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Top economists provide a concise and accessible evaluation of major developments in trade and trade policy. Examination of key issues pertinent to the multinational trading system, as well as regional trade arrangements and policy developments at the national level. Provides up--to--date assessments of the World Trade Organizationa s current Trade Policy Reviews. *Economic Policy has earned a reputation around the world as the one publication that always identifies current and emerging policy topics early. * Papers are specially commissioned from first--class economists and experts in the policy field. * The editors are all based at top European economic institutions and each paper is discussed by a panel of distinguished economists. * This unique approach guarantees incisive debate and alternative interpretations of the evidence.

Economic Policy 49

Editorsa introduction. Foreign direct investment and the dark side of decentralization: Sebastian G. Kessing, Kai A. Konrad and Christos Kotsogiannis. Capital deepening and wage differentials: Germany versus US: Winfried Koeniger and Marco Leonardi. Age, seniority and labour costs: lessons from the Finnish IT revolution: Francesco Daveri and Mika Maliranta. Valuing ecosystem services as productive inputs: Edward B. Barbier.