nep-int New Economics Papers
on International Trade
Issue of 2016‒06‒14
thirty papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. The variation of export prices across and within firms By Juan de Lucio; Raúl Mínguez; Asier Minondo; Francisco Requena
  2. For God's sake. The impact of religious proximity on firms' exports By Alessia Lo Turco; Daniela MAGGIONI
  3. Protectionism through Exporting: Subsidies with Export Share Requirements in China By Fabrice Defever; Alejandro Riaño
  4. TTIP and agricultural trade: The case of tariff elimination and pesticide policy cooperation By Xiong, Bo; Beghin, John
  5. Trade Creation and Diversion under NAFTA: The North American Strawberry Market By Lee, Youngjae; Kennedy, Lynn
  6. The Jurisprudence of the World Trade Organization in 2014 By Daniel Rais
  7. Eco-Labelling and the Gains from Agricultural and Food Trade: A Ricardian Approach By Heerman, Kari E.R.; Sheldon, Ian
  8. The Empirical Landscape of Trade Policy By Chad P. Bown; Meredith Crowley
  9. It’s Not You, It’s Me” : Breakups in U.S.-China Trade Relationships By Monarch, Ryan
  10. Global production sharing: exploring Australia’s competitive edge By Prema-chandra Athukorala; Tala Talgaswatta; Omer Majeed
  11. The impact of outward FDI on the performance of Chinese multinationals By Cozza, Claudio; Rabellotti, Roberta; Sanfilippo, Marco
  12. Services Linkages and the Value Added Content of Trade By Daniel Rais
  13. Better More Than One: Portfolio Currency Pricing and Exchange Rate Hedging By Maria V. Sokolova
  14. Potential Poverty Effects of the Special Safeguard Mechanism: the Case of Wheat By Countryman, Amanda; Ufer, Danielle
  15. International standards certification, institutional voids and exports from developing country firms By Goedhuys, Micheline; Sleuwagen, Leo
  16. Poverty and shared prosperity implications of deep integration in Eastern and Southern Africa By Balistreri,Edward Jay; Maliszewska,Maryla; Osorio-Rodarte,Israel; Tarr,David; Yonezawa,Hidemichi
  17. Forest Stewardship Standards: Voluntary Governance As A Trade Facilitation Strategy? By Kanieski da Silva, Bruno; Boys, Kathryn A.
  18. A Dynamic Model of Effects of Effects of Trade and Environmental Policies on Firms' Offshoring and Clean Technology Adoption Decisions By Meng, Xianwei; Wei, Xuan
  19. Long-Run Drivers of Current Account Imbalances in the EU: the Role of Trade Openness By Giuseppe Caivano; Nicola D. Coniglio
  20. U.S. Agricultural Export Competitiveness and Export Market Diversification By Jha, Jaya; Roe, Terry L.
  21. How to boost export performance in Greece By Christine de la Maisonneuve
  22. Democratic Legitimation of Trade Policy Tomorrow - TTIP, Democracy and Market in the Swiss Constitution By Daniel Rais
  23. Geo-blocking in Cross-border e-Commerce in the EU Digital Single Market By Melisande Cardona
  24. Estimating the Effects of the Trans-Pacific Partnership (TPP) on Latin America and the Caribbean (LAC) By Diego A. Cerdeiro
  25. The internationalization of the RMB, capital market openness, and financial reforms in China By Aizenman, Joshua
  26. An Economy-wide Analysis of Trade Liberalization Impacts on Rural Household Income in Taiwan By Hsu, Shih-Hsun; Chang, Ching-Cheng; Lin, Hsing-Chun; Liou, Ruey-Wan; Hsu, Sheng-Ming; Hsieh, Te-Yen; Lin, Kuo-Jung
  27. International Migration and its Effect on Labor Supply of the Left-Behind Household Members: Evidence from Nepal By Phadera, Lokendra
  30. Globalization Threatens One Quarter of Finnish Employment By Tuhkuri, Joonas

  1. By: Juan de Lucio (Pontificia University of Comillas-ICADE. Alberto Aguilera 23, 28015 Madrid (Spain)); Raúl Mínguez (Chamber of Commerce of Spain. Ribera del Loira 12, 28042 Madrid (Spain).); Asier Minondo (Corresponding author. Deusto Business School, University of Deusto, Camino de Mundaiz 50, 20012 Donostia - San Sebastian (Spain). Research afiliate of Instituto Complutense de Estudios Internacionales.); Francisco Requena (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).)
    Abstract: This paper uses transaction-level trade data to analyze the differences in export prices across and within Spanish manufacturing rms in the year 2014. The transactionalnature of the database uncovers sizable differences in the price that an exporter charges for the same product and destination. To explain this new margin in the variation of export prices, we extend the Baldwin and Harrigan (2011) model, allowing more productive firms to manufacture a wider quality-range of varieties. For a representative sample of multi-transaction and multi-destination exporting firms, regression analyses con rm that more productive rms set higher average export prices and o er a wider quality-range of varieties within a destination.
    Keywords: export prices, firm-level transaction data, heterogeneous firms, quality
    JEL: F1 F10 F23
    Date: 2016–05
  2. By: Alessia Lo Turco (Università Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); Daniela MAGGIONI (Università di Catania, Department of Political Sciences)
    Abstract: Using a rich firm level data set for Turkish manufacturing, we test whether the sharing of similar religious beliefs with potential contracting parties drives a firm.s first time entry in export markets. We exploit variation in the practice of Islam across Turkish provinces andwe find that firms located in provinces characterised by stronger religiousness are more likely to enter export destinations with a higher share ofMuslims among their population. This result is robust to the control for trade, cultural and migration ties, reverse causality and to several further sensitivity checks. Religious proximity, in particular, eases export entry for producers of "trust intensive" goods and mitigates the role of export experience in subsequent foreign market entries. All in all, our evidence hints at the important role of religious proximity in reducing export entry sunk costs by fostering higher trust among contracting parties.
    Keywords: Islam, export entry, uncertainty, cultural distance
    JEL: F14 F11 D22 D80 N30
    Date: 2016–05
  3. By: Fabrice Defever; Alejandro Riaño
    Abstract: We study the effect of subsidies subject to export share requirements (ESR) — that is, conditioned on a firm exporting at least a given fraction of its output — on exports, the intensity of competition and welfare, through the lens of a two-country model of trade with heterogeneous firms. Our calibrated model suggests that this type of subsidy boosts exports more and provides greater protection for domestic firms than a standard unconditional export subsidy, albeit at a substantial welfare cost.
    Keywords: Export Subsidies; Export Share Requirements; Trade Policy; Heterogeneous
    Date: 2016
  4. By: Xiong, Bo; Beghin, John
    Abstract: A possible Trans-Atlantic Trade and Investment Partnership (TTIP) agreement will further integrate agricultural markets between the United States and the European Union. The elimination of tariffs and cooperation on Sanitary and Phytosanitary measures will promote cross-Atlantic trade. We empirically estimate the impacts of tariffs and Maximum Residue Limits (MRLs) on trade in plant products between the two partners. Furthermore, we simulate trade expansions under plausible negotiation outcomes. We find that a TTIP agreement promotes cross-Atlantic trade in plant products, in both directions, by over 60% if tariffs are removed and MRLs are mutually recognized or harmonized to Codex levels.
    Keywords: Trans-Atlantic Trade and Investment Partnership, TTIP, maximum residue limit, MRL, sanitary and phytosanitary measures, tariff, trade agreement, NTM, Agricultural and Food Policy, International Relations/Trade, Q17, F15,
    Date: 2016–05–24
  5. By: Lee, Youngjae; Kennedy, Lynn
    Abstract: In order to identify the effect on trade creation and diversion of NAFTA in the North American strawberry market, this study conducts a partial equilibrium analysis by using the CES utility and production functions of Dixit and Stiglitz which provide necessary equations to estimate unobservable final prices of imported strawberries and non-tariff trade costs. Based on the results of this study, we could confirm that 1) the effect on trade creation of NAFTA is greater than the effect on trade diversion, which leads to positive effect of NAFTA on the North American strawberry market, 2) the difference between the local price and the imported price might be due to high non-tariff trade costs that exist between borders, 3) market integration simulation shows trade creation of 453% and no trade diversion, and 4) market segregation simulation shows that trade volume in the regional market decreases by 26% and trade volume out of regional market increases by 1045%.
    Keywords: NAFTA, Trade Creation, Trade Diversion, Strawberries., Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade, F10, F13, F14, F18, O19, Q17, Q54.,
    Date: 2016–07–31
  6. By: Daniel Rais
    Abstract: Abstract In 2014, the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) adopted seven panel reports and six Appellate Body rulings. Two of the cases relate to anti-dumping measures. Three cases, comprising five complaints, are of particular interest and these are summarised and discussed below. China – Rare Earths further refines the relationship between protocols of accession and the general provisions of WTO agreements, in particular the exceptions of Article XX GATT. Recourse to that provision is no longer excluded but depends on a careful case-by-case analysis. While China failed to comply with the conditions for export restrictions, the case reiterates the problem of insufficiently developed disciplines on export restrictions on strategic minerals and other commodities in WTO law. EC – Seals Products is a landmark case for two reasons. Firstly, it limits the application of the agreement on Technical Barriers to Trade (TBT Agreement) resulting henceforth in a narrow reading of technical regulations. Normative rules prescribing conditions for importation are to be dealt with under the rules of the General Agreement on Tariffs and Trade (GATT) instead. Secondly, the ruling permits recourse to public morals in justifying import restrictions essentially on the basis of process and production methods (PPMs). Meanwhile, the more detailed implications for extraterritorial application of such rules and for the concept of PPMs remain open as these key issues were not raised by the parties to the case. Peru – Agricultural Products adds to the interpretation of the Agreement on Agriculture (AoA), but most importantly, it confirms the existing segregation of WTO law and the law of free trade agreements. The case is of particular importance for Switzerland in its relations with the European Union (EU). The case raises, but does not fully answer, the question whether in a bilateral agreement, Switzerland or the EU can, as a matter of WTO law, lawfully waive their right of lodging complaints against each other under WTO law within the scope of their bilateral agreement, for example the agreement on agriculture where such a clause exists.
    Date: 2015–07–20
  7. By: Heerman, Kari E.R.; Sheldon, Ian
    Abstract: Following a modern Ricardian approach, trade in environmental products with eco‐labelling is modelled. Based on the model, expressions are derived for the share of products an importer purchases from a specific exporter for low‐cost and environmentally‐friendly technologies. It is then shown that, using bilateral trade and production data, the share equation for low‐cost‐technologies can be estimated, from which parameters describing trade costs and average productivity can then be retrieved. Using the latter parameters, it is also shown how the share equation for environmentally‐friendly technologies can then be used to retrieve a parameter describing eco‐labelling costs. The consumer and environmental gains from eco‐labelling are also analyzed, along with a discussion and comparison of the effects of mutual recognition versus harmonization of countries’ eco‐labelling regimes.
    Keywords: trade, trade costs, eco-labeling, trade liberalization, Agricultural and Food Policy, Environmental Economics and Policy, International Relations/Trade, F11, F14, F15, Q17, Q56,
    Date: 2016
  8. By: Chad P. Bown; Meredith Crowley
    Abstract: This chapter 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. We address 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? Our analysis documents the extent of cross-sectional heterogeneity in applied commercial policy across countries, their economic sectors, and their trading partners, over time. We conclude that substantial trade policy barriers remain as an important feature of the world economy.
    Keywords: tariffs, MFN, preferences, quotas, temporary trade barriers, antidumping, safeguards
    JEL: F02 F13 F14 F15 F3 H21 H23 H25 K33 L5 N4 N70
    Date: 2016–04–01
  9. By: Monarch, Ryan
    Abstract: Costs to switching suppliers can affect prices by discouraging buyer movements from high to low cost sellers. This paper uses confidential U.S. Customs data on U.S. importers and their Chinese exporters to investigate these costs. I find considerable barriers to supply chain adjustments: 45% of arm’s-length importers keep their partner, and one-third of switching importers remain in the same city. Guided by these regularities, I propose and structurally estimate a dynamic discrete exporter choice model. Cost estimates are large and heterogeneous across products. These costs matter for trade prices: halving switching costs reduces the U.S.- China Import Price Index by 14.7%.
    Keywords: International Trade ; Import Price ; Transactional Relationships
    JEL: F14 F23 L14 D21
    Date: 2016–05
  10. By: Prema-chandra Athukorala; Tala Talgaswatta; Omer Majeed
    Abstract: Global production sharing — cross-border dispersion of production processes within vertically integrated global industries — has been an increasingly important structural feature of economic globalization in the recent decades. This paper examines patterns and determinants of global production sharing with an emphasis on how Australian manufacturing fits into global production networks (GPNs). Though Australia is a minor player in GPNs, there is evidence that Australian manufacturing has a distinct competitive edge in specialized, skill-intensive tasks in several industries such as aircrafts, medical devices, machine tools, measuring and scientific equipment, and photographic equipment. Specialization in high-value-to-weight components and final goods within GPNs, which are suitable for air transport, helps Australian manufacturing to overcome the ‘tyranny of distance’ in world trade. Being predominantly ‘relationship-specific’, Australian GPN exports are not significantly susceptible to real exchange rate appreciation.
    Keywords: Australian manufacturing, global production sharing, global production networks, gravity model
    JEL: F11 F14 F23 M16
    Date: 2016
  11. By: Cozza, Claudio; Rabellotti, Roberta; Sanfilippo, Marco
    Abstract: Using a new firm-level database, EMENDATA, this paper investigates the effects on Chinese multinational enterprises of Outward FDI (OFDI) into advanced European countries. Propensity score matching is combined with a difference-in-difference estimator to reduce the problems of self-selection of treated firms in foreign markets and to eliminate time-invariant and unobservable differences between those firms and the controls. The results provide robust evidence in support of the view that China’s OFDI had so far a positive impact on domestic activities in enhancing firms’ productivity and scales of operation, as measured by assets, sales and employment. Distinguishing among such investments on the basis of entry mode shows that acquisitions facilitate early access to intangible assets but are detrimental to financial performance, whereas greenfield investments have a positive impact on the scale and productivity of Chinese investors. Publication keywords: outward FDI, reverse spillovers, performance, Chinese multinationals
    JEL: F45
    Date: 2014–12–06
  12. By: Daniel Rais
    Abstract: Abstract Working with a set of global social accounting matrices spanning intermittent years from 1992 to 2011, this paper examines the services embodied in trade on a value added basis. Data include not only the direct and indirect contribution of services to value added contained in a given country's exports, but also the extent to which third-country value added in services, through intermediate linkages of imported goods and services, is also embodied in production and trade. Our data indicate, in line with previous findings, that the ratio of value added to gross trade has been decreasing both for goods and for services, which is consistent with growing vertical production fragmentation. On the other hand, while value added in goods sectors including indirect exports is less than the gross value of exports, in services, it is greater, highlighting the service intensity of trade.
    Date: 2015–08–20
  13. By: Maria V. Sokolova (IHEID, The Graduate Institute of International and Development Studies, Geneva)
    Abstract: This paper examines the relationship between the composition of exporters' currency pricing portfolio - number and value of product sales in different currencies at a destination - and their success in trade as measured by continuing to their exporting activity. Detailed investigation of currency choice data of Russian exporters between 2005-2009 shows that many exporters use only one currency pricing per destination. Among those who use more than one currency pricing, higher diversification is indeed associated with up to 18% higher odds of survival as an exporter at the product-destination. Nevertheless, many exporters still use only one currency pricing per destination. This puzzle is explained in this paper by incorporating the concept of "exchange rate hedging costs" into the existent literature on currency choice. These costs are firm-speci c and relate to the complexity on the part of the firm of using more than one currency. The firms that have high exchange rate hedging costs will be using only one currency, but still continue exporting to the destination.
    Keywords: international currency choice, currency portfolio, exchange rate, export data, vehicle currency, emerging economy, exchange rate hedging
    JEL: F14 F31 F36 F41 G11
    Date: 2014–08
  14. By: Countryman, Amanda; Ufer, Danielle
    Abstract: Negotiations under the Doha Development Agenda include provisions for a Special Safeguard Mechanism (SSM). The SSM would allow developing countries to invoke an additional duty on agricultural commodity imports when prices fall below a specified price trigger (P-SSM) or net imports rise above a specified quantity trigger (Q-SSM). This research uses a Computable General Equilibrium (CGE) modeling framework to evaluate the potential poverty effects of the SSM in agriculture. Some argue that the SSM is necessary to protect developing country domestic producers from the variability in world commodity markets; however, existing research suggests that widespread use of the SSM may destabilize world prices and increase the cost of commodity imports for domestic consumers. Many of the main arguments in favor of the SSM focus on the well-being of vulnerable agricultural producers, yet many rural residents in poor countries are net purchasers of food, and urban poverty is a growing concern. Therefore, the potential for an SSM policy to mitigate poverty vulnerability seems unlikely. This research aims to augment the existing literature regarding proposed trade reform in the WTO by investigating the potential implications of the SSM on poverty in Brazil and Mexico by implementing the policy in the global wheat market.
    Keywords: Special Safeguard Mechanism, World Trade Organization, International Trade, Trade Policy, Agricultural and Food Policy, International Relations/Trade,
    Date: 2016
  15. By: Goedhuys, Micheline (UNU-MERIT); Sleuwagen, Leo (MSI, KU Leuven)
    Abstract: This paper analyses the impact of International Standards Certification (ISC) on the export participation and the scale of exports of firms based in 89 developing or transition countries. We conceptualise ISC as an endogenous institutional advantage, which bridges institutional voids in the country and helps firms to export. The empirical results show that certified firms are more likely to export, and to export on a larger scale. The impact of ISC runs through two channels: productivity and transaction cost economies. We show that certification plays an important role in bringing down transaction costs in international markets, while also maintaining and raising efficiency. This finding is reinforced by additional evidence, suggesting that ISC matters more for the export participation of domestic firms than for foreign firms and is of greater importance for firms based in countries characterised by severe institutional voids.
    Keywords: certification, export performance, institutional voids, transaction costs
    JEL: D23 D24 O12 O17 O33
    Date: 2016–05–10
  16. By: Balistreri,Edward Jay; Maliszewska,Maryla; Osorio-Rodarte,Israel; Tarr,David; Yonezawa,Hidemichi
    Abstract: Evidence indicates that trade costs are a much more substantial barrier to trade than tariffs are, especially in Sub-Saharan Africa. This paper decomposes trade costs into: (i) trade facilitation, (ii) non-tariff barriers, and (iii) the costs of business services. The paper assesses the poverty and shared prosperity impacts of deep integration to reduce these three types of trade costs in: (i) the East African Customs Union?Common Market of East and Southern Africa?South African Development Community"Tripartite"Free Trade Area; (ii) within the East African Customs Union; and (iii) unilaterally by the East African Customs Union. The analysis employs an innovative, multi-region computable general equilibrium model to estimate the changes in the macroeconomic variables that impact poverty and shared prosperity. The model estimates are used in the Global Income Distribution Dynamics microsimulation model to obtain assessments of the changes in the poverty headcount and shared prosperity for each of the simulations for the six African regions or countries. The paper finds that these reforms are pro-poor. There are significant reductions in the poverty headcount and the percentage of the population living in poverty for all six of the African regions from deep integration in the Tripartite Free Trade Area or comparable unilateral reforms by the East African Customs Union. Further, the incomes of the bottom 40 percent of the populations noticeably increase in all countries or regions that are engaged in the trade reforms. The reason for the poor share in prosperity is the fact that the reforms increase unskilled wages faster than the rewards of other factors of production, as the reforms tend to favor agriculture. Despite the uniform increases in income for the poorest 40 percent, there are some cases where the share of income captured by the poorest 40 percent of the population decreases. The estimated gains vary considerably across countries and reforms. Thus, countries would have an interest in negotiating for different reforms in different agreements.
    Keywords: Free Trade,Economic Theory&Research,Trade Policy,Emerging Markets,Trade Law
    Date: 2016–05–04
  17. By: Kanieski da Silva, Bruno; Boys, Kathryn A.
    Keywords: forestry, certification, trade, standards, Agribusiness, Environmental Economics and Policy, International Relations/Trade,
    Date: 2016
  18. By: Meng, Xianwei; Wei, Xuan
    Abstract: This paper develops a dynamic general equilibrium model to analyze the effects of changes in trade and environmental policies on firms' production location choices and clean technology adoptions to reduce emission. During this process, the equilibrium worker's wages and environmental quality of related countries are determined. In addition, this model is applied to the trade and production relocation issues between the United States and China over 1999-2013 to quantify the pollution haven effects and the total production offshoring directly and indirectly from the U.S. to China. Further, the long-run predictions on offshoring and emission levels in both countries and counterfactual policy analysis are discussed in this paper.
    Keywords: offshoring, technology adoption, trade policy, environment, Environmental Economics and Policy, Industrial Organization, International Relations/Trade, Labor and Human Capital, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, F18, F23, D21, J31, Q52, Q56,
    Date: 2016
  19. By: Giuseppe Caivano (Università degli Studi di Bari "Aldo Moro"); Nicola D. Coniglio (Università degli Studi di Bari "Aldo Moro")
    Abstract: This paper investigates, using panel cointegration methods, the long-run drivers of current account imbalances in 15 EU member States during the period 1974-2011. We argue that the degree of trade openness greatly affects the relative strength of the different long-term drivers of current account imbalances. Our empirical results indicate that competitiveness factors strongly affect imbalances in countries with a low trade openness, while the effects weakens as trade openness increases. Similarly, we find evidence of a positive effects of government debt on current account deficits for high openness countries and a negative impact for medium and low openness countries. Our results suggest that the structural heterogeneity in the degree of openness across EU countries might be an important contributor to the diverging patterns in current account balances experienced in the last decades.
    Keywords: Current account imbalances; panel cointegration; trade openness
    JEL: D63 E24 O15 O40
    Date: 2016–05
  20. By: Jha, Jaya; Roe, Terry L.
    Abstract: This paper examines the structural relationship between U.S. agricultural exports, foreign GDP growth, and real exchange rate volatility, and the impact of exogenous shocks on the evolution of export growth to examine the sector's international competitiveness and opportunities for export extensification. The long- and short-run dynamics of export demand are analyzed within the structural cointegrating vectorautoregressive framework. Principal findings are that: 1. Exports of high-value processed agricultural products are more sensitive to changes in foreign income and exchange rate fluctuations than exports of low-value grains and bulk commodities. Specifically, a 10% growth in trade-adjusted GDP across all importing countries leads to a 7.8% increase in U.S. exports of bulk commodities compared to 33% increase in exports of high-value processed commodities. Similarly, a 10% increase in the value of the trade-weighted exchange rate (i.e., an appreciation of the U.S. dollar) reduces bulk exports by 8.4% compared to a whopping 35% decline in high-value processed food exports; 2. In response to exogenous shocks, deviations from the predicted equilibrium level of exports are corrected at a much faster rate for grains and other bulk commodity exports than export of high value commodities. For example, more than 75% of the disequilibrium in aggregate bulk commodity exports is corrected within one year; less than 15% of the disequilibrium in high-value processed exports is corrected within a year. 3. The present concentration of U.S. agricultural commodity exports to a few developed countries is increasingly problematic, U.S. agricultural exports may benefit not only from policies intended to increase trade with existing developing country importers but also from policies that aim to export agricultural commodities to emerging markets. Our paper also highlights the importance of including the long-run relationship when modeling the short-run dynamics.
    Keywords: U.S. agricultural exports, foreign income, exchange rates, cointegrating VAR, bounds test, income and price elasticities, export demand, structural impulse response functions, International Development, International Relations/Trade, Q17, O11, O41, O51, F14, F41, F62, C22, C32,
    Date: 2016–05
  21. By: Christine de la Maisonneuve
    Abstract: This paper analyses the structure of Greek exports and presents policy recommendations to boost export performance. Despite recent improvements, export performance deteriorated in the last decade particularly in the service sector. The decline in unit labour costs since the beginning of the crisis has restored cost competitiveness, but the response of exports has been sluggish due to severe liquidity constraints of exporters, lack of investment in export industries and in part because prices did not adjust as fast. Greece is dominated by SMEs and specialised in low-technology goods which makes it difficult to be well integrated into global value chains. Structural problems in product markets, barriers to exporting, access to finance and administrative burden affect competitiveness and impede export performance. Boosting investment in infrastructure and logistics, further liberalising the network industries, improving investment in human and knowledge-based capital to allow upgrading in the global value chains will be essential to enhance export performance. Comment stimuler la performance à l'exportation en Grèce Ce document présente une analyse de la structure des exportations grecques ainsi que des recommandations visant à doper les résultats de la Grèce à l’exportation. Malgré les améliorations observées récemment, les résultats à l’exportation se sont détériorés ces dix dernières années, en particulier dans le secteur des services. Le déclin des coûts unitaires de main-d’oeuvre depuis le début de la crise a permis le rétablissement de la compétitivité-coûts, mais les exportations n’ont réagi que modérément en raison des contraintes strictes de liquidités pesant sur les exportateurs, d’un manque d’investissement dans les industries d’exportation et aussi, en partie, d’un retard dans l’ajustement des prix. Les PME jouent un rôle prépondérant dans l’économie grecque par ailleurs spécialisée dans la production de biens à faible intensité technologique, ce qui complique son intégration dans les chaînes de valeur mondiales. Les problèmes structurels sur les marchés de produits, les barrières à l’exportation, les difficultés d’accès aux financements ainsi que les charges administratives sont autant de facteurs qui pèsent sur la compétitivité et obèrent les résultats à l’exportation. Il sera essentiel de dynamiser l’investissement dans les infrastructures et dans le secteur logistique, de poursuivre la libéralisation des industries de réseau et d’améliorer l’investissement dans le capital humain et intellectuel pour favoriser la progression dans les chaînes de valeur mondiales afin de rehausser les résultats à l’exportation.
    Keywords: competitiveness, structural reforms, global value chains, investment, exports
    JEL: F1 F43 J3 K2 K4 L5 O52
    Date: 2016–05–26
  22. By: Daniel Rais
    Abstract: Abstract Free Trade Agreements (FTAs) are increasingly more concerned with regulatory convergence, rather than trade liberalisation through elimination of tariffs. This appears to result more often in so-called dynamic trade agreements, which still evolve after adoption. Further economic integration in democracies, however, depends on the support of the constituency. This article takes a closer look at the democratic legitimation of global economic integration in a case study on Switzerland. It finds that the current principles and institutions of democracy in Switzerland are unlikely to fully accommodate the new regulatory challenges of dynamic FTAs.
    Date: 2015–11–09
  23. By: Melisande Cardona (European Commission - JRC - IPTS)
    Abstract: A cross-border e-commerce Mystery Shopping Survey conducted in 2015, finds that the practice of erecting virtual barriers is still common in cross-border e-commerce within the EU, as it was in 2009. Electrical appliances, electronics and computer games are particularly difficult to buy online from another country. Geo-blocking often takes place at the delivery stage of the online purchase process and less often at the access stage. Larger websites can also block access according to a buyer’s IP address. Geo-blocking is less probably between countries sharing a common language while a common border or geographical proximity has no effect. Travel services have a different pattern of geo-blocking from tangible goods, where geo-blocking mainly takes place at the access stage. Price analysis shows that differentiation takes place in all sectors, but is more common in the sectors less affected by geo-blocking.
    Keywords: geo-blocking, mystery shopping, cross-border e-commerce, digital single market
    JEL: D12
    Date: 2016–05
  24. By: Diego A. Cerdeiro
    Abstract: In February 2016, twelve Pacific Rim countries signed the agreement on the Trans Pacific Partnership (TPP), one of the largest and most comprehensive trade deals in history. While there are several estimates of the likely effects of the TPP, there is no systematic study on the effects on all Latin American countries. We present the results from applying a multi-sector model with perfect competition presented by Costinot and Rodriguez-Clare (2014). The exercise, based on input-output data for 189 countries and 26 sectors, shows that (i) Asian TPP members are estimated to benefit most from the agreement, (ii) negative spillovers to non-TPP LAC countries appear to be of a different order of magnitude than the gains of members, and (iii) some non-TPP LAC countries may experience relatively large benefits from joining the TPP. As a cautionary note, however, we point out that even a cursory cross-study comparison shows that there is considerable uncertainty regarding the potential effects of the TPP for both members and non-members.
    Date: 2016–05–23
  25. By: Aizenman, Joshua
    Abstract: ​This paper provides an overview of Chinese financial and trade integration in recent decades, and the challenges facing China in the coming years. China had been a prime example of export-led growth, benefiting from learning by doing, and by adopting foreign know-how, supported by a complex industrial policy. While the resultant growth has been spectacular, it comes with hidden but growing costs and distortions. The Chinese export-led growth path has been challenged by its own success, and the Global Financial Crisis forced China toward rebalancing, which is a work in progress. Reflecting on the internationalization of the CNY, one expects the rapid accelerating of the commercial internationalization of the CNY. In contrast, there are no clear-cut reasons to rush with the full CNY financial internationalization: The gains from CNY financial internationalization are overrated. Publication keywords: export led growth, CNY internationalization, mercantilism, financial integration, FDI
    JEL: E60 F36 F40 F60 O24 O40
    Date: 2015–02–12
  26. By: Hsu, Shih-Hsun; Chang, Ching-Cheng; Lin, Hsing-Chun; Liou, Ruey-Wan; Hsu, Sheng-Ming; Hsieh, Te-Yen; Lin, Kuo-Jung
    Abstract: As Blank (2008, p. 302) notes, off-farm income earned by farm household plays at least two major roles in agriculture. In a macroeconomic role, off-farm income is a neglected index of a country’s economic development. In a microeconomic role, off-farm income is one of the most important risk management tools available to farm households. Blank (2008, p. 133) further emphasizes, “Currently, economy-wide demand for labor is the engine of “growth” in American agriculture. A growing real wage is a sufficient condition for rural household income growth.” Gardner (2005) also points out that this is the dominant explanation for the catch-up of farm to urban household income levels observed over recent decades in the U.S. Like in the U.S., off-farm income represents a high and generally increasing percentage of average farm operator household income in Taiwan. Off-farm income accounted for about 80 percent of total farm household income in 2014. The contribution of off-farm income for farm household and rural development are too important to be ignored. In recent decades, the major trends of commercialization, globalization, science and technology are all ongoing and interrelated. The impacts of trade liberalization (e.g., WTO, FTA, or TPP) on Taiwan’s agriculture sector has been an important issue in policy debates. Most of the debates focus on decreases in major indicators, e.g., total output value in production agriculture sector, food security, food self-sufficiency rate and on-farm income of farm household. Almost all of them neglect or ignore those potential increases in off-farm employment and income from local economic growth with trade liberalization. For the research methodology, Irwin et al. (2010) provide a selected review of the economics literature over the past 100 years with a focus on the economic transformation of rural places and conclude that “Rural development is a general equilibrium problem that requires general equilibrium tools.” The development of computable general equilibrium (CGE) modeling techniques by agricultural economists has been a major contribution to the entire economics profession and rural development, in particular. Computable general equilibrium models are the only ones that endogenously determine primary factor supplies as well as all prices and incomes in an economy. In this study, we built the SAM-based GEMTEE (General Equilibrium Model for Taiwanese Economy and Environment) model—a recursive dynamic computable general equilibrium (CGE) model that depicts the economy of Taiwan and its demographic structure through time—a flexible mechanism to reflect how fertility respond to income and demographic policies, as well as demographers’ perspectives. The GEMTEE model is a CGE model derived from the Monash-type CGE model (Dixon and Rimmer 2002) and is calibrated to the 2006 Social Accounting Matrix of Taiwan as the benchmark. We use cross-strait trade liberalization as a case study. The 57 sectors of GTAP (Global Trade analysis Project) dataset and 166 sectors of Taiwan’s Input-Output Tables are aggregated into four major sectors: agriculture, agro-processing, manufacture and services. With all tariff rates eliminated from bilateral trade between China and Taiwan, GTAP simulations produce different import and export price changes to both economies. We then use SAM-based GEMTEE model to simulate the impacts of cross-strait trade liberalization on Taiwan’s economy, agriculture output off-farm income, farm household income and employment. Simulation results demonstrate that Taiwan’s GDP will increase by 1.78%, but total agriculture output will decrease by 0.9%. For per farm household income, although on-farm income decreases by NT$1,648, off-farm income will increase by NT$10,580. In total, per farm household income increases by NT$8,932 with cross-strait trade liberalization. With trade liberalization as the engine of growth and trade adjustment assistance (TAA) mechanism in work, economic growth in Taiwan’s agriculture may be maintained and in the long run off-farm income and employment will increase to provide a “safety net” for rural households.
    Keywords: Trade liberalization, off-farm income, rural household income, Computable General Equilibrium (CGE), Social Accounting Matrix (SAM), Community/Rural/Urban Development, International Relations/Trade,
    Date: 2016
  27. By: Phadera, Lokendra
    Abstract: This paper analyzes the differential impact of migration on labor supply of the left-behind household members in Nepal, where international migration for employment, predominantly a male phenomenon, increased substantially between 2001 and 2011. Using the NLSS III data, this paper extends the analysis further by incorporating the impacts on both extensive and intensive margins and answering the question of if they are not wage-employed, what the remaining members in the household engaging in instead. The paper finds that, in response to outmigration of some family members, women realign their priorities and reallocate their time from market employment to self-employment and home production, possibly filling in the roles vacated by the migrants. In contrast, the income effect dominates the impact of migration on the left-behind men; that is, men value their leisure more because of the remittances from abroad and decrease their overall supply of labor.
    Keywords: International Migration, Migration, Labor Supply, International Development, Labor and Human Capital, F220, O150, J220,
    Date: 2016
    Date: 2016
    Date: 2016
  30. By: Tuhkuri, Joonas
    Abstract: We find that one quarter of Finnish employment is highly susceptible to offshoring in the next decade. That is, one in four jobs are easy to move abroad. The share is large. In specific, jobs in manufacturing appear more threatened. Offshorable workers are often highly educated. And innovators are particularly offshorable. In international comparison, our findings for Finland are similar to those in Sweden and in the United States. But the estimated threat of globalization through offshoring does not imply future mass unemployment. Jobs that are estimated to be easy to offshore will not necessarily move abroad. And even if they are, we may invent new jobs. The task content of current jobs may change, and the future mix of occupations may be different. But our findings do suggest that offshoring will change how we work.
    Date: 2016–05–04

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