nep-int New Economics Papers
on International Trade
Issue of 2009‒07‒11
five papers chosen by
Alessia A. Amighini
University Amedeo Avogadro

  1. The determinants of trade survival By Ana Cristina Molina and Marco Fugazza
  2. Understanding Interstate Trade Patterns By Yilmazkuday, Hakan
  3. Antidumping Protection hurts Exporters:Firm-level evidence from France By Jozef Konings; Hylke Vandenbussche
  4. Factor Content of Bilateral Trade: The Role of Firm Heterogeneity and Transaction Costs By d'Artis Kancs; Pavel Ciaian
  5. Interregional Trade, Industrial Location and Import Infrastructure By Toru Kikuchi; Kazumichi Iwasa

  1. By: Ana Cristina Molina and Marco Fugazza (IUHEID, The Graduate Institute of International and Development Studies, Geneva)
    Abstract: The aim of this paper is to explore the patterns of trade turation across regions and to identify its determinants. Using an extended Cox model, we evaluate the effects of country and product characteristics, as well as of trade cost variables on the duration of trade relationships from 96 countries from 1995 to 2004. Our results suggest first that the duration of trade relationships increases with the region level of development: trade relationships from richer economies face lower hazardrates i.e. longer duration. Second, the type of product matters for export survival, trade relationships involving differentiated products show a hazard rate that is 11% to 13% lower than trade relationships involving homogeneous goods. Third, high export costs increase the probability of export failure in all regions but the effect diminishes with time, thus suggesting that export experience matters. Finally, the size of exports also matters: the larger the transaction, the higher the probability of survival.
    Keywords: Duration, Trade, Fixed Costs
    JEL: F1 C41
    Date: 2009–06
  2. By: Yilmazkuday, Hakan
    Abstract: This paper models interstate trade patterns of U.S. states using a partial equilibrium trade model. The theoretical model deviates from the existing gravity literature by employing trade estimations in ratio form, with the ratio of imports from different sources, rather than the level of bilateral trade between two locations. Using this specification, together with considering the production side through technology levels, the elasticity of substitution across goods, the elasticity of substitution across varieties of each good, and the good specific elasticity of distance measures are all identified in the empirical analysis, which is not the case in gravity type studies. The ratio transformation also effectively eliminates any proportional distribution margin, international trade, or overstatement of distance measures from the theoretical trade equation. Compared to empirical international trade literature, the elasticity of substitution is estimated to be lower, while the elasticity of distance is estimated to be higher intranationally.
    Keywords: Trade Ratios; Transportation; The United States
    JEL: R13 R32 R12
    Date: 2009–06
  3. By: Jozef Konings; Hylke Vandenbussche
    Abstract: This paper empirically evaluates the effects of antidumping measures on the exports of protected firms. While antidumping protection raises the domestic sales of the more “traditional” non-exporting firms on the protected market with about 5%, it negatively affects the firm-level exports of similar products as the protected ones. Export sales of protected firms fall by almost 8% compared to a relevant control group of unprotected firms. The drop in firm-level exports more than doubles for firms that are global, i.e. firms with foreign affiliates. Measured at the product-level, extra-EU exports of goods protected by antidumping fall by 36% while exports to target countries fall by as much as 66% following protection. Protection also affects the extensive margin of exporters but to a lesser extent. Initial exporters face a marginally higher probability to stop exporting during protection compared to unprotected firms. Finally, we find that the productivity of exporters falls while that of non-exporters rises during antidumping protection. We offer a number of plausible explanations for our findings arising from the heterogeneous firm literature. We also discuss the importance of our findings for policy.
    Keywords: Antidumping, firm-level exports, intensive margin, extensive margin, productivity, dif-in dif
    JEL: F13 L O30 C2
    Date: 2009
  4. By: d'Artis Kancs; Pavel Ciaian
    Abstract: In this paper we study the determinants of the factor content of the CEE agricultural trade. Examining empirically three hypothesis, which relate cross-country differences in technology, relative factor abundance and transaction costs and market imperfections to the factor content of trade we find that the first two hypotheses are confirmed by the majority of developed EU countries, but rejected by roughly one half of the CEE transition country pairs. Second, we find that when accounting for transaction costs of farm (re)organization, both hypotheses are confirmed by the majority of the CEE country pairs. These findings provide empirical evidence of market imperfections, and particularly, of transaction costs of farm (re)organization in the CEE.
    Keywords: Factor content, bilateral trade, relative factor abundance, technological differences, agriculture, transaction costs
    JEL: F12 F14 D23 Q12 Q17
    Date: 2009
  5. By: Toru Kikuchi (Graduate School of Economics, Kobe University); Kazumichi Iwasa (Kyoto University)
    Abstract: The purpose of this study is to illustrate, with a simple two-region, two-good, two-factor model, how an improvement in one regionfs import infrastructure can affect firmsf location decisions and the nature of the trading equilibrium. It is shown that, through improvements in import infrastructure, one region might divert high-tech industries to another region. This effect reduces the incentive to improve import infrastructure.
    Date: 2009–07

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