nep-int New Economics Papers
on International Trade
Issue of 2006‒03‒05
sixteen papers chosen by
Martin Berka
Massey University

  1. Will the Doha Round Lead to Preference Erosion? By Mary Amiti; John Romalis
  2. The Impact on India of Trade Liberalization in the Textiles and Clothing Sector By A. Prasad; Sonali Jain-Chandra
  3. How Does Trade Openness Influence Budget Deficits in Developing Countries? By Tahsin Saadi-Sedik; Jean-Louis Combes
  4. Trade liberalization, factor market flexibility, and growth : the case of Morocco and Tunisia By Dennis, Allen
  5. Trade openness and wage distribution in Chile. By Elisa Borghi
  6. Can the Standard International Business Cycle Model Explain the Relation Between Trade and Comovement? By M. Ayhan Kose; Kei-Mu Yi
  7. Input Specificity and Global Sourcing By Galina A. Schwartz; Ari Van Assche
  8. Does Inflation in China Affect the United States and Japan? By Luke Willard; Tarhan Feyzioglu
  9. Stylized Facts on Bilateral Trade and Currency Unions: Implications for Africa By Charalambos G. Tsangarides; Pierre Ewenczyk; Michal Hulej
  10. Why haven't price-cost margins decreased with globalization ? By Hervé Boulhol
  11. Sustaining Growth Accelerations and Pro-Poor Growth in Africa By Kevin Joseph Carey; Sanjeev Gupta; Catherine A. Pattillo
  12. Tax Incentives for Foreign Investment in Latin America and the Caribbean: Do They Need to be Harmonized? By Richard M. Bird
  13. Does Import Protection Discourage Exports? By Stephen Tokarick
  14. Reforming External Tariffs in Central and Western African Countries By Lubin Kobla Doe
  15. Investigating distance effects on environmental values: A choice modelling approach By Giovanni B. Concu
  16. How to kill a country?: The USÐAustralia Free Trade Agreement, pharmaceuticals and intellectual property By John Quiggin

  1. By: Mary Amiti; John Romalis
    Keywords: Access to foreign markets , Developing countries , Trade , Tariffs , Multilateral trade negotiations ,
    Date: 2006–01–20
  2. By: A. Prasad; Sonali Jain-Chandra
    Keywords: Trade liberalization , India , Exports , Economic models ,
    Date: 2005–12–02
  3. By: Tahsin Saadi-Sedik; Jean-Louis Combes
    Keywords: Trade policy , Budget deficits , Terms of trade , Developing countries ,
    Date: 2006–01–18
  4. By: Dennis, Allen
    Abstract: In recent years there has been an increasing recognition of the importance of complementary policies in enhancing the benefits of a more open trade regime. This study focuses on the importance of factor market flexibility to trade reforms. Using the Global Trade Analysis Project (GTAP) model and database, the results show that the welfare impact of trade reform is contingent on the flexibility of factor markets, with higher welfare gains occurring where factor markets are more flexible, and vice-versa. Defining two extreme factor market scenarios over Morocco and Tunisia, the author finds that the welfare gains of trade reforms under conditions of flexible factor markets can be as much as six times the gains compared with a rigid factor market scenario. This is so because whereas trade reforms may improve the incentive structure for resource reallocation, the extent to which resources move from less efficient to more efficient sectors of an economy is dependent on the degree of flexibility of factor markets.
    Keywords: Free Trade,Economic Theory & Research,Markets and Market Access,Trade and Regional Integration,Trade Law
    Date: 2006–03–01
  5. By: Elisa Borghi (CESPRI, Università Bocconi, Milano, Italy)
    Abstract: This article analyses the effect of trade openness, implemented in Chile after 1974, on wage inequality. In the first part, this study analyses inequality and wage distribution in Chile. Workers are grouped in three categories, according to the educational level reached, in order to discriminate between skilled and unskilled labor and calculate the wage gap. The wage gap between workers with a university degree and laborers that completed the secondary school increased during the period analyzed. The wage gap between workers with secondary education completed and laborers that completed the first cycle of education decreased in the period. The second part of this article investigates the relationship between wage inequality dynamics of different groups of workers and trade openness. The empirical results suggest that trade liberalization increased wage differences between workers with a university degree and workers with a high school degree, while it did not affect the decreasing wage gap between laborers with secondary school completed and laborers with primary school completed. This paper is made up of six sections. Section I introduces the analysis. Section II describes briefly the trade liberalization process. Section III analyses the wage distribution in Chile and a measure of the wage gap between more educated and less educated workers is obtained. Section IV presents some theoretical aspects. Section V analyses the effects of the trade liberalization on the wage gap, considering different groups of workers, according to the educational level. Section VI concludes.
    Keywords: Trade openness; Inequality; Skill premium
    JEL: J31 F16
    Date: 2005–09
  6. By: M. Ayhan Kose; Kei-Mu Yi
    Date: 2005–11–03
  7. By: Galina A. Schwartz; Ari Van Assche
    Abstract: This paper investigates the role of productivity on a firm’s organizational choice. We expand Antràs and Helpman (2004) by allowing heterogeneous firms to choose between adopting specific and generic inputs. In input-intensive industries, firms face a trade-off between the lower productivity of generic inputs and the reduced hold-up friction of generic outsourcing. We demonstrate that the hold-up friction under generic outsourcing increases with a firm’s productivity. This implies that: (i) high productivity firms choose ideal outsourcing to the South, (ii) medium productivity firms choose generic outsourcing to the South, (iii) low productivity firms choose generic outsourcing to the North. <P>Cet article étudie le rôle de la productivité sur les choix organisationnels des entreprises. Nous élargissons l’étude d’Antràs et Helpman (2004) en permettant aux entreprises hétérogènes de choisir entre l’adoption d’intrants spécifiques ou génériques. Au sein des industries caractérisées par une forte utilisation d’intrants, les entreprises font face à un compromis entre une productivité réduite liée aux intrants génériques et un problème de hold-up moindre découlant de l’impartition générique. Nous démontrons que le problème de hold-up lié à l’impartition générique augmente selon la productivité d’une entreprise. Ce qui implique que : les entreprises dont le taux de productivité est élevé choisissent l’impartition optimale au Sud, (ii) les entreprises dont le taux de productivité est moyen choisissent l’impartition générique au Sud, (iii) les entreprises dont le taux de productivité est bas choisissent l’impartition générique au Nord.
    Keywords: input specificity, outsourcing, firm heterogeneity, incomplete contracts, hold-up problem, spécificité des intrants, impartition, hétérogénéité des entreprises, incomplétude des contrats, problèmes de hold-up.
    JEL: F23 F12
    Date: 2006–02–01
  8. By: Luke Willard; Tarhan Feyzioglu
    Keywords: Inflation , China , United States , Japan , Deflation , Trade , Economic models ,
    Date: 2006–02–09
  9. By: Charalambos G. Tsangarides; Pierre Ewenczyk; Michal Hulej
    Keywords: Bilateral trade , Africa , Monetary unions , Economic models ,
    Date: 2006–02–07
  10. By: Hervé Boulhol (IXIS CIB et CES-TEAM)
    Abstract: This study analyzes the determinants of price-cost margins (PCMs) for OECD countries between 1970-2003. The main objective is to quantify the pro- competitive effect of international trade and understand why, despite trade liberalization, PCMs have not fallen overall. An increase of one percentage point in the import penetration ratio is estimated to lower the PCM by around 0,005 : on average, imports contributed to a large decrease of 0,042 in the PCM. In addition, domestic product market deregulation has reduced PCMs. However, these effects are countervailed by the impacts of exports, financial deepening and disinflation. Union participation seems negatively related to PCMs.
    Keywords: Price-cost margin, pro-competitive effect, wage bargaining, dynamic panel.
    JEL: F12 F16 L11 L13 L60 J50
    Date: 2005–08
  11. By: Kevin Joseph Carey; Sanjeev Gupta; Catherine A. Pattillo
    Keywords: Poverty reduction , Sub-Saharan Africa , Economic growth , Productivity , Trade ,
    Date: 2005–10–19
  12. By: Richard M. Bird (International Tax Program, Rotman School of Management, University of Toronto)
    Abstract: The issue of harmonizing tax incentives in the various regional economic groupings that exist in the Latin America and Caribbean region has recently again come under discussion. My aim in this paper is essentially to sketch a framework within which countries contemplating this issue may approach it in a way that may both reduce the ‘harm’ that might otherwise occur and also foster more judicious and reasoned consideration of the inevitable trade-offs facing them. To set the stage, I first outline the changing views of tax incentives over the last half-century and consider briefly some aspects of the tax incentives now in place in the region. Following a brief discussion about whether tax competition is bad, good, or simply inevitable, I conclude by outlining a general institutional framework within which economic groupings in the region may best deal with the issue of harmonizing tax incentives for foreign investment.
    Keywords: Latin America, Caribbean, tax incentives, policy harmonization, economic unions
    JEL: H25 H87 F15
    Date: 2006–01
  13. By: Stephen Tokarick
    Date: 2006–02–01
  14. By: Lubin Kobla Doe
    Date: 2006–01–20
  15. By: Giovanni B. Concu (Risk and Sustainable Management Group, University of Queensland)
    Abstract: This paper describes a Choice Modelling experiment set up to investigate the relationship between distance and willingness to pay for environmental quality changes. The issue is important for the estimation and transfer of benefits. So far the problem has been analysed through the use of Contingent Valuation-type of experiments, producing mixed results. The Choice Modelling experiment allows testing distance effects on parameters of environmental attributes that imply different trade-offs between use and non-use values. The sampling procedure is designed to provide a Ògeographically balancedÓ sample. Several specifications of the distance covariate are compared and distance effects are shown to take complex shapes. Welfare analysis also shows that disregarding distance produces under-estimation of individual and aggregated benefits and losses, seriously hindering the reliability of costbenefit analyses.
    Keywords: choice Modelling techniques, distance, aggregation, sampling, functional forms.
    JEL: Q51 Q58
    Date: 2005–12
  16. By: John Quiggin (Department of Economics, University of Queensland)
    Date: 2005–01

This nep-int issue is ©2006 by Martin Berka. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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