nep-int New Economics Papers
on International Trade
Issue of 2016‒04‒16
29 papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. Impacts of Trade Liberalization on Dairy Industry in China By Ahmed, Wasim; Hussain, Safdar; Jafar, Rana Muhammad Sohail; Guang-Ju, Wang; Rabnawaz, Ambar; Saqib, Zulkaif Ahmed; JianZhou, Yang
  2. Variable Trade Costs, Composition Effects and the Intensive Margin of Trade By Lionel Fontagné; Antoine Berthou
  3. What next for the DDA? Quantifying the role of negotiation modalities By Yvan Decreux; Lionel Fontagné
  4. The Political Economy of Services Trade Agreements By Fiorini, Matteo; Lebrand, Mathilde
  5. Preferential Trade Agreements By Nuno Limão
  6. Measuring Openness to Trade By Waugh, Michael E.; Ravikumar, B.
  7. Accounting for the New Gains from Trade Liberalization By Chang-Tai Hsieh; Nicholas Li; Ralph Ossa; Mu-Jeung Yang
  8. Simulation analysis of the EU ELV/RoHS directives based on an applied general equilibrium model with Melitz-type trade specification By Oyamada, Kazuhiko
  9. How Multi-Destination Firms Shape the Effect of Exchange Rate Volatility on Trade: Micro Evidence and Aggregate Implications By Jérôme Héricourt; Clément Nedoncelle
  10. Institutions, Foreign Direct Investment, and Economic Growth in North African countries By zouheir abida
  11. International Shocks and Domestic Prices: How Large Are Strategic Complementarities? By Mary Amiti; Oleg Itskhoki; Jozef Konings
  12. Preferential trading agreements and the gravity model in presence of zero and missing trade flows: Early results for China and India By Rahul Sen; Sadhana Srivastava; Don Webber
  13. Does New Zealand Economics Have a Useful Past? The Example of Trade Policy and Economic Development By Geoffrey T. F Brooke; Anthony M. Endres; Alan J. Rogers
  14. Does the Type of Neighbor Matter?: Evidence of heterogeneous Export Spillovers on Domestic Companies in Mexico By Cardoso-Vargas, Carlos-Enrique
  15. The empirical landscape of trade policy By Bown,Chad P.; Crowley,Meredith A
  16. European High-End Varieties in International Competition By Lionel Fontagné; Sophie Hatte
  17. Assessing the Trans-Pacific Partnership, Volume 2: Innovations in Trading Rules By Jeffrey J. Schott; Cathleen Cimino-Isaacs
  18. The Canada-U.S. Productivity Puzzle: Regional Evidence of the Pulp and Paper Industry, 1971-2005 By Jean-Thomas Bernard; Jakir Hussain
  19. LIML Estimation of Import Demand and Export Supply Elasticities By Vahagn Galstyan;
  20. Japanese import survey : descriptive analysis By Nabeshima, Kaoru; Michida, Etsuyo
  21. TRADE IN CARBON AND THE EFFECTIVENESS OF CARBON TARIFFS By Christoph Böhringer; Jan Schneider; Emmanuel Asane-Otoo
  22. Supporting Developing Countries in WTO Dispute Settlement By Johannesson, Louise
  23. Ukrainian Export Diversification: Macro Level Analysis By Zubritskiy, Artur
  24. The Impact of Innovation in the Multinational Firm By L. Kamran Bilir; Eduardo Morales
  25. Export-Led Innovation Among European Firms. Demand and Technological Learning Effects By Fassio, Claudio
  26. Domestic and international border effects By Hayakawa, Kazunobu
  27. Unilateral tariff cuts: a theory By Sokolovska, Olena
  28. International Migration: Driver of Political and Social Change? By Tuccio, Michele; Wahba, Jackline; Hamdouch, Bachir
  29. Prozessqualitäten in der WTO: Ein Vorschlag für die reliable Messung von moralischen Bedenken By Sonntag, Winnie; Spiller, Achim

  1. By: Ahmed, Wasim; Hussain, Safdar; Jafar, Rana Muhammad Sohail; Guang-Ju, Wang; Rabnawaz, Ambar; Saqib, Zulkaif Ahmed; JianZhou, Yang
    Abstract: The aim of this review to call attention towards the impacts of exchange liberalization on the dairy industry, and these impacts are vital concerning the monetary development of a country. The focus of this literature is on certain issues of proficiency and worldwide competitiveness of the dairy segment in an open economy environment. It identifies the sensational competition raise in the dairy sector affected by China's liberalization programs, via signing trade agreements with several countries across the globe, and the execution of the World Trade Organization (WTO) agreements. It gives an outline of the WTO Agreement on Agriculture and its impacts on the dairy part. So we have concentrated on specific parts of dairy, particularly production, demand and trade policies to empower dairy holders under the worldwide competitiveness and indicators like the local asset cost proportion. China dairy production was 36 million tons during 2010, however alarmingly declined up to 26.52 million tons in 2014. The production declined had driven towards import from out of the country, in this manner strategies and agreements require certain facilitations to meet local dairy items demands in China. The impacts of duties by developed nations to lessen taxes, local support and export subsidies have been insignificant and unless these nations fundamentally diminish the exchange distorting endorsements to their dairy segment it will be troublesome for China to contend with the global market.
    Keywords: Dairy production, Dairy trade
    JEL: F1 Q18
    Date: 2016
  2. By: Lionel Fontagné (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Antoine Berthou (Banque de France)
    Abstract: We estimate the elasticity of extra EU French firm-level exports with respect to applied tariffs – a variable trade cost. We implement a method controlling for unobserved firm characteristics driving selection in exports market, and controlling for the multilateral resistance terms. Results confirm a significant negative impact of tariffs on firm-level exports, with one fifth of this impact falling on the induced adjustment in the exporters' product mix. When controlling for this adjustment and focusing on the core exported products, the elasticity of the product-destination firm-level exports with respect to applied tariffs is estimated at about −2.5.
    Keywords: International trade, Firm heterogeneity, Multi-product exporters, Trade elasticity
    Date: 2016–01
  3. By: Yvan Decreux (ITC (UNCTAD-WTO) - International Trade Center - WTO - UNCTAD); Lionel Fontagné (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique)
    Abstract: Negotiators have reached a deal on a limited series of issues WTO Ministerial Conference in Bali (3–6 December 2013), one of these being trade facilitation. Based on a quantitative assessment taking into account the detail of the last proposals circulated, we argue however that due to the design of the negotiation, achievements of the DDA will eventually be limited. This is due to a lack of ambition making it difficult for negotiat ors to compensate their own concessions. Such feebleness is induced by the way negotiations were organized – in separate groups, without much consideration for, or understanding of, how the different elements added up to more than the sum of the parts. Our quantification of these issues is performed with a dynamic computable general equilibrium model of the world economy, while liberalisation of tariffs is taken into account at the product level in order to address exceptions, flexibilities as well as the non-linear design of the formulas. A reduction in domestic support and the phasing out of export subsidies in agriculture are taken into account, as well as trade facilitation. Our conclusion is that negotiators will have to re-bundle the bits of the negotiation and shift efforts towards the neglected issue of services to make progress towards the objectives agreed on in Bali.
    Keywords: Doha Development Round, Computable General Equilibrium Models, Trade facilitation
    Date: 2014–05
  4. By: Fiorini, Matteo; Lebrand, Mathilde
    Abstract: This paper studies the determinants of liberalization commitments in the context of trade in services used as intermediate inputs. Compared to goods, services inputs are mostly complementary to other factors of production and non-tradable. We build a theoretical trade policy framework in which (i) foreign investment as a way to contest a market for non-tradable services can be restricted by the government and (ii) the role of services as complementary inputs explains unilateral commitment to services trade liberalization. Commitment helps governments to avoid political pressures that would result in protectionist measures leading downstream producers to inefficiently reduce their production. In addition we provide new results on the influence of lobbying by both national firms and foreign multinationals. We discuss how the bargaining power of the government, the size of national services sectors and the difference in valuation between national and foreign contributions affect the willingness of the government to sign a services trade agreement.
    Keywords: Services Trade, Trade Agreements, FDI, Lobby
    JEL: D43 F13 F21 L80
    Date: 2016
  5. By: Nuno Limão
    Abstract: A large and growing number of countries participate in multiple preferential trade agreements (PTAs), which increasingly entail broad cooperation over policies extending far beyond trade barriers. I review the traditional and non-traditional motives for PTAs and their empirical determinants as well as their impacts on trade and on multilateral liberalization. I argue that the broad nature of modern PTAs, their substantial creation of bilateral trade and their modest effects on members’ tariffs, require us to augment the economic and policy structure of traditional models of PTAs as a static preferential tariff reduction. Throughout I draw lessons from the existing literature and point towards many interesting paths for future research, to advance our understanding of the causes of modern PTAs and their impacts on trade related outcomes and beyond.
    JEL: F02 F1 F4 F5
    Date: 2016–03
  6. By: Waugh, Michael E. (New York University); Ravikumar, B. (Federal Reserve Bank of St. Louis)
    Abstract: In this paper we derive a new measure of openness—the trade potential index—that quantifies the potential gains from trade as a simple function of data. Using a standard multicountry trade model, we measure openness by a country’s potential welfare gain from moving to a world with frictionless trade. In this model, a country’s trade potential depends on only the trade elasticity and two observable statistics: the country’s home trade share and its income level. Quantitatively, poor countries have greater potential gains from trade relative to rich countries, while their welfare costs of autarky are similar. This leads us to infer that rich countries are more open to trade. Our trade potential index correlates strongly with estimates of trade costs, while both the welfare cost of autarky and the volume of trade exhibit correlate weakly with trade costs. Thus, our measure of openness is informative about the underlying trade frictions.
    Date: 2016–03–01
  7. By: Chang-Tai Hsieh; Nicholas Li; Ralph Ossa; Mu-Jeung Yang
    Abstract: We measure the "new" gains from trade reaped by Canada as a result of the Canada-US Free Trade Agreement (CUSFTA). We think of the "new" gains from trade of a country as all welfare effects pertaining to changes in the set of firms serving that country as emphasized in the so-called "new" trade literature. To this end, we first develop an exact decomposition of the gains from trade which separates "traditional" and "new" gains. We then apply this decomposition using Canadian and US micro data and find that the "new" welfare effects of CUSFTA on Canada were negative.
    JEL: F10 F12 F14
    Date: 2016–03
  8. By: Oyamada, Kazuhiko
    Abstract: This paper explores the potential usefulness of an AGE model with the Melitz-type trade specification to assess economic effects of technical regulations, taking the case of the EU ELV/RoHS directives as an example. Simulation experiments reveal that: (1) raising the fixed exporting cost to make sales in the EU market brings results that exports of the targeted commodities (motor vehicles and parts for ELV and electronic equipment for RoHS) to the EU from outside regions/countries expand while the domestic trade in the EU shrinks when the importer's preference for variety (PfV) is not strong; (2) if the PfV is not strong, policy changes that may bring reduction in the number of firms enable survived producers with high productivity to expand production to be large-scale mass producers fully enjoying the fruit of economies of scale; and (3) When the strength of the importer's PfV is changed from zero to unity, there is the value that totally changes simulation results and their interpretations.
    Keywords: Macroeconomics, International trade, Econometric model, Econometrics
    JEL: C68 D58 F12 L11
    Date: 2016–03
  9. By: Jérôme Héricourt; Clément Nedoncelle
    Abstract: How can the lack of reaction of aggregate exports to Real Exchange Rate (RER) volatility be explained? Using a French firm-level database that combines balance-sheet and product-destination-specific export information over the period 1995-2009, we propose a micro-founded explanation to this macro puzzle, by investigating how firms reallocate exports across destinations following RER volatility shocks. We show that firm-level bilateral exports to a considered destination also react to external volatility, represented by several indicators we build. Firms tend to reallocate exports away from destinations with unfavorable dynamics in terms of RER volatility, and this effect grows with the scope of possible reallocations. Efficient diversification of destinations served appear therefore as another way to handle exchange rate risks, and provides an explanation to the small aggregate trade response to RER volatility: if big multi-destination firms, who account for the bulk of aggregate exports, can react to an adverse shock of RER volatility somewhere by transferring trade to other and less volatile destinations, this leaves exports mainly unchanged at the macro level.
    Keywords: Real Exchange Rate Volatility;Multi-destination Exporters;Reallocation;Aggregation
    JEL: F14 F31 G32 L25
    Date: 2016–03
  10. By: zouheir abida (university of sfax)
    Abstract: This paper examines the relationship between foreign direct investment (FDI), economic freedom and economic growth in a panel of 4 countries of North Africa (Tunisia, Morocco, Algeria and Egypt), and 5-year periods from 1980 to 2013. Our empirical results, based on the generalized method of moment (GMM) system estimator, reveal that FDI have a significant positive impact on output growth. Instead, the effect of FDI is contingent on the level of economic freedom in the host countries. This means the countries exhibit greater degrees of economic freedom gain significantly from the presence of multinational corporations (MNCs). Countries should implement policies and procedures that guarantee transparency enough for potential investors before using other measures for attracting higher levels of FDI. However, the building of more effective institutions will be a long and arduous process. In some countries, it may be politically difficult for the government to make a range of reforms in the short run but in the long-run they can lead to tremendous economic benefits
    Keywords: Foreign direct investment, Economic freedom, Economic growth
    JEL: F20 M21 O43
  11. By: Mary Amiti; Oleg Itskhoki; Jozef Konings
    Abstract: How strong are strategic complementarities in price setting across firms? In this paper, we provide a direct empirical estimate of firm price responses to changes in prices of their competitors. We develop a general framework and an empirical identification strategy to estimate the elasticities of a firm’s price response to both its own cost shocks and to the price changes of its competitors. Our approach takes advantage of a new micro-level dataset for the Belgian manufacturing sector, which contains detailed information on firm domestic prices, marginal costs, and competitor prices. The rare features of these data enable us to construct instrumental variables to address the simultaneity of price setting by competing firms. We find strong evidence of strategic complementarities, with a typical firm adjusting its price with an elasticity of 35% in response to the price changes of its competitors and with an elasticity of 65% in response to its own cost shocks. Furthermore, we find substantial heterogeneity in these elasticities across firms, with small firms showing no strategic complementarities and a complete cost pass-through, while large firms responding to their cost shocks and competitor price changes with roughly equal elasticities of around 50%. We show, using a tightly calibrated quantitative model, that these findings have important implications for shaping the response of domestic prices to international shocks.
    JEL: D22 E31 F31
    Date: 2016–03
  12. By: Rahul Sen (Department of Economics, Faculty of Business and Law, Auckland University of Technology); Sadhana Srivastava (Department of Economics, Faculty of Business and Law, Auckland University of Technology); Don Webber (Department of Accountancy, Economics and Finance, University of the West of England, Bristol, UK)
    Abstract: The two most populous countries of the world have embarked upon an extensive array of preferential trading agreements in recent decades. This paper specifically investigates the impacts on trade creation and trade diversion of China’s and India’s 11 major preferential trade agreements using an augmented gravity model that takes into account zero and missing trade flows in the data, employing a Zero Inflated Negative Binomial (ZINB) regression model as suggested in the recent literature by Burger (2009) and Kohl (2012). The early results for the ZINB model, provided only for India and China as the home country, confirms that Chinese exports and imports were more likely to be net trade creating in presence of PTAs while India’s exports were more likely to be net trade diverting in the presence of the same PTAs, with imports having an insignificant effect. For India and China so far, most ASEAN+6 PTAs seems to have created both intra-bloc and extra-bloc trade. APTA is observed to be the only significant export creating PTA for India, while APTA and ACFTA are both found to be export creating for China.
    Keywords: Trade creation; Trade diversion; Distance; Trade agreements
    JEL: F14
    Date: 2015–02
  13. By: Geoffrey T. F Brooke (School of Economics, Auckland University of Technology, NZ); Anthony M. Endres (School of Economics, Auckland University of Technology, NZ); Alan J. Rogers (Department of Economics, Faculty of Business and Law, Auckland University of Technology)
    Abstract: We examine the history of economic thought on trade policy in New Zealand from the 1920s to the early 1980s. The focus is upon the different doctrinal perspectives taken by academic economists in New Zealand. Throughout the period under review policymakers supported an inward-looking trade and development regime buttressed by extensive interventionist trade policy. Appeals to the employment argument for industrialization through import substitution lent their policies a veneer of economic respectability. Most economists were not persuaded; they railed against quantitative import controls, discriminatory tariffs and cumbersome export incentive schemes and they offered, in vain, some constructive alternatives relying on price signals rather than administrative rules. One of our main findings is that most of the early work exposited here anticipated the rent seeking explanation for the configuration of trade policy.
    Keywords: Trade Policy, Industrial Policy, Economic Thought, Rent Seeking
    JEL: B20 F13 N77
    Date: 2015–08
  14. By: Cardoso-Vargas, Carlos-Enrique
    Abstract: This document examines whether the agglomeration of foreign processing firms (PCS) assembling imported inputs to make export products favors the incorporation to the export activity or market expansion of domestic companies. Similarly this situation is evaluated by considering ordinary foreign firms (ORD) or not manufactured processed products and non-local hybrid companies (HBR) that act in both regimes of commerce. The theoretical framework guiding the empirical evaluation is based on a simple model inspired by Melitz (2003), which is evaluated by means of a conditional logit model with panel data. The findings show evidence that the concentration of these types of foreign companies increases the probability that domestic companies show a presence in certain markets. Notwithstanding, these export spillovers widely heterogeneous in virtue of the fact that their existence and sphere of influence are associated with their specificity in terms of country or product, as well as with the regime of commerce and the technological capacity used by domestic companies vis-à-vis neighboring foreign companies.
    Keywords: international trade, agglomeration externalities, heterogeneity firms
    JEL: F13 F14 F21
    Date: 2016–02–27
  15. By: Bown,Chad P.; Crowley,Meredith A
    Abstract: This paper surveys empirically the broad features of trade policy in goods for 31 major economies that collectively represented 83 percent of the world's population and 91 percent of the world's GDP in 2013. It addresses the following five questions: Do some countries have more liberal trading regimes than others? Within countries, which industries receive the most import protection? How do trade policies change over time? Do countries discriminate among their trading partners when setting trade policy? Finally, how liberalized is world trade? The analysis documents the extent of cross-sectional heterogeneity in applied commercial policy across countries, their economic sectors, and their trading partners, over time. It concludes that substantial trade policy barriers remain as an important feature of the world economy.
    Keywords: Currencies and Exchange Rates,Free Trade,Economic Theory&Research,Emerging Markets,Trade Law
    Date: 2016–04–04
  16. By: Lionel Fontagné (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Sophie Hatte (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, Université de Rouen, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: We study international competition in high-end varieties for 416 detailed HS6 product categories marketed by the leading French luxury brands. We construct a world database of trade flows for these products, computing unit values of related bilateral trade flows and analyzing competition among the main exporters. We use the observed distribution of unit values to define a high-end market segment. Exports of high-end varieties are shown to be less sensitive to distance, and found more sensitive to destination country wealth than other varieties, but only in relation to countries already producing a large range of luxury brands, pointing to a first-mover advantage.
    Keywords: Product differentiation, Market shares, Unit values
    Date: 2016–04–08
  17. By: Jeffrey J. Schott (Peterson Institute for International Economics); Cathleen Cimino-Isaacs (Peterson Institute for International Economics)
    Abstract: On February 4, 2016, the United States and 11 other countries signed the Trans-Pacific Partnership (TPP), an ambitious accord that not only lowers barriers to trade and investment in goods and services but also crafts trading rules and standards in important areas such as intellectual property rights (IPR), state-owned enterprises, digital trade, labor, and environment. Now with the agreement signed, the Obama administration and Congress must work together to draft implementing legislation and resolve outstanding issues that may hold up bipartisan support for the deal. TPP compromises related to IPR, labor, and currency are among the most contentious issues. In a series of publications the Peterson Institute for International Economics has undertaken an ambitious assessment of the TPP's key issues and outcomes to provide a useful reader's guide to the trade pact and contribute to a more educated public debate over its ratification by the United States and other member countries. In Volume 1, PIIE scholars analyzed several major market access and sectoral issues in the TPP. In Volume 2, they assess various innovations in trading rules and how TPP provisions build on past practice. TPP rulemaking in new areas could have important implications for future regional deals and the global trading system writ large.
  18. By: Jean-Thomas Bernard (Department of Economics, University of Ottawa); Jakir Hussain (PhD Candidate, Department of Economics, University of Ottawa)
    Abstract: We analyze the total factor productivity (TFP) of the pulp and paper industry in three Canadian provinces (British Columbia, Ontario, and Quebec) and in three U.S. states that are contiguously located south of the border (Washington, Illinois, and Maine) over the period of 1971 to 2005. We find that the industry in the three Canadian provinces had much higher TFP growth rates in the era following the Free Trade Agreement (FTA), signed in 1988. In terms of productivity trend, this relative TFP surge has allowed the industry in the three Canadian provinces to move ahead of Illinois and Washington and closer to Maine which is the U.S. leader in the sample. Our results in this particular case do not support the commonly accepted view that Canada has a productivity problem relative to the U.S.
    Keywords: Total factor productivity, income convergence, pulp and paper industry
    JEL: D24 L73 N62
    Date: 2015
  19. By: Vahagn Galstyan (Department of Economics, Trinity College Dublin);
    Abstract: Following the seminal contribution of Feenstra (1994), I apply limited-information maximum likelihood to estimate import demand and export supply elasticities for a range of eurozone countries. The results highlight substantial inconsistencies in the parameters estimated by the methodology of Fuller (1977) relative to the parameters estimated by the methodology of Hausman et al (2012). The nature of the structural equations reveals complications generated by the limiting behavior of the parameters that can be replicated in finite samples. The results of simulations underscore substantial improvements in parameter estimates in a three-dimensional panel, suggesting that the problem of limiting behaviour can be overcome in larger dataset/panels.
    Keywords: LIML, elasticity
    JEL: F14 C13
    Date: 2016–03
  20. By: Nabeshima, Kaoru; Michida, Etsuyo
    Abstract: Food importers, such as wholesalers and food processing firms, play an important role in sourcing food from abroad. They are also responsible for ensuring that imported food meets the food safety standards of the importing country. Often, assurance of conformity is done in collaboration with exporters. Thus, importers can influence how supply chains in developing countries are organized. This paper uses a unique dataset obtained from the Japanese market to examine how importers select suppliers and assure food quality.
    Keywords: Food industry, Imports, Quality control, Food Standards Compliance, Importer, Supply Chain
    JEL: O12 D22
    Date: 2016–03
  21. By: Christoph Böhringer (University of Oldenburg, Department of Economics); Jan Schneider (University of Oldenburg, Department of Economics); Emmanuel Asane-Otoo (University of Oldenburg, Department of Economics)
    Abstract: Carbon-based import tariffs are discussed as policy measures to reduce carbon leakage and increase the global cost-effectiveness of unilateral CO2 emission pricing. We assess how the potential of carbon tariffs to increase cost-effectiveness of unilateral climate policy depends on the magnitude and composition of carbon embodied in trade. For our assessment, we combine multi-region input-output (MRIO) analysis with computable general equilibrium (CGE) analysis based on data from the World Input-Output Database (WIOD) for the period 1995 to 2007. The MRIO analysis confirms that carbon embodied in trade has sharply increased during this period. Yet, the CGE analysis suggests that the effectiveness of carbon tariffs in reducing leakage and improving global-cost effectiveness of unilateral climate policy does not increase over time, whereas the potential to shift the economic burden of CO2 emissions reduction from abating developed regions to non-abating developing regions increases substantially.
    Keywords: carbon tariffs; unilateral climate policy; computable general equilibrium
    JEL: Q58 D57 D58
    Date: 2016–04
  22. By: Johannesson, Louise (Research Institute of Industrial Economics (IFN))
    Abstract: Even though the World Trade Organization (WTO) ensures equal access to the dispute settlement system, the legal process is still highly costly, an aspect that primarily affects poorer developing countries. It is feared that this imbalance discourages developing countries from filing and defending complaints against richer countries. In an effort to reduce these costs and increase participation by developing countries, the WTO provides two supporting measures: legal assistance, and preferential panel composition. The latter reserve one slot on the panel exclusively for a judge from a developing country. This paper examines whether these measure leads to increased participation, applying a model that takes into account the decision to participate by both the developing and the industrialised country. We show that both measures encourage developing countries to file more complaints, yet, the number of adjudicated disputes ay not increase accordingly. Furthermore, the measures may decrease developing countries’ average success rate in panel. Using unique data, we also empirically inspect the presumed benefit of including a developing-country judge on the panel (Art. 8.10) and find a negative impact on the developing-country success rate. This apparent inconsistency is, however, resolved within the theoretical framework through a selction mechanism. The model developed in this paper aims to provide a more systematic approach to policy evaluation of certain types of supporting measures in the WTO.
    Keywords: WTO dispute settlement; Developing countries; Special and Differential Treatment provisions; Legal capacity; Panelists
    JEL: F13 K41
    Date: 2016–03–23
  23. By: Zubritskiy, Artur
    Abstract: Complex microanalysis of Ukrainian goods exporting diversification on extensive and intensive basis was made. The national export structure deviations from the world one were formulated. Product codes groups characterized by the highest export concentration were detected
    Keywords: Export, export diversification, export sector, export structure
    JEL: F14
    Date: 2014–12–20
  24. By: L. Kamran Bilir; Eduardo Morales
    Abstract: When firms operate production plants in multiple countries, technological improvements developed in one country may be shared with firm sites abroad for efficiency gain. We develop a dynamic model that allows for such intrafirm transfer, and apply it to measure the impact of innovation on performance for a panel of U.S. multinationals. Our estimates indicate U.S. parent R&D raises performance significantly at firm locations abroad, and also complements R&D by affiliates. Parent R&D is a substantially more important determinant of firm performance than affiliate R&D. We identify these R&D effects using variation in location-specific innovation policies.
    JEL: F00 F23 O30
    Date: 2016–04
  25. By: Fassio, Claudio (LUISS School of European Political Economy)
    Abstract: This paper investigates the effect of exporting activities on the innovation strategies of European firms in France, Germany, Italy, Spain and UK. The paper puts forward the hypothesis that such a positive effect is driven two main mechanisms. The first is a technological learning effect that allows firms active in international markets to benefit from foreign knowledge spillovers in technologically advanced markets and decrease their research cost for the development of innovations. The second is a demand effect induced by fast-growing foreign markets that increase the potential output of firms. The empirical analysis, which addresses important endogeneity issues related with the strategic choice of the markets of destination operated by firms, shows that the two effects induce the adoption of different innovation strategies. While the technological learning effect positively affect the decision of firms to introduce brand new product innovations, the demand effect fosters the adoption of efficiency and imitation strategies. The paper shows that the effect of exporting activity on innovation strategies crucially depends on the type of export destinations. The lower levels of the technological learning effect which is found among the export destinations of Italian and Spanish firms might represent a possible obstacle for the ability of these countries to increase their future innovative capacities.
    Keywords: Exports; Innovation strategies; European Union economics
    JEL: F10 O33 P51
    Date: 2015–03–05
  26. By: Hayakawa, Kazunobu
    Abstract: Previous studies in the border-effect literature surprisingly found that domestic border effects are larger than international border effects (e.g., in the United States or Brazil). One interpretation of this result is that these estimates include the effects of producer agglomeration. Therefore, in this study, we estimate those border effects exclusively for transactions for final consumption, in which such agglomeration forces will be weak, in China and Japan. As a result, we found larger international border effects and could not find a significant role for producer agglomeration in the estimates of border effects. We also found that China's accession to the World Trade Organization reduces border effects in trading between China and Japan but does not decrease domestic border effects.
    Keywords: East Asia, China, Japan, International trade, Econometric model, Gravity, Border effects
    JEL: F15 F53
    Date: 2016–03
  27. By: Sokolovska, Olena
    Abstract: In order to analyze the Ukraine-EU trade arrangement in the context of modern theory of non-reciprocal trade agreements we provide brief examination of some theoretical approaches and practical implications of unilateral tariff preference schemes and examine current situation with tariff regulation in Ukraine-EU commodity trade. We found that unilateral tariff reduction or elimination under these schemes could lead either to trade creation or trade diversion, depending firstly form the presence of market power of beneficiary country. The obtained results could be used for further estimation of impact of non-reciprocal reduction of tariffs by EU governments on Ukrainian export flows
    Keywords: tariff preferences, trade policy, unilateral trade liberalization
    JEL: F13 H20 H3 H30
    Date: 2016–03
  28. By: Tuccio, Michele (University of Southampton); Wahba, Jackline (University of Southampton); Hamdouch, Bachir (University Mohammed V - Agdal Rabat)
    Abstract: This paper focuses on the impact of international migration on the transfer of political and social norms. Exploiting recent and unique data on Morocco, it explores whether households with return and current migrants bear different political preferences and behaviours than non-migrant families. Once controlling for the double selection into emigration and return migration, findings suggest that having a returnee in the household increases the demand for political and social change, driven by returnees mostly from Western European countries, who have been exposed to more democratic norms at destination. However, we find a negative impact of having a current migrant on the willingness to change of the left-behind household, driven by migrants to non-West countries, where the quality of political and social institutions are lower. Our results are robust to also controlling for destination selectivity. Finally, findings suggest that migration not only affect political attitudes but also actual behaviour: regions with higher returnee shares have had greater participation rates in the 2011 political elections.
    Keywords: international migration, political change, transfer of norms, Morocco
    JEL: D72 F22 O15 O55
    Date: 2016–03
  29. By: Sonntag, Winnie; Spiller, Achim
    Abstract: Im Jahr 2014 hat das WTO-Schlichtungsgremium (Appellate Body) einen vielbeachteten Schiedsspruch zum Importverbot der EU für Robbenprodukte getätigt. Das verhängte Importverbot für Robbenprodukte wurde auf Grundlage des Art. XX (a) GATT grundsätzlich gerechtfertigt. Damit wurde erstmals der Schutz der öffentlichen Sittlichkeit als Begründung für eine tierschutzbezogene Handelsbeschränkung anerkannt. Diese Entscheidung eröffnet als Präzedenzfall Optionen für supranationale Maßnahmen für weitere Produkte, deren Herstellungsprozess auf moralische Bedenken der Gesellschaft trifft. Denkbar wären hier z. B. eine verpflichtende Kennzeichnung bzw. ein Importverbot für Produkte aus besonders tierwohlkritischen Produktionsformen. Allerdings bleibt in der Forschung bisher weitgehend unklar, wann eine Gefährdung der sittlichen Ordnung besteht. Der vorliegende Beitrag thematisiert deshalb die Frage, wie die moralischen Bedenken (moral concerns) einer Gesellschaft gemessen werden können. Hierzu wird eine Messmethode konzeptionell vorgestellt, die eine valide und reliable Messung der moralischen Bedenken einer Gesellschaft erlaubt. Das Ziel ist ein auf WTO-Ebene einsetzbares, wissenschaftlich fundiertes und vertrauenswürdiges Instrument (Scale) zur Messung des Besorgnisgrades von Gesellschaften in Bezug auf Tierschutzfragen zu entwickeln.
    Abstract: In 2014, the WTO's Dispute Settlement Body accepted the EU import ban on seal products. The EU banned the importation and sale of seal products under the justification of Article XX (a) GATT. Thereby, the EU import ban is the first WTO case in which the Appellate Body accepted a trade restriction based on the moral concerns of EU citizens with regard to the inhuman killing of seals. This discussion may offer opportunities for mandatory labelling or import bans on other products from production systems which violate public ethical beliefs and morality. However, in recent research there is a lack of clarity in the determination of when public morality is seriously endangered and needs to be protected. Therefore, the present paper deals with the question of how to measure the moral concerns of a society in a valid and reliable manner. Although it is important to identify and verify if public morality is really compromised, it must also be ensured that this instrument is not just used as a form of protectionism. The paper introduces a measuring method which allows a reliable and valid measurement of public concern within a particular society. The objective of this work is to develop a trustworthy WTO-wide science-based tool (a scale) for the measurement of the degree of public concern with respect to animal welfare topics.
    Keywords: Moralische Bedenken,Tierhaltung,Prozessstandards,EC-Seal Products,WTO,moral concerns,animal husbandry,process standards
    Date: 2016

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