nep-int New Economics Papers
on International Trade
Issue of 2016‒06‒04
thirty-two papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. The supplier network of exporters : Connecting the dots By Emmanuel Dhyne; Stela Rubínová
  2. Hidden Trade Costs? Maximum Residue Limits and US Exports to Trans-Atlantic and Trans-Pacific Trading Partners By Hejazi, Mina; Grant, Jason H.; Peterson, Everett
  3. Complex Internationalization Strategies and Firm Export Dynamics: Crisis and Recovery By David Córcoles; Carmen Díaz-Mora*; Rosario Gandoy
  4. Delivery Costs and Cross-border e-Commerce in the EU Digital Single Market By Melisande Cardona; Nestor Duch-Brown
  5. Are Free Trade Agreements Good for the Environment? A Panel Data Analysis By Nemati, Mehdi; Hu, Wuyang; Reed, Michael
  6. A COOL Repeal: Potential Outcomes of U.S. Mandatory Country of Origin Labeling Requirements on Dairy and Beef Sectors By Bonanno, Alessandro; Countryman, Amanda; Hadrich, Joleen
  7. Cities export specialization By Díaz-Lanchas, Jorge; Llano, Carlos; Minondo, Asier; Requena, Francisco
  8. Migrant Networks and Trade: The Vietnamese Boat People as a Natural Experiment By Christopher Parsons; Pierre-Louis Vézina
  9. Asymmetric Trade Flows and Their Implication for Competitiveness, Efficiency and Trade By Lee, Youngjae; Kennedy, Lynn
  10. Policy Impacts from U.S. Organic Equivalency with the European Union By Demko, Iryna; Edward, Jaenicke
  11. Corn Ethanol and US Biofuel Policy Ten Years Later: A Systematic Review and Meta-analysis By Hochman, Gal; Zilberman, David
  12. Multinational enterprises and economic development in host countries: What we know and what we don't know By Narula, Rajneesh; Pineli, André
  13. The impact of tariff rates on the probability of trade relationships survival: evidence from ASEAN+6 manufactured goods By Lin, Chin-Ho
  14. Current Account and Real Exchange Rate changes: the impact of trade openness By Davide Romelli; Cristina Terra; Enrico Vasconcelos
  15. Revealed Concerns: A New Look at the Impact of Sanitary and Phytosanitary Measures on Agri-Food Trade By Grant, Jason; Arita, Shawn
  16. Migration and FDI: Reconciling the standard trade theory with empirical evidence By Jayet, Hubert; Marchal, Léa
  17. Growth Volatility and Export Diversity in OIC Countries By Ali, Salman Syed
  18. The impact of migrants on the cross-border M&A: Some evidence for Japan By Etzo, Ivan; Takaoka, Sumiko
  19. Determining the Effect of NAFTA on the North American Sweet Potato Market By Lee, Youngjae; Kennedy, Lynn
  20. The law of regional trade agreements in the WTO dispute settlement system: lessons from the Peru-Agricultural Products case By Daniel Rais
  21. Distortions to Agricultural Incentives in India: Evidence from Agricultural Value Chains By Tokgoz, Simla; Majeed, Fahd
  22. Environmental Concerns and Individual Trade Policy Preferences in Developing Countries By Daniel Rais
  23. Impacts of the Trans-Pacific Partnership for US and International Dairy Trade By Peterson, Everett; Grant, Jason; Sydow, Sharon
  24. Corruption and innovation: the mediating role of trade By DeMaria, Federica; Franco, Chiara; Solferino, Nazaria
  25. The political connotation of international trade and globalisation: a common misunderstanding By Traverso, Silvio
  26. Refugees and Asylum Seekers, the Crisis in Europe and the Future of Policy By Hatton, Timothy J.
  27. Intra-industry trade in a rapidly globalizing industry: the case of wine By Kym Anderson; Joseph Francois; Douglas Nelson; Glyn Wittwer
  28. NTMs, Preferential Trade Agreements, and Prices: New evidence By Daniel Rais
  29. Export Restrictions in relation to Extractive Industries By Daniel Rais
  30. Foreign Investment into Australia By Adam McKissack; Jessica Xu
  31. Evaluating the Economic and Environmental Impacts of a Global GMO Ban By Mahaffey, Harry; Taheripour, Farzad; Tyner, Wallace E.
  32. Agricultural Protection, Domestic Policies, and International Political Economy: What is the Role of the State in Explaining Agricultural Protection? By Moon, Wanki; Pino, Gabriel; Asirvatham, Jebaraj

  1. By: Emmanuel Dhyne (Research Department, NBB and UMons); Stela Rubínová (The Graduate Institute, Geneva)
    Abstract: The capability of domestic firms to compete on foreign markets is an important indicator of a country’s economic strength and a target of many economic policies. We know that only a small share of producers sells on foreign markets and that these firms perform in many aspects differently from their purely domestic counterparts. Recent research, however, highlighted that many exporters are just trade intermediaries that do not produce the exported good and, importantly, the capability to export is supported by availability of cheap and high-quality inputs. This suggests that in order to understand an economy’s involvement in international trade and the characteristics of firms that produce for foreign markets we need to look beyond the firms that own a good when it crosses the border and acknowledge that many firms are engaged in international trade indirectly. This paper fills the gap by offering the first glimpse of the domestic supplier network that underpins exports production. To this purpose we use a new and unique dataset of yearly transactions between all domestic firms in the Belgian economy and augment it with data on firms’ characteristics and their international transactions. We show that the current picture of firms in international trade indeed misses an important share of firms. While we confirm that direct exporters are the best performing firms, we also show that they are supported by suppliers that are very good performers themselves. In fact, we find evidence of a performance premium that is increasing in the proximity to foreign demand.
    Keywords: Exporters, domestic suppliers, productivity
    JEL: D22 F24 L25
    Date: 2016–05
  2. By: Hejazi, Mina; Grant, Jason H.; Peterson, Everett
    Abstract: Sanitary and phytosanitary (SPS) measures are not new, but their significance in international agri-food trade continues to grow. Despite recent data collection efforts, the current literature has not lead to a consensus about the impact of SPS measures on trade nor has it led to a prescribed framework for how to address SPS policy reforms in multilateral and bilateral trade negotiations. In this article we focus on a specific type of SPS measures that features prominently in the current mega-regional trade negotiations, namely food safety standards in the form of maximum residue limits. First, we construct a comprehensive database of country-and-product specific MRLs for global fresh fruit and vegetable trade and develop a novel bilateral stringency index to quantify the degree of MRL regulatory heterogeneity between trading nations for the years 2013 and 2014. Second, a formal econometric model is developed to investigate the trade restricting nature of these measures. The results suggest that for any given fresh fruit or vegetable product, importer MRL standards that are marginally stricter than exporter MRLs can impart significant reductions in bilateral trade. However, when MRL policies are roughly equivalent, as is the case between the US and some of its TPP trading partners, the actual restrictiveness of this SPS policy diminishes dramatically. The results have important implications for the current mega-regional negotiations.
    Keywords: fruit and vegetable trade, bilateral trade, maximum residue limits, non-tariff measures, Trans-Atlantic Trade and Investment Partnership, Trans-Pacific Partnership, Intensive and Extensive Margins of Trade, International Relations/Trade, F13, Q17,
    Date: 2016
  3. By: David Córcoles (University of Castilla-La Mancha); Carmen Díaz-Mora* (University of Castilla-La Mancha); Rosario Gandoy (University of Castilla-La Mancha)
    Abstract: The aim of this paper is to investigate the dynamics of the exporting activity of manufacturing firms that are involved in complex internationalization strategies. We consider complex internationalization to be when firms are simultaneously active in exporting, importing intermediates and international production, which are typically associated with participation in GVCs. Our descriptive data show that these triple mode internationalized firms belong to an elite group of firms that exhibit a higher level of labour productivity, are larger and show a higher likelihood of engaging in product innovation. On the basis of the estimation of a random-effects probit model with panel data, we find that once such firm characteristics are controlled for, internationalization complexity plays an important role in continuing to export. Additionally, the results from a dynamic panel data model show that being involved in more sophisticated internationalization modes positively influences the level of exports. Thus, it seems that firms active in a complex mix of internationalization strategies have an added advantage which enables them to confront the uncertainty of foreign markets in better conditions and translates to a lower likelihood of ceasing exporting and to higher export values. We go one step further and investigate whether the impact is different during the trade collapse in 2009 and the following recovery.
    Keywords: Export dynamics, firms' characteristics, complex internationalization, trade collapse and recovery
    Date: 2016–05
  4. By: Melisande Cardona (European Commission - JRC - IPTS); Nestor Duch-Brown (European Commission - JRC - IPTS)
    Abstract: This paper studies the effects of delivery costs on cross-border e-commerce flows in the EU. For this purpose, we use surveys carried out in 2015 on firms and consumers, to analyse the supply and demand side separately. The paper first offers some descriptive statistics on the issues of delivery and e-commerce. In addition, the paper provides some indirect and descriptive evidence about the effects of delivery costs on cross-border e-commerce. Finally, a more robust econometric analysis is carried out to assess the effects of a hypothetical reduction of concerns about delivery cost on cross-border e-commerce in the EU, from the perspective of both consumers and firms. On the consumers' side, the results indicate that concerns about long delivery times reduce expenditure in other countries more strongly if the consumer has had more experience with shopping in non-neighbouring countries. The results on the supply side indicate that removing delivery cost concerns would increase the overall number of firms selling online across the border by 6.2 percentage points. Similarly, an increase of 5 percentage points would be registered in the volume of online trade. Finally, we compute the implied reduction in cross-border trade costs that would result from a hypothetical policy intervention to eliminate these delivery cost concerns. We plug this trade cost estimate into a macro-sector multi-country CGE model. The macro-economic results indicate that, even though the impact on GDP would be tiny, an important effect would come from reduced overall price levels. Consumer prices would be significantly reduced due to a productivity shock in the retail sector.
    Keywords: parcel delivery costs, cross-border e-commerce, digital single market
    JEL: D12
    Date: 2016–05
  5. By: Nemati, Mehdi; Hu, Wuyang; Reed, Michael
    Abstract: This study attempts to empirically re-examine the relationship between free trade agreements (FTAs) and greenhouse gas (GHG) emissions. For this aim, we chose three different free trade agreements: Southern Common Market (MERCOSUR), North American Free Trade Agreement (NAFTA), and the Australia-United States Free Trade Agreement (AUSFTA). These FTAs are between developing countries, developed and developing countries, and only developed countries, respectively. Panel unit root, panel cointegration, and fully modified OLS (FMOLS) estimators are employed to find the longrun relationship between GHG emission, trade liberalization, and other economic factors. The results indicate that the environmental effect of a free trade agreement depends on the agreement type. When the agreement is among only developed or only developing countries, there is no environmental damage to the world and these types of FTAs can be beneficial for the world environment. However, when developing and developed countries are in the agreement, world GHG emissions increase.
    Keywords: Economic Factors, EKC, FTAs, GHG Emissions, Panel Cointegration, Environmental Economics and Policy, International Relations/Trade, F18, Q56,
    Date: 2016–05–25
  6. By: Bonanno, Alessandro; Countryman, Amanda; Hadrich, Joleen
    Abstract: In December 2015 the US Congress repealed the Mandatory Country of Origin Labeling (COOL) requirement for some agricultural commodities to avoid potential retaliatory tariffs from Canada and Mexico that were authorized by the WTO. In this analysis we simulate and compare the potential welfare effects that such tariffs could have had on two sectors that were likely to be affected by them (dairy and beef) vis-à-vis a scenario where COOL was maintained, using a modified Global Trade Analysis Project (GTAP) model and a sector specific- disaggregated database.
    Keywords: Country of Origin Labeling, Agricultural Trade, Beef, Agricultural and Food Policy, International Relations/Trade,
    Date: 2016
  7. By: Díaz-Lanchas, Jorge (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.); Llano, Carlos (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.); Minondo, Asier (Deusto Business School, University of Deusto.); Requena, Francisco (Universitat de Valencia. Departamento de Estructura Economica.)
    Abstract: Do large and small cities exhibit different patterns of export specialization? Using highly disaggregated product-level trade data for Brazilian cities in year 2013, we find that more populated urban areas export proportionately more complex and skill-intensive goods than less populated urban areas. We also show that Brazilian urban areas that have increased more in population have also augmented more than proportionately the exports of complex and skill-intensive goods. Our empirical findings support recent models which argue that large cities attract more skilled workers and exhibit a wide range of capabilities, providing them a comparative advantage in skill-intensive and complex goods.
    Keywords: urban areas, exports, complexity, skills, comparative advantage, Brazil
    JEL: F11 F14 R12
    Date: 2016–05
  8. By: Christopher Parsons (Business School, University of Western Australia); Pierre-Louis Vézina (King's College London)
    Abstract: We provide cogent evidence for the causal pro-trade effect of migrants and in doing so establish an important link between migrant networks and long-run economic development. To this end, we exploit a unique event in human history, i.e. the exodus of the Vietnamese Boat People to the US. This episode represents an ideal natural experiment as the large immigration shock, the first wave of which comprised refugees exogenously allocated across the US, occurred over a twenty-year period, during which time the US imposed a complete trade embargo on Vietnam. Following the lifting of trade restrictions in 1994, US exports to Vietnam grew most in US States with larger Vietnamese populations, themselves the result of larger refugee inflows 20 years earlier.
    Date: 2016
  9. By: Lee, Youngjae; Kennedy, Lynn
    Abstract: The asymmetric trade flow of agricultural goods can serve as a clue to help understand unobservable agricultural competitiveness, infrastructural efficiency for exports, and net openness to imports. In order to identify these three factors from agricultural trade data, we adapt a trade model developed by Eaton and Kortum. Unlike Eaton and Kortum, we interpret specific country dummy variables as proxies representing these three factors. This study makes four important findings. First, agricultural trade flow is strongly related to net openness to imports but less to agricultural competitiveness. Second, agricultural competitiveness is more related to land endowments than economic development. Third, economic development improves infrastructural efficiency for agricultural exports. Finally, existing agricultural import restrictions are shown to be punitive.
    Keywords: agricultural competitiveness, gross and net openness to imports, gross competitiveness, infrastructural efficiency., Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade, F11, F13, F14, F18, O19, Q17, Q54.,
    Date: 2016–07–31
  10. By: Demko, Iryna; Edward, Jaenicke
    Abstract: This study uses the synthetic control method to investigate the impact of the 2012 bilateral organic equivalency arrangement between the European Union and the United States, the two largest organic markets in the world. Employing the newly available USDA Global Agricultural Trade System (GATS) data on organic trade, we collectively analyze 23 products of U.S. organic exports, representing fresh produce, coffee, and tomato sauce, at the quarterly level during the 2011-2014 period. We find that the policy generates an increase of $149,100, or 9.3%, in the organic exports of these products to the European Union each quarter.
    Keywords: organic equivalency arrangement, synthetic control method, Agricultural and Food Policy, International Relations/Trade,
    Date: 2016–05–25
  11. By: Hochman, Gal; Zilberman, David
    Abstract: We use data and estimates on biofuel impacts reported in the literature to assess some of the controversy surrounding the introduction of biofuels by conducting meta-analyses on the impacts of corn ethanol on food and fuel prices, greenhouse gases, employment, rural income, balance of trade, the United States government budget, and learning-by-doing. The meta-analyses suggest that corn ethanol has had a relatively significant impact on the income of agricultural and related agribusiness industries, employment in farm states, fuel security in terms of reducing the import of oil from abroad, and the overall balance of trade. These effects are likely the main drivers behind biofuel policies.
    Keywords: Biofuels, Energy policy, Impacts, Meta-analysis, Environmental Economics and Policy, Political Economy, Resource /Energy Economics and Policy, Q4,
    Date: 2016–05–18
  12. By: Narula, Rajneesh (Henley Business School, University of Reading); Pineli, André (Henley Business School, University of Reading)
    Abstract: The attraction of multinational enterprises (MNEs) has become a key component of development policies. Generous incentive packages are offered by governments to attract foreign direct investment (FDI), although few countries perform proper cost/benefit analyses. MNEs can have a decisive influence on the development path of countries, although the effectiveness of an FDI-assisted development strategy depends on a variety of factors. Net benefits depend not only on quantity, but also on the quality of FDI. Quality has to do with the MNE's investment motivations, the affiliates' mandate and autonomy, which in turn determine the potential for linkages and spillovers. These effects also depend on the capacity of domestic firms to absorb, internalise and upgrade their knowledge assets. A sound FDI policy must not be exclusively concerned with attracting capital investment, but must prioritise enhancing the local embeddedness of the MNEs. Globalisation and subsequent changes in economic organisation require both policy makers and scholars to reconsider their understanding of FDI and development. "FDI" and "MNEs" are no longer synonyms, as MNEs are increasingly able to control value chains without ownership through equity. Poor data and weak methodologies mean making realistic estimations of development effects is also increasingly fraught with difficulty. The tools to measure linkages and spillovers are increasingly outdated, as we cannot estimate non-equity engagements or knowledge flows, and this means we are unable to objectively judge if foreign investments have a net positive or negative effect, and whether such effects persist or attenuate over time.
    Keywords: multinational enterprises, foreign direct investment, economic development, developing countries, externalities, spillovers, linkages
    JEL: D62 F23 O14 O19 O24
    Date: 2016–05–10
  13. By: Lin, Chin-Ho
    Abstract: This article explores the links between imported trade relationships, duration, and tariff rates. We investigate how the probability of survival of trade relationships affected due to the difference in the tariff rates based on survival analysis. Using ASEAN+6 as the reporter with 89 trading partners on manufactured goods from 1996 to 2011. A series of findings are as follows. First, low-tariff trade survives longer than high-tariff trade on manufactured goods. Second, a significantly negative correlation between tariff rates and duration is evidenced, which increases around 4% hazard ratios. Also, the reduction of tariff rates in intra-regional trade is helpful to prolong the length of trade relationships. Third, low tariff rates have 9.1% lower hazard ratios. We also obtain robust results in production networks and Rauch product’s classification. Finally, we consider these findings could be the references for other economic organizations, which is aimed at the diminution of tariff rates.
    Keywords: Production networks; East Asia; Survival analysis; Machinery
    JEL: F1 F14 F15
    Date: 2015–12–19
  14. By: Davide Romelli; Cristina Terra; Enrico Vasconcelos
    Abstract: This article investigates the impact of trade openness on the relationship between current account and real exchange rates, during episodes of sudden stops and of abrupt exchange rate depreciations. Using data for developed and emerging economies for the period 1970--2011, we find that more open economies are associated with lower exchange rate depreciations during sudden stops. We also provide evidence that, during abrupt exchange rate depreciation episodes, economies that are more open to trade experience a larger change in current account and trade balance. In other words, our results indicate that improvements in current account and trade balance are accompanied by a smaller exchange rate depreciation in more open economies. These findings are robust to different measures of openness to trade and methodologies of identifying sudden stops and abrupt exchange rate depreciations
    Date: 2016–05
  15. By: Grant, Jason; Arita, Shawn
    Keywords: Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, International Relations/Trade,
    Date: 2016–05–25
  16. By: Jayet, Hubert; Marchal, Léa
    Abstract: This article focuses on an apparent conflict between the standard trade theory and available empirical evidence on factor flows. Theoretically, labor and capital flows must be substitutes. However, empirical papers find migration and FDI to be either substitutes or complements, depending upon the skill content of migration. To reconcile the standard theory with these empirical results, we develop a two-country general equilibrium model. We consider three factors - capital, unskilled and skilled labor - and two internationally traded goods. Countries only differ in their factor endowments. The first country is a developing country amply endowed with unskilled labor; the second one is a developed country well endowed with skilled labor. Under imperfect factor mobility, we find that capital and unskilled labor flows are substitutes, while capital and skilled labor flows are complements.
    Keywords: Capital flows,Migration,Skills,Standard trade theory
    JEL: F11 F21 F22 J61
    Date: 2016
  17. By: Ali, Salman Syed (The Islamic Research and Teaching Institute (IRTI))
    Abstract: While exports contribute to economic growth through expanding the market, a narrow export base can increase the volatility of this growth. Many OIC member countries face the problem of low diversity of exports. This paper measures the impact of export diversity on the volatility of growth in the OIC member countries using a new data set of trade flows at 4-digit STIC level issued by IMF. It finds that one standard deviation increase in export diversity reduces the volatility of GDP growth by about 17.2 percent for the OIC countries. In the group of less-developed countries and in the group of oil-exporting countries, the intensive margin of diversification is more important than extensive margin diversification for stability of growth.
    Keywords: Export Diversification; GDP Volatility; Growth; OIC Countries
    JEL: F41 F43
    Date: 2016–01–19
  18. By: Etzo, Ivan; Takaoka, Sumiko
    Abstract: Japanese outbound M&A activity has been running at a record pace regardless of the exchange rate movements. This paper examines the determinants of Japanese outbound M&A activity and the link between the migrants, which refer to both immigrants and Japanese citizens residing abroad, and Japanese outbound cross-border M&A activity in order to investigate whether immigrants alleviate the informational problems and stimulate the cross-border M&A activity with their host countries. Our results suggest that both immigrant and Japanese citizens residing abroad increase the probability of acquiring the asset in a potential target country. Moreover, both stocks have also a positive effect on the number of outbound M&A deals and the value of outbound M&A deals.
    Keywords: Country risk, Cross-border M&A, Exchange rate, Migration
    JEL: F21 F22 G34
    Date: 2016–05–24
  19. By: Lee, Youngjae; Kennedy, Lynn
    Abstract: In order to analyze the effect of NAFTA on the North American sweet potato market, this study uses both observable trade data such as trade volumes and home prices and unobservable trade data such as imported prices and non-tariff trade costs. The unobservable trade data are estimated by the model used in this study. Unlike previous studies, this study confirms that the degree of integration in the North American sweet potato markets is relatively low because the three individual sweet potato markets are mostly dominated by their own product and the difference between home and imported prices in each NAFTA member country have increased from pre-NAFTA to post-NAFTA levels. Two counterfactual analyses confirm that low levels of market integration may be due to high non-tariff trade costs.
    Keywords: NAFTA, Sweet Potatoes, Non-Tariff Trade Cost, Trade Creation, and Trade Diversion., Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade, F10, F13, F14, F18, O19, Q17, Q54.,
    Date: 2016–07–31
  20. By: Daniel Rais
    Abstract: SECO Working Paper No 4/2016
    Date: 2016–05–31
  21. By: Tokgoz, Simla; Majeed, Fahd
    Abstract: With growing population, increasing and still uneven income distribution, achieving food and nutrition security is a critical goal for the Government of India (GOI). GOI implements a wide range of agricultural, trade, and domestic policies to achieve this goal, creating a highly regulated environment for consumers and producers. At the same time, there are new policies, such as biofuels market policies, that create new value chains and new income opportunities for the farmers. Income growth leads to higher consumption of vegetable oils and livestock and dairy products, creating higher value added for oilseeds producers by generating larger markets for by-products. This complicated policy environment affects both the producer and the consumer decisions across the entire value chain. In this context, it is crucial to identify which parts of agricultural distortions in India are due to market failure and which parts are due to effective policy intervention. Agricultural distortions, originating from either policy design or other sources, also create and influence value chains within a country. Therefore, measuring distortions along the complete agricultural value chain is necessary for effective policy design. The objective of the paper is to measure the impact of sector-specific and state-specific policies on agricultural incentives in India across agricultural value chains. Specifically, we focus on two value chains: oilseeds value chain (rapeseed and groundnut complex) and biofuels value chain (ethanol-molasses-sugar-sugarcane complex). We utilize state level price data at different points in the market to measure distortions to agricultural incentives at state level for the primary commodities in these value chains and for the entire value chain. The results show that GOI has effectively protected the farmers for the primary commodities included in this analysis. When a primary commodity is part of a value chain that generates additional products through processing, the effective NRPs for the farmers producing the primary commodity increase. This is due to two channels: first farmers receive higher prices for their crop since there is additional value being generated through a larger market. Second, protection of these processed commodities and their higher prices are transmitted to the primary commodity prices. Measuring distortions along the entire value chain are therefore necessary for effective policy design and evaluation.
    Keywords: Agricultural and Food Policy,
    Date: 2016
  22. By: Daniel Rais
    Abstract: Abstract Many political leaders of the Global South oppose linkages between trade liberalization and environmental protection. We examine whether citizens in developing countries share this position. Whereas a recent study finds that, in industrialized countries, environmental concerns are associated with protectionist sentiments, we hypothesize that citizens in poorer countries are likely to view the trade-environment nexus in a more positive light. We fielded a combination of surveys and conjoint experiments in Costa Rica, Nicaragua, and Vietnam to test this argument. The results show that citizens are concerned about negative environmental implications of trade. Yet, individuals with greener preferences are also more supportive of trade liberalization. Furthermore, and in contrast to prevailing government rhetoric, the majority of citizens support environmental clauses in trade agreements. These findings suggest that there might be room for more ambitious efforts to include environmental standards in international trade agreements.
    Date: 2015–05–15
  23. By: Peterson, Everett; Grant, Jason; Sydow, Sharon
    Keywords: Agricultural and Food Policy, International Relations/Trade, Livestock Production/Industries, Marketing, Production Economics,
    Date: 2016–05–25
  24. By: DeMaria, Federica (Associazione Italiana per la Cultura della Cooperazione e del Non Profit); Franco, Chiara (Associazione Italiana per la Cultura della Cooperazione e del Non Profit); Solferino, Nazaria (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)
    Abstract: The paper aims to investigate the relationship among corruption, innovation and trade. We develop a model where a firm producing an innovation may pay some bribes to sell its own products in the domestic or international market. The government official may accept or not the bribes and choose whether or not to be honest, eventually, gaining some illegal beneficial. Firm’s profit may be affected by the costs of innovation and on the cost of corruption. Firm’s ability to sell new products in the foreign market also assumes a strategic role by playing a part in determining the efficient enterprises.
    Keywords: Corruption; Innovation; Export; Institutions
    JEL: D73 F13 O31
    Date: 2015–04–13
  25. By: Traverso, Silvio
    Abstract: Globalisation is often associated with a conservative political ideology and it usually finds the opposition of progressive political groups. The present essay contends this idea and tries to illustrate how the process is consistent with a progressive political philosophy. It also argues that the removal of this political bias would allow both the promoters of international trade and the progressive political organisations to be more effective in pursuing their own objectives.
    Keywords: Globalisation,Free trade
    Date: 2015
  26. By: Hatton, Timothy J.
    Abstract: This paper examines some key aspects of migration for asylum to provide a background to the recent crisis and the policy debate that it has spawned. After outlining some of the key facts I focus on the origin and destination factors that influence asylum applications, particularly the policies adopted in developed countries. I then examine different aspects of public opinion that condition the scope for the development of asylum policies. In this light I focus on three issues: border controls, resettlement policies and burden-sharing among destination countries. The existing asylum system that encourages migrants to make hazardous maritime or overland crossings to gain access to an uncertain prospect of obtaining refugee status is inefficient, poorly targeted and lacks public support. In the long run it should be replaced by a substantial joint programme of resettlement that would help those most in need of protection, that would eliminate the risks to refugees, and that would command more widespread public support.
    Keywords: Asylum Migration; Asylum Policy; Refugees
    JEL: F22 F53 J15
    Date: 2016–05
  27. By: Kym Anderson; Joseph Francois; Douglas Nelson; Glyn Wittwer
    Abstract: This paper overviews the current structure and dynamics of international trade in wine with an emphasis on its intra-industry features. Using network analytic methods, we illustrate developments in the world’s wine markets since the mid-1960s around a relatively stable core of countries. Those developments include both evolving demands for wine and, on the supply side, a rapidly emerging group of countries entering the core without displacing the original members. Not surprisingly, given that the analysis is based on bilateral trade in a single product, the developing patterns of intra-industry trade are quite consistent with the patterns revealed in the network analysis.
    Keywords: International intra-industry trade, wine trade, network methods
    JEL: F1 L7
    Date: 2016
  28. By: Daniel Rais
    Abstract: Abstract Combining for the first time a new dataset of non-tariff measures (NTMs) in 65 countries with the CEPII’s unit values database, we estimate average ad-valorem equivalents (AVEs) for SPS, TBT and other measures by section of the Harmonized System of product classification. While most existing AVEs are obtained from indirect quantity-based estimation, ours are obtained from direct price-gap estimation. They lie in a single-digit range, i.e. substantially lower than previous estimates based on older data. Our results may reflect the progressive phasing out of commandand-control instruments such as quantitative restrictions in many countries; they also suggest that sanitary and technical regulations have not substituted for them as trade-restrictive interventions. Most interestingly, we show that deep-integration clauses in regional trade agreements, in particular the mutual recognition of conformity-assessment procedures, substantially reduce the price-raising effect of NTMs, possibly reflecting lower compliance costs.
    Date: 2015–02–15
  29. By: Daniel Rais
    Abstract: This paper considers concrete policy options to better regulate the use of export restrictions in relation to extractive industries. It briefly describes recent trends in the use of export restrictions on mineral and energy resources. It gives an account of the main shortcomings in the WTO legal treatment of export restrictions. It accordingly discusses possible avenues for reforming existing WTO disciplines in the interest of secure access to supplies, while still taking into account the need to preserve some policy space for host countries to use such measures as legitimate development tools.
    Date: 2015–05–01
  30. By: Adam McKissack (Treasury, Government of Australia); Jessica Xu (Treasury, Government of Australia)
    Abstract: Despite the essential contribution of foreign investment to Australia’s economic growth and prosperity, the benefits of foreign investment are not well understood. This paper aims to provide further insights into foreign investment in Australia by examining the trends, the sources and the positive effects of foreign investment into Australia. The available data on foreign investment in Australia suggests a fairly consistent trend over time despite increases in the number of foreign investment applications received by the Foreign Investment Review Board.
    Keywords: foreign direct investment
    JEL: F21 O56
    Date: 2016–01
  31. By: Mahaffey, Harry; Taheripour, Farzad; Tyner, Wallace E.
    Abstract: The objective of this research is to assess the global economic and greenhouse gas emission impacts of GMO crops. This is done by modeling two counterfactual scenarios and evaluating them apart and in combination. The first scenario models the impact of a global GMO ban. The second scenario models the impact of increased GMO penetration. The focus is on the price and welfare impacts, and land use change greenhouse gas (GHG) emissions associated with GMO technologies. Much of the prior work on the economic impacts of GMO technology has relied on a combination of partial equilibrium analysis and econometric techniques. However, Computable General Equilibrium (CGE) modelling is a way of analyzing economy-wide impacts that takes into account the linkages in the global economy. Though it has been used in the context of GMO crops, the focus has been on the effects of various trade policies and regulatory regimes. Here the goal is to contribute to the literature on the benefits of GMO technology by estimating the impacts on price, supply and welfare. Food price impacts range from an increase of 0.27% to 2.2%, depending on the region. Total welfare losses associated with loss of GMO technology total up to $9.75 billion. The loss of GMO traits as an intensification technology has not only economic impacts, but also environmental ones. The full environmental analysis of GMO is not undertaken here. Rather we model the land use change owing to the loss of GMO traits and calculate the associated increase in GHG emissions. We predict a substantial increase in GHG emissions if GMO technology is banned.
    Keywords: GMO Crops, Productivity, Computable General Equilibrium, Economic Impacts, Land Use Change, Land Use Emissions, Agricultural and Food Policy,
    Date: 2016
  32. By: Moon, Wanki; Pino, Gabriel; Asirvatham, Jebaraj
    Abstract: The extant explanations of agricultural protection centers around domestic factors such as interest group politics within countries. Relatively little research effort has been paid to factors relating to conflictual international relations. The paper considers the state as a major decision-making unit and inter-state relations as an additional force shaping agricultural protectionism. The paper pursues two objectives: (i) developing a theory concerning states’ behavior in terms of protecting their agricultural sectors from foreign competition and promoting domestic agriculture; and (ii) developing empirical models to test the theory. The theory highlights inter-state conflicts and competition as a fundamental force driving agricultural protection that would be designed to promote domestic agricultural production capacity that would fit each state’s economic, political, and ecological conditions. The empirical models testing the theory would shed light on the role of the state’s desire to promote national food security in explaining agricultural protectionism in developed and developing countries.
    Keywords: Agricultural protection, state-centered political economy, international political economy, national food security, Agricultural and Food Policy, International Relations/Trade,
    Date: 2016–05–25

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