nep-int New Economics Papers
on International Trade
Issue of 2014‒08‒28
twenty-six papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. A note on firm age and the margins of exports: First evidence from Germany By Wagner, Joachim
  2. The Moderating Role of FDI Motives and Embeddedness on the Performance of Foreign and Domestic Firms in Emerging Markets By Tilo F. Halaszovich; Sarianna M. Lundan
  3. China’s African financial engagement, real exchange rates and trade between China and Africa By Sylviane GUILLAUMONT JEANNENEY; Ping HUA
  4. A note on quality of a firm’s exports and distance to destination countries: First evidence from Germany By Wagner, Joachim
  5. Dynamic Selection: An Idea Flows Theory of Entry, Trade and Growth By Thomas Sampson
  6. Republic of Malawi Diagnostic Trade Integration Study Update : Reducing Trade Costs to Promote Competitiveness and Inclusive Growth By World Bank
  7. Economic Implications of Deeper South Asian-Southeast Asian Integration: A CGE Approach By Wignaraja, Ganeshan; Morgan, Peter; Plummer, Michael; Zhai, Fan
  8. Trade flows and trade disputes By Bown, Chad P.; Reynolds, Kara M.
  9. Exchange Rate Volatility and the Foreign Trade in CEEC By Tomanova, Lucie
  10. What Drives the Market Share Changes? Price Versus Non-Price Factors By Konstantins Benkovskis; Julia Woerz
  11. Pollution and International Trade: Evaluation of the Turkish Case through Input-Output Analysis By Tunç, Gül Ipek; Türüt Aşık, Serap; Akbostancı, Elif
  12. Price Competition in the enlarged EU 27 Export Market and the Role of Foreign Direct Investment By Jens K. Perret
  13. Estimating Trade Flows, Describing Trade Relationships, and Identifying Barriers to Cross-Border Trade Between Cameroon and Nigeria By World Bank
  14. Trade Costs and Development : A New Data Set By Jean-François Arvis; Ben Shepherd; Yann Duval; Chorthip Utoktham
  15. The Role of Global Value Chains during the Crisis: Evidence from Spanish and European Firms By Aranzazu Crespo; Marcel Jansen
  16. Measuring Value Added in the People’s Republic of China’s Exports: A Direct Approach By Xing, Yuqing
  17. The Changes in World Trade: The Analysis On The Basis of Subsectors of Manufacture and Services By Yılmaz, Şiir; Serim, Havva
  18. International Trade and Intertemporal Substitution By Fernando Leibovici; Michael E. Waugh
  19. Exchange Rates, Borrowing Costs and Exports: Firm-Level Evidence By Kwan Yong Lee; Kanda Naknoi
  20. The Effect of Tariffs on Imports : A Sector-Wise Analysis of Indonesia in 2001-2012 By Ardiansyah Romadhon; Yutaka Ito; Keisuke Kawata; Yuichiro Yoshida
  21. How regional integration and transnational energy networks have boosted FDI in Turkey (and may cease to do so): a case study: how geo-political alliances and regional networks matter By Sanchez Martin, Miguel Eduardo; Escribano Frances, Gonzalo; de Arce Borda, Rafael
  22. Trade Facilitation in the Caribbean : The Case of Customs Performance By Jose Eduardo Gutierrez Ossio; Martin Alessandro; Juan Jose Neyra
  23. Trade Facilitation, Value Creation, and Competiveness : Policy Implications for Vietnam's Economic Growth, Volume 1 By Duc Minh Pham; Deepak Mishra; Kee-Cheok Cheong; John Arnold; Anh Minh Trinh; Huyen Thi Ngoc Ngo; Hien Thi Phuong Nguyen
  24. Terms of Trade and Total Factor Productivity: Empirical evidence from Latin American emerging markets By Castillo, Paul; Rojas, Youel
  25. India-ASEAN Free Trade Agreement: The Untapped Potential By Banik, Nilanjan
  26. Trade Facilitation, Value Creation, and Competiveness : Policy Implications for Vietnam's Economic Growth, Summary Report By Duc Minh Pham; Deepak Mishra; Kee-Cheok Cheong; John Arnold; Anh Minh Trinh; Huyen Thi Ngoc Ngo; Hien Thi Phuong Nguyen

  1. By: Wagner, Joachim (Leuphana University Lueneburg, Germany, Royal Institute of Technology (KTH), and Centre of Excellence for Science and Innovation Studies (CESIS), Stockholm, Sweden)
    Abstract: This note uses a new tailor-made data set to investigate the link between firm age and the extensive and intensive margins of exports empirically for the first time for Germany. Results turn out to be fully in line with the theoretical considerations. Older firms are more often exporters, export more and more different goods to more different destination countries, and export to more distant destination markets.
    Keywords: Exports; firm age; export margins; Germany
    JEL: F14
    Date: 2014–07–24
  2. By: Tilo F. Halaszovich (University of Bremen - International Management and Governance & ZenTra); Sarianna M. Lundan (University of Bremen - International Management and Governance & ZenTra)
    Abstract: Foreign firms entering emerging markets are usually assumed to be superior to the domestic competitors in the host country. Their superior firm specific advantages (FSAs) allow them to outcompete incumbent rivals and to internalize the gains from foreign direct investment (FDI) entirely. Most of these results are based on resource or efficiency seeking FDI. More recently, the motive for FDI in these markets has shifted to market seeking. A consequence of this shift is the need for foreign firms to get deeper embedded in the institutional envi-ronment of the host country. The institutional environment of emerging markets is consid-erably different from developed countries. Coping with the institutional obstacles of a host country can be assumed to moderate the ability of a foreign firm to exploit its FSAs. We ana-lyze the impact of the firm's degree of embeddedness on its performance in emerging mar-kets using the World Bank’s Enterprise Survey Manufacturing Sector Module data on 15,715 firms from 78 emerging markets. We use the degree of localization of sourcing and sales to measure the degree of embeddedness in the host country market. We find that both dimen-sions are subject to a reversed U-shaped function. That is, by extending the degree of local sales and local sourcing up to a certain percentage, a firm can realize positive performance growth by becoming more embedded into the emerging market, but beyond this point, the performance impact is negative. We also find that foreign firms involved in local sales seem to lose part of their ability to exploit their ownership advantages as compared to foreign firms that export their production.
    Keywords: emerging market FDI, FDI motives, institutional environment
    JEL: F23
    Date: 2014–08
  3. By: Sylviane GUILLAUMONT JEANNENEY (Université d'Auvergne); Ping HUA (FERDI)
    Abstract: In the last decade China’s trade with Africa increased faster than its overall foreign trade. This paper focuses on the role of real exchange rates in this growth. A “bilateral real exchange rate” augmented trade gravity model applied to China’s trade with 49 African countries over the period 2000 to 2011 shows that the real appreciation of most African currencies relative to the renminbi favoured China’s exports to these countries, but had no impact on China’s imports from Africa. This real appreciation of African currencies is explained by three main factors: 1) the decision to peg them to other currencies (in particular to the euro), 2) the amount of export of raw materials from African countries, and 3) the amount of financial assistance from international donors including China. Thus, a kind of detrimental sequence exists in Africa’s relationship with China: China’s imports of raw materials and its economic cooperation are among the factors explaining the appreciation of African real exchange rates, which itself stimulates China’s exports of manufactured goods, and so restricts Africa’s own industrial development.
    JEL: F12 F14 F31 F35
    Date: 2014–08
  4. By: Wagner, Joachim (Leuphana University Lueneburg, Germany, Royal Institute of Technology (KTH), and Centre of Excellence for Science and Innovation Studies (CESIS), Stockholm, Sweden)
    Abstract: This note uses a tailor-made new data set to investigate for the first time the link between the quality of a firm’s exports and the distance to destination countries for Germany. To anticipate the most important result, it is shown that the quality of exported goods and the distance to destination countries are not statistically positively correlated.
    Keywords: Exports; export quality; distance; Germany
    JEL: F14
    Date: 2014–07–24
  5. By: Thomas Sampson
    Abstract: This paper develops an idea flows theory of trade and growth with heterogeneous firms. New firms learn from incumbent firms, but the diffusion technology ensures entrants learn not only from frontier technologies, but from the entire technology distribution. By shifting the productivity distribution upwards, selection on productivity causes technology diffusion and this complementarity generates endogenous growth without scale effects. On the balanced growth path, the productivity distribution is a traveling wave with an increasing lower bound. Growth of the lower bound causes dynamic selection. Free entry mandates that trade liberalization increases the rates of technology diffusion and dynamic selection to offset the profits from new export opportunities. Consequently, trade integration raises long-run growth. The dynamic selection effect is a new source of gains from trade not found when firms are homogeneous. Calibrating the model implies that dynamic selection approximately triples the gains from trade relative to heterogeneous firm economies with static steady states.
    Keywords: International trade, firm heterogeneity, technology diffusion, endogenous growth
    JEL: F12 O41
    Date: 2014–08
  6. By: World Bank
    Keywords: Environmental Economics and Policies International Economics and Trade - Free Trade Economic Theory and Research Transport Economics Policy and Planning International Economics and Trade - Trade Policy Environment Transport Macroeconomics and Economic Growth
    Date: 2014–03
  7. By: Wignaraja, Ganeshan (Asian Development Bank Institute); Morgan, Peter (Asian Development Bank Institute); Plummer, Michael (Asian Development Bank Institute); Zhai, Fan (Asian Development Bank Institute)
    Abstract: South and Southeast Asian economic integration via increased trade flows has been increasing significantly over the past 2 decades, but the level of trade continues to be relatively low. This underperformance has been due to both policy-related variables—relatively high tariff and non-tariff barriers—and high trade costs due to inefficient "hard" and "soft" infrastructure (costly transport links and problems related to trade facilitation). The goal of this study is to estimate the potential gains from South Asian–Southeast Asian economic integration using an advanced computable general equilibrium (CGE) model. The paper estimates the potential gains to be large, particularly for South Asia, assuming that the policy- and infrastructure-related variables that increase trade costs are reduced via economic cooperation and investment in connectivity. As Myanmar is a key inter-regional bridge and has recently launched ambitious, outward-oriented policy reforms, the prospects for making progress in these areas are strong. If the two regions succeed in dropping inter-regional tariffs, reducing non-tariff barriers by 50%, and decreasing South Asian–Southeast Asian trade costs by 15%—which this paper suggests is ambitious but attainable—welfare in South Asia and Southeast Asia would rise by 8.9% and 6.4% of gross domestic product, respectively, by 2030 relative to the baseline. These gains would be driven by rising exports and competitiveness, particularly for South Asia, whose exports would rise by two thirds (64% relative to the baseline). Hence, the paper concludes that improvements in connectivity would justify a high level of investment. Moreover, it supports a two-track approach to integration in South Asia, i.e., deepening intra-regional cooperation together with building links to Southeast Asia.
    Keywords: south asia-southeast asian regional integration; inter-regional trade; cge analysis; tariff and non-tariff barriers
    JEL: C68 F12 F13 F15 F17
    Date: 2014–08–12
  8. By: Bown, Chad P.; Reynolds, Kara M.
    Abstract: This paper introduces a new data set and establishes a set of basic facts and patterns regarding the trade that countries fight about under World Trade Organization (WTO) dispute settlement. The paper characterizes the scope of products, as well as the levels of and changes to the trade values, market shares, volumes, and prices for those goods that eventually become subject to WTO litigation. The first result is striking heterogeneity in the level of market access at stake across disputes: for example, 14 percent of cases over disputed import products feature bilateral trade that is less than $1 million per year and another 15 percent feature bilateral trade that is more than $1 billion per year. Nevertheless, some strong patterns emerge from a more detailed examination of the data. Both high- and low-income complainants tend to suffer important losses in foreign market access in the products that ultimately become subject to dispute. Furthermore, although the respondent's imposition of an allegedly WTO-inconsistent policy is associated with reductions, on average, in trade values, volumes, and exporter-received prices, there is some evidence of differences in the size of these changes across the different types of policies under dispute and the potential exporter country litigants. Finally, these different types of policies under dispute can have dissimilar trade effects for the complainant relative to other (non-complainant) exporters of the disputed product and this is likely to affect the litigation allegiance of third countries.
    Keywords: Markets and Market Access,Trade Law,Economic Theory&Research,Free Trade,Emerging Markets
    Date: 2014–07–01
  9. By: Tomanova, Lucie (Silesian University in Opava/Finance, School of Business Administration in Karvina, Karvina, Czech Republic)
    Abstract: The exchange rate plays an important role in a country’s export performance and currency volatility has impact on international trade, the balance of payments and economic performance, however, views on the impact of exchange rate volatility on international trade flows are inconsistent, thus it is necessary to examine this matter further, and with knowledge of the application to small open economies. This paper analyzes impact of exchange rate volatility on the export performance of Central and Eastern European countries. Using monthly time series data, the empirical analyses has been carried out for the period 01/1999 to 03/2013. Volatility’s impact on export performance is estimated on bilateral export flows of Czech Republic, Slovakia, Hungary and Poland to euro area. For the volatility measurement, G/ARCH models are used. Autoregressive distributed lag and error-correction approach are used to examine the impact of exchange rate volatility on the exports. The results suggest no significant relationship among the exchange rate volatility and export performance in CEE countries, impact of exchange rate volatility turns out to be ambiguous.
    Keywords: exchange rates, VECM, ARDL, export, volatility
    JEL: F31 F42 C22
    Date: 2013
  10. By: Konstantins Benkovskis; Julia Woerz
    Abstract: The paper proposes a theoretical framework for explaining gains and losses in export market shares by considering both price and non-price determinants. Starting from a demand-side model a la Armington (1969), we relax several restrictive assumptions to evaluate the contribution of unobservable changes in taste and quality, taking into account differences in elasticities of substitution across product markets. Using highly disaggregated trade data from UN Comtrade, our empirical analysis for the major world exporters (G7 and BRIC countries) reveals the dominant role of non-price factors in explaining the competitive gains of BRIC countries and concurrent decline in the G7 share of world exports.
    Keywords: export market share decomposition, non-price competitiveness, real effective exchange rate
    JEL: C43 F12 F14 L15
    Date: 2014–08–13
  11. By: Tunç, Gül Ipek (Department of Economics, METU, Ankara, Turkey); Türüt Aşık, Serap (Department of Economics, METU, Ankara, Turkey); Akbostancı, Elif (Department of Economics, METU, Ankara, Turkey)
    Abstract: Environmental impacts of international trade have been on the agenda of both academicians and policy makers in the last decades. Different aspects of the relationship between international trade and environment have been investigated by utilizing different models either for single countries or for group of countries. This study mainly aims to explore the pollution content of international trade of the Turkish economy. For this purpose input-output methodology is employed. In recent years input-output methodology is widely used in environmental issues since with this methodology both direct and indirect effects of production and consumption on the environment can be identified explicitly. Though there are alternative measures, in this study to quantify the effects of environment on international trade, “the balance of emissions terms of trade” (BETT) will be calculated. BETT mainly measures the difference of pollution embodied in exports and pollution embodied in imports. Therefore a positive BETT suggests that Turkish exports are more pollution intensive than her imports and vice versa. While trade volume has been increasing in the Turkish economy, we aim to test whether Turkey becomes a net exporter or importer of pollution. The findings of the study are also interpreted in terms of clean and dirty sectors of the Turkish economy. As pollution indicators mainly carbon dioxide emissions of fuels like coal, natural gas and oil will be calculated. Additionally, as the main data source the latest three input-output tables of the Turkish economy will be utilized.
    Keywords: Pollution, International Trade, Input-Output, Turkey
    JEL: C67 F14 Q40
    Date: 2013
  12. By: Jens K. Perret (European Institute for International Economic Relations at the University of Wuppertal)
    Abstract: From a microeconomic perspective competition between firms has been duely discussed. Extending microeconomic concepts to a macroeconomic level and considering competition between countries becomes more complex. The complexity issues is tackled in this study by extending a methodology developed in Borbely (2006) to account for specialization in specific sectors as well as price groups that under certain assumptions can be seen as a quality indicator. This study observes 27 EU countries - excluding Croatia - and Turkey. This allows for a view on the competition structure in the context of the EU common market. In a second step of the analysis it is analyzed whether FDI inflows impact the price - quality - level of a sector or the probability to switch to a higher or a lower price level in said sector. Where in other publications including \cite{borbely06} for selected EU countries a positive impact of FDI inflows is found, this study finds for the EU as a whole or the EU 15 or EU 10+1 (including Turkey) sub-groups no significant impact of FDI inflows on the price level or the probability to switch to another price level.
    Keywords: structural change, European Union, price competition, exports, revealed comparative advantages, export unit values
    JEL: F14 F15 L16
    Date: 2014–08
  13. By: World Bank
    Keywords: Environmental Economics and Policies Law and Development - Trade Law Economic Theory and Research Transport Economics Policy and Planning International Economics and Trade - Trade Policy Environment Macroeconomics and Economic Growth Transport
    Date: 2013–05
  14. By: Jean-François Arvis; Ben Shepherd; Yann Duval; Chorthip Utoktham
    Keywords: Law and Development - Trade Law International Economics and Trade - Free Trade International Economics and Trade - Trade Policy Economic Theory and Research Transport Economics Policy and Planning Macroeconomics and Economic Growth Transport
    Date: 2013–01
  15. By: Aranzazu Crespo; Marcel Jansen
    Abstract: This paper analyzes the role that global value chains (GVC) have played during the sovereign debt crisis in Europe, and the key policy challenges that Spain faces. First, we provide a comparative analysis of the export performance and FDI activities of Spanish firms, using the firm-level information of the EFIGE dataset. Then, we use input-output tables from the WIOD database to identify the industries whose participation in GVCs should be promoted since they retain a larger share of domestic value added. Finally, we analyze the capacity of GVCs to amplify or act as built-in stabilizers following economic downturns. To do so, we compute the first round impact on Spanish gross exports and domestic value added of a 10% increase in final demand in selected areas of the world. Spain's gross exports would be worth 2.28% of GDP while the domestic value added from export would grow by 2.34%, which suggests that GVCs act as stabilizers since the promote more the domestic value added components.
    Date: 2014–08
  16. By: Xing, Yuqing (Asian Development Bank Institute)
    Abstract: We apply a direct approach to estimate domestic value added embedded in the People’s Republic of China’s (PRC) exports. The estimates suggest that the domestic value added of processing exports and processing high-tech exports gradually increased from 30% and 25%, to 44% and 45%, respectively, between 1997 and 2012. On the other hand, the domestic content of processing exports with supplied materials fell to 14% from the peak of 35%. In 2012, the domestic value added of the PRC’s total exports remained below 77%. Our estimates prove to be the upper limits of the corresponding trade in value added. Compared to our estimates, the Organisation for Economic Co-operation and Development’s Trade in Value Added database (TiVA) significantly overestimates the domestic content of the PRC’s exports. TiVA’s estimates are also inconsistent with the fact that the share of processing exports in the PRC’s total exports has decreased steadily. In addition, we show that the PRC’s processing exports demonstrate significant heterogeneity across its trading partners; processing exports account for a large portion of total exports to high income countries but a relatively small portion of exports to low income countries. This heterogeneity implies that the domestic content of the PRC’s exports varies significantly by destination.
    Keywords: People’s Republic of China; trade in value added; domestic value added
    JEL: F10
    Date: 2014–08–08
  17. By: Yılmaz, Şiir (Gazi University, Department of Economics); Serim, Havva (Gazi University, Department of Economics)
    Abstract: The international economic relations have changed within the context of world trade in recent decades. This change have been observed by examining the rank of leading exporter countries in manufacture and commercial services trade and their sub sectors. The shifts have showed that the effects in manufacture sector have been more significant than services. While the attack of emerging economies like China, India and Republic of Korea have been observed in mostly manufacture sector, the share and the rank of leading countries in services have not been changed much. This situation has reemphasized that there is a shift in production in manufacture sector towards emerging economies so developed countries have headed for services sector.
    Keywords: International Economics, Export of Manufacture and Services Sector, Subsector Analysis
    JEL: F01 F02 F10
    Date: 2013
  18. By: Fernando Leibovici (Department of Economics, York University, Toronto, Canada); Michael E. Waugh (New York University and NBER)
    Abstract: This paper studies the dynamics of international trade flows at business cycle frequencies. We show that introducing dynamic considerations into an otherwise standard model of trade can account for several puzzling features of trade flows at business cycle frequencies. Our insight is that because international trade is time-intensive, variation in the rate at which agents are willing to substitute across time affects how trade volumes respond to changes in output and prices. We formalize this idea and calibrate our model to match key features of U.S. data. We find that, in contrast to standard staticmodels of international trade, ourmodel is quantitatively consistent with salient features of U.S. cyclical import fluctuations. We also find that our model accounts for two-thirds of the peak-to-trough decline in imports during the 2008-2009 recession.
    Date: 2014–08–11
  19. By: Kwan Yong Lee (University of North Dakota); Kanda Naknoi (University of Connecticut)
    Abstract: This study empirically examines the effects of currency depreciation on the exporting firms' borrowing costs and exports. Using Korean data, first we find novel evidence that unanticipated currency depreciation increases the firm-level real interest rate for firms in sectors importing intermediate inputs. Next, we show that currency depreciation has contractionary effects of rising costs of borrowing and imported inputs, and an expansionary effect of an improvement in price competitiveness. The overall effect of currency depreciation on exports is found to be contractionary, and our estimation has captured the effects of large financial shocks during financial crises.
    Keywords: Balance sheet effect, Exchange rate, Borrowing Costs, Exports
    JEL: F14 F31 F41
    Date: 2014–07
  20. By: Ardiansyah Romadhon (Graduate School for International Development and Cooperation, Hiroshima University); Yutaka Ito (Graduate School for International Development and Cooperation, Hiroshima University); Keisuke Kawata (Graduate School for International Development and Cooperation, Hiroshima University); Yuichiro Yoshida (Graduate School for International Development and Cooperation, Hiroshima University)
    Abstract: This paper examines the validity of the commonly accepted paradigm that tariffs discourage imports in Indonesia. Specifically, this paper investigates the effect of tariffs on imports by industry using six-digit sectoral trade data for the 2001-2012 period. We also measure the welfare cost of a marginal change in tariff rates in each industry using Harberger's approach. The results show that tariffs negatively affect only certain industries, such as chemical, stone/glass, and metals, but not other industries. The findings demonstrate that in these three industries, the welfare gain from a 1% decrease in the 2012 tariff rate amounts to approximately 3% of tariff revenue.
    Keywords: Tariff, Indonesian import, Harberger's approach
    Date: 2014–08
  21. By: Sanchez Martin, Miguel Eduardo; Escribano Frances, Gonzalo; de Arce Borda, Rafael
    Abstract: Turkey has historically struggled to attract foreign investors. This paper argues that not only macroeconomic and political stability, but also regional integration explains the upsurge in foreign direct investment observed since 2005. The analysis draws from a qualitative framework. It discusses how, contrary to the Customs Union Treaty for industrial products with the European Union, the official start of the European Union's accession to negotiations in 2005 encompassed a wide set of reforms in several chapters directly or indirectly affecting the business climate. The reforms helped to enhance foreign direct investment attraction in Turkey. However, it seems that the global economic slowdown starting in 2009 and increasing Euro-skepticism have already started to erode this effect. Only large foreign investment in the energy sector observed in 2009-13, explained by the energy security strategy of the European Union and the privatization agenda, has prevented the collapse of foreign direct investment inflows to Turkey.
    Keywords: Foreign Direct Investment,Investment and Investment Climate,Knowledge Economy,Trade Liberalization,Oil&Gas
    Date: 2014–07–01
  22. By: Jose Eduardo Gutierrez Ossio; Martin Alessandro; Juan Jose Neyra
    Keywords: Culture and Development - Cultural Policy International Economics and Trade - Trade Policy International Economics and Trade - Customs and Trade Private Sector Development - E-Business Law and Development - Trade Law
    Date: 2013–06
  23. By: Duc Minh Pham; Deepak Mishra; Kee-Cheok Cheong; John Arnold; Anh Minh Trinh; Huyen Thi Ngoc Ngo; Hien Thi Phuong Nguyen
    Keywords: International Economics and Trade - Trade Policy International Economics and Trade - Free Trade Economic Theory and Research Private Sector Development - E-Business Transport Economics Policy and Planning Transport Macroeconomics and Economic Growth
    Date: 2013–07
  24. By: Castillo, Paul (Banco Central de Reserva del Perú); Rojas, Youel (Banco Central de Reserva del Perú)
    Abstract: In this paper we use quarterly data from Chile, Mexico and Peru to study the link between terms of trade and Total Factor Productivity (TFP). We estimate TFP using a stylized general equilibrium model for a small open economy model with quarterly data. Then, the TFP is decomposed into a domestic component and one external component linked to terms of trade using a structural VAR model as in Blanchard and Quah (1989). Our main results shows that the terms of trade has indeed not only short term but also medium and long term effects on TFP, being the short and medium term impact more predominant in the sample.
    Keywords: Calibration, general equilibrium, terms of trade, total factor productivity
    JEL: C11 C13 C51 F41
    Date: 2014–08
  25. By: Banik, Nilanjan
    Abstract: India has signed a FTA with the ASEAN. The ‘Look East’ policy for India matches very well with the ‘Look West’ policy that ASEAN have for India. However, in its present state, India-ASEAN FTA promises limited gain. There is a need to go beyond trade in goods, and cover areas in services. We find evidence of complementarities in trading relation. A reason for ASEAN economic community progressing well has to do with the complementarities. Complementarities exist in terms of trade in energy, consumer durables and food items. For India to gain meaningfully there is a need to become part of East Asian production network. Participating in East Asian production network has become a necessary condition if India wants to target a higher growth trajectory.
    Keywords: ASEAN, INDIA, FTA
    JEL: F13 F16
    Date: 2014–08–14
  26. By: Duc Minh Pham; Deepak Mishra; Kee-Cheok Cheong; John Arnold; Anh Minh Trinh; Huyen Thi Ngoc Ngo; Hien Thi Phuong Nguyen
    Keywords: Environmental Economics and Policies International Economics and Trade - Trade Policy Economic Theory and Research Private Sector Development - E-Business Transport Economics Policy and Planning Environment Transport Macroeconomics and Economic Growth
    Date: 2013–07

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