle - allocative efficiency, redistribution and cyclical stabilisation - seemed to reinforce one another. EMU's fiscal rules - embodied in the Maastricht Treaty and the Stability and Growth Pact - can be regard...
Article
Globalization implies changes that create both threats and opportunities. The challenge for Europe is to become flexible in order to avail of the opportunities this brings and surmount the threats. This requires reforming labour market and social policies. When thinking about such reforms the notion of a single ‘European social model’ is largely ir...
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Europe?s labour and social institutions need urgent reform if we are to grasp the opportunities offered by globalisation and avoid the threats. But the notion of a single ?European Social Model? is largely unhelpful for thinking about reforms. Of the four main models operating, the ?Nordic? and the ?Anglo-Saxon? models are both efficient, but only...
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En este artículo se presenta una versión resumida del informe Sapir. Tras constatar que la UE, como bloque, no está creciendo a un ritmo satisfactorio, se propone una "agenda" encaminada a tratar de mejorar la situación y facilitar el éxito de la reciente ampliación. Esta "agenda" se basa, en esencia, en tres puntos: fomentar la inversión en materi...
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Andr� Sapir produced this short paper at the request of Commissioner Mandelson for the Expert Seminar on Trade Defence Instruments at the European Commission.
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The Lisbon agenda was reborn in 2005 with its economic goals prioritised and a new system of governance. But "naming and shaming" of underperforming countries has been dropped and there will be no redrawing of the EU budget. The new emphasis is on national "ownership" of reforms. Jean Pisani-Ferry and Andr� Sapir call for more focused guidelines, r...
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Since unification, the debate about Germany's poor economic performance has focused on supply-side weaknesses, and the associated reform agenda sought to make low-skill labour markets more flexible. We question this diagnosis using three lines of argument. First, effective restructuring of the supply side in the core advanced industries was carried...
Book
Full-text available
Over the past decade European economic integration has seen considerable institutional success, but the economic performance of the EU has been varied. While macroeconomic stability has improved and an emphasis on cohesion preserved, the EU economic system has not delivered satisfactory growth performance. This book is the report of a high-level gr...
Chapter
As the members of the European Union (EU) engage with the Central and Eastern Europe countries (CEECs) in negotiations for their accession, the nature of the discussion on the EU side is altering. The implications of what is at stake are starting to be looked at more closely, the subject matter has become much more technically focused on the acquis...
Article
The make-or-buy decision is analyzed in a simple two-task principal-agent model. There is a cost-saving/quality tradeoff in effort provision. The principal faces a dichotomous choice between weak ("make") and strong ("buy") cost-saving incentives for the agent; the dichotomy is due to an incomplete-contracting limitation necessitating that one part...