nep-int New Economics Papers
on International Trade
Issue of 2016‒04‒30
27 papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. Optimal Trade Policy, Equilibrium Unemployment and Labor Market Inefficiency By Wisarut Suwanprasert
  2. Protectionism is "Alive and Well"- Agriculture in the EU-Canada Trade Agreement By Kerr, William; Hobbs, Jill
  3. Do the WTO and RTAs Promote Food Trade? By Mujahid, Irfan; Kalkuhl, Matthias
  4. Econophysics Point of View of Trade Liberalization: Community dynamics, synchronization, and controllability as example of collective motions By IKEDA Yuichi; AOYAMA Hideaki; IYETOMI Hiroshi; MIZUNO Takayuki; OHNISHI Takaaki; SAKAMOTO Yohei; WATANABE Tsutomu
  5. The labor content of exports database By Cali,Massimiliano; Francois,Joseph; Hollweg,Claire Honore; Manchin,Miriam; Oberdabernig,Doris Anita; Rojas Romagosa,Hugo Alexander; Rubinova,Stela; Tomberger,Patrick
  6. The main determinants of the sectors and industries of the Polish economy for foreign direct investment By Magdalena Kozłowska
  7. Productivity, Demand and the Home Market Effect By Giraldo, Iader; Jaramillo, Fernando
  8. Trade and Labor Market Dynamics By Lorenzo CALIENDO; Maximiliano DVORKIN; Fernando PARRO
  9. Exchange Rate Pass-through in Production Chains: Application of input-output analysis By Huong Le Thu HOANG; SATO Kiyotaka
  10. Import Penetration, Intermediate Inputs and Firms’ Productivity in the EU Food Industry By Olper, Alessandro; Curzi, Daniele; Raimondi, Valentina
  11. India's merchandise trade with China: growth, prospects and future potential? By haq wani, Nassir ul; dhami, Jasdeep kaur
  12. Foreign Direct Investments and trade in agriculture: an incomplete contracts approach By Scoppola, Margherita
  13. Estimating Border Effects: The Impact of Spatial Aggregation By Coughlin, Cletus C.; Novy, Dennis
  14. Effects of regional trade agreements on trade in strategic By Tegebu, Fredu Nega; Hussein, Edris Seid
  15. Emerging Multinational Corporations: a prominent player in the global economy By Mustafa Sakr and Andre Jordaan
  16. A Case Study of U.S. Fresh Tomato Trade among NAFTA Countries. By Lopez, Jose A.
  17. The Effects of Border Violence on U.S.-Mexican Cattle Trade By Ahn, Hannah; Ribera, Luis A.
  18. Non-Tariff Measures and Standards in Trade and Global Value Chains By Beghin, John; Maertens, Miet; Swinnen, Jo
  19. The Effect of the Internet on Bilateral Trade By Biswas, Trina; Kennedy, P. Lynn
  20. How Do U.S and Australian Beef Imports Impact on the Hanwoo Beef Market in South Korea? By Kim, GwanSeon; Mark, Tyler
  21. Determinants of Cross-Border Mergers and Acquisitions Targeting Africa: 1991-2011 By MK Wilson and DJM Vencatachellum
  22. Impact of Aid for Trade to Agricultural Development and Trade By Ahn, Soojung; Lee, Sang Hyeon
  23. Mandatory Country of Origin Labeling Induced Structural Change of U.S. Meat Products By Yeboah, Osei; Naanwaab, Cephas B.; Otchere, Richmond
  24. U.S. Food Manufacturing Industry: The Choice of Exports vs. FDI By Asgari, Mahdi
  25. Foreign Firm Ownership and Productivity Spillovers in the Southern African Development Community (SADC) Region By Paul J Dunne and Nicholas Masiyandima
  26. Globalisation and inequality: A dynamic general equilib- rium model of unequal exchange By Roberto Veneziani; Naoki Yoshihara
  27. Cross-Border M&As and Eco-Environmental Performance of European Energy Utilities By Evgenii Monastyrenko

  1. By: Wisarut Suwanprasert
    Abstract: Abstract Why do politicians advocate trade protections to save domestic jobs when neoclassical trade models suggest that small open economies should implement free trade? The novel insight of this paper is that trade protections can be rationalized as a second-best policy that improves the domestic welfare when the equilibrium unemployment is different from the constrain-efficient unemployment. To understand the puzzle, I incorporate a Diamond-Mortensen-Pissarides frictional labor market into the standard Heckscher-Ohlin model of international trade. The model offers four main findings. First, when the relative price of the labor (capital)-intensive good increases, equilibrium unemployment decreases (increases). Second, a labor market in a competitive equilibrium is constrained-efficient when the Hosios condition is satisfied. Third, a capital-abundant country with inefficiently high unemployment may experience welfare losses from trade. Conditional on having the same observed trade share, a labor-abundant country with inefficiently high unemployment have extra welfare gains from international trade. Finally and importantly, when the labor market in a small open economy generates inefficiently high equilibrium unemployment, the optimal trade policy is to raise the domestic price of its labor-intensive goods (an import tariff in a capital-abundant country and an export subsidy in a labor-abundant country). Free trade is optimal only when a labor market is initially efficient. The model predictions are supported by patterns of tariffs in WTO member countries.
    JEL: F11 F13 F16 F66
    Date: 2016–04–19
  2. By: Kerr, William; Hobbs, Jill
    Abstract: After six years of secret negotiations the agreed text of the trade agreement between the European Union and Canada was released in September 2014. The Comprehensive Economic and Trade Agreement (CETA) must still be ratified by the respective legislatures. Agricultural trade was expected to be a contentious issue in the negotiations with both Canada and the EU having sensitive areas where liberalization would be difficult. In Canada, the domestic policy for dairy and poultry -supply management- requires support from high trade barriers. In the EU, some SPS barriers are non-negotiable- GMOs and the use of growth hormones in beef production. The eventual bargain leaves these trade inhibiting measures largely intact. Some liberalization was achieved in other areas such as recognition of EU geographical indications in Canada, reduced barriers to sales of EU wine, increased market access for EU cheeses and expansion in EU TRQs for wheat, hormone free beef and pork.
    Keywords: Agri-food trade, Canada, EU, preferential agreement, protectionism, Agricultural and Food Policy, International Relations/Trade, F53, Q17,
    Date: 2015
  3. By: Mujahid, Irfan; Kalkuhl, Matthias
    Abstract: In addition to multilateral trade agreements under the World Trade Organization (WTO), the world has seen a remarkable proliferation of regional trade agreements (RTAs) in the last two decades. This study investigates the impacts of these multilateral and regional trade institutions on food trade. The Gravity model of international trade is used for the empirical analysis. The model is developed in a large panel data setting and attempted to address some potential problems in the estimation including multilateral trade resistances and zero trade values. The results suggest that both the WTO and RTAs have delivered significant positive effects on bilateral trade among the participant countries, but not food. Only RTAs are found to have increased bilateral food trade among the members. However, although no evidence can be found that the WTO enhances food trade among the members, it promotes food trade of the developing countries more than the developed ones.
    Keywords: WTO, regional trade agreement, food trade, food security, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Relations/Trade, F13, F14, O13, Q17, Q18,
    Date: 2015
  4. By: IKEDA Yuichi; AOYAMA Hideaki; IYETOMI Hiroshi; MIZUNO Takayuki; OHNISHI Takaaki; SAKAMOTO Yohei; WATANABE Tsutomu
    Abstract: In physics, it is known that various collective motions exist. For instance, a large deformation of heavy nuclei at a highly excited state, which subsequently proceeds to fission, is a typical example. This phenomenon is a quantum mechanical collective motion due to strong nuclear force between nucleons in a microscopic system consisting of a few hundred nucleons. Most national economies are linked by international trade and consequently economic globalization forms a giant economic complex network with strong links, i.e., interactions due to increasing trade. In Japan, many small and medium enterprises could achieve higher economic growth by free trade based on the establishment of an economic partnership agreement (EPA), such as the Trans-Pacific Partnership (TPP). Thus, it is expected that various interesting collective motions will emerge in the global economy under trade liberalization. In this paper, we present collective motions in trade liberalization observed in the analysis of the industry sector-specific international trade data from 1995 to 2011 and production index time series from 1998 to 2015 for G7 countries. We discuss the results and implications for three collective motions: (i) synchronization of international business cycle, (ii) immediate propagation of economic risk, and (iii) difficulty of structural controllability during economic crisis.
    Date: 2016–03
  5. By: Cali,Massimiliano; Francois,Joseph; Hollweg,Claire Honore; Manchin,Miriam; Oberdabernig,Doris Anita; Rojas Romagosa,Hugo Alexander; Rubinova,Stela; Tomberger,Patrick
    Abstract: This paper develops a novel methodology to measure the quantity of jobs and value of wages embodied in exports for a large number of countries and sectors for intermittent years between 1995 and 2011. The resulting Labor Content of Exports database allows the examination of the direct contribution of labor to exports as well as the indirect contribution via other sectors of the economy for skilled and unskilled labor. The analysis of the new data sets documents several new findings. First, the global share of labor value added in exports has been declining globally since 1995, but it has increased in low-income countries. Second, in line with the standard Hecksher-Ohlin trade model, the composition of labor directly contained in exports is skewed toward skilled labor in high-income countries relative to developing countries. However, that is not the case for the indirect labor content of exports. Third, manufacturing exports are a key source of labor demand in other sectors, especially in middle- and low-income countries. And the majority of the indirect demand for labor spurred by exports is in services sectors, whose workers are the largest beneficiaries of exporting activities globally. Fourth, differences in the labor value added in exports share across developing countries appears to be driven more by differences in the composition of exports rather than in sector labor intensities. Finally, average wages typically increase rapidly enough with the process of economic development to more than compensate the loss in jobs per unit of exports. The paper also includes the necessary information to build the Labor Content of Exports database from the original raw data, including stata do-files and matlab files, as well as descriptions of the variables in the data set.
    Keywords: Banks&Banking Reform,Economic Theory&Research,Trade Policy,Labor Policies,Labor Markets
    Date: 2016–03–28
  6. By: Magdalena Kozłowska (University of Economics in Katowice)
    Abstract: On the basis of the available material I shall investigate the attractiveness of sectors and branches of the Polish economy for foreign direct investment (FDI).First of all, they are identified sectors and industries of the Polish economy which now became attractive from the foreign direct investors point of view. I shall also identify and specify the general conditions for investment in those sectors and industries.Next I shall indicate the change of the sectorally-trade attractiveness of the Polish economy since the 90s., that is since the initial period of transformation of the socio-economic development in the country took place. In that period there was a significant improvement in the general conditions for foreign capital in comparison with the period of real socialism.In the process of analysis I will attempt to compare the attractiveness of sectors and industries of the Polish economy and the economies of European countries, especially the Central and Eastern Europe as direct competitors in the Polish struggle for obtaining foreign capital.The basis of all of the analyzes will be mainly sources of the Polish Agency for Information and Foreign Investment, which, among other things, deals with searching for attractive locations for investment as well as materials Ministry of Economy and of the well-known consulting firm Ernst & Young.
    Keywords: attractiveness of sectors, attractiveness of industries, foreign direct investment
    JEL: A10 F00
  7. By: Giraldo, Iader; Jaramillo, Fernando
    Abstract: The causality between international trade and industrialization is still ambiguous. We consider a model of international trade with the Home Market Effect - with differences in income and productivity between sectors and between countries - in order to identify additional channels for determining the effects of international trade on industrialization. Introducing non-homothetic preferences and differences in productivity aids in the interpretation of any apparent paradoxes within international trade, such as the commercial relations between more populated countries like China and India and large economies such as the U.S. Population size, demand composition and productivity levels constitute the three main channels for determining the effects of international trade. Interactions among these channels define the results obtained in terms of industrialization, while welfare levels are always higher in relation to autarky.
    Keywords: International Trade, Non-homothetic Preferences, Home Market Effect, Monopo-listic Competition.
    JEL: F10 F12 F17
    Date: 2016–04–15
  8. By: Lorenzo CALIENDO; Maximiliano DVORKIN; Fernando PARRO
    Abstract: We develop a dynamic trade model where production and consumption take place in spatially distinct labor markets with varying exposure to domestic and international trade. The model recognizes the role of labor mobility frictions, goods mobility frictions, geographic factors, and input-output linkages in determining equilibrium allocations. We show how to solve the equilibrium of the model without estimating productivities, migration frictions, or trade costs, which are usually difficult to identify. We calibrate the model to 38 countries, 50 U.S. states, and 22 sectors, and use the rise in China's import competition to quantify the effects across more than 1,000 U.S. labor markets. We find that China's trade shock resulted in a loss of 800,000 U.S. manufacturing jobs, about 50% of the change in the manufacturing employment share unexplained by a secular trend. We find aggregate welfare gains, but, due to trade and migration frictions, the welfare and employment effects vary across U.S. labor markets. Estimated transition costs to the new long-run equilibrium are also heterogeneous and reflect the importance of accounting for labor dynamics.
    Date: 2016–03
  9. By: Huong Le Thu HOANG; SATO Kiyotaka
    Abstract: This study proposes a new empirical approach to the exchange rate pass-through (ERPT) in Japanese imports using input-output (IO) analysis. We analyze how exchange rate changes are transmitted from import prices to domestic producer prices through numerous stages of production by employing the Japanese IO tables of 2000, 2005, and 2011. Specifically, calculating input coefficients among 108 industries at numerous production stages, we demonstrate that, contrary to the stylized fact, the extent of ERPT to domestic producer prices should be significantly higher than empirical results of the conventional ERPT analysis. Conducting a panel estimation of ERPT determinants, we show that a large dependence on intermediate input imports tends to increase the extent of ERPT. More importantly, we reveal that if the manufacturing sectors tend not only to import intermediate inputs from abroad but also to export their products to foreign countries, the degree of import pass-through to producer prices increases significantly. Thus, growing international production sharing will have a positive impact on ERPT to domestic producer prices.
    Date: 2016–03
  10. By: Olper, Alessandro; Curzi, Daniele; Raimondi, Valentina
    Abstract: The aim of this contribution is to study empirically the effect of trade liberalization on productivity growth exploiting a large micro-dataset of more than 20,000 French and Italian food firms, over the 2004-2012 period. This relationship has been studied focusing on import penetration at both industry and upstream sectors level, to investigate the role played by imports in intermediate inputs. Main findings show that import penetration in both final products and intermediate inputs systematically contributed to firm-level productivity growth. Yet, the productivity growth effect induced by import penetration in upstream sectors is 10 times higher than the one at the industry level. Horizontal import competition coming from the EU15 and OECD countries exerts the strongest effect on productivity growth. By contrast, when vertical import penetration is considered, also sourcing intermediate inputs from emerging markets appears important for firms’ productivity growth. Finally, we also find a strong confirmation that the effects of import penetration are increasing with the initial level of firms’ productivity. All these stylized facts may have interesting policy implications.
    Keywords: import penetration, intermediate inputs, firm-level TFP, food industry, Agricultural and Food Policy, F14, F15, F61, L66, Q17,
    Date: 2015–06
  11. By: haq wani, Nassir ul; dhami, Jasdeep kaur
    Abstract: India and China are the two important emerging economies of the world with strong history of intimacy. After liberalization both have made rapid progress. Owing to large size and amalgamated composition of economies, the economies are looks as the upcoming global leaders on the international arena. The bilateral trade between the nations has definitely impact on the economic scenario of global trade. The trade relation in terms of trade between India and China is developing its own impetus and dynamism. India’s share in China’s exports and Imports increased from 0.51 per cent and 0.30 per cent in 1995 to 2.66 per cent and 1.34 per cent in 2011 respectively. During the period of 1995-1999, the actual growth rates of Indian exports to and imports from China, i.e. 3.07 per cent and 6.05 per cent respectively. The political relations between India and China turned to be good one, which positively affected their trade relations. The trade between these two giant economies has been identified as the most sensible and reliable instrument, in recognizing the impact on the dynamism of the global economy and its vibrant growth speed. It is in this context of their changing behavior, the current paper makes an endeavor to appraise that how the bilateral trade between the two economies becomes as a tool in intensifying their partnership for their joint advantages in the future time.
    Keywords: India: China: Economic Performance: EII and III
    JEL: F14 F17
    Date: 2016–03–20
  12. By: Scoppola, Margherita
    Abstract: Despite the attention given in recent years to the growth of foreign land acquisitions, there have been few studies investigating the pattern of recent Foreign Direct Investment (FDI) in agriculture and the ones that have are mostly focused on the locational drivers of FDI. This paper explores how the contractual features of transactions of agricultural products affect the “internalization” decision of firms, that is, the choice trade/FDI. The paper develops a partial equilibrium model incorporating incomplete contracts and asset specificity, which is used to address a number of questions: What is the impact of the quality of the institutions on the choice trade/FDI? How may the bargaining power of the downstream and upstream firms affect the outcome? How is the choice FDI/trade affected by the presence of a state–owned firm? The model provides some uncommon results, such as the finding that when the investor is private, weak institutions may promote FDI.
    Keywords: Foreign Direct Investment, foreign land acquisitions, agriculture, firm organization, bargaining power, International Relations/Trade, Q15, F23, L23, Q17.,
    Date: 2015
  13. By: Coughlin, Cletus C. (Federal Reserve Bank of St. Louis); Novy, Dennis (University of Warwick, UK)
    Abstract: Trade data are typically reported at the level of regions or countries and are therefore aggregates across space. In this paper, we investigate the sensitivity of standard gravity estimation to spatial aggregation. We build a model in which initially symmetric micro regions are combined to form aggregated macro regions. We then apply the model to the large literature on border effects in domestic and international trade. Our theory shows that larger countries are systematically associated with smaller border effects. The reason is that due to spatial frictions, aggregation across space increases the relative cost of trading within borders. The cost of trading across borders therefore appears relatively smaller. This mechanism leads to border effect heterogeneity and is independent of multilateral resistance effects in general equilibrium. Even if no border frictions exist at the micro level, gravity estimation on aggregate data can still produce large border effects. We test our theory on domestic and international trade flows at the level of U.S. states. Our results confirm the model’s predictions, with quantitatively large effects.
    Keywords: Gravity; Geography; Borders; Trade Costs; Heterogeneity; Home Bias; Spatial Attenuation; Modifiable Areal Unit Problem (MAUP)
    JEL: F10 F15 R12
    Date: 2016–04–01
  14. By: Tegebu, Fredu Nega; Hussein, Edris Seid
    Abstract: Recent proliferation of regional trade agreements (RTAs) has intensified the debate on merits of south-south trade agreements. This study contributes to this debate by analyzing trade creation and trade diversion effects of African RTAs on trade in nine of the eleven strategic agricultural products. An extended gravity model is estimated using PPML. Results indicate that African RTAs have mixed effect on trade creation and trade diversion. Net trade creation is positive in four of the eight RTA and it is negative in three. Further, for a significant number of the individual agrifood commodities, regional agreements in Africa have increased openness to non-members’ trade while increasing trade among themselves. Although a lot remains to be done, RTAs in Africa are attractive means to speed up the move towards common market for agricultural products in the continent. This will have positive implication for food security and sustainable agricultural development in the continent.
    Keywords: Regional Trade Agreements, food security, gravity model, Africa, Food Security and Poverty, International Development, International Relations/Trade, F13, F14, F15,
    Date: 2015
  15. By: Mustafa Sakr and Andre Jordaan
    Abstract: As emerging market multinational corporations (EMNCs) tend to remarkably expand their global presence, it is of the utmost importance to explore the salient attributes of such unfolding phenomenon. One of the key findings is that top EMNCs are displaying a leapfrogging internationalisation process. Moreover, natural resources related sectors, in particular energy, have been proven to dominate the non-financial industry structure of EMNCs. In addition, various interesting findings have been concluded by this article. Regarding the preferred destination for their outward foreign direct investment (OFDI), EMNCs currently tend to invest more in developing markets. However, the relevance of developed markets is growing over time. Available statistics furthermore exhibit that greenfield is often preferred above mergers and acquisitions (M&As) as an entry mode into developing markets. The opposite is true in developed markets. EMNCs are domiciled predominantly in BRICS countries which account collectively for most of the OFDI getting from EMs. Emerging African MNCs are dramatically losing ground in the EMNC landscape. Regarding internationalisation, ownership, industry and geographical structure and preferred entry modes, remarkable differences are easily seen in the salient features of EMNCs compared to those based in developed markets.
    Keywords: Emerging MNCs, BRICS MNCs, African MNCs, emerging markets’ OFDI, differences between EMNCs and DMNCs.
    JEL: P45 F21
    Date: 2016
  16. By: Lopez, Jose A.
    Keywords: fresh-market tomatoes, U.S. import demand for fresh-market tomatoes, tomato varieties, SDAIDS, Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade, Q11, R21,
    Date: 2016–02–06
  17. By: Ahn, Hannah; Ribera, Luis A.
    Abstract: Due to local violence in Mexico and the continuation of safety concerns along the border region, some ports of entry for Mexican cattle imports into the U.S. have been closed. When a port of entry is closed, the USDA establishes temporary facilities for contingency livestock inspection to maintain the flow of trade across the US-Mexico border. The purpose of this research is to identify the border closures’ impact on the trade flows between Mexico and the United States and between different ports of entry from January 2009 to September 2014. The observed bilateral trade flows between two countries could be explained well using statistical methods involving variables as the length of border closures, geographical locations, the US cattle prices relative to Mexican prices, seasonal patterns in the US cattle imports from Mexico, the combined result of drought, and feed costs. Through the use of a regression in Stata software, a series of economic explanatory variables, and a dummy variable for port of entry openings and closure the study attempts to measure how much of impact a closed port of entry has on the nearby ports of entry.
    Keywords: U.S.-Mexican Cattle Trade, Ordinary Least Squares, Seemingly Unrelated Regression, Violence in Mexico, Border Closings, Bilateral aggregate trade, Ports of entry, Agricultural and Food Policy, International Relations/Trade, Livestock Production/Industries, F140,
    Date: 2016
  18. By: Beghin, John; Maertens, Miet; Swinnen, Jo
    Abstract: We assess the literature on public and private quality standards and their impact in food markets, international trade, and global supply chains. We focus on their effects on welfare, trade, industrial organization, and labor markets and with special attention to the North-South context. We also attempt to better characterize when these measures constitute protectionism, a complicate task. We look at studies investigating public and private standards and across various quantitative approaches and countries. These standards have complex effects. The evidence is mixed regarding standards as catalyst for or impediment against trade and development, reflecting the complexity of these effects and their specificity to industries and countries. The analysis of standard-like nontariff measures and their impacts does not lead to sweeping prescriptions for policy reforms. We identify more modest prescriptions and make some recommendations for fruitful research directions.
    Keywords: Agricultural and Food Policy, International Relations/Trade,
    Date: 2015
  19. By: Biswas, Trina; Kennedy, P. Lynn
    Keywords: Internet, Agricultural Exports, Non-agricultural Exports, Gravity Model, Institutional and Behavioral Economics, International Relations/Trade,
    Date: 2016
  20. By: Kim, GwanSeon; Mark, Tyler
    Keywords: International Relations/Trade, Livestock Production/Industries,
    Date: 2016
  21. By: MK Wilson and DJM Vencatachellum
    Abstract: The fast output growth that a number of countries in Sub-Saharan Africa have achieved in the last decade has led to significant inflow of FDI into the continent. A number of studies have examined the trend of such FDI inflows generally but only a few have focused on these flows that are mainly mergers and acquisitions (M&A). Using a dynamic panel data model, this paper examines the determinants of FDI that targeted Africa between 1990 and 2011, a period when the continent exhibited high and sustained economic growth. The paper finds that the trend of M&A in Africa is similar to that of the other developing regions suggesting that the underlying factors driving M&A globally also apply to Africa. However, M&A activity in Africa respond with a lag, showing the role of inertia in driving M&A activity. In particular, we find that M&A targeting Africa responds positively and significantly to international stock markets (S&P) and international bond yields (G7). Internal factors which are location specific are also important determinants. Not surprisingly, given the continent’s endowment in natural resources such as oil and rare metals, and the high demand for such commodities in this period, our results further indicate that natural resources are a positive driver of M&A targeting Africa.
    Keywords: Africa, Mergers and Acquisitions, Foreign Direct Investment
    JEL: F23 C23 G15
    Date: 2016
  22. By: Ahn, Soojung; Lee, Sang Hyeon
    Abstract: Aid for Trade (AfT) has emerged as a significant mechanism for development of developing countries by helping them to participate in the global value chain. Grants on agricultural part in AfT has been gradually increased since 2002 and invested in various ways from agrarian reform, agricultural education and training to plant and post-harvest protection and pest control. In spite of the increase, there were only few researches on significance between AfT and agricultural development. This research aims to evaluate whether AfT has significant relation with agricultural development and trade. It also examines whether there is heterogeneity in the response to AfT across recipient countries with different national characteristics. We conducted a subgroup analysis using a panel tobit model. Also, UN COMTRADE(PC-TAS) for the export data, the World Bank data for agricultural GDP, OECD QWIDS for AfT data from 2002 to 2013 were used. Our results show that AfT in agriculture has increased both agricultural GDP and exports of the recipient countries. This study also found the most effective form of AfT in agriculture which differs from country to country depending on the characteristics of each country.
    Keywords: Aid for Trade in Agriculture, Agricultural Development, Food Trade, Global Value Chain, International Development, International Relations/Trade, F14, F35, O19,
    Date: 2016–01
  23. By: Yeboah, Osei; Naanwaab, Cephas B.; Otchere, Richmond
    Abstract: Country of Origin Labeling (COOL) for meat products have been a debated subject since its implementation in March, 2009. While advocates of COOL suggest it provides valuable information to consumers, opponents on the other hand claim it imposes unnecessary cost on consumers and distort trade in affected commodities. This paper applies a Source Differentiated Almost Ideal Demand System to estimate mandatory COOL induced Structural Change in U.S. imported meat products. Included in the model is a system of equations setting consisting of beef, pork and lamb. The results show an elastic own price for beef from all countries except Canada. Pork from Canada, Denmark and Mexico; and lamb from Australia and New Zealand; has an inelastic own price. The initial impact of COOL resulted in a decline in the imports of the three meat products. Also, the Pre and Post COOL analyses show declined expenditures on all meat types from all the sources. The chow test performed indicates a structural change in all the meat types from all the sources with the exception of beef from Canada and Pork from Denmark. COOL appears to have had mixed effect on U.S. meat imports based on the source of origin of each meat type.
    Keywords: Country of Origin Labeling, Source Differentiated Almost Ideal Demand System, Chow Test., Agricultural and Food Policy,
    Date: 2016–01–20
  24. By: Asgari, Mahdi
    Keywords: International Relations/Trade,
    Date: 2016
  25. By: Paul J Dunne and Nicholas Masiyandima
    Abstract: The study uses firm level data from the World Bank Enterprise Surveys and employs alternative techniques to identify and estimate the within and intra-industry productivity impact of firm foreign ownership in SADC. Using firm labour productivity and employing sector fixed effects to identify the impact of foreign firm ownership on productivity, we find results that strongly suggest the existence of positive within firm and intra-industry FDI productivity spillovers for both small and large firms in the region. The productivity gains are, however, larger for small firms than for large firms suggesting greater productivity spillover advantages for the relatively technologically backward small firms. Similarly, there is heterogeneity with regard to productivity spillovers across individual countries, with the relatively technologically advanced countries such as South Africa and Mauritius experiencing larger intra-industry spillovers while less technologically endowed countries enjoy larger within firm gains.
    Keywords: Growth; development; firm; technology; spillovers; productivity; FDI; SADC
    JEL: O33
    Date: 2016
  26. By: Roberto Veneziani (Queen Mary University of London); Naoki Yoshihara (Department of Economics, University of Massachusetts Amherst)
    Abstract: A dynamic general equilibrium model that generalises Roemer's [23] economy with a global capital market is analysed. An axiomatic analysis of the concept of unequal exchange (UE) between countries is developed at general dynamic equilibria. The class of UE definitions that satisfy three fundamental properties - including a correspondence between wealth, class and UE exploitation status - is completely characterised. It is shown that this class is nonempty and a definition of UE exploitation between countries is proposed, which is theoretically robust and firmly anchored to empirically observable data. The full class and UE exploitation structure of the international economy is derived in equilibrium.
    Keywords: Exploitation, classes, unequal exchange, international economy
    JEL: D63 F02 B51
    Date: 2016–04
  27. By: Evgenii Monastyrenko
    Abstract: European electricity industry has recently come through liberalization. Surge of intakes with high share of cross-border deals was market players’ response. Measuring of post-merger performance alterations is a central question of M&A literature. EU energy sector is responsible for significant part of global greenhouse gas emissions. Its efficiency should be regarded with respect to ecological dimension. This study addresses combined economic and environmental performance of 15 biggest European energy producers in 2005-2013. I exploit Data envelopment analysis (DEA) with CO2 as an undesirable output. Panel fractional regression model with financial controls is used to isolate effects of completed mergers. Results suggest that in short term firms profit from selling their subsidiaries to foreign counter-parties. This effect doesn’t sustain over time. Same-type domestic deals are detrimental in short run, but performance-enhancing in long term. Domestic and cross-border acquisitions immediately damage performance. Later ones stimulate efficiency in the long run.
    Keywords: Mergers and acquisitions, Firm performance, Data envelopment analysis, Fractional regression model, Electric power industry, Carbon dioxide emissions
    JEL: F21 G34 L25 L94 D24
    Date: 2016–03

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