Denise Konan - Academia.edu (original) (raw)

Papers by Denise Konan

RePEc: Research Papers in Economics, Jan 15, 2003

The Policy Research Working Paper Series disseminates the findings of work in progress to encoura... more The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished.

Social Science Research Network, Jun 13, 1997

A computable general equilibrium model of Egypt is developed to analyze proposed reforms in its t... more A computable general equilibrium model of Egypt is developed to analyze proposed reforms in its trade policies, including a partnership agreement with the European Union. The model has multiple trading regions and allows for administrative trade barriers and tariffs. The paper reports computations of the revenue impacts of trade liberalization and the required changes in distortionary commodity taxes to maintain a fixed real government budget. Egypt's greatest potential gains come from removing its administrative trade barriers while adopting globally free trade. The partnership agreement with the EU could lower or raise Egypt's welfare, depending on prior trade reform.

Journal of Development Economics, Oct 1, 2006

The Policy Research Working Paper Series disseminates the findings of work in progress to encoura... more The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished.

Energy Policy, Dec 1, 2020

Abstract: This paper uses data provided by Hawaiian Electric Company (HECO) for the period from S... more Abstract: This paper uses data provided by Hawaiian Electric Company (HECO) for the period from September 2010 to May 2014. The study explores the effect of customer mix of each distributed transformer on the shape of load profiles along with their variability. Results suggest that in a more residential-concentrated area, net load generally has two peaks — morning and night, while a more commercial-or industrial-concentrated area exhibits one midday peak. The shape of a given areas’ load profile is mostly influenced by its customer-mix and the time-of-day, while its load volatility is largely the result of weather patterns and the level of PV penetration. Since solar power typically exhibits different generation characteristics from power produced by other conventional sources, more precise solar forecasts enable electric system operators to better manage electricity generation with fluctuating solar output.

In this paper, we analyze the importance of regulation and market structure on the welfare impact... more In this paper, we analyze the importance of regulation and market structure on the welfare impact of service trade liberalization. For this purpose, we incorporate an imperfectly competitive services sector that can take on various market structures into a standard CGE model for a small open economy.We assume that in the benchmark a domestic incumbent monopolizes the services sector. In the counterfactuals, the services sector is liberalized and a license is provided to a single foreign service provider. If regulations can enforce competition between the domestic and foreign firm, then the telecommunications market structure turns into a Cournot duopoly. If regulations are weak, then the domestic and the foreign firm can form a cartel. We apply our framework to analyze the welfare impact of telecommunications liberalization in Tunisia. We find that if regulation guarantees competition, Tunisia's welfare can improve up to 1.7 percent. If a cartel is formed, however, Tunisia's welfare can drop 0.15 percent. These results emphasize the importance of market structure and the regulatory environment on the success of telecom liberalization in Tunisia.

Review of Development Economics, Oct 1, 1997

A computable general equilibrium model of Egypt is developed to analyze proposed reforms in its t... more A computable general equilibrium model of Egypt is developed to analyze proposed reforms in its trade policies, including a partnership agreement with the European Union. The model has multiple trading regions and allows for administrative trade barriers and tariffs. The paper reports computations of the revenue impacts of trade liberalization and the required changes in distortionary commodity taxes to maintain a fixed real government budget. Egypt's greatest potential gains come from removing its administrative trade barriers while adopting globally free trade. The partnership agreement with the EU could lower or raise Egypt's welfare, depending on prior trade reform.

The World Bank eBooks, Jan 16, 2004

The Policy Research Working Paper Series disseminates the findings of work in progress to encoura... more The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished.

Springer eBooks, 2001

Deep integration"-explicit government actions to members and nonmembers of a PTA, regionalism as ... more Deep integration"-explicit government actions to members and nonmembers of a PTA, regionalism as an reduce the market-segmenting effect of domestic instrument of trade and investment becomes more regulatory policies through coordination and attractive. cooperationis becoming a major dimension of some Using a standard competitive general equilibrium regional integration agreements, led by the European model of the Egyptian economy, Hoekman and Konan Union. Health and safety regulations, competition laws, find that the static welfare impact of a "deep" free trade licensing and certification regimes, and administrative agreement is far greater than the impact that can be procedures such as customs clearance can affect trade (in expected from a classic "shallow" agreement. Under ways analogous to nontariff barriers) even though their some scenarios, welfare may increase by more than 10 underlying intent may not be to discriminate against percent of GDP, compared with close to zero under a foreign suppliers of goods and services. shallow agreement. Whether preferential trade agreements (PTAs) can be Given Egypt's highly diversified trading patterns, a justified in a multilateral trading system depends on the shallow PTA with the European Union could be merely extent to which formal intergovernmental agreements diversionary, leading to a small decline in welfare. Egypt are tecbnically necessary to achieve the deep integration already has duty-free access to the European Union for needed to make markets more contestable. The more manufactures, so the loss in tariff revenues incurred need for formal cooperation, the stronger the case for would outweigh any new trade created. regional integration. Large gains in welfare from the PTA are conditional on Whether PTAs are justified regionally also depends on eliminating regulatory barriers and red tapein which whether efforts to reduce market segmentation are case welfare gains may be substantial: 4 to 20 percent applied on a nondiscriminatory basis. If innovations to growth in real GNP. reduce transaction or market access costs extend to both This papera product of the Development Research Groupis part of a larger effort in the group to analyze regional integration agreements. Copies of the paper are available free from the World Bank,

RePEc: Research Papers in Economics, 1996

By explicitly modeling a distortion in the intermediate goods sector, 1 develop a model of an end... more By explicitly modeling a distortion in the intermediate goods sector, 1 develop a model of an endogenous vertical multinational enterprise. Firms invest abroad to lower cost of multi-stage production. The implications for international trade and investment differ markedly from the conventional wisdom of multinationals. Particularly, intra-fIrm trade in intermediates implies vertical investment complements rather than substitutes for trade. The decision to become a multinational depends on the level of foreign factor prices, nature of competition with foreign suppliers, transport, tariff, and subsidiary plant costs. Marginal change in tariff may result in welfare jumps as firm configuration shifts.

RePEc: Research Papers in Economics, 1993

RePEc: Research Papers in Economics, 1998

A growing proportion of international trade within the Association of Southeast Asian Nations (AS... more A growing proportion of international trade within the Association of Southeast Asian Nations (ASEAN) occurs within multinational enterprises. This paper reviews the present trade and foreign investment environment within ASEAN members and analyzes the impact of an ASEAN free trade agreement (AFf A) on foreign investment in the region. We anticipate that a reduction of regional trade barriers will make South East Asia a more attractive investment destination to both service ASEAN consumers and integrate production processes within the region. Some indications about potential changes in the allocations of investment within the region are also provided.

RePEc: Research Papers in Economics, Oct 1, 2007

Road Ecology Center, Aug 24, 2003

Section 7 of the Endangered Species Act (ESA) mandates federal agencies such as the Federal Highw... more Section 7 of the Endangered Species Act (ESA) mandates federal agencies such as the Federal Highway Administration (FHWA) to insure that any action authorized, funded, or carried out by such agencies is not likely to jeopardize the continued existence of any endangered species or threatened species or result in the destruction or adverse modification of habitat of such species which is determined by the secretary of the interior. ESA, therefore, has a significant effect on the selection of a roadway alignment and consequently the cost of the entire highway project. As evident in many parts of the country, developments experienced in the transportation industry have had a considerable impact on the environment and the general populace. This has resulted in significant changes in the use of land in many metropolitan regions in the country. Among the many environmental issues that transportation officials have to deal with is the issue of threatened and endangered species (TES). The study involved a review of best practices of TES issues as they relate to transportation. Three of such examples from the State of Georgia are presented as case studies in this paper. Geographic information system (GIS) applications were developed for all the projects used in the case studies, some of which are presented in this paper. The paper concludes by noting the influence of ESA on transportation projects.

Energy Policy, Sep 1, 2019

Since 2010, the installed capacity of solar photovoltaic (PV) penetration in Hawai'i has soared d... more Since 2010, the installed capacity of solar photovoltaic (PV) penetration in Hawai'i has soared due to exceedingly high electricity rates, generous installation tax credits, and net energy metering. The inherent variability of solar resources and changes in customer behavior impose increasing volatility at the circuit level, which poses challenges with grid stability. This study uses a rich and unique proprietary data set to assess the interrelated effects of weather and socioeconomic factors on power system operations to maintain a balance between load and supply of solar photovoltaic at the system level. We find that PV penetration, weather and residents on circuit contribute greatly to volatility under varying operating regimes. In the end, Hawai'i shows that "old grids" can tolerate much higher level of penetration than previously understood.

status: published, 2006

The data used in preparing the input-output table for the Tunisian economy came from a 1995 input... more The data used in preparing the input-output table for the Tunisian economy came from a 1995 inputoutput table for Tunisia that was provided by the “Institut National de la Statistique”(INS). The Tunisia IO table is grouped commodity by commodity and includes 52 sectors. INS (1998) provides a description of the data collection techniques used. All units are measured in units of 1000 dinars at current 1995 producer prices.

Policy Research Working Papers, 1999

Deep integration"-explicit government actions to members and nonmembers of a PTA, regionalism as ... more Deep integration"-explicit government actions to members and nonmembers of a PTA, regionalism as an reduce the market-segmenting effect of domestic instrument of trade and investment becomes more regulatory policies through coordination and attractive. cooperationis becoming a major dimension of some Using a standard competitive general equilibrium regional integration agreements, led by the European model of the Egyptian economy, Hoekman and Konan Union. Health and safety regulations, competition laws, find that the static welfare impact of a "deep" free trade licensing and certification regimes, and administrative agreement is far greater than the impact that can be procedures such as customs clearance can affect trade (in expected from a classic "shallow" agreement. Under ways analogous to nontariff barriers) even though their some scenarios, welfare may increase by more than 10 underlying intent may not be to discriminate against percent of GDP, compared with close to zero under a foreign suppliers of goods and services. shallow agreement. Whether preferential trade agreements (PTAs) can be Given Egypt's highly diversified trading patterns, a justified in a multilateral trading system depends on the shallow PTA with the European Union could be merely extent to which formal intergovernmental agreements diversionary, leading to a small decline in welfare. Egypt are tecbnically necessary to achieve the deep integration already has duty-free access to the European Union for needed to make markets more contestable. The more manufactures, so the loss in tariff revenues incurred need for formal cooperation, the stronger the case for would outweigh any new trade created. regional integration. Large gains in welfare from the PTA are conditional on Whether PTAs are justified regionally also depends on eliminating regulatory barriers and red tapein which whether efforts to reduce market segmentation are case welfare gains may be substantial: 4 to 20 percent applied on a nondiscriminatory basis. If innovations to growth in real GNP. reduce transaction or market access costs extend to both This papera product of the Development Research Groupis part of a larger effort in the group to analyze regional integration agreements. Copies of the paper are available free from the World Bank,

The views expressed herein are those of the authors and not necessarily those of the National Bur... more The views expressed herein are those of the authors and not necessarily those of the National Bureau of

We develop a computable general equilibrium model of the Egyptian economy. The model is suitable ... more We develop a computable general equilibrium model of the Egyptian economy. The model is suitable for analyzing the impacts of reforms in the tax system, the trade-policy regime, or both taken together. A two-sector, general-equilibrium model is presented diagrammatically to illustrate the separate and joint effects of distortionary capital taxes, consumption taxes, and tariffs. Thus, trade or tax reform may be undertaken conditionally upon maintenance of the other distortions or may be undertaken in a combined policy package. We compute the welfare gains from various policy changes, along with impacts on the real exchange rate and on real factor prices, allowing tax rates to vary endogenously to satisfy a fixed real revenue target for the Egyptian government. Scenarios include removal or unification of the consumption tax, the capital tax. Or both, and tariff unification, a free-trade agreement with the European Union, and unilateral tariff elimination. Welfare effects depend critic...

Both outward and inward foreign direct investment (FDI) play an important role in restructuring e... more Both outward and inward foreign direct investment (FDI) play an important role in restructuring economies. Outward investment is a way of maximizing the rents on the accumulated knowledge and skill of a country´s firms, or preserving them as long as possible when the country itself has lost

RePEc: Research Papers in Economics, Jan 15, 2003

The Policy Research Working Paper Series disseminates the findings of work in progress to encoura... more The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished.

Social Science Research Network, Jun 13, 1997

A computable general equilibrium model of Egypt is developed to analyze proposed reforms in its t... more A computable general equilibrium model of Egypt is developed to analyze proposed reforms in its trade policies, including a partnership agreement with the European Union. The model has multiple trading regions and allows for administrative trade barriers and tariffs. The paper reports computations of the revenue impacts of trade liberalization and the required changes in distortionary commodity taxes to maintain a fixed real government budget. Egypt's greatest potential gains come from removing its administrative trade barriers while adopting globally free trade. The partnership agreement with the EU could lower or raise Egypt's welfare, depending on prior trade reform.

Journal of Development Economics, Oct 1, 2006

The Policy Research Working Paper Series disseminates the findings of work in progress to encoura... more The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished.

Energy Policy, Dec 1, 2020

Abstract: This paper uses data provided by Hawaiian Electric Company (HECO) for the period from S... more Abstract: This paper uses data provided by Hawaiian Electric Company (HECO) for the period from September 2010 to May 2014. The study explores the effect of customer mix of each distributed transformer on the shape of load profiles along with their variability. Results suggest that in a more residential-concentrated area, net load generally has two peaks — morning and night, while a more commercial-or industrial-concentrated area exhibits one midday peak. The shape of a given areas’ load profile is mostly influenced by its customer-mix and the time-of-day, while its load volatility is largely the result of weather patterns and the level of PV penetration. Since solar power typically exhibits different generation characteristics from power produced by other conventional sources, more precise solar forecasts enable electric system operators to better manage electricity generation with fluctuating solar output.

In this paper, we analyze the importance of regulation and market structure on the welfare impact... more In this paper, we analyze the importance of regulation and market structure on the welfare impact of service trade liberalization. For this purpose, we incorporate an imperfectly competitive services sector that can take on various market structures into a standard CGE model for a small open economy.We assume that in the benchmark a domestic incumbent monopolizes the services sector. In the counterfactuals, the services sector is liberalized and a license is provided to a single foreign service provider. If regulations can enforce competition between the domestic and foreign firm, then the telecommunications market structure turns into a Cournot duopoly. If regulations are weak, then the domestic and the foreign firm can form a cartel. We apply our framework to analyze the welfare impact of telecommunications liberalization in Tunisia. We find that if regulation guarantees competition, Tunisia's welfare can improve up to 1.7 percent. If a cartel is formed, however, Tunisia's welfare can drop 0.15 percent. These results emphasize the importance of market structure and the regulatory environment on the success of telecom liberalization in Tunisia.

Review of Development Economics, Oct 1, 1997

A computable general equilibrium model of Egypt is developed to analyze proposed reforms in its t... more A computable general equilibrium model of Egypt is developed to analyze proposed reforms in its trade policies, including a partnership agreement with the European Union. The model has multiple trading regions and allows for administrative trade barriers and tariffs. The paper reports computations of the revenue impacts of trade liberalization and the required changes in distortionary commodity taxes to maintain a fixed real government budget. Egypt's greatest potential gains come from removing its administrative trade barriers while adopting globally free trade. The partnership agreement with the EU could lower or raise Egypt's welfare, depending on prior trade reform.

The World Bank eBooks, Jan 16, 2004

The Policy Research Working Paper Series disseminates the findings of work in progress to encoura... more The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished.

Springer eBooks, 2001

Deep integration"-explicit government actions to members and nonmembers of a PTA, regionalism as ... more Deep integration"-explicit government actions to members and nonmembers of a PTA, regionalism as an reduce the market-segmenting effect of domestic instrument of trade and investment becomes more regulatory policies through coordination and attractive. cooperationis becoming a major dimension of some Using a standard competitive general equilibrium regional integration agreements, led by the European model of the Egyptian economy, Hoekman and Konan Union. Health and safety regulations, competition laws, find that the static welfare impact of a "deep" free trade licensing and certification regimes, and administrative agreement is far greater than the impact that can be procedures such as customs clearance can affect trade (in expected from a classic "shallow" agreement. Under ways analogous to nontariff barriers) even though their some scenarios, welfare may increase by more than 10 underlying intent may not be to discriminate against percent of GDP, compared with close to zero under a foreign suppliers of goods and services. shallow agreement. Whether preferential trade agreements (PTAs) can be Given Egypt's highly diversified trading patterns, a justified in a multilateral trading system depends on the shallow PTA with the European Union could be merely extent to which formal intergovernmental agreements diversionary, leading to a small decline in welfare. Egypt are tecbnically necessary to achieve the deep integration already has duty-free access to the European Union for needed to make markets more contestable. The more manufactures, so the loss in tariff revenues incurred need for formal cooperation, the stronger the case for would outweigh any new trade created. regional integration. Large gains in welfare from the PTA are conditional on Whether PTAs are justified regionally also depends on eliminating regulatory barriers and red tapein which whether efforts to reduce market segmentation are case welfare gains may be substantial: 4 to 20 percent applied on a nondiscriminatory basis. If innovations to growth in real GNP. reduce transaction or market access costs extend to both This papera product of the Development Research Groupis part of a larger effort in the group to analyze regional integration agreements. Copies of the paper are available free from the World Bank,

RePEc: Research Papers in Economics, 1996

By explicitly modeling a distortion in the intermediate goods sector, 1 develop a model of an end... more By explicitly modeling a distortion in the intermediate goods sector, 1 develop a model of an endogenous vertical multinational enterprise. Firms invest abroad to lower cost of multi-stage production. The implications for international trade and investment differ markedly from the conventional wisdom of multinationals. Particularly, intra-fIrm trade in intermediates implies vertical investment complements rather than substitutes for trade. The decision to become a multinational depends on the level of foreign factor prices, nature of competition with foreign suppliers, transport, tariff, and subsidiary plant costs. Marginal change in tariff may result in welfare jumps as firm configuration shifts.

RePEc: Research Papers in Economics, 1993

RePEc: Research Papers in Economics, 1998

A growing proportion of international trade within the Association of Southeast Asian Nations (AS... more A growing proportion of international trade within the Association of Southeast Asian Nations (ASEAN) occurs within multinational enterprises. This paper reviews the present trade and foreign investment environment within ASEAN members and analyzes the impact of an ASEAN free trade agreement (AFf A) on foreign investment in the region. We anticipate that a reduction of regional trade barriers will make South East Asia a more attractive investment destination to both service ASEAN consumers and integrate production processes within the region. Some indications about potential changes in the allocations of investment within the region are also provided.

RePEc: Research Papers in Economics, Oct 1, 2007

Road Ecology Center, Aug 24, 2003

Section 7 of the Endangered Species Act (ESA) mandates federal agencies such as the Federal Highw... more Section 7 of the Endangered Species Act (ESA) mandates federal agencies such as the Federal Highway Administration (FHWA) to insure that any action authorized, funded, or carried out by such agencies is not likely to jeopardize the continued existence of any endangered species or threatened species or result in the destruction or adverse modification of habitat of such species which is determined by the secretary of the interior. ESA, therefore, has a significant effect on the selection of a roadway alignment and consequently the cost of the entire highway project. As evident in many parts of the country, developments experienced in the transportation industry have had a considerable impact on the environment and the general populace. This has resulted in significant changes in the use of land in many metropolitan regions in the country. Among the many environmental issues that transportation officials have to deal with is the issue of threatened and endangered species (TES). The study involved a review of best practices of TES issues as they relate to transportation. Three of such examples from the State of Georgia are presented as case studies in this paper. Geographic information system (GIS) applications were developed for all the projects used in the case studies, some of which are presented in this paper. The paper concludes by noting the influence of ESA on transportation projects.

Energy Policy, Sep 1, 2019

Since 2010, the installed capacity of solar photovoltaic (PV) penetration in Hawai'i has soared d... more Since 2010, the installed capacity of solar photovoltaic (PV) penetration in Hawai'i has soared due to exceedingly high electricity rates, generous installation tax credits, and net energy metering. The inherent variability of solar resources and changes in customer behavior impose increasing volatility at the circuit level, which poses challenges with grid stability. This study uses a rich and unique proprietary data set to assess the interrelated effects of weather and socioeconomic factors on power system operations to maintain a balance between load and supply of solar photovoltaic at the system level. We find that PV penetration, weather and residents on circuit contribute greatly to volatility under varying operating regimes. In the end, Hawai'i shows that "old grids" can tolerate much higher level of penetration than previously understood.

status: published, 2006

The data used in preparing the input-output table for the Tunisian economy came from a 1995 input... more The data used in preparing the input-output table for the Tunisian economy came from a 1995 inputoutput table for Tunisia that was provided by the “Institut National de la Statistique”(INS). The Tunisia IO table is grouped commodity by commodity and includes 52 sectors. INS (1998) provides a description of the data collection techniques used. All units are measured in units of 1000 dinars at current 1995 producer prices.

Policy Research Working Papers, 1999

Deep integration"-explicit government actions to members and nonmembers of a PTA, regionalism as ... more Deep integration"-explicit government actions to members and nonmembers of a PTA, regionalism as an reduce the market-segmenting effect of domestic instrument of trade and investment becomes more regulatory policies through coordination and attractive. cooperationis becoming a major dimension of some Using a standard competitive general equilibrium regional integration agreements, led by the European model of the Egyptian economy, Hoekman and Konan Union. Health and safety regulations, competition laws, find that the static welfare impact of a "deep" free trade licensing and certification regimes, and administrative agreement is far greater than the impact that can be procedures such as customs clearance can affect trade (in expected from a classic "shallow" agreement. Under ways analogous to nontariff barriers) even though their some scenarios, welfare may increase by more than 10 underlying intent may not be to discriminate against percent of GDP, compared with close to zero under a foreign suppliers of goods and services. shallow agreement. Whether preferential trade agreements (PTAs) can be Given Egypt's highly diversified trading patterns, a justified in a multilateral trading system depends on the shallow PTA with the European Union could be merely extent to which formal intergovernmental agreements diversionary, leading to a small decline in welfare. Egypt are tecbnically necessary to achieve the deep integration already has duty-free access to the European Union for needed to make markets more contestable. The more manufactures, so the loss in tariff revenues incurred need for formal cooperation, the stronger the case for would outweigh any new trade created. regional integration. Large gains in welfare from the PTA are conditional on Whether PTAs are justified regionally also depends on eliminating regulatory barriers and red tapein which whether efforts to reduce market segmentation are case welfare gains may be substantial: 4 to 20 percent applied on a nondiscriminatory basis. If innovations to growth in real GNP. reduce transaction or market access costs extend to both This papera product of the Development Research Groupis part of a larger effort in the group to analyze regional integration agreements. Copies of the paper are available free from the World Bank,

The views expressed herein are those of the authors and not necessarily those of the National Bur... more The views expressed herein are those of the authors and not necessarily those of the National Bureau of

We develop a computable general equilibrium model of the Egyptian economy. The model is suitable ... more We develop a computable general equilibrium model of the Egyptian economy. The model is suitable for analyzing the impacts of reforms in the tax system, the trade-policy regime, or both taken together. A two-sector, general-equilibrium model is presented diagrammatically to illustrate the separate and joint effects of distortionary capital taxes, consumption taxes, and tariffs. Thus, trade or tax reform may be undertaken conditionally upon maintenance of the other distortions or may be undertaken in a combined policy package. We compute the welfare gains from various policy changes, along with impacts on the real exchange rate and on real factor prices, allowing tax rates to vary endogenously to satisfy a fixed real revenue target for the Egyptian government. Scenarios include removal or unification of the consumption tax, the capital tax. Or both, and tariff unification, a free-trade agreement with the European Union, and unilateral tariff elimination. Welfare effects depend critic...

Both outward and inward foreign direct investment (FDI) play an important role in restructuring e... more Both outward and inward foreign direct investment (FDI) play an important role in restructuring economies. Outward investment is a way of maximizing the rents on the accumulated knowledge and skill of a country´s firms, or preserving them as long as possible when the country itself has lost