nep-int New Economics Papers
on International Trade
Issue of 2014‒10‒22
thirty-six papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. Reducing trade costs in east Africa : deep regional integration and multilateral action By Balistreri, Edward J.; Tarr, David G.; Yonezawa, Hidemichi
  2. Firms, Quality Upgrading and Trade By Sheldon, Ian
  3. Out of sight, not out of mind. Education networks and international trade By Marina Murat
  4. Firm age and the margins of international trade: Comparable evidence from five European countries By Joachim Wagner
  5. Local intermediate inputs and the shared supplier spillovers of foreign direct investment By Kee, Hiau Looi
  6. The survey on international freight rates in Italy: methods and results By Enrico Pastori; Miriam Tagliavia; Enrico Tosti; Simonetta Zappa
  7. Japanese Small and Medium-sized Enterprises Export Decisions: The Role Overseas Market Information By Tomohiko INUI; Keiko ITO; Daisuke MIYAKAWA
  8. Firms, Productivity and Trade By Gopinath, Munisamy; Choi, Jangho
  9. The Exporting and Productivity Nexus: Does Firm Size Matter? By Cassey LEE
  10. Trade, Migration, and the Place Premium: Mexico and the United States By Davide Gandolfi; Timothy Halliday; Raymond Robertson
  11. Policy Priorities for International Trade and Jobs By Lippoldt, Douglas
  12. Productivity Growth, Trade and Poverty By Martin, Will
  13. Impact of Trade Openness on Technical Efficiency: Agricultural Sector of the European Union By Hart, Jarret
  14. National food security: a framework for public policy and international trade. FOODSECURE working paper no. 17 By M. Huchet Bourdon; C. Laroche Dupraz
  15. Business, Brokers and Borders: The Structure of West African Trade Networks By Olivier Walther
  16. Foreign Direct Investment and Fiscal Policy - A Literature Survey By António Jacinto Simões; José Ventura; Luís A. G. Coelho
  17. Estimating Direct and Indirect Effects of Foreign Direct Investment on firm Productivity in the Presence of Interactions between Firms By Sourafel Girma; Yundan Gong; Holger Görg; Sandra Lancheros
  18. International Trade and the Environment: A Framework for Analysis By M. Scott Taylor; Brian R. Copeland
  19. The consequences of trade openness on the availability of seafood resources: Methodology and evidence based in the case of Turkey. FOODSECURE working paper no.16. By Basak BAYRAMOGLU; Jean-François JACQUES
  20. Tariff Liberalization and Agriculture in the Trans-Pacific Partnership Region By Burfisher, Mary; Dyck, John; Meade, Birgit; Mitchell, Lorraine; Wainio, John; Zahniser, Steven; Arita, Shawn; Beckman, Jayson
  21. Services Negotiation and Plurilateral Agreements: TISA and sectoral approach By NAKATOMI Michitaka
  22. International trade network: fractal properties and globalization puzzle By Mariusz Karpiarz; Piotr Fronczak; Agata Fronczak
  23. Quality in Exports By Hylke Vandenbussche
  24. Korea's Policy Package for Enhancing its FTA Utilization and Implications for Korea's Policy By Inkyo CHEONG
  25. Does Corporate Taxation Deter Multinationals? Evidence from a Historic Event in Ireland By Holger Görg; Eric Strobl
  26. Education ties and investments abroad. Empirical evidence from the US and UK By Marina Murat
  27. Measuring the impact of a change in the price of Cashew received by exporters on farmgate prices and poverty in Guinea-Bissau By Cont, Walter; Porto, Guido
  28. Natural Selection: Earnings and Employment in Foreign-owned Firms By David C. Maré; Lynda Sanderson; Richard Fabling
  29. Major players of the international food trade and the world food security. FOODSECURE working paper no. 12 By Benoit Daviron; Mathilde Douillet
  30. Evidence on Policies to Increase the Development Impacts of International Migration By David McKenzie; Dean Young
  31. New Data from Official Statistics for Imports and Exports of Goods by German Enterprises By Joachim Wagner
  32. Multinational Retailers and Firm-Level Exports By Cheptea, Angela; Emlinger, Charlotte; Latouche, Karine
  33. Delivering Results in Standards and Conformance in ASEAN: the Critical Roles of Institutional Strengthening and the Private Sector By Simon Pettman
  34. Internationalization of Middle Size Multinational Enterprises in Chinese Markets: Mirroring Back Effects By Andrea Pontiggia; Tiziano Vescovi
  35. Can selective immigration policies reduce migrants' quality? By Simone BERTOLI; Vianney Dequiedt; Yves Zenou
  36. Food price volatility and domestic stabilization policies in developing countries. FOODSECURE working paper no. 9 By Christophe Gouel

  1. By: Balistreri, Edward J.; Tarr, David G.; Yonezawa, Hidemichi
    Abstract: There is substantial evidence that with the progressive global decline in tariffs over several decades, trade costs are a more significant barrier to trade than tariffs, especially in Sub-Saharan Africa. This paper decomposes trade costs into three categories: costs that can be lowered by trade facilitation, nontariff barriers, and the costs of business services. The paper develops a 10-region, 18-sector, global trade model that includes Kenya, Tanzania, Uganda, and Rwanda of the East African Customs Union. The analysis finds that deep integration in the East African Customs Union that lowers these trade costs results in significant gains for the four countries, especially from improved trade facilitation. Extending the lowering of nontariff barriers and services liberalization multilaterally would increase the gains between two and seven times, depending on the country. that the analysis also finds that reducing nondiscriminatory services barriers in Kenya and Tanzania would increase welfare even more than multilateral reduction of discriminatory services barriers. The paper is innovative both conceptually and empirically. It contains foreign direct investment in services and is the first paper to numerically assess liberalization of barriers against domestic and multinational service providers in a multi-sector, multi-region, applied general equilibrium model. The paper uses new databases of the ad valorem equivalents of barriers in services and the time in trade costs. Both databases are shown to be important to the results.
    Keywords: Free Trade,Economic Theory&Research,Trade Policy,Emerging Markets,Trade Law
    Date: 2014–09–01
  2. By: Sheldon, Ian
    Keywords: Agribusiness, International Relations/Trade,
    Date: 2013–12
  3. By: Marina Murat
    Abstract: This paper investigates the impact of international students on the UK bilateral trade with 167 partner economies during 1999-2009. The base hypothesis is that transnational social networks lower the invisible trade barriers existing between countries. University students typically develop ties of friendship and trust that can last for decades after graduation and may evolve into economic and business ties. I find robust evidence that education networks boost the bilateral trade between the UK and the home countries of graduates and students. At a more disaggregated level, the strongest effects on exports and imports derive from the networks linked to the Middle East and to the new member countries of the European Union;
    Keywords: International students; higher education; networks; bilateral trade;
    JEL: I23 J24 F14 F20
    Date: 2012–11
  4. By: Joachim Wagner (Leuphana University Lueneburg, Germany)
    Abstract: This note uses comparable representative data for manufacturing firms from five European countries (Germany, France, Italy, Spain, and the United Kingdom) to investigate the links between firm age and the participation of the firms in export, the share of exports in total sales, the number of countries exported to, and the participation in import. The big picture revealed is in line with the theoretical considerations. Older firms tend to be more often exporters and importers, they export to more different destination countries, and they export a higher share of their total sales in three out of five countries.
    Keywords: Exports, imports, firm age, ´trade margins, EFIGE data
    JEL: F14
    Date: 2014–09
  5. By: Kee, Hiau Looi
    Abstract: Trade liberalizations have been shown to improve domestic firms'performance through the new varieties of imported intermediate inputs. This paper uses a unique, representative sample of Bangladeshi garment firms to highlight that local intermediate inputs may also enhance domestic firms'performance, through the shared supplier spillovers of foreign direct investment (FDI) firms. An exogenous EU trade policy shock is shown to cause some FDI firms in Bangladesh to expand, which led to better performance of the domestic firms that shared their suppliers. Overall, the shared supplier spillovers of FDI explain 1/4 of the product scope expansion and 1/3 of the productivity gains within domestic firms.
    Keywords: Markets and Market Access,Water and Industry,Economic Theory&Research,E-Business,Labor Policies
    Date: 2014–09–01
  6. By: Enrico Pastori (TRT Trasporti e Territorio srl); Miriam Tagliavia (Banca d'Italia); Enrico Tosti (Banca d'Italia); Simonetta Zappa (Banca d'Italia)
    Abstract: The paper describes the methodology and the main results of the sample survey on international merchandise transport that the Bank of Italy has carried out since 1999, with a reconstruction of the aggregate time series to 1989. We have obtained information on the different transport modes from several sources and used interviews with operators to estimate freight rates according to the structure of the reference market. Foreign and Italian transporters’ market shares of import and export volumes are estimated on the basis of the sample data and administrative records. We then break down foreign trade data by transport mode to take account of the structural overestimation of road haulage. We perform a quantitative analysis of the possible determinants of freight rates and compare the results with those available in the literature. The relationship between trade flows, transport distance and costs is estimated using a gravitational model
    Keywords: Freight, transportation, transportation modes, international trade, trade elasticity, gravity model.
    JEL: L91 R41 F19
    Date: 2014–09
  7. By: Tomohiko INUI (Gakushin University); Keiko ITO (Senshu University); Daisuke MIYAKAWA (Harvard University)
    Abstract: This paper examines how the Japanese firms’ export decision is affected by the availability of information on export markets, focusing on whether the availability of such information has a different impact on the export decision between large firms and small and medium-sized enterprises (SMEs). Unlike existing studies which solely focus on information sharing among firms, we are interested in the role of firms’ lender banks as an additional source of information. Specifically, using a unique dataset containing information not only on firms’ export activities but also on their lender banks’ exposure to other exporting firms and lender banks’ own overseas activities, we find that information spillovers through lender banks positively affect SMEs’ decision to start exporting and the range of destinations to which they export. Such information spillovers also reduce the likelihood that exporter firms exit from export markets. The export-to-sales ratio of exporter firms, however, is not affected by such information spillovers. These results imply that information on foreign markets provided by lender banks substantially reduces the fixed entry costs associated with starting exporting and entering new export markets as well as firms’ costs associated with continuing to export. Our results highlight that channels of information spillovers other than those examined in the literature so far may be of considerable importance, especially for SMEs
    Keywords: Export Decision; Lender Bank; Information Spillover; Extensive and Intensive Margins
    JEL: F10 F14 G21 L25
    Date: 2014
  8. By: Gopinath, Munisamy; Choi, Jangho
    Keywords: International Relations/Trade, Productivity Analysis,
    Date: 2013–12
  9. By: Cassey LEE (Institute of Southeast Asian Studies)
    Abstract: The main purpose of this study is to examine whether the relationship between exporting and productivity differs across firm sizes in the Malaysian manufacturing sector. A firm-level panel data from the Study on Knowledge Content in Economic Sectors in Malaysia (MyKE) is used in the study. Overall, exporters were found to be more productive than non-exporters. This productivity gap becomes less important as firms become larger. There is evidence that the selection process for exporting is binding only for small firms. Policies that are meant to encourage small firms to export need to focus on enhancing human capital and foreign ownership.
    Keywords: Globalisation, Firm Size, Exporting, Productivity
    JEL: L60 O30 F14
    Date: 2014
  10. By: Davide Gandolfi (Macalester College); Timothy Halliday (University of Hawaii at Manoa and UH Economic Research Organization); Raymond Robertson (Macalester College)
    Abstract: Large wage differences between countries ("place premiums") are well documented. Neoclassical trade theory suggests that factor price convergence should follow increased commercial integration. Rising commercial integration, foreign direct investment, and migration followed the 1994 North American Free Trade Agreement between the United States and Mexico. This paper evaluates the degree of wage convergence between Mexico and the United States between 1988 and 2011. We match survey and census data from Mexico and the US to estimate the change in wage differentials for observationally identical workers over time. We find no evidence of long-run wage convergence among cohorts characterized by low migration propensities although this was, in part, due to large macroeconomic shocks. On the other hand, we do find some evidence of convergence for workers with high migration propensities. Finally, we find evidence of convergence in the border of Mexico vis-à-vis its interior in the 1990s but this was reversed in the 2000s. We conclude that the place premium is largely stable, even following large reductions to trade and investment barriers and high migration.
    Keywords: Migration, Labor-market Integration, Factor Price Equalization
    JEL: F15 F16 J31 F22
    Date: 2014–09
  11. By: Lippoldt, Douglas
    Keywords: Agricultural and Food Policy, International Relations/Trade,
    Date: 2013–12
  12. By: Martin, Will
    Keywords: International Relations/Trade, Productivity Analysis,
    Date: 2013–12
  13. By: Hart, Jarret
    Keywords: International Relations/Trade, Research and Development/Tech Change/Emerging Technologies,
    Date: 2013–12
  14. By: M. Huchet Bourdon; C. Laroche Dupraz
    Abstract: This paper does not set out to redefine and re-explain the food security concept, but to look into the links between food security and international trade. First, we propose a conceptual framework to sum up the relationships between food security, international trade and public policies. Second, we check whether the widely used food security indicators are really suited to monitoring the impacts of government interventions and external trade shocks on the food security level. We use the Bonilla Index as our food security indicator throughout this analysis of the impact of national policies on food security.
    JEL: F13 Q18
  15. By: Olivier Walther (Department of Border Region Studies, University of Southern Denmark)
    Abstract: Using social network analysis, this paper studies the structure of trade networks that developed across West African borders. The first part aims to understand the centralization of cross-border trade networks. In a business environment where transaction costs are extremely high, we find that decentralized networks are well adapted to the various uncertainties induced by long-distance trade. We also study the trade-offs faced by traders between embeddedness and brokerage and find that long-distance trade relies both on the trust and cooperation shared among local traders, and on the distant ties developed with foreign partners from a different origin, religion or culture. In the second part, we study the spatial structure of trade networks and the influence of national borders on the development of social ties. The paper shows that the spatial form of trade networks is constrained by the historical origin of the traders engaged in cross-border activities. In those markets where trade is recent and where most of the traders are not native of the region, national borders are likely to exert a greater influence than in those regions where trade has pre-colonial roots.
    Keywords: Social networks, trade, border markets, brokerage, West Africa
    JEL: D85 F14 L14 P25
    Date: 2014–05
  16. By: António Jacinto Simões (Management Department, Évora University); José Ventura (CEFAGE-UE and Management Department, Évora University); Luís A. G. Coelho (CEFAGE-UE and Management Department, Évora University)
    Abstract: This paper conducts a literature survey on Foreign Direct Investment (FDI) and its relation to fiscal policy. Geographical and cultural proximity between originating and host countries, market size of the host countries, as well as other exogenous variables have been pointed out by a significant part of the literature as crucial factors in FDI decisions. Fiscal policy, as an endogenous factor, is an increasingly important tool on the countries competitiveness for attracting FDI, mainly in the Euro-zone. The papers analyzed identify some areas of fiscal policy: most papers focus analysis of fiscal policy only on the tax rate – that is, on the relationship between the income tax rate in force in the country and FDI; other papers analyze the relationship between fiscal harmonization and FDI; some papers study the relationship between the complexity of the fiscal system and FDI; while others attempt to relate other specific areas of fiscal policy – e.g. fiscal regime of thin capitalization – with FDI decisions; various other studies show the relationship between territories with non-existent (or extremely low) fiscal regimes and FDI. It is expected that this characteristics of fiscal policy, will be relevant in the decision-making process, where countries are competing with each other as potential locations for FDI.
    Keywords: Foreign Direct Investment; Fiscal Policy; Corporate Income Tax Rate; Tax Harmonization; Tax Complexity; Tax Havens.
    JEL: H30 H21 H25 F21
    Date: 2014
  17. By: Sourafel Girma; Yundan Gong; Holger Görg; Sandra Lancheros
    Abstract: We implement a method to estimate the direct effects of foreign-ownership on foreign firms' productivity and the indirect effects (or spillovers) from the presence of foreign-owned firms on other foreign and domestic firms' productivity in a unifying framework, taking interactions between firms into account. To do so, we relax a fundamental assumption made in empirical studies examining a direct causal effect of foreign ownership on firm productivity, namely that of no interactions between firms. Based on our approach, we are able to combine direct and indirect effects of foreign ownership and calculate the total effect of foreign firms on local productivity. Our results show that all these effects vary with the level of foreign presence within a cluster, an important finding for the academic literature and policy debate on the benefits of attracting foreign owned firms
    Keywords: foreign direct investment, treatment effects, SUTVA, propensity score matching
    JEL: F23 C19
    Date: 2014–09
  18. By: M. Scott Taylor (University of Calgary); Brian R. Copeland
    Date: 2014–09–29
  19. By: Basak BAYRAMOGLU; Jean-François JACQUES
    Abstract: In this study, we investigate whether the trade in fish and fish prod- ucts contributed to the decline of 57 fish species observed from 1996 to 2009 in Turkey. Our aim is to test the theoretical prediction that trade liberalization in the presence of open access resources can lead to a re- duction in harvest at the long-run due to stock depletion. To this end, we carry out an instrumental variable estimation for a panel data model.
    JEL: C23 Q22 Q27 Q56
  20. By: Burfisher, Mary; Dyck, John; Meade, Birgit; Mitchell, Lorraine; Wainio, John; Zahniser, Steven; Arita, Shawn; Beckman, Jayson
    Keywords: International Relations/Trade, Production Economics,
    Date: 2013–12
  21. By: NAKATOMI Michitaka
    Abstract: 1. The World Trade Organization (WTO) General Agreement on Trade in Services (GATS) negotiation has not resulted in any major achievements since the Telecommunication and Financial Services Agreements concluded in 1997 due to a lack of momentum in the Doha Round, concerns about free-riding, and free trade agreement (FTA) competition. In the stalemate in the Round, TISA, together with FTAs, have been promoted as a strong tool for liberalization and rulemaking in services. 2. Trade in Services Agreement (TISA) is a plurilateral initiative among like-minded countries aiming at high level liberalization and rulemaking in services. Japan needs to be involved fully in it since this framework has the potential to form global rules directly, create new business opportunities for Japan, and serve as a leverage in individual FTAs to protect Japanese interests. 3. Although the legal structure of TISA is to be discussed, defining TISA as an FTA is problematic since it may lead to an arbitrary interpretation of Article 5 of GATS, furthermore, the scenario for globalizing it involving developing members is not clear, economic welfare problem exists, and it does not match the horizontal nature of services regulations. In light of global rulemaking, TISA should be developed based on the idea of participation of members forming critical mass and the extension of benefits of the agreement to non-participants on a most-favored nation (MFN) basis. 4. Sectoral agreement as exemplified in the Telecommunication and Financial Services Agreements is a useful tool to develop GATS that is capable of incorporating the characteristics of various sectors. Sectoral approach should be developed in TISA aiming at global rules. Japan is encouraged to table sectoral proposals actively in such areas as retail and distribution, manufacturing related services, culture related services, environment related services, and cross border data flows in TISA.
    Date: 2014–09
  22. By: Mariusz Karpiarz; Piotr Fronczak; Agata Fronczak
    Abstract: Globalization is one of the central concepts of our age. The common perception of the process is that, due to declining communication and transport costs, distance becomes less and less important. However, the distance coefficient in the gravity model of trade, which grows in time, indicates that the role of distance increases rather than decreases. This, in essence, captures the notion of the globalization puzzle. Here, we show that the fractality of the international trade system (ITS) provides a simple solution for the puzzle. We argue, that the distance coefficient corresponds to the fractal dimension of ITS. We provide two independent methods, box counting method and spatial choice model, which confirm this statement. Our results allow us to conclude that the previous approaches to solving the puzzle misinterpreted the meaning of the distance coefficient in the gravity model of trade.
    Date: 2014–09
  23. By: Hylke Vandenbussche
    Abstract: The measurement of quality is a difficult task given that quality typically is an unobserved product characteristic. In this paper we develop a new “Quality Indicator” based on a structural model with an identifiable quality parameter. We follow the methodology proposed by Di Comité, Thisse and Vandenbussche (2014). This method offers an easy way to generate product-level quality ranks of exported products (manufacturing CN8). Moreover, it overcomes some of the flaws present in other quality measures. The quality metric used here is an improvement over existing ones, since it disentangles quality from cost and taste effects. A failure to do so, results in quality effects that are wrongly identified. Product-level export price data come from Comext (Eurostat) and cost data are obtained from the firm-level database ORBIS. When we apply this method on individual EU countries exports' of products to a common destination, we obtain distributions of "export quality" and its change over time in the period (2007-2011). A striking finding is the large extent of quality dynamics going on in the EU market. We show that quality can run in different direction than market share i.e. products with the largest market shares, need not have the highest quality. We also estimate a price elasticity of quality which is positive and significant. This suggests that quality upgrading results in a higher willingness to pay by consumers and therefore offers a way to escape cost competition.
    JEL: D43 F12 F14
    Date: 2014–09
  24. By: Inkyo CHEONG (Inha University)
    Abstract: Korea’s trade with most of its 46 free trade agreement (FTA) partner countries has been expanded continuously. Its FTA utilization ratios were as low as 20% before 2010, and some suspicions regarding the benefits of FTA were raised, despite the government’s active promotion. But Korea recorded higher than 70% FTA utilization in the case of Korea-US FTA and the EU-Korea FTA in 2013. Today’s high performance could be achieved due to the strategic approach and diverse support mechanisms initiated by the government of Korea since 2010. The supporting programs for businesses included education courses for companies and consulting, workshops to explain the FTAs and provide information on FTAs, building the portals for FTAs, and the expos for FTAs in foreign countries. Several policy implications can be drawn from Korea’s experience in assisting businesses with FTA utilization. First, the major barriers that prevent companies from utilizing FTAs should be clearly identified. Secondly, coordination among national supporting agencies is critical in increasing the efficiency of the infrastructure assisting FTA utilization. Thirdly, governments should promote FTAs with large economies, which are expected to bring high economic gains in general. Fourthly, authorities of trade and industry should understand the importance of the quality of FTAs.
    Keywords: : Free trade agreement (FTA), FTA utilization, rules of origin (ROO), tariff elimination, ASEAN-Korea FTA
    JEL: F15 F53 O53
    Date: 2014–11
  25. By: Holger Görg; Eric Strobl
    Abstract: We use a unique exogenous corporate tax policy change in the Republic of Ireland to investigate how corporate taxation affects foreign direct investment at the extensive and intensive margin. To this end we construct exhaustive sectoral and plant level panel data and use difference-in-differences strategies. Our results do not provide strong evidence that the increase in corporate tax rates for exporters did affect the entry or exit of plants from the US or UK in Ireland. Entry rates of German firms seem to be negatively affected, however. At the intensive margin there is evidence that foreign plants in Ireland reduce the size of their operations in response to the tax change
    Keywords: multinational companies, foreign direct investment, corporate tax, Ireland, difference-in-differences
    JEL: F23 H25
    Date: 2014–09
  26. By: Marina Murat
    Abstract: Abstract. This paper analyses the impact of university student ties on the FDI of the US and UK into 167 countries during the period 1999-2010. University ties are measured by international students flows and alumni associations worldwide. Studies on transnational social networks suggest that effects should be higher on the FDI directed to the developing economies. The paper’s main findings are that international student flows and alumni associations abroad exert a positive influence on the FDI from the US and UK into the students’ home countries. More specifically, their influence is strong and significant in the group of developing countries. Results, similar for the US and UK, are robust to different regressors and econometric specifications.
    Keywords: International students, alumni, bilateral FDI, education networks.
    JEL: F14 F20 I23 J24
    Date: 2013–06
  27. By: Cont, Walter; Porto, Guido
    Abstract: This paper assesses the impact of a change in the price of cashew received by exporters in general -- and by FUNPI, a fund to promote the industrialization of agricultural products, in particular -- on farmgate prices and poverty in Guinea-Bissau. The analysis builds a theoretical model of supply chains in export agriculture that includes exporters, traders, and farmers competing in a bilateral oligopoly fashion. The model is adapted to data from the country's cashew sector and a household survey. Given the market structure, a shock on export prices or the introduction of an export tax, such as the FUNPI contribution, has a strong effect on farmgate prices, as farmers absorb about 80 percent of the tax (while exporters take up 13 percent and traders absorb the remaining 7 percent). The effect is uneven across households, as poor rural households are more exposed to price volatility and most cashew farmers are poor. It is estimated that their income falls by 12 percent as a result of the FUNPI contribution. Complementary policies can overcome the effect of the FUNPI surcharge on farmgate prices by aiming for reductions in transport, infrastructure, and transaction costs for traders and exporters. Fostering cashew processing would create added value through a displacement of volume from exporters to processors. The analysis finds it implausible that, under reasonable assumtions, a subsidy would overturn the welfare costs of the FUNPI contribution.
    Keywords: Markets and Market Access,Economic Theory&Research,Debt Markets,Emerging Markets,Access to Markets
    Date: 2014–09–01
  28. By: David C. Maré (Motu Economic and Public Policy Research and the University of Waikato); Lynda Sanderson (The Treasury); Richard Fabling (Motu Economic and Public Policy Research)
    Abstract: This paper examines remuneration and labour mobility patterns among workers in foreign-owned firms operating in New Zealand. By tracking workers as they move across jobs in different types of firms, we document the extent of the “foreign wage premium”, distinguishing between compositional factors (e.g., differences in industry and employment composition across foreign and domestic firms) and remaining differences in wage levels and growth rates. We find that much of the average earnings gap between foreign- and domestically-owned firms is due to compositional factors -- foreign firms tend to be larger and employ workers who would have received relatively high wages regardless of where they worked. However, even among apparently similar workers and firms, we find a two to four percent earnings gap between workers in domestic and foreign-owned firms. This gap is primarily associated with a wage increase of around two percent on moving from a domestic to a foreign firm, augmented by higher wage growth among foreign-owned firms. However, these premia appear to be specific to foreign-firm employment, as workers who return to domestically-owned firms do not appear to retain the additional earnings associated with foreign-firm employment into their subsequent jobs. We then consider whether foreign-owned firms source workers differently from other New Zealand firms and whether there are systematic differences in the destinations of departing employees by firm ownership. Although foreign-owned firms do not appear to preferentially hire recent immigrants, employees of foreign owned firms are more geographically mobile within New Zealand than comparable workers in domestically owned firms, and are more likely to emigrate within a year of leaving their job.
    Keywords: Foreign Direct Investment (FDI); Earnings; Labour mobility
    JEL: D22 F23 J31
    Date: 2014–10
  29. By: Benoit Daviron; Mathilde Douillet
    Abstract: The production, exchanges and prices of food products are strongly influenced by the agricultural and trade policies of the world's largest countries. These policies are one of the major drivers of global food security. This paper will provide an overview of the key agricultural and trade policies of the major players – i.e. countries - in the global food system. A separate, detailed overview of farm policies in Brazil, China and the US is included.
    JEL: F13 Q17 Q18
  30. By: David McKenzie (The world bank); Dean Young (University of Michigan)
    Abstract: International migration offers individuals and their families the potential to experience immediate and large gains in their incomes, and offers a large number of other positive benefits to the sending communities and countries. However, there are also concerns about potential costs of migration, including concerns about trafficking and human rights, a desire for remittances to be used more effectively, and concerns about externalities from skilled workers being lost. As a result there is increasing interest in policies which can enhance the development benefits of international migration and mitigate these potential costs. We provide a critical review of recent research on the effectiveness of these policies at three stages of the migration process: pre-departure, during migration, and directed towards possible return. The existing evidence base suggests some areas of policy success: bilateral migration agreements for countries whose workers have few other migration options, developing new savings and remittance products that allow migrants more control over how their money is used, and some efforts to provide financial education to migrants and their families. Suggestive evidence together with theory offers support for a number of other policies, such as lowering the cost of remittances, reducing passport costs, offering dual citizenship, and removing exit barriers to migration. Research offers reasons to be cautious about some policies such as enforcing strong rights for migrants like high minimum wages. Nevertheless, we find the evidence base to be weak for many policies, with no reliable research on the impact of most return migration programs, nor for whether countries should be trying to induce communal remitting through matching funds.
    Keywords: Migration Policy, Remittances, Return Migration, Impact Evaluation
    JEL: O15 F22
    Date: 2014–10
  31. By: Joachim Wagner (Leuphana University Lueneburg, Germany)
    Date: 2014–08
  32. By: Cheptea, Angela; Emlinger, Charlotte; Latouche, Karine
    Keywords: Production Economics, Research and Development/Tech Change/Emerging Technologies,
    Date: 2013
  33. By: Simon Pettman (European Advisory Services (EAS), Asia Office, Singapore)
    Abstract: Addressing technical barriers to trade is a key priority of ASEAN as part of trade facilitation in achieving an integrated economy under the ASEAN Economic Community in 2015 and in building an effective and competitive Economic Community beyond 2015. Standards and Conformance assessment measures, while seeking to ensure quality and safety of products for consumers, should not become barriers to trade across the region as ASEAN liberalises its trading regime. A delicate balance needs to be achieved between the two to build a thriving economic region. ASEAN has been working towards achieving standards harmonisation in its priority sectors of integration and bringing about regulatory convergence, taking into account the diversities in its ten member states. More, however, needs to be done and as this Policy Brief shows, the roles of institutional strengthening and the private sector are critical in this task.ASEAN members to quicken the development of a technologically more egalitarian region.
    Date: 2014–07
  34. By: Andrea Pontiggia; Tiziano Vescovi
    Abstract: In this paper, we focus on the internationalization strategies implemented by Middle Size Multinational Enterprises (MMNE) in Chinese markets. We assume that these strategies differs from those of the large multinational companies. Differences explained by the size of the company (medium) compared to the size of the potential market (large). The hypothesis is that in the internationalization strategy of Medium size Multinational Enterprises (MMNEs) is recursive and based on two-way innovation process. This processes is defined as a mirroring back phase and its shown by companies prone to innovate the business model because of the international exposure. Culturally distant and large markets may support firms to increase their strategic innovation rate. Evidences based on case studies show the content and the modes of the internationalization of MMNEs.
    Keywords: management, finance, economics.
    JEL: F23 M16 M31 D22 D21
    Date: 2014–09
  35. By: Simone BERTOLI (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Vianney Dequiedt (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Yves Zenou (Stockholm University - Stockholm University - Stockholm University)
    Abstract: Destination countries have been resorting to selective immigration policies to improve migrants' quality. We propose a model that analyzes the effects of selective immigration policies on migrants' quality, measured by their wages at destination. Screening potential migrants on the basis of observable characteristics also influences their self-selection on unobservables that influences their wages. We show that the prevailing pattern of selection on unobservables influences the effect of an increase in selectivity, which can reduce migrants' quality when migrants are positively self-selected.
    Keywords: selective policies; self-selection; migrants' quality
    Date: 2014–09–23
  36. By: Christophe Gouel
    Abstract: When food prices spike in countries with large numbers of poor people, public intervention is essential to alleviate hunger and malnutrition. For governments, this is also a case of political survival. Government actions often take the form of direct interventions in the market to stabilize food prices, which goes against most international advice to rely on safety nets and world trade. Despite the limitations of food price stabilization policies, they are widespread in developing countries. This paper attempts to untangle the elements of this policy co-nundrum. Price stabilization policies arise as a result of international and do-mestic coordination problems. At the individual country level, it is in the na-tional interest of many countries to adjust trade policies to take advantage of the world market in order to achieve domestic price stability. When countercyclical trade policies become widespread, the result is a thinner and less reliable world market, which further decreases the appeal of laissez-faire. A similar vicious circle operates in the domestic market: without effective policies to pro-tect the poor, such as safety nets, food market liberalization lacks credibility and makes private actors reluctant to intervene, which in turn forces government to step in. The current policy challenge lies in designing policies that will build trust in world markets and increase trust between public and private agents.
    JEL: F13 H8 Q18

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