nep-int New Economics Papers
on International Trade
Issue of 2015‒08‒07
29 papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. Trade and FDI Liberalization in an Oligopolistic Model: Partial versus General Equilibrium Effects By Kenji Fujiwara
  2. Atlantic versus Pacific Agreement in Agri-food Sectors: Does the Winner Take it All? By Disdier, Anne-Célia; Emlinger, Charlotte; Fouré, Jean
  3. Estimating the Impact of Organic Equivalency Agreements on U.S. Agricultural Trade By Demko, Iryna; Jaenicke, Edward C.
  4. Do exporting firms benefit from retail internationalization? Evidence from France By Cheptea, Angela; Emlinger, Charlotte; Latouche, Karine
  5. What Outcome to Expect On Geographical Indications in the TTIP Free Trade Agreement Negotiations with the United States? By Matthews, Alan
  6. Vertical Specialization, Global Value Chains and the changing Geography of Trade: the Portuguese Rubber and Plastics Industry Case By João Carlos Lopes; Ana Santos
  7. Export decision under risk By de Sousa, José; Disdier, Anne-Célia; Gaigné, Carl
  8. Nonparametric Counterfactual Predictions in Neoclassical Models of International Trade By Rodrigo Adao; Arnaud Costinot; Dave Donaldson
  9. Black Sea countries: Grain production & exports By Sizov, Andrey
  10. The Transatlantic Trade and Investment Partnership and Agriculture: A Quantitative Analysis By Beckman, Jayson; Arita, Shawn; Mitchell, Lorraine
  11. Bilateral export trade and income similarity: Does the Linder hypothesis hold for agricultural and food trade? By Steinbach, Sandro
  12. Bilateral Free Trade Agreements (FTAs): Opportunities and Challenges for Bangladesh – Framework Issues By Khondaker Golam Moazzem; Mehruna Islam Chowdhury; Saifa Raz
  13. Agriculture in the Canada-EU Trade Agreement (PowerPoint) By Kerr, William A.; Hobbs, Jill E.
  14. The structure of steel exports: Changes in specialisation and the role of innovation By Anthony de Carvalho; Naoki Sekiguchi
  15. Contracting and the Division of the Gains from Trade By Swati Dhingra; Andrew Bernard
  16. Changing patterns of global agri-food trade and virtual water flows By Schwarz, Jana; Mathijs, Erik; Maertens, Miet
  17. Suspension Agreements and Antidumping/Countervailing Duties: US-Mexico Sugar Markets and the Effects of Alternative Trade Policies By Whistance, Jarrett; Payen, Andrick; Thompson, Wyatt
  18. The Impacts of Food Safety Incidents on U.S. Beef Trade: A Gravity Model Approach By Shang, Xia; Glynn, Tonsor
  19. Exporter Heterogeneity and Price Discrimination: A Quantitative View By Jae Wook Jung; Ina Simonovska; Ariel Weinberger
  20. Impacts of Food Safety Regulations on Trade Flows: An Application to the Almond and Hazelnut Industries By Sisman, Muhammet Y.
  21. Share of exports to low-income countries, productivity, and innovation: A replication study with firm-level data from six European countries By Joachim Wagner
  22. Does the US use Food Safety Regulation as a Disguised Barrier to Trade? Evidence from Canadian Agri-food Commodity Exports. By Rollins, Emily R.
  23. Trade Liberalization and Food Security: A Case Study of Taiwan using Global Food Security Index (GFSI) By Chen, Chi-Chung; Shih, Jou-Chen; Chang, Ching-Cheng; Hsu, Shih-Hsun
  24. High Trade Costs and Their Consequences: An Estimated Model of African Agricultural Storage and Trade By Porteous, Obie C.
  25. The Welfare Effects of Opening to Foreign Direct Investment in Polluting Sectors By Galinato, Gregmar I.; Graciano, Tim A.; Zhao, Xin
  26. Common Names or Protected Property? A US Perspective on Strengthening GI Protection By Babcock, Bruice A.
  27. Price Volatility, Tariff Structure and the Special Safeguard Mechanism By Leister, Amanda M.; Narayanan, Badri
  28. Valuing Switching Options in International Grain Marketing By Johansen, Stephan; Wilson, William; Dahl, Bruce
  29. Trade diversion and high food prices - The impact of the Russian pig meat import ban By Djuric, Ivan; Götz, Linde; Glauben, Thomas

  1. By: Kenji Fujiwara (School of Economics, Kwansei Gakuin University)
    Abstract: This paper studies the effects of liberalization of trade and foreign direct investment (FDI) in a model where multiple oligopolistic sectors compete for a common factor. In contrast to the case of a fixed factor price, trade liberalization is shown to improve the host country’s welfare by benefiting the consumers and firms while the opposite applies to FDI liberalization. Then, we find that simultaneous liberalization of trade and FDI improves world welfare since the positive effect of trade liberalization dominates the negative effect of FDI liberalization. This result suggests that trade liberalization must be accommodated in order to promote FDI liberalization.
    Keywords: Trade liberalization, FDI liberalization, oligopoly, factor price.
    JEL: F12 F13 F23
    Date: 2015–07
    URL: http://d.repec.org/n?u=RePEc:kgu:wpaper:132&r=int
  2. By: Disdier, Anne-Célia; Emlinger, Charlotte; Fouré, Jean
    Abstract: Two main regional trade agreements are currently under negotiation: The Transatlantic Trade and Investment Partnership (TTIP) and the Trans-Pacific Partnership (TPP). The former involves the United States and the European Union and deals with the removal of remaining tariffs and the harmonization of non-tariff measures, while the latter currently includes the United States and 11 other countries and focuses mainly on tariffs. Trade liberalization of the agri-food sector is a sensitive topic in both TTIP and TPP discussions. This paper first provides an overview of the current flows and trade barriers. Using a general equilibrium model of international trade (the MIRAGE model), it then assesses the potential impact of these two agreements on agri-food trade and value added. Results suggest that the US have a huge interest in both agreements for their agri-food sectors, while almost all their partners and third countries would benefit less and even register losses in some sectors. The two agreements however do not compete much one with the other, since all defensive and offensive interests of contracting parties are complementary. Finally, the Atlantic trade may be impacted by the inclusion of standards harmonization within the Pacific Agreement but not by its extension to additional members (e.g. China or India).
    Keywords: Mega-trade deals, agri-food, CGE model, Transatlantic Trade and Investment Partnership, Trans-Pacific Partnership, Agricultural and Food Policy, International Relations/Trade, F13, F15, Q17,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205303&r=int
  3. By: Demko, Iryna; Jaenicke, Edward C.
    Abstract: This study uses new organic import/export data to test the hypothesis that a 2012 organic certification equivalency agreement between the European Union and the United States positively influenced U.S. trade of organic agricultural commodities. Using a difference-in-difference approach, we find that the likelihood of exporting any level of organic products to a particular E.U. country increased due to the agreement, as did the share of organic exports to the E.U. We intend to estimate the effect on organic imports from the E.U. in a similar way.
    Keywords: organic equivalency agreement, organic export, organic import, Agricultural and Food Policy, International Relations/Trade,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205097&r=int
  4. By: Cheptea, Angela; Emlinger, Charlotte; Latouche, Karine
    Abstract: In this paper, we explore the link between globalization of the retail sector and the export activity of firms from their origin country. In a previous paper (Cheptea et al. (2015)), we showed that exporting firm from countries with internationalized retail companies benefit more from this process than firms from other countries. The underlying assumption of this paper is that the main benefits are grasped by the retailers' domestic suppliers. In other words, firms that sell their products under retailers' brands benefit more from the overseas expansion of retailers than other firms. We employ French firm-level data to evaluate the effect for the two types of firms. We identify retailers' suppliers using the certification of French agri-food firms with the private IFS standard, granting them the right to sell their products under a retailer's brand. Our empirical objective is to estimate whether firms with IFS certification have better export performance on markets where French retail companies have established outlets. We find that certified French firms export more than non-certified firms to markets where IFS retailers established outlets (mainly outside Europe). The difference is statistically significant and robust to the use of firm- and country-specific fixed effects. Results are similar for the extensive and the intensive margin of exports.
    Keywords: Multinational retailers, Firm-level exports, Private standards., International Relations/Trade, F12, F14, F23.,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205457&r=int
  5. By: Matthews, Alan
    Keywords: TTIP, IPRs, GIs, Trade, Protection, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, International Relations/Trade, Political Economy, Public Economics,
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:ags:eaa145:206448&r=int
  6. By: João Carlos Lopes; Ana Santos
    Abstract: The growing fragmentation of production in the last decades has changed the geography, and dynamics, of trade. It is very important, especially for small and open economies, a good position in regional and global value chains (GVC). The necessary increase in imports, namely of intermediate inputs, that this positioning implies must be accompanied by an adequate increase of exports, generating a substantial amount of domestic value added. In this paper, an empirical analysis is made of the changes in the geography of imports and exports of Portuguese rubber and plastics industry, as well as the growing vertical specialization of this sector, both with direct and total measures, in the period 1995-2011. To put the main trends in perspective, a comparison will be made with some northern and southern EU countries, the main trade partners of Portugal in this industry, and in fact in all the others. The rubber and plastics industry is a good case study in the context of GVC analysis, given the strong proportion of intermediate inputs in its output and trade.
    Keywords: Vertical specialization; Global value chains; Rubber and plastics; Portugal
    JEL: E01 F14 F23 L65
    Date: 2015–07
    URL: http://d.repec.org/n?u=RePEc:ise:isegwp:wp122015&r=int
  7. By: de Sousa, José; Disdier, Anne-Célia; Gaigné, Carl
    Abstract: Does demand volatility matter for exports? How do exporting firms deal with skewed demand? A simple model of downside risk aversion shows that on average exporters increase export prices and reduce export volumes when demand volatility in destination markets increases. They behave the opposite way when demand skewness rises. We find that the moments of the demand distribution also affect the number of exporting firms and the industry supply. These adjustments may lead some firms to increase their exports when demand volatility increases. These theoretical predictions are put to the test by using French firm-level exports across destination markets with different levels of demand volatility and skewness. The firm-level results, over the period 2000-2009, are consistent with our predictions.
    Keywords: Uncertainty, Demand volatility, Firm exports, Skewness, International Relations/Trade, Risk and Uncertainty, D81, F12, L25,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205584&r=int
  8. By: Rodrigo Adao; Arnaud Costinot; Dave Donaldson
    Abstract: We develop a methodology to construct nonparametric counterfactual predictions, free of functional-form restrictions on preferences and technology, in neoclassical models of international trade. First, we establish the equivalence between such models and reduced exchange models in which countries directly exchange factor services. This equivalence implies that, for an arbitrary change in trade costs, counterfactual changes in the factor content of trade, factor prices, and welfare only depend on the shape of a reduced factor demand system. Second, we provide sufficient conditions under which estimates of this system can be recovered nonparametrically. Together, these results offer a strict generalization of the parametric approach used in so-called gravity models. Finally, we use China's recent integration into the world economy to illustrate the feasibility and potential benefits of our approach.
    JEL: F10 F11 F14 F15 F17
    Date: 2015–07
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:21401&r=int
  9. By: Sizov, Andrey
    Keywords: Agricultural and Food Policy, International Relations/Trade,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:usao14:204980&r=int
  10. By: Beckman, Jayson; Arita, Shawn; Mitchell, Lorraine
    Keywords: International Relations/Trade,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205056&r=int
  11. By: Steinbach, Sandro
    Abstract: In this paper we invesƟgate the Linder hypothesis for bilateral export trade in agricultural and food products by uƟlizing the sectoral gravity equaƟon derived in Hallak (2010). Based on a sample of 152 countries, we study the relaƟonship for 737 agricultural and food products at the 6-digit HS code level, using trade data for 1995-2012. We esƟmate the gravity equaƟon year by and year and sector by sector, analyzing the esƟmates of Linder's term for two specificaƟons of the similarity index. We compare a theoreƟcally jusƟfied definiƟon of the index with an adjusted definiƟon that takes into account relaƟve prices. We show that similar demand structures determine bilateral export trade. AccounƟng for relaƟve prices, we find that the Linder term is more pronounced. Our find¬ings show that the similarity effect is strongest for processed products and weakest for bulk products. From those results we come to the conclusion that similar aggregate preferences are a major driver of export trade in final consumpƟon goods.
    Keywords: Product quality, Linder effect, sectoral gravity model, Agribusiness,
    Date: 2015–05
    URL: http://d.repec.org/n?u=RePEc:ags:iefi15:206217&r=int
  12. By: Khondaker Golam Moazzem; Mehruna Islam Chowdhury; Saifa Raz
    Abstract: In the backdrop of rise in Free Trade Agreements (FTAs) in developing countries, particularly after the global financial and economic crisis, Bangladesh is still ambivalent in setting its strategies regarding it. The present study tries to explore Bangladesh’s scope for taking market-specific initiatives including FTAs with a view to enhance export. A number of economic tools and techniques have been applied to examine possible scenarios regarding preferential market access for Bangladesh. Based on the analysis, the following conclusions have been drawn out: a) there are good reasons for Bangladesh to pursue negotiations for preferential market access including bilateral FTAs, though at a limited level, particularly with countries of Southern region; b) Given the limited level of export competitiveness, major focus should be put on signing Preferential Trade Agreements; and c) the government should put emphasis on strengthening its institutional capacity for effective negotiation with prospective partner countries.
    Keywords: free trade agreement (FTA), Bangladesh, bilateral FTA, export
    Date: 2014–06
    URL: http://d.repec.org/n?u=RePEc:pdb:opaper:107&r=int
  13. By: Kerr, William A.; Hobbs, Jill E.
    Keywords: Agricultural and Food Policy, International Relations/Trade,
    Date: 2014–12
    URL: http://d.repec.org/n?u=RePEc:ags:iats14:206224&r=int
  14. By: Anthony de Carvalho; Naoki Sekiguchi
    Abstract: This paper examines changes in the steel-related export structure of the ten largest steelmaking economies between 2004 and 2014, in terms of the steel products exported and the market destination for those exports. To shed light on how exporters’ patterns of specialisation have changed in the period since 2004, indices of “Revealed Comparative Advantage” (RCA) are developed for a number of low, medium and high value-added steel products, indicating that export specialisation patterns may be changing noticeably as some steel producers in emerging economies move up the value chain and begin exporting more sophisticated steel products. The paper also assesses the role of innovation, as measured by patents, in determining the export structure of countries, and finds a positive correlation between innovation activity and export specialisation in higher value-added steel segments.
    Keywords: trade, patents, comparative advantage
    JEL: F14 L6 O34
    Date: 2015–07–29
    URL: http://d.repec.org/n?u=RePEc:oec:stiaaa:2015/7-en&r=int
  15. By: Swati Dhingra (London School of Economics); Andrew Bernard (Dartmouth College)
    Abstract: Abstract This paper examines the microstructure of import markets and the division of the gains from trade among consumers, importers and exporters. When exporters and importers transact through anonymous markets, double marginalization and business stealing among competing importers lead to lower profits. Trading parties can overcome these inefficiencies by investing in richer contractual arrangements such as bilateral contracts that eliminate double marginalization through fixed fees and joint contracts that internalize business stealing by maximizing joint profits of the exporter and its competing importers. Introducing these contractual choices into a trade model with heterogeneous exporters and importers, we show that trade liberalization increases the incentive to engage in joint contracts, thus raising the profits of exporters and importers at the expense of consumer welfare. We examine the implications of the model for prices, quantities and exporter-importer matches in Colombian import markets before and after the US-Colombia free trade agreement. US exporters that started to enjoy duty-free access were more likely to increase their average import price, decrease their quantity exported and reduce the number of import partners.
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:red:sed015:298&r=int
  16. By: Schwarz, Jana; Mathijs, Erik; Maertens, Miet
    Abstract: International agri-food trade has expanded rapidly during the past decades and changed considerably in structure with important implications especially for developing economies. One of the main environmental concerns regarding international trade is about the exploitation and redistribution of water resources. In this paper we use the virtual water approach for analyzing the relation between global agri-food trade, its structure and virtual water flows in the period of 1986 to 2011. Specifically, for five world regions we calculate growth rates of interregional trade values and virtual water volumes, the contribution of different product groups to trade and the economic water efficiency of imports and exports. Our findings show that over time trade values have generally increased more rapidly than virtual water volumes. In Africa and South America virtual water exports have roughly quadrupled since 1986. In all regions staples and industrial products account for the largest share in virtual water trade. The recent shift towards high-value exports is beneficial for developing countries from a regional water efficiency perspective due to high trade values and low associated virtual water volumes. Water efficiency of trade has increased in all regions since 2000 and export water efficiency is especially high in Europe.
    Keywords: virtual water trade, food trade, international trade, environmental impact, economic development, Agribusiness, Agricultural and Food Policy, Environmental Economics and Policy, F18, F64, Q17, Q27, Q56,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:kucawp:200308&r=int
  17. By: Whistance, Jarrett; Payen, Andrick; Thompson, Wyatt
    Keywords: sugar policy, sugar trade, suspension agreement, Agricultural and Food Policy, International Relations/Trade,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205550&r=int
  18. By: Shang, Xia; Glynn, Tonsor
    Keywords: Beef Trade, Gravity Model, Food Safety, FSIS Recall, Agricultural and Food Policy, Food Security and Poverty, International Relations/Trade,
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:ags:saea14:162483&r=int
  19. By: Jae Wook Jung; Ina Simonovska; Ariel Weinberger
    Abstract: We quantify a class of commonly-employed general equilibrium models of international trade and pricing-to-market that feature firm-level heterogeneity and consumers with nonhomothetic preferences. We demonstrate theoretically that the models lack the flexibility to match salient features of US firm-level data. Consequently, we outline a theoretical framework that can reconcile the documented price dispersion across firms and markets, while maintaining consistency with cross-sectional observations on firm productivity and sales. We calibrate the model’s parameters to match bilateral trade flows across 71 countries as well as the productivity and sales advantages of US exporters over non-exporters. We find that the calibrated model accounts for the majority of the dispersion in prices of tradables across countries of different income levels, while maintaining a tight quantitative fit to firm-level data. Given its additional flexibility, the model quantitatively outperforms the existing alternatives and yields welfare gains for the US that are 14-54% higher, but at the cost of loss of tractability.
    JEL: F12 F14 F17
    Date: 2015–07
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:21408&r=int
  20. By: Sisman, Muhammet Y.
    Keywords: Agricultural and Food Policy, International Relations/Trade,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:206227&r=int
  21. By: Joachim Wagner (Leuphana University Lueneburg, Germany)
    Abstract: Crinò and Epifani (2012) report and discuss two empirical regularities they find in a representative sample of Italian manufacturing firms. First, there is a negative correlation between firms’ productivity and their export share to low-income destinations. Second, there is a negative correlation between firms’ innovation activity and their export share to low-income destinations. This note uses recently available comparable high quality firm level data for six European countries (including Italy) and similarly specified empirical models in an attempt to replicate these results. Replication failed completely. The link found between the share of exports to lowincome countries and either productivity or R&D intensity is never in line with the results from Crinò and Epifani (2012).
    Keywords: Exports, low-income destinations, productivity, innovation, EFIGE data
    JEL: F14
    Date: 2015–07
    URL: http://d.repec.org/n?u=RePEc:lue:wpaper:344&r=int
  22. By: Rollins, Emily R.
    Abstract: This study asks the question: is the US using food safety regulations illegitimately, that is as a non-tariff barrier to trade rather than to manage food safety risks, specifically in the context of agri-food imports from Canada? Data on US import refusals of three categories of fruits, vegetables and nuts, cereal products, and seafood are used as a proxy for stringency and enforcement of US food safety regulations, with a negative binomial generalized linear model being employed to determine the significance of range of food safety risk and other less legitimate drivers of US food safety regulations. Key variables used to capture political influence on US food safety regulations are lobbying contributions, changes in import prices, and the occurrence of countervailing investigations. While US border rejections for these commodities are largely explained by food safety risks, there is evidence of political influence, with qualitative and quantitative difference across the commodities.
    Keywords: Food safety regulation, non-tariff barriers, protectionism, import refusals, agricultural trade, Agricultural and Food Policy, International Relations/Trade, Political Economy,
    Date: 2015–05–27
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205758&r=int
  23. By: Chen, Chi-Chung; Shih, Jou-Chen; Chang, Ching-Cheng; Hsu, Shih-Hsun
    Abstract: In this study, the annual GFSIs of Taiwan over the past 15 years were computed to investigate the association between food security, food self-sufficiency rate, and trade liberalization. Within the past 15 years, there were significantly sharp declines in 2002 and 2008. We inferred that the main reason for the sharp declines in 2002 is the import tariff decrease resulting from Taiwan’s entry into the World Trade Organization (WTO). And for 2008, an economic recession generated by the Global Financial Crisis should be responsible for the significant decline of Taiwan’s GFSI. In general, we found that there has been a steady growth trend of Taiwan’s GFSI since 2002 although food self-sufficiency rate has been declining. In conclusions, judging from the more comprehensive measurement of food security definition, trade liberalization improves the food security status of Taiwan.
    Keywords: Food Security, Trade Liberalization, Taiwan, Food Security and Poverty, International Development, International Relations/Trade,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205700&r=int
  24. By: Porteous, Obie C.
    Abstract: How large are trade costs in the world's poorest countries and what are their consequences? I explore this question using a new dataset I have assembled of monthly prices and production of 6 staple grains from 2003 to 2013 in 230 market catchment areas covering all 42 countries of continental sub-Saharan Africa. I estimate and solve a spatial temporal model of monthly storage and trade under uncertainty including storage in each of the 230 markets, overland trade between 413 pairs of markets, and trade with the world market through 30 ports. I then re-solve the model for a counterfactual scenario in which trade costs are lowered to match transportation costs in the rest of the world. I find median intra-national trade costs over 5 times higher than elsewhere in the world along with significant extra costs for trade across borders and with the world market. Lowering trade costs for staple grains results in a 46.4% drop in the average food price index, a contraction in the agriculture, storage, and trade sectors, and a net welfare gain of 2.4% ($125 billion equivalent variation). I show that 87.5% of this welfare gain can be achieved by lowering trade costs through ports and along key links representing just 18% of the trade network, supporting a corridor-based approach for infrastructure investment and trade policy. In an extension, I find that the effects of agricultural technology adoption depend crucially on trade costs, with farmers only benefiting from technology adoption when trade costs are low.
    Keywords: Trade Costs, Storage, Sub-Saharan Africa, Trade Corridors, Technology Adoption, Agricultural and Food Policy, Demand and Price Analysis, Food Security and Poverty, International Development, International Relations/Trade, F14, O13, Q11, Q17,
    Date: 2015–05–27
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205776&r=int
  25. By: Galinato, Gregmar I.; Graciano, Tim A.; Zhao, Xin
    Abstract: This article shows how policies to attract foreign direct investment (FDI) in a polluting sector affect home-country welfare relative to the autarky case. We consider a welfare maximizing country who attracts FDI into a polluting sector, while accounting for environmental quality changes. The government sets the level of environmental regulation and public infrastructure. Foreign investors prefer good infrastructure quality and less environmental regulation. We show that under autarky, environmental regulations are increasing over infrastructure. However, with FDI, optimal environmental regulations may be a subsidy if the benefits from a wage increase outweigh the damages from pollution. Also, we find that if a country has very poor levels of infrastructure it is better off not allowing FDI to enter but as infrastructure quality increases, the result is reversed where welfare with FDI is higher than under autarky.
    Keywords: Environmental Regulations, Infrastructure, Welfare, Pollution Haven, Environmental Economics and Policy, International Relations/Trade, Resource /Energy Economics and Policy, F64, Q58, O44,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205092&r=int
  26. By: Babcock, Bruice A.
    Keywords: TTIP, GIs, IPRs, Trade, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, International Relations/Trade, Political Economy,
    Date: 2015–04
    URL: http://d.repec.org/n?u=RePEc:ags:eaa145:206446&r=int
  27. By: Leister, Amanda M.; Narayanan, Badri
    Abstract: Agricultural commodity and food price volatility has been a central focus by policy makers around the globe. Following price spikes in 2008, 2011 and 2012, much attention has been given to price fluctuations as poor households are more negatively affected by extreme variation in prices rather than the increasing levels of prices alone. Two key contentious policy measures within the WTO that affect both the levels and potential variability in commodity prices include specific tariffs and the proposed Special Safeguard Mechanism (SSM). Both policies are shown to be discriminatory in nature towards developing countries (Chowdri, 2012 and Hertel et al. 2010). However, while the SSM is expected to increase agricultural price volatility, the use of specific tariffs may be volatility reducing when compared to an ad valorem tariff structure. This research investigates the potential for reduced commodity price volatility in the presence of the SSM, given the use of specific rather than ad valorem tariffs. Our works implements the SSM in a computable general equilibrium modeling framework and finds evidence of decreased variability of producer prices, import prices, and output in most developed and developing countries when specific tariffs are accounted for.
    Keywords: Special Safeguard Mechanism, Specific Tariffs, Agricultural Trade, Trade Policy, CGE Modeling, International Relations/Trade, F13, F14, Q17, Q18,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205806&r=int
  28. By: Johansen, Stephan; Wilson, William; Dahl, Bruce
    Abstract: An important strategy of commodity trading firms is geographical diversification and vertical integration, often justified with the need for multiple origins. This strategy can be interpreted as a ‘switching option’. Strategic options have become increasingly apparent and important, but, tend to be undervalued using traditional valuation techniques. This paper develops a stochastic real options model to value networks of export elevators. It is applied to soybean trading for shipments from ports in the United States, Brazil and Ukraine. The paper estimates the option value of being able to switch origins in export trades. This value is determined by the distributions of margins and their correlations in a switching option algorithm. The results are roughly comparable to observed recent trade values of representative assets.
    Keywords: Switching options, vertical integration, export elevators, asset valuation, Agricultural and Food Policy, International Relations/Trade,
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:ags:nddaae:201309&r=int
  29. By: Djuric, Ivan; Götz, Linde; Glauben, Thomas
    Abstract: In this paper we analyze the impact of the Russian ban on import of pig meat originating in the EU on the domestic pig meat price developments in Russia. We use a regime-switching price transmission model in order to identify possible changes in the long-run equilibrium between the pig meat prices of Russia and its main non-EU trading partners. Our results indicate the reduction of transaction costs in pig meat trade between Russia and its main non-EU trading partners, followed by the increase in transmission of price changes in the long-run. Though, our results indicate completely opposite results concerning domestic price relations between wholesale and end consumer pig meat prices in Russia. Overall, faced with the scarcity of pig meat on the domestic market, Russian consumers bear the biggest burden from the ban in the medium term by being faced with the significant increase in end consumer pig meat prices.
    Keywords: import ban, pig meat, price transmission, Russia, Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, Food Security and Poverty, International Relations/Trade, C22, I31, P22, Q11, Q17, Q18,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:aaea15:205306&r=int

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