nep-int New Economics Papers
on International Trade
Issue of 2014‒10‒13
34 papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. The Harmonization of Technical Barriers to Trade, Innovation and Export Behavior: Theory with an Application to EU Environmental Regulations By MANTOVANI Andrea; VANCAUTEREN Mark
  2. The Joint Impact of Specific Tariffs and Preferential Trade Agreements: Do Low Income Countries Gain or Lose? By Sohini CHOWDHURY
  3. How Restrictive Are ASEAN's RoO? By Olivier CADOT; Lili Yan ING
  4. Import Penetration, Export Orientation and Plant Size in Indonesian Manufacturing By Sadayuki TAKII
  5. Italian trade and direct investment in North Africa By Riccardo Settimo
  6. Should Canada Diversify its Trade Pattern? An Overlapping-Generations CGE Analysis of Trade and Ageing By Patrick GEORGES; Marcel MERETTE; Aylin SECKIN
  7. Agricultural Trade Policies and Food Security: Is there a Causal Relationship? By Emiliano Magrini; Pierluigi Montalbano; Silvia Nenci; Luca Salvatici
  8. The Effects of Foreign Trade Liberalization and Financial Flows between Slovenia and EU Budgets after the Accession By BAYAR Ali; MAJCEN Boris; MOHORA Cristina
  9. Agricultural Trade Liberalization in a World of Uncertainty: Discussion of the Results of a World CGE Model By BOUSSARD J.M.; GERARD F.; PIKETTY M.G.; CHRISTENSEN A.K; VOITURIEZ T.
  10. On the employment effects of outward FDI: The case of Spain, 1995-2011 By Oscar Bajo-Rubio; Carmen Díaz-Mora
  11. Partial Equilibrium Modeling of Trade Zeros By James FETZER
  12. The Modelling of an Open Regional Economy: Effects of Imports and Trade Liberalization By Christine WIECK; Thomas I. WAHL
  13. Are EU trade preferences really effective? A Generalized Propensity Score evaluation of the Southern Mediterranean countires's case in agriculture and fishery. FOODSECURE working paper no. 23 By Emiliano Magrini; Pierluigi Montalbano; Silvia Nenci
  14. Poverty Impacts of Trade Liberalization: The Case of Indonesia By Guntur Sugiyarto; Erwin Corong
  15. Trade and Labour Standards: Will There Be a Race to the Bottom? By Zhiqi Chen; Afshan Dar-Brodeur
  16. When Free Trade is Good for the Environment? By Chahreddine ABBES
  17. A note on firm age and the margins of imports: First evidence from Germany By Joachim Wagner
  18. Discussion: The Economic Consequences of International Labor Migration and Trade on Local Labor Markets By Kandilov, ivan
  19. Regulation, Market Structure and Service Trade Liberalization: A CGE Analysis By Denise KONAN; Ari Van ASSCHE
  20. Intra-Industry Trade and Input Demand By Kurt KRATENA
  21. Trade Implications of Turkey's Accession to the EU By Yontem Sonmez; Dr Scott McDonald
  22. Evaluating the Impact of Tariff Removals and Terms-of-Trade Changes on the Trinidad & Tobago Economy By Patrick WATSON; Kyren GREIGG
  23. A global value chain analysis of macroeconomic imbalances in Europe By Stefan Ederer; Peter Reschenhofer
  24. Estimating Prices and Excess Demand and Trade Costs in a Spatial Price Equilibrium Model By Torbjorn Jansson
  25. Trade and Poverty in South Asia By Keshab Raj BHATTARAI
  26. Product Differentiation and Trade: An Example From the Bovine Meat Sector By Sophie DROGUE; Stephan MARETTE; Priscila RAMOS
  27. Off-Shoring and Wage Inequality: where do we stand? By Fatima, Syeda Tamkeen
  28. Regional Integration under the East African Community: An Assessment of the Trade and Welfare Effects for Uganda By Sangeeta Khorana; Kato Kimbugwe; Nick Perdikis
  29. Explaining Trade Shortfalls in the MENA Region By Rania MINIESY; Jeffrey B. NUGENT
  30. The Accession of China to WTO: The Consequences for the Regional Gap By BRILLET Jean Louis; XIAOYUE Liu
  31. The Impact of Multilateral Liberalisation on European Regions: a CGE Assessment By David LABORDE; Jean SÉBASTIEN
  32. Economic Impact of a Potential FTA Between EU and ASEAN on the German Economy By Konstantin KHOLODILIN; Tanja FENDEL
  33. EU Enlargement and Beyond: A Simulation Study on EU and CIS Integration By SULAMAA Pekka; WIDGRÉN Mika
  34. Value Chain in East Asia Production Network -An International Input-output Model Based Analysis By Zhi WANG; Shangjin WEI; Kei-Mu YI

  2. By: Sohini CHOWDHURY
  3. By: Olivier CADOT (University of Lausanne, CEPR and FERDI); Lili Yan ING (Economic Research Institute for ASEAN and East Asia (ERIA) and University of Indonesia)
    Abstract: This paper uses a disaggregated (product-level) gravity approach to estimate the effect of ASEAN’s product-specific rules of origin (RoO) on regional trade, using original data on rules applicable at the six-digit level of the harmonized system. Overall, we find that the average ad-valorem equivalent (AVE) of ASEAN’s RoO’s is 3.40 percent across all instruments and sectors. The trade-weighted average is 2.09 percent. This moderate estimate is in line with the existing literature. However, we also find fairly high AVEs for some sectors including leather, textile and apparel, footwear, and automobiles. We also find that some rules appear more restrictive than others; in this regard, the Textile Rule seems to stand out as a relatively more trade-inhibiting rule than others.
    Keywords: Rules of Origin, Gravity equation, International Trade, ASEAN, Global Value Chains
    JEL: F12 F13 F14 F15
    Date: 2014
  4. By: Sadayuki TAKII (Seinan Gakuin University)
    Abstract: This paper empirically examines differential impacts of globalisation on plant size among plants with different characteristics, including initial plant size, import and export status, and ownership. After accounting for other characteristics, results of this analysis suggest that both import penetration and export orientation do not have differential impacts on the size of larger and smaller plants. This is contrary to fears that only relatively large plants can benefit from globalisation while smaller plants would lose their market shares. The results also suggest that negative impact of import penetration on plant size is greater for importers and that the increase in export orientation positively impacts the size of exporting plants.
    Keywords: Globalisation, Plant size, Indonesia
    JEL: F14
    Date: 2014
  5. By: Riccardo Settimo (Banca d'Italia)
    Abstract: More than three years since the events of the Arab Spring, the five North African countries – Algeria, Egypt, Libya, Morocco and Tunisia are still going through a difficult transition. This study provides an overview of Italian trade and direct investment in the region. The main stylized facts are the following: (1) among the countries of the European Union, Italy is the region’s largest trading partner; (2) the region is a crucial source of energy, supplying 31 per cent of the oil and 44 per cent of the natural gas that Italy imports; (3) compared with the EU average, Italian exports are specialized in refined petroleum products and capital goods. The primary objective of Italian firms’ direct investment in North African countries is to enter new markets rather than to secure lower production costs.
    Keywords: international trade, foreign direct investment (FDI), North Africa
    JEL: F10 F21 F50 O55
    Date: 2014–09
  6. By: Patrick GEORGES; Marcel MERETTE; Aylin SECKIN
  7. By: Emiliano Magrini (Food and Agriculture Organization, Rome, Italy); Pierluigi Montalbano (Sapienza, University of Rome); Silvia Nenci (University of Rome 3); Luca Salvatici (University of Rome 3)
    Abstract: The aim of this paper is to assess the causal impact of trade policy distortions on food security. The added value of this work is twofold: i) its use of a non-parametric matching technique with continuous treatment, namely the Generalised Propensity Score (GPS) to address the self selection bias; ii) its analysis of heterogeneity in treatment (by commodities) as well as in outcome (i.e. different dimensions of food security). The results of our estimates clearly show that trade policy distortions are, overall, significantly correlated with the various dimensions of food security analysed. Both discrimination against agriculture and 'excessive' support lead to poor performances in all dimensions of food security (availability, access, utilisation and stability).
    Keywords: Food security, International trade, Trade measures, Impact evaluation, GPS.
    JEL: C21 F14 Q17
    Date: 2014–09
  8. By: BAYAR Ali; MAJCEN Boris; MOHORA Cristina
  10. By: Oscar Bajo-Rubio (Universidad de Castilla-La Mancha); Carmen Díaz-Mora (University of Castilla-La Mancha)
    Abstract: In this paper, we analyse the impact on domestic employment resulting from outward FDI performed by Spanish firms, using industry data for the period 1995‐2011. Together with the effects on total employment, we differentiate the effects according to the particular groups of countries and activities to which those FDI outflows are addressed. In addition, the impact of outward FDI on the demand for labour is also analysed separately for high and low skill levels of the labour force.
    Keywords: Foreign direct investment, Employment, Spanish economy
    JEL: F21 F23 J40
    Date: 2014–09
  11. By: James FETZER
  12. By: Christine WIECK; Thomas I. WAHL
  13. By: Emiliano Magrini; Pierluigi Montalbano; Silvia Nenci
    Abstract: This study aims to assess the trade impact of preferential schemes. It focuses on the controversial case of the trade preferences in agriculture and fishery granted by the EU to the Southern Mediterranean Countries over the period 2004-2009. The analysis presents several methodological improvements on previous works. These findings raise important issues for policy-making by mitigating the claimed efficiency of the EU trade policy in the Meditterean area.
    JEL: F1 F4
  14. By: Guntur Sugiyarto; Erwin Corong
  15. By: Zhiqi Chen (Department of Economics, Carleton University); Afshan Dar-Brodeur (Statistics Canada)
    Abstract: The objective of this paper is to investigate whether international rivalry will lead to a “race-to-the-bottom” (RTB) in labour standards. We derive the equilibrium levels of labour standards in an environment that is most conducive to a RTB, specifically the Brander and Spencer (1985) model of strategic trade in which each government has an incentive to lower the cost of a domestic firm. Our analysis suggests that strategic trade considerations do not lead to a RTB in labour standards. To the contrary, equilibrium labour standards are higher than those in the absence of government intervention. In the case where governments are free to choose the rate of an export subsidy, labour standards are inefficiently high. Binding global trade rules that reduce the subsidy rate would move the equilibrium labour standards closer to their efficient level, and a prohibition of the subsidy would eliminate the efficiency loss in labour markets.
    Keywords: Labour standards, international trade, export subsidy
    JEL: J8 F1
    Date: 2014–09–29
  16. By: Chahreddine ABBES
  17. By: Joachim Wagner (Leuphana University Lueneburg, Germany)
    Abstract: This note uses a new tailor-made data set to investigate the link between firm age and the extensive margins of imports empirically for the first time for Germany. Results turn out to be fully in line with the theoretical considerations. Older firms are more often importers, import more different goods, and import from more different countries of origin.
    Keywords: Imports, firm age, import margins, Germany
    JEL: F14
    Date: 2014–08
  18. By: Kandilov, ivan
    Keywords: International Relations/Trade, Labor and Human Capital,
    Date: 2013–12
  19. By: Denise KONAN; Ari Van ASSCHE
  20. By: Kurt KRATENA
  21. By: Yontem Sonmez; Dr Scott McDonald
  22. By: Patrick WATSON; Kyren GREIGG
  23. By: Stefan Ederer; Peter Reschenhofer
    Abstract: This paper assesses whether or to what extent the macroeconomic imbalances, which emerged in the ‘North’ and ‘South’ of the European Monetary Union before the financial and economic crisis of 2008/09, are symmetric. Firstly, we calculate bilateral exports and imports between all EU member states, applying the concept of ’trade in value added’, and discuss their role in the emergence of trade surpluses and deficits. Secondly, we decompose the changes in the trade balances into the effects of shifts in final demand on the one side and changes in the global production patterns on the other. Thirdly, we quantify to what extent an increase in domestic demand in the North and a decrease in the South would support the elimination of these imbalances. Finally, we calculate a hypothetical scenario in which final demand would expand similarly in all EMU member states. Thereby we evaluate how the macroeconomic imbalances would have evolved in the case of more balanced demand developments in the EMU in the past, as well as how adjustment could possibly happen in the future.
    Keywords: European Monetary Union, macroeconomic imbalances, global value chains, input-output analysis
    JEL: C67 E60 F14 F15
    Date: 2014–09
  24. By: Torbjorn Jansson
  25. By: Keshab Raj BHATTARAI
  26. By: Sophie DROGUE; Stephan MARETTE; Priscila RAMOS
  27. By: Fatima, Syeda Tamkeen
    Abstract: The distributional impact of globalization is of great academic interest. This paper traces the progression of theoretical trade models and their ability to explain the differential impact of off-shoring on skill premiums (i.e. skilled-unskilled wage dispersion) in the recipient developing countries. In light of the increasing trend of off-shoring activities, it is important to look at its consequence on labor demand and skill composition in the south which can in turn affect the wage dispersion in these economies. The varied impact of off-shoring activities onto the wage dispersion in the south as supported by the empirical evidence calls for a comprehensive model that can reconcile these differences. The class of theoretical models pointing in only one direction of either an increase, decrease or no change in wage dispersion need to be enriched to take account of multiple equilibrium or asymmetric pattern of skill premium obtained under different circumstances.
    Keywords: Off-shoring; Foreign direct investment; FDI; Wage inequality; Skill premium; Developing south
    JEL: F16 J31
    Date: 2014
  28. By: Sangeeta Khorana; Kato Kimbugwe; Nick Perdikis
  29. By: Rania MINIESY; Jeffrey B. NUGENT
  30. By: BRILLET Jean Louis; XIAOYUE Liu
  31. By: David LABORDE; Jean SÉBASTIEN
  32. By: Konstantin KHOLODILIN; Tanja FENDEL
  33. By: SULAMAA Pekka; WIDGRÉN Mika
  34. By: Zhi WANG; Shangjin WEI; Kei-Mu YI

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