nep-int New Economics Papers
on International Trade
Issue of 2014‒08‒20
27 papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. Supply Chains and the Internalization of SMEs: Evidence from Italy By Giorgia Giovannetti; Enrico Marvasi; Marco Sanfilippo
  2. The Euro effects on intermediate and final exports. By Lavinia Rotili
  3. International Trade Costs, Global Supply Chains and Value-added Trade in Australia By Gerard Kelly; Gianni La Cava
  4. Gravity model of trade flows between European Union countries in the era of globalization By Natalia Drzewoszewska; Michal Bernard Pietrzak; Justyna Wilk; Stanislaw Matusik
  5. North-South Standards Harmonization and International Trade By Olivier Cadot; Anne-Célia Disdier; Lionel Fontagné
  6. The wind of change: Maritime technology, trade and economic development By Luigi Pascali
  7. Russia’s Foreign Trade in 2013 By Nadezhda Volovik
  8. Global Trade and Specialisation Patterns Over the Next 50 Years By Åsa Johansson; Eduardo Olaberría
  9. Trade Liberalization, Inequality and Poverty in Brazilian States By Marta Castilho; Marta Menéndez; Aude Sztulman
  10. European High-End Products in International Competition By Lionel Fontagné; Sophie Hatte
  11. Exchange Rate Volatility, Financial Constraints and Trade: Empirical Evidence from Chinese Firms By Sandra Poncet; Jérôme Héricourt
  12. Regional Cooperation and Integration in a Changing World By Asian Development Bank (ADB); ; ;
  13. Export upgrading and growth in China: the prerequisite of domestic embeddedness By Sandra Poncet; Felipe Starosta
  14. Liberalization and Agricultural Exports of India: A Paradigm Shift towards Non-Traditional Commodities By Shah, Deepak
  15. Global Investment Decisions and Patent Protection: Evidence from German Multinationals By Nabokin, Tatjana
  16. Economic Freedom and Indian Outward Foreign Direct Investment: An Empirical Analysis By Anwar, Amar; Mughal, Mazhar
  17. Spillovers from agglomerations and inward FDI. A Multilevel Analysis on SSA domestic firms By Marco Sanfilippo; Adnan Seric
  18. Demand for Luxury Goods in a World of Income Disparities By Anna Ray; Antoine Vatan
  19. Heterogeneity and distance. Some propositions on how differences across regions, firms and functions affect the role of distance in FDI location decisions. By Davide Castellani; Giulio Giangaspero; Antonello Zanfei
  20. Internationalisation des coopératives agricoles françaises. By Nina Latouillle; Karine Latouche; Samira Rousselière
  21. Global Virtual Water Trade: integrating Structural Decomposition Analysis with Network Theory By Tiziano Distefano; Massimo Riccaboni; Giovanni Marin
  22. Heterogeneous Firms and Informality: The Effects of Trade Liberalization on Labor Markets By Becker, Dennis
  23. Analyse des effets des pratiques managériales sur la performance à l’export. Etude empirique des PME marocaines By Abdallah Alaoui; Hind El Makrini
  24. How Global is Globalization? By Jac C. Heckelman; Andrew T. Young
  25. Economic Centrality: How Much is Economics and How Much is Geography? By Nuno Crespo; M. Paula Fontoura; Nadia Simoes
  26. Quality in Open Markets: How Larger Leads to Less By Calmette, Marie-Françoise; Kilkenny, Maureen; Loustalan, Catherine; Pechoux, Isabelle; Bernard, Christian
  27. Globalization and Inequality By Kanbur, Ravi

  1. By: Giorgia Giovannetti; Enrico Marvasi; Marco Sanfilippo
    Abstract: This paper explores the impact of being part of a supply chain on the internationalization of firms. We show that even small and less productive firms, if involved in production chains, can take advantage of reduced costs of entry and economies of scale that enhance their probability to become exporters. The empirical analysis is carried out on an original database, obtained by merging and matching balance sheet data with data from a survey on over 25,000 Italian firms, largely SMEs, which include direct information on the involvement in supply chains. We find a positive and significant impact of being part of a supply chain on the probability to export and on the intensive margin of trade. The number of foreign markets served (the extensive margin), on the other hand, does not seem to be affected. We also investigate whether being in different positions along the chain, i.e. upstream or downstream, matters and we find that downstream producers tend to benefit more. Our results are robust to different specifications, estimation methods, and to the inclusion of the control variables typically used in heterogeneous firm models.
    Keywords: Supply Chains, SMEs, Heterogeneous firms, Internationalization
    JEL: F12 F14 F21
    Date: 2014–05
  2. By: Lavinia Rotili (Sapienza University of Rome)
    Abstract: This paper studies the euro effects on intermediate and final exports taking advantage of the world input-output dataset (WIOD). The originality of this empirical analysis is that it combines one of the most analyzed topics in international economics, the euro trade effects, with the theme of supply chain trade. The main findings are the following: i) the euro has positively affected Eurozone trade with a larger effect on intermediate flows relative to final exports; ii) the intra-area euro effect becomes either negative or not statistically significant when switching from a small sample of advanced economies to a larger group of emerging and developing economies. The paper provides some evidence that the heterogeneity of the euro effects between the small and the large sample can be explained by a missing variable related to the increasing relevance of supply chain connections between European countries.
    Keywords: Euro, supply chain, trade, gravity equation.
    JEL: F1 F15 F2 F33
    Date: 2014–07
  3. By: Gerard Kelly (Reserve Bank of Australia); Gianni La Cava (Reserve Bank of Australia)
    Abstract: We examine how the structure of Australian production and trade has been affected by the expansion of global production networks. As conventional measures of international trade do not fully capture the impact of global supply chains, we present complementary estimates of value-added trade for Australia. These value-added trade estimates suggest that the United States and Europe are more important for export demand than implied by conventional trade statistics, as some Australian content is exported to those locations indirectly via east Asia. The estimates also highlight the importance of the services sector to Australian trade, as the services sector is integral to producing goods exports. We also find that, compared to thirty years ago, Australian production now involves more stages of production, a greater share of production occurs overseas, and more production occurs towards the start of the supply chain. For Australia, these structural adjustments mainly occurred during the 1990s, and we provide evidence that similar adjustments have occurred elsewhere in the world driven by several factors, including lower international trade costs, deregulation of markets that produce intermediate goods and services, and economic development in emerging economies, such as China.
    Keywords: fragmentation; supply chains; trade costs; value-added trade
    JEL: D57 E01 F12 L16 L23
    Date: 2014–08
  4. By: Natalia Drzewoszewska (Nicolaus Copernicus University, Poland); Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland); Justyna Wilk (Wroclaw University of Economics, Poland); Stanislaw Matusik (Wroclaw University of Economics, Poland)
    Abstract: The objective of the paper is to present the impact of globalization conditions on trade flows between states. These determinants were considered as alternative factors for the physical distance between countries in the gravity model performed by Tinbergen (1962). In the traditional gravity model a value of trade exchange between any of two countries is directly proportional to the product of their GNP and inversely proportional to the distance between them. In the current global economy geographical distance between regions is not identified as a factor of preventing a trade exchange; therefore the distance measure in gravity model may be interpreted as an economic dissimilarity of cooperating countries. In the paper the international trade flows between EU members in the period of 1999-2010 were examined. Panel gravity models presented in the literature prove that the globalization factors, apart from a geographical distance, perform a significant role for increasing international trade. The impact of improving transport infrastructure was confirmed in the study.
    Keywords: international trade, European Union, globalization, gravity model of trade flows, panel model
    JEL: C33 F14
    Date: 2013–05
  5. By: Olivier Cadot (CEPR - Center for Economic Policy Research - CEPR, CEPREMAP - Centre pour la recherche économique et ses applications - Centre pour la recherche économique et ses applications, FERDI - Fondation pour les Etudes et Recherches sur le Développement International - FERDI, UNIL - Université de Lausanne - Université de Lausanne, BFSH1 - Université de Lausanne); Anne-Célia Disdier (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Lionel Fontagné (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, Department of Economics - European University Institute, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)
    Abstract: Recent years have seen a surge in economic integration agreements (EIAs) and the development of non-tariff measures (NTMs). As a consequence, a growing number of EIAs include provisions on NTMs. This paper focuses on provisions on technical regulations. We investigate whether the technical requirements contained in North-South Agreements affect international trade. More particularly, using a gravity equation, we assess to what extent North-South harmonization of technical barriers creates or reinforces a hub-and-spoke trade structure potentially detrimental to the integration of Southern countries in world economy.
    Keywords: Economic integration agreement ; Technical provisions ; Harmonization ; Hub-andspoke trade structure
    Date: 2012–09
  6. By: Luigi Pascali
    Abstract: The 1870-1913 period marked the birth of the first era of trade globalization. How did this tremendous increase in trade affect economic development? This work isolates a causality channel by exploiting the fact that the steamship produced an asymmetric change in trade distances among countries. Before the invention of the steamship, trade routes depended on wind patterns. The introduction of the steamship in the shipping industry reduced shipping costs and time in a disproportionate manner across countries and trade routes. Using this source of variation and a completely novel set of data on shipping times, trade, and development that spans the great majority of the world between 1850 and 1900, I find that 1) the adoption of the steamship was the major reason for the first wave of trade globalization, 2) only a small number of countries that were characterized by more inclusive institutions benefited from globalization, and 3) globalization exerted a negative effect on both urbanization rates and economic development in most other countries.
    Keywords: Steamship, Gravity, Globalization.
    JEL: F1 F15 F43 O43
    Date: 2014–06
  7. By: Nadezhda Volovik (Gaidar Institute for Economic Policy)
    Abstract: This paper deals with the broad specter of Russia's foreign trade issues. The authors analyze major indicators, geographical profile regulation and the terms of Russia's foreign trade.
    Keywords: Russian economy; foreign trade; Russia's foreign trade regulations;
    JEL: F10 F13 F19
    Date: 2014
  8. By: Åsa Johansson; Eduardo Olaberría
    Abstract: This report presents descriptive evidence of specialisation trends and investigates empirically their causes and consequences, analysing the role of policies in this process. Then, based on the insights from the backward looking analysis, it draws global trade and specialisation scenarios up to 2060, taking into account international spillovers. The report highlights that comparative advantage in terms of factor endowments matters for trade specialisation, although framework and trade policies also play a role. For instance, tariffs on intermediate inputs are found to adversely affect trade with this adverse effect found to have increased over time, likely reflecting expanding global supply chains magnifying the impact of tariffs. The forward-looking analysis suggests that over the next 50 years, the geographical centre of trade will continue to shift from OECD to non-OECD regions, reflecting faster growth in these countries. Multilateral global trade liberalisation could raise world trade by 15% by 2060 relative to the status quo, whereas regional liberalisation among a core group of OECD countries only would raise world trade by 4% due to trade diversion. Profils des échanges mondiaux et de la spécialisation au cours des cinquante prochaines Ce rapport présente des données descriptives concernant les tendances en matière de spécialisation et examine empiriquement ses causes et conséquences tout en analysant le rôle des politiques publiques à cet égard. À partir des enseignements tirés de l’analyse rétrospective, il établit ensuite des scénarios d’échanges mondiaux et de spécialisation jusqu’en 2060 en tenant compte des retombées internationales qu’ils pourraient avoir. Le rapport souligne que la spécialisation commerciale dépend de l’avantage comparatif que représente la dotation en facteurs de production, bien que les politiques générales et les politiques commerciales aient aussi leur importance. Par exemple, les droits de douane prélevés sur les biens intermédiaires s’avèrent préjudiciables aux échanges, cet effet s’accentuant au fil des ans. Cette évolution témoigne vraisemblablement du fait que le développement des chaînes d’approvisionnement mondiales amplifie l’incidence des droits de douane. L’analyse prospective laisse supposer qu’au cours des cinquante prochaines années, le centre géographique des échanges s’éloignera encore des pays de l’OCDE au profit de pays d’autres régions dont la croissance s’accélèrera. La libéralisation des échanges mondiaux multilatéraux pourrait entraîner une augmentation des échanges mondiaux de 15 % d’ici 2060 par rapport à la situation actuelle tandis que la hausse induite par la libéralisation régionale dans un groupe composé des grands pays de l’OCDE ne serait que de 4 % en raison de la réorientation des courants d’échanges.
    Keywords: trade liberalisation, global value chains, intermediate input tariff, Long-term trade and specialisation patterns, profils des échanges et de la spécialisation à long terme, droits de douane sur les biens intermédiaires, chaînes de valeur mondiales, libéralisation des échanges
    JEL: F13 F14 F17 F43
    Date: 2014–07–02
  9. By: Marta Castilho (Universidade Federal Fluminense - Universidade Federal Fluminense); Marta Menéndez (DIAL - Développement, institutions et analyses de long terme - Institut de recherche pour le développement [IRD], UP9 - Université Paris 9, Dauphine - Université Paris IX - Paris Dauphine, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA)); Aude Sztulman (LEDa - DIAL - Laboratoire d'Economie de Dauphine - Equipe Economie de la mondialisation et du développement - Université Paris IX - Paris Dauphine)
    Abstract: This paper studies the impact of globalization on household income inequality end poverty using detailed microdata across Brazilian states from 1987 to 2005. Results suggest that the Brazilian states more exposed to tariff cuts experienced smaller reductions in household poverty and inequality. Contrasting results emerge when we disaggregate into rural and uraban areas within states: trade liberalization contributes to growth in poverty and inequality in urban areas and may be linked to evidence indicating that state poverty and inequality in Brazil decrease with rising export exposure and increase with import penetration.
    Keywords: Trade Liberalization ; Poverty and inequality ; Latin America ; Brazilian states
    Date: 2014–03–28
  10. By: Lionel Fontagné (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Sophie Hatte (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, Université de Rouen - Université de Rouen)
    Abstract: We study international competition in high-end products for 416 detailed HS6 product categories marketed by leading French luxury brands. We construct a world database of trade flows for these products in the period 1994-2009, computing unit values of related bilateral trade flows and analyzing competition among the main exporters. We use the observed distribution of unit values to define a high-end market segment. In 2009, Europe's market share (EU27 plus Switzerland) despite suffering some erosion since 1994, represented three-quarters of the world market. Exports of high-end products are shown to be less sensitive to distance than other products, and found more sensitive to destination country wealth than other products, but only in relation to countries already producing a large range of luxury brands.
    Keywords: Product differentiation ; Market shares ; Unit values
    Date: 2013–11
  11. By: Sandra Poncet (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Jérôme Héricourt (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, EQUIPPE - ECONOMIE QUANTITATIVE, INTEGRATION, POLITIQUES PUBLIQUES ET ECONOMETRIE - Université Lille I - Sciences et technologies - Université Lille II - Droit et santé - Université Lille III - Sciences humaines et sociales - PRES Université Lille Nord de France)
    Abstract: This paper studies how firm-level export performance is affected by Real Exchange Rate (RER) volatility and investigates whether this effect depends on existing financial constraints. Our empirical analysis relies on export data for more than 100,000 Chinese exporters over the 2000-2006 period. We confirm a trade-deterring effect of RER volatility. We find that the value exported by firms, as well as their probability of entering new export markets, decrease for destinations with a higher exchange rate volatility and that this effect is magnified for financially vulnerable firms. As expected, financial development seems to dampen this negative impact, especially on the intensive margin of export. These results provide micro-founded evidence that financial constraints may play a key role in determining the macro impact of RER volatility on real outcomes.
    Keywords: Exchange rate volatility ; Financial development ; Exports
    Date: 2013–03
  12. By: Asian Development Bank (ADB); (Office of Regional Economic Integration, ADB); ;
    Abstract: Asia is on the rise with increasing significance in the global economy. In parallel, regional cooperation and integration is becoming stronger, bringing both benefits and costs. The region is diverse, and so are the challenges that must be overcome to achieve greater trade and financial integration. For trade, with the Doha Round stymied, what is the best route to take in untangling the noodle bowl of FTAs? And how best to deepen financial integration? How does integration impact inequality—within and across countries? There are risks to integration. How should they be addressed? This monograph—prepared for the 2013 Asian Development Bank Annual Meeting—aims to stimulate debate and further research on the role regional integration can play in sustaining growth, reducing poverty, and promoting welfare and future prosperity for Asia and the Pacific.
    Keywords: regional cooperation and integration, rci, macroeconomic policy, intraregional trade, south-south trade, free trade agreements, FTAs, noodle bowl effect, trade integration, financial integration, economic growth, poverty reduction, economic welfare, import export, financial transactions, commercial transactions
    Date: 2013–04
  13. By: Sandra Poncet (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Felipe Starosta (UP1 - Université Paris 1, Panthéon-Sorbonne - Université Paris I - Panthéon-Sorbonne - PRES HESAM)
    Abstract: Our work contributes to the literature relating output structure and economic development by showing that growth gains from upgrading are not unconditional. Relying on data from a panel of Chinese cities, we show that the level of capabilities available to domestic _rms operating in ordinary trade is an important driver of economic growth. However, no direct gains emanate from the complexity of goods produced by either processing-trade activities or foreign _rms. This suggests that the sources of product upgrading matter, and that domestic embeddedness is key in order for capacity building and technology adoption to be growth enhancing.
    Keywords: Economic complexity ; Export upgrading ; FDI ; Processing trade ; Growth ; China
    Date: 2013–03
  14. By: Shah, Deepak
    Abstract: The major issues discussed in this study revolve around export potential of India in non-traditional agricultural commodities in relation to traditional ones and domestic demand and supply aspects of various commodities with special emphasis on non-traditional ones in particular and traditional ones in general with a view to evaluate India’s export trade in these commodities in the near future and direction of trade. The study shows that the agricultural exports of India have always been fraught with high fluctuations. In spite of significant production expansions in many agricultural commodities, India’s global agricultural trade has remained at lower ebb. A lack of vision and a directionless agricultural export planning on the part of our policy planners seem to be responsible for this not so-encouraging scenario. However, it is to be further noted that though India’s share for most of the selected commodities in the total Asian and world exports encompassing them fluctuated during the past two decades, a fillip received to their exports in the wake of liberalization of policies also meant encouraging trends. Notwithstanding the dwindling India’s share of world agricultural exports, it is hoped that a regime of liberal trade policy measures will propel this country’s international market share in these commodities in future, in general. And, adoption of such international trade friendly measures is likely to benefit India’s horticultural exports, in particular. Further, though the study shows horticultural exports of India to forge ahead even in the face of wide international price fluctuations and high burgeoning demand for these high value commodities, the development of horticultural products in the country still suffers from several constraints, which are not only general but also crop specific in nature. In brief, it deserves mention that the country’s strength lies in its rich bio-diversity, diversity in agro-climatic conditions, a large labour force, the low use of agro-chemical. All this can provide a boost to the export trade of India in agricultural products.
    Keywords: Liberalization Agricultural Exports India
    JEL: Q17
    Date: 2012–09–10
  15. By: Nabokin, Tatjana
    Abstract: This paper investigates the role of patent protection in the global investment decisions of multinational firms. Using comprehensive firm-level panel data of German multinationals, we investigate how changes in a host country’s patent protection influence the extensive and intensive margin of foreign direct investment (FDI) decisions. We isolate the effect of patent protection by estimating a difference-in-difference type approach and controlling for an extensive set of fixed effects. At the extensive margin, we find that strengthening patent protection increases the probability of locating a foreign affiliate, whereby the effect is stronger for firms that highly depend on patent protection. The effect depends further on a host country’s initial legal and economic development. Given that a parent has established a foreign affiliate, no systematic effects of patent protection are found for the decision on how much to invest in the affiliate at the intensive margin. With regard to the ownership structure, we find that multinationals take into account the risk of intellectual property infringements and increase the ownership share held in the foreign affiliate after strengthening patent protection.
    Keywords: Intellectual property rights; patent protection; foreign direct investment; multinationals
    JEL: O34 F23
    Date: 2014–08
  16. By: Anwar, Amar; Mughal, Mazhar
    Abstract: This study examines the role economic freedom plays in attracting Indian outward foreign direct investment to various countries. Investments by Indian multinationals to various continents are studied along with aggregate investment outflows. Results show that Indian outward FDI do appear to prefer economically free economies. Government size, ease of foreign trade, and market regulations are the aspects of economic freedom Indian investors appear to cherish, while legal structure does not seem to influence the volume of investments by Indian multinationals.
    Keywords: Outward FDI; Economic Freedom; Foreign Direct Investment; India
    JEL: F2 O5
    Date: 2012–09–16
  17. By: Marco Sanfilippo; Adnan Seric
    Abstract: This paper adopts multilevel analysis to analyse the agglomeration-performance nexus for domestic firms in Sub-Saharan Africa. We show that contextual factors such as country, city and industry together explain up to 30% of the variance in firms’ productivity. Our results show also that African firms can take advantage from agglomeration externalities when they locate in cities more densely populated by firms specialized in different sectors (urbanization economies), while their performance worsen when they face direct competition from firms in the same industry. These effects are similar in the services and the manufacturing industries, even if in the latter positive spillovers are found to be conditional to the presence of backward and foreign linkages with nearby firms. Finally, we are also able to show that these effects are magnified when domestic firms locate close to foreign multinationals, especially those coming from the South.
    Keywords: Agglomeration economies, Firms’ heterogeneity, Sub-Saharan Africa
    JEL: D22 F23 O14
    Date: 2014–07
  18. By: Anna Ray (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Antoine Vatan (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, LMA - Laboratoire de macroéconomie - Centre de Recherche en Économie et STatistique (CREST))
    Abstract: This paper approaches international trade in luxury goods from demand side. It associates demand for luxury goods with within-country income disparities, via a social interactions component, the so-called Veblen effect (Veblen 1899). In the theoretical part, we propose a simple model of vertical differentiation with preferences displaying a Veblen effect. The model predicts that demand for luxury goods increases with the income gap between the two socio-economic groups (wealthy and non-wealthy agents). Furthermore, wealthy individuals in societies with higher income disparities have higher incentives to purchase luxury goods and hence they are willing to pay more for these. Next, we provide an empirical validation of these predictions on a sample of French high-end exporters (as defined by Martin and Mayneris, 2013) from French 8-digit CN custom data for 2006 at firm-product-destination level. Both demand for and average firm-product unit values of luxury goods are increasing with the income gap in importer country. The relationship is robust to inclusion of control variables as well as to use of alternative measures of income dispersion.
    Keywords: International Trade ; Luxury Goods ; Veblen Effects
    Date: 2013–10
  19. By: Davide Castellani (Department of Economics, Finance and Statistics, Università di Perugia); Giulio Giangaspero (Department of Social Sciences and Economics - DiSS - Sapienza University of Rome - Italy); Antonello Zanfei (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: The idea that distance may hinder cross-border economic activities has a long tradition in both international trade and international business studies. And the need to consider distance as a multifaceted concept including both spatial and institutional features has also been increasingly acknowledged in the literature. In this paper we argue that the complexities of distance factors and their impact on FDIs can be best appreciated when considered across regions, across firms and across functions. We present some developments in extant literature that account for heterogeneity in each of these three directions, and draw some implications for the analysis of FDIs location decisions.
    Keywords: FDIs, Multinationals, Distance, Heterogeneity.
    JEL: F23 O33
    Date: 2013
  20. By: Nina Latouillle; Karine Latouche; Samira Rousselière
    Abstract: This article aims at understanding the internationalization of French agri-food cooperatives through two components: i) the presence of subsidiaries of cooperatives abroad and; ii) export of either the cooperatives or their affiliate(s). Merging the AMADEUS dataset on French agri-food cooperatives, containing information on the cooperative network, with customs data, providing data on French agri-food exports, allows us to provide some answers. The main result shows that the export activities of the cooperatives and those of its subsidiaries are complementary.
    Keywords: agri-food cooperative groups, subsidiaries, territorial link, export performance, foreign implantation
    JEL: F23 L25
    Date: 2014
  21. By: Tiziano Distefano (IMT Lucca Institute for Advanced Studies); Massimo Riccaboni (IMT Lucca Institute for Advanced Studies); Giovanni Marin (Ceris-CNR)
    Abstract: The consideration of both the direct and the indirect effects of global production and trade is the first step in order to assess the sustainability of resource exploitation, in particular water usage. This paper applies the Global Multi-Regional Input-Output model to quantify the interdependencies of different sectors and to determine the overall water consumption of each country. This procedure allows the measurement of Virtual Water Trade, that is the volume of water embedded in traded goods. This paper introduces further extensions based on network analysis to overcome the limitations of I-O models. To the best of our knowledge, this is the first attempt to build a bridge between two different, but related, methodologies. Firstly, we assess the evolution of the structure of international trade in Virtual Water (VW). Secondly, we present the results from the Structural Decomposition Analysis. Finally, we introduce other measures from Network Theory, in order to integrate the previous results. Community Detection assessment reveals the emergence of regional VW systems composed by a limited set of countries. Thus our study confirms the need of elaborating and implementing transboundary policies for water management, especially in the European Union.
    Keywords: virtual water trade, multi-regional input-output model, network analysis, community detection
    JEL: C67 Q25 F18
    Date: 2014–08
  22. By: Becker, Dennis
    Keywords: International Relations/Trade, Production Economics,
    Date: 2014
  23. By: Abdallah Alaoui; Hind El Makrini
    Abstract: Moroccan’s trade deficit has worsened the last ten years. Actually, it stands at 42,3 billion dirhams. The aim of this study is to examine that export performance of Moroccan SMEs depend mainly on the managerial practices of their managers, more than the exogenous factors. Morocco is an illustrative case of a developing country where managerial determinants seem to influence significantly export performance of SMEs. Based on a qualimetric study, we analyze this relationship involving a questionnaire completed by 100 managers. The findings identify strategy, intelligence, communication and export commitment as the significant determinants of export performance. This study has interesting implications for practitioners, public policymakers and scholars alike. The research can also be used in teaching.
    Keywords: Managerial practices, Competitiveness, Export performance, Moroccan SMEs
    Date: 2014–07–24
  24. By: Jac C. Heckelman (Wake Forest University); Andrew T. Young (West Virginia University, College of Business and Economics)
    Abstract: We examine a balanced panel of globalization indices for 129 countries over the years 1991-2010. We report evidence of cross-country sigma convergence in the overall globalization index. Sigma convergence also holds for each of the economic, political, and social globalization indices, as well as each sub-index within these indices. However, the evidence for stochastic convergence, based on panel unit root tests, is only strong for the political globalization index. Regarding the economic and social dimensions of globalization, respectively, we find evidence for stochastic convergence only in the flows and cultural proximity sub-indices. For the OECD subsample, evidence supports stochastic convergence for the overall, economic and political globalization indices. Evidence to support regional convergence among the non-OECD nations on various globalization dimensions is much more limited. Our findings indicate that globalization convergence is truly global only on the political dimension.
    Keywords: globalization, institutions, sigma convergence, stochastic convergence, panel unit root tests
    JEL: E02 F02 F40 O43
    Date: 2014
  25. By: Nuno Crespo; M. Paula Fontoura; Nadia Simoes
    Abstract: Proximity to the markets is a key determinant of the location of firms because distance still matters, as recently reported in the literature. In this paper, based on an adapted version of the most standard centrality index we propose a decomposition method which allows isolating the influence of: (i) internal and external factors; (ii) economic and geographical aspects. In order to illustrate our methodology, we consider data for 171 countries. This empirical example leads to the conclusion that the centrality level of the countries derives from different sources, requiring therefore different policy interventions in order to improve it.
    Keywords: gcentrality, peripherality, economic geography, distance.
    JEL: F14 R30
    Date: 2014–06
  26. By: Calmette, Marie-Françoise; Kilkenny, Maureen; Loustalan, Catherine; Pechoux, Isabelle; Bernard, Christian
    Abstract: We show how a large country’s entrance on world markets can lead to lower and less quality diversity available to consumers rather than more. In our model, autarky quality is directly proportional to the willingness to pay for quality and home market size, and inversely proportional to the cost of quality. We formalize strategically interacting firms, and identify the context in which a low-quality producer can lead, driving high-quality producers out of the market despite the existence of customers willing to pay for higher quality. We discuss the feasibility of this ‘predatory strategy’ by an emerging country. It is more likely in contexts where the emerging exporter is much larger.
    Date: 2014–06
  27. By: Kanbur, Ravi
    Keywords: International Development, Production Economics,
    Date: 2014

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