|
on International Trade |
| By: | Aksel Erbahar (Erasmus School of Economics and Tinbergen Institute, The Netherlands) |
| Abstract: | Previous firm-level literature established that there are substantial costs of entry into new export markets. Chaney (2014) opens the black-box of entry costs by building a dynamic network model of international trade where firms acquire customers in new destinations through their existing customers in other destinations. Following his conjecture, this paper examines whether firms use their existing suppliers in a destination to find their first clients in those markets. I use a disaggregated dataset on Turkish firms' exports and imports for the 2003-08 period, and investigate the effect and the channels that import experience might have on export entry. By identifying import experience using instrumental variables, and shutting down productivity channels with firm-year fixed effects, I find that having a supplier in the destination country raises the probability of exporting to that country by 5.5 percentage points on average, revealing a "market knowledge" phenomenon. The paper's main contribution to the literature is finding for the first time that firms' country-specific import experience increases the likelihood of exporting to that country. Digging further to explore heterogeneous effects, I find that this effect increases with the destination country's size, proximity, language similarity, and the size of its Turkish community. Moreover, the strength of the firm's relationship with its supplier as proxied by several variables such as the share of imported products that are differentiated increases the probability of export market entry. |
| Keywords: | market entry; export diversification; learning by importing; networks |
| JEL: | F1 F14 F61 L20 |
| Date: | 2017–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20170012&r=int |
| By: | Saggi, Kamal; Wong, Woan Foong; Yildiz, Halis Murat |
| Abstract: | Preferential trade agreement (PTA) members have to eliminate internal tariffs with each other but are allowed to discriminate against non-members. This can be in potential conflict with the WTO's overall non-discrimination clause. Using a competing exporters model of endogenous trade agreement formation, we study the central rules that govern PTAs. We find that the free trade agreements' (FTAs) requirement to eliminate internal tariffs increases total welfare when circumstances are such that global free trade is infeasible. However, it also reduces the likelihood of reaching global free trade. We also find that the MFN constraint does not just contribute to the achievement of global free trade but also delivers a welfare-superior outcome when global free trade is not possible. Finally, we show that the MFN constraint complements the PTA rules in achieving global free trade for only FTAs but not customs unions (CUs). However, when global free trade is infeasible, the MFN constraint is welfare improving for both types of PTAs. We conclude that while the likelihood of global free trade within the WTO requirements depends on the nature of PTAs, these requirements are necessarily welfare improving in a tariff-ridden world. |
| Keywords: | WTO, Coalition proof Nash equilibrium, Free Trade Agreement, Customs Union |
| JEL: | F11 F12 |
| Date: | 2017–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76330&r=int |
| By: | Lommatzsch, Kirsten; Silgoner, Maria A.; Ramskogler, Paul |
| Abstract: | It has been argued that the increasing importance of global value chains necessitates a modification of conventional competitiveness measures. We compile a broad dataset including value added trade, gross exports and conventional and value added based real exchange rates. To sharply focus on external competitiveness, a new price competitiveness indicator is introduced, the TWULC (Trade Weighted Unit Labour Cost indicator). It weights sectorspecific cost trends according to sector shares in exports. Econometric tests for a panel of 38 countries show that the focus on value added trade generally improves the explanatory power of export equations. Value added exports' sensitivity towards real exchange rates is up to four times higher than that of gross exports. Real effective exchange rates focusing on exporting industries and on value added weights yield more robust results across the specifications, but do not systematically outperform the more conventional measures of price or cost competitiveness. |
| Keywords: | competitiveness,external trade,labour costs |
| JEL: | F14 J30 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:522016&r=int |
| By: | Kenichi Kawasaki (National Graduate Institute for Policy Studies) |
| Abstract: | Recently a number of large-scale uncertainties have emerged as threats to the development of regional integration. Most notably, the UK has decided to leave the EU, and the new US president has stated that he would withdraw the US from the Trans-Pacific Partnership (TPP). This paper presents a quantitative comparison of the economic impacts of a number of alternative regional trade agreement (RTA) scenarios. The impacts were estimated using a Computable General Equilibrium (CGE) model of global trade. It is estimated that the US would no longer gain and might even lose, if it withdraws from TPP. The benefits of the bilateral Free Trade Agreement (FTA) and Economic Partnership Agreement (EPA) with Japan would be smaller than those of TPP. Higher tariffs on US imports from China and Mexico would lead to significant deterioration of the economic welfare of not only China and Mexico but also the US. Furthermore, China fs benefits from the Regional Comprehensive Economic Partnership (RCEP) might be relatively limited depending on the levels of the agreement and weighed against the adverse impacts of the possible US tariffs. The UK economy would suffer as a result of BREXIT, but the cost of BREXIT could be smaller than the possible benefits of joining TPP. All in all, it has been shown that income gains resulting from non-tariff measure (NTM) reductions are much larger than those arising from tariff removals. Global best efforts are required to achieve higher level RTAs and the resulting larger economic benefits. |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ngi:dpaper:16-28&r=int |
| By: | Thorbecke, Willem (Asian Development Bank Institute) |
| Abstract: | The PRC has become an important importer for many countries. We investigate how turbulence in the PRC can spill over to trading partners through the trade channel. Exports from several East Asian and Southeast Asian countries to the PRC exceed 10% of their gross domestic products. To shed light on economies’ exposures to the PRC, this paper estimates a gravity model. The results indicate that Taipei,China and members of the Association of Southeast Asian Nations are exposed to the PRC because they produce goods for the PRC market and are exposed to advanced economies because they ship parts and components to the PRC for processing and reexport to the West. The Republic of Korea is more exposed to a slowdown in advanced economies that purchase processed exports from the PRC than to a slowdown in the PRC. Major commodity exporters such as Australia, Brazil, Indonesia, and Saudi Arabia, and exporters of sophisticated consumption and capital goods such as Germany and Switzerland are exposed to a slowdown in the PRC domestic market. This paper also estimates import elasticities for the PRC. The results indicate that imports for processing into the PRC are closely linked to processed exports from the PRC to the rest of the world and that ordinary imports are closely linked to PRC gross domestic product. The renminbi exerts only a weak impact on imports, however. The paper concludes by recommending that firms and countries diversify their export base and their trading partners to reduce their exposures to the PRC and to advanced economies. |
| Keywords: | PRC growth spillovers; gravity model; ordinary and processing trade; Asia |
| JEL: | F14 F22 F32 |
| Date: | 2017–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0634&r=int |
| By: | Adriana Peluffo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Juan Ignacio Scasso (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | In this work we explore the link between export and import products quality and the level of income of destination and source countries. As proxy to quality we use a firm-level measure calculated from the unit value prices of both exports and imports of Uruguayan manufacturing firms. Previous works argue that high quality products are exported to and imported from high income countries. Moreover, it is also argued that firms that export to high income countries upgrade their quality by using imports from high income countries. We test these hypotheses using a rich database for Uruguay over the period 1997-2008. This dataset combines firm level data and detailed customs data of exports and imports by destination or origin country. To analyze causal associations we use instrumental variable techniques, and utilize real exchange rate fluctuation to construct the instruments. Our results show that exporting to high income countries has a negative effect on the quality of imported goods and that importing from high income countries has a positive effect on our measure of import quality. |
| Keywords: | exports, imports, quality, international trade |
| JEL: | F1 L1 O1 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-10-16&r=int |
| By: | Tadashi Ito (Faculty of International Social Science, Gakushuin University); Toshiyuki Matsuura (Keio Economic Observatory, Keio University); Chih-Hai Yang (National Central University) |
| Abstract: | The concern regarding the hollowing out by FDI has re-emerged in Japan, with both large and small firms relocating their plants to China since the late 1990s. This study sheds lights on the effects of agglomeration and firm characteristics upon the complementary relationship between FDI and import of intermediate input from home country, which has been overlooked in the literature. Estimating the duration model of Japanese affiliates' input trade by using parent?affiliate, productlevel data from 2000 to 2006, we found while firms in agglomerated regions with more foreign affiliates shorten its duration, small firms import for a longer duration. |
| Keywords: | FDI by SMEs, Trade duration, Intermediate goods, Agglomeration |
| JEL: | F14 F21 F23 |
| Date: | 2016–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2016-025&r=int |
| By: | Piotr Gabrielczak (Faculty of Economics and Sociology, University of Lodz); Tomasz Serwach (Faculty of Economics and Sociology, University of Lodz) |
| Keywords: | euro, international trade, complexity, treatment, Estonia |
| JEL: | C21 F14 F15 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ann:wpaper:4/2017&r=int |
| By: | Natalia Ferreira-Coímbra (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Juan Labraga (Universidad ORT Uruguay) |
| Abstract: | This article uses a gravity model estimated by Poisson PML to quantify the trade impact of certain sanitary and phytosanitary standards applied to bovine meat and agricultural products. In the case of bovine meat, we study the impact of the Foot-and-Mouse-Disease status (FMD), the status of Bovine spongiform encephalopathy (BSE) and the European Union´s decision to ban meat produced with animals treated with growth promotants over Mercosur´s exports. We found a negative and significant association between FMD and exports. In addition and counterintuitively, given that MERCOSUR´s countries have never produced meat with animals treated with growth promotants, we found a negative and significant impact of this new standard. However, when the impact is measured only for the boneless meat, proxy of high-quality meat, we found a positive impact. The second case deals with the impact on exports of the measures taken by the European Union referred to agricultural genetically modified products (GMO), in particular the impact on Argentine , Brazilian and Mexican exports of corn , cotton and canola . We found that the Community measures on cotton and canola have a negative association with exports, while those taken on maize have a positive association with the exports. In the case of national measures, we find a negative association with the exports of Argentina and a positive association with Brazil´s exports. |
| Keywords: | gravity model, Poisson regression, agri-food trade |
| JEL: | F14 Q17 C23 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:ude:wpaper:1215&r=int |
| By: | Guillaume Corlay (École Nationale de la Statistique et de l'Administration Économique (ENSAE)); Stéphane Dupraz (Columbia University); Claire Labonne (ENSAE ParisTech); Anne Muller (ENSAE ParisTech); Céline Antonin (Observatoire français des conjonctures économiques); Guillaume Daudin (Observatoire français des conjonctures économiques) |
| Abstract: | Jacks et al. (2011) offer an alternative to price gaps to quantify trade costs. Implementing a method which consists in deducing international trade costs from trade flows, they argue that the reduction in trade costs was the main driving force of trade growth during the first globalization (1870-1913), whereas economic expansion was the main driving force during the second globalization (1950-2000). We argue that this important result is driven by the use of an ad hoc aggregation method. What Jacks et al. (2011) capture is the difference in the relative starting trade of dyads experiencing faster trade growth in the first and second globalization. More generally, we cast doubts on the possibility to reach conclusions of such nature with a method that infers trade costs from trade flows, and then uses these costs to explain trade flows. We argue that it can only rephrase the information already contained in openess ratios. |
| Keywords: | Trade costs; Globalization; Gravity model; Aggregation; Structure effect |
| JEL: | F14 N70 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/5illks3d909msotf5fe5i4mk5m&r=int |
| By: | Manzano, George N.; Martin, Kristine Joy C. |
| Abstract: | The Trans-Pacific Partnership (TPP) is a regional free trade agreement (FTA) initiated by the United States (US) and is presently being negotiated among 12 countries. With the Philippines negotiating at many fronts at the global level--that includes the ASEAN Economic Community and the European Union-Philippines FTA, among others--the invitation to join the TPP is another opportunity worth studying. This study will use an alternative methodology--the Sussex framework--which is a departure from the prevalent use of the computable general equilibrium models to estimate the effects of the TPP on prospective partners. This paper aims to complement existing studies in the field and focuses on analyzing the (i) possible impact on the Philippines-US trade in goods when a Philippines-US FTA happens in the context of the Philippines joining the TPP and the (ii) probable negative effects that could happen to the Philippines-US bilateral trade if the Philippines opts not to be a member of the TPP. To analyze the impact of the TPP on the Philippines-US trade in goods, the study will model the TPP as a collection of bilateral US-TPP countries with FTAs. The relevant indicators generated from the series of bilateral FTAs will then be interpreted in the context of how these would impact on the Philippines as a third, nonpartner country. |
| Keywords: | Philippines, Trans-Pacific Partnership, FTA, free trade agreement, United States, trade in goods, bilateral trade, indicator approach |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:phd:pjdevt:pjd_2014-2015_vol__41-42_nos__1-2c&r=int |
| By: | Matthews, Alan; Salvatici, Luca; Scoppola, Margherita |
| Abstract: | This paper aims at providing an overview of the most relevant trade issues raised by the current agricultural domestic and trade policies of the European Union (EU) and at drawing policy implications for the future of the Common Agriculture Policy (CAP) and for international trade negotiations. The focus of the paper is the period after the 2003 CAP reform which largely decoupled EU direct payments. The paper assesses the trade impacts of the EU policies by: a) analysing the evolution of the policy instruments and of the financial resources under Pillars 1 and 2 of the CAP; b) reviewing the theoretical literature and the empirical tools and evidence on the production and trade impacts of direct payments, market management measures and rural development policies; c) analysing the evolution of the bound, applied and preferential agricultural tariffs and of the tariff rate quotas applied by the EU; d) reviewing the theoretical literature and the empirical tools and evidence on the degree of agricultural protection provided to the EU agricultural sector by the EU multilateral and preferential tariffs, tariff rate quotas and non-tariff measures; and e) discussing the policy implications with a focus on the debate about the future of the CAP. |
| Keywords: | Agricultural and Food Policy, International Relations/Trade, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatrcp:252767&r=int |
| By: | Mnatsakanyan, Hovhannes; Lopez, Jose; Bakhtavoryan, Rafael |
| Abstract: | Over the last three decades, U.S. imports of fresh fruits have been constantly increasing at an annual average growth rate of 7% (USITC, 2016). Fresh fruits make up 9% of the total U.S. food imports (UN Database, 2016) with the top seven fruits accounting for 82% of the value of the U.S. fresh fruit imports and Canada and Mexico (NAFTA countries) as the most important trade partners (USITC, 2016). This study analyzes the main U.S. markets and supply sources of the top imported fresh fruits and estimates a Source-Differentiated Almost Ideal Demand System model (SDAIDS) using time-series data, with North American Free Trade Agreement (NAFTA) countries and the rest of the world (ROW) as import sources. Our results suggest that source of origin is an intrinsic quality attribute for most of the fresh fruits analyzed. More specifically, the study found that most uncompensated own-price elasticities are inelastic, most cross-price elasticities are positives indicating that the fruits imported from given sources are net substitutes, and that statistically significant expenditure elasticities are positive implying that the quantity imported of all the fresh fruit analyzed increases as real expenditure for those fruits rises. The results of this study will be useful to policy-makers in regulating the international market of fresh fruits, setting optimal import taxes and price floors, and predicting likely scenarios of imports from Canada and Mexico. |
| Keywords: | Demand and Price Analysis, |
| Date: | 2017–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252760&r=int |
| By: | Yeboah, Osei-Agyeman; Shaik, Saleem; Legesse, Bafikadu; Faulkner, Paula; Aku, Helga |
| Abstract: | The Trans-Pacific Partnership (TPP) is a proposed regional free trade agreement (FTA) among 12 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. The TPP by eliminating more than 18,000 taxes and other trade barriers on American products across the 11 other countries is expected make it easier for American entrepreneurs, farmers, and small business owners to sell Made-In-America products abroad. This paper attempts to examine the factors that affects trade creation and trade diversion between the US and TPP countries using the gravity model by applying both panel pooled data from 1991 to 2015 to four gravity equations (agricultural related products, bulk agricultural products, consumer oriented agricultural products, and intermediate agricultural products) in each case. The factors include traditional trade variables GDP of US (exporting country), GDP of importing countries, FTA’s, border, language, real exchange rate, arable land and population for U.S. Three models (One-way random effect, the two-way random effect and pooled) were applied to each of the four products. In all, the pooled model showed the highest predictive power and with consistent parameters. Similarly, considering the specific products, consumer oriented and intermediate products are the most sensitive to these factors while bulk agricultural products are the least. Keywords: Bilateral trade, Gravity model, TPP, FTA’s |
| Keywords: | Bilateral trade, Gravity model. Free Trade Agreement, Trans Pacific Partnership, International Relations/Trade, |
| Date: | 2017–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252803&r=int |
| By: | Addey, Kwame; Yeboah, Osei; Shaik, Saleem |
| Abstract: | The dynamics of international trade among countries have been widely studied. The use of the traditional gravity model has been conspicuous in this area since its first related use by Tinbergen. There have been several variations of the model by economists in an attempt to understand the factors influencing international trade. One area that has sparsely been exploited is the dynamics of trade between individual regions of a country and the country’s trade partners. With the recently derived Enabling Trade Index(ETI) by the World Trade Forum, this paper employs the components of the sub-indexes and pillars of the ETI in a traditional gravity model to explain the dynamics of three agricultural crop exports of the 48 contiguous US states. It is realised from the Tobit regression of the gravity model that the sub-indexes such market access, border administration, infrastructure and operating environment are sufficiently able to explain changes in state exports of corn, wheat and soybean. Likewise, the pillars are also able to explain the responses of these three state agricultural exports to relative changes among partners. |
| Keywords: | Crop Production/Industries, International Relations/Trade, Research Methods/ Statistical Methods, |
| Date: | 2017–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252791&r=int |
| By: | Pasadilla, Gloria O.; Wirjo, Andre |
| Abstract: | The database of the Organisation for Economic Co-operation and Development-World Trade Organization (OECD-WTO) on Trade in Value Added shows that services constitute a significant share of global goods exports. These services are either embedded in the product (such as engineering services) or bundled with its sale (such as recycling services). “Servicification”--the term coined to describe the increasing value contribution of services in manufacturing value chains--is also true in the Asia-Pacific Economic Cooperation (APEC) member-economies. This paper shows the growth in the share of services value added in APEC’s manufacturing exports between 1995 and 2009. The role of services in improving productivity is a top consideration in the decision of manufacturing firms to “servicify”. Indeed, this paper shows positive correlations between services inputs and productivity but negative correlations between OECD index of services restrictiveness and manufacturing exports per capita. Particularly for business services, restrictions on the movement of people as well as on foreign ownership and other market entry conditions contribute the most to high index of trade restrictiveness. |
| Keywords: | APEC, services, manufacturing, servicification, trade in value added (TiVA), services-manufacturing linkage, productivity, servicify, trade restrictiveness, Asia-Pacific Economic Cooperation, Organisation for Economic Co-operation and Development, OECD: World Trade Organization, WTO |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:phd:pjdevt:pjd_2014-2015_vol__41-42_nos__1-2d&r=int |
| By: | Takumi Naito (Vanderbilt University and Waseda University) |
| Abstract: | To study the long-run growth and welfare effects of both symmetric and asymmetric trade liberalization, we extend Baldwin and Robert-Nicoud (2008) to allow for asymmetric countries. We obtain four main results. First, the dynamic effect strictly dominates the static effect on expenditure if and only if the knowledge sector is active. Second, under a generalized Coe-Helpman specification, unilateral trade liberalization can raise the balanced growth rate. Third, in the symmetric country case, we derive extended autarkiness ratio formulas for long-run growth and welfare. Fourth, growth-enhancing unilateral trade liberalization is not sufficient for higher long-run welfare for at most one country. |
| Keywords: | Trade and growth, Heterogeneous firms, Asymmetric countries, Unilateral trade liberalization, Endogenous growth |
| JEL: | F1 F4 |
| Date: | 2017–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:van:wpaper:vuecon-sub-17-00004&r=int |
| By: | Alessia A. Amighini; Margaret S. McMillan; Marco Sanfilippo |
| Abstract: | We contribute to the long debated issue of whether inward foreign direct investment (FDI) can stimulate investment in developing countries by introducing a novel measure of FDI, based on industry-level data. Our results suggest a positive impact of FDI on total investment – measured as the ratio of gross fixed capital formation to GDP – but only if multinational enterprises engage in manufacturing production; the same does not hold for other business activities. Moreover, we find evidence of a more beneficial impact of foreign investors from advanced economies compared to developing ones. Our results are robust to alternative measures of FDI, as well as to instrumental variable approaches accounting for the potential endogeneity of FDI. |
| JEL: | F21 F23 F63 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23049&r=int |
| By: | Jules Hugot; Camilo Umana Dajud |
| Abstract: | Current estimates offer a puzzling picture of the magnitude and historical evolution of the distance elasticity of trade. We take advantage of historical episodes that changed bilateral distance to estimate the distance elasticity in the time dimension and characterize its evolution over time. The openings of the Suez and Panama Canals -- as well as the closure of the Suez Canal from 1967 to 1975 -- allow us to control for unobserved time-invariant country pair characteristics in a gravity setting. Our estimates show that the impact of distance on trade remains particularly low, even if it has increased during the last half century. These results reconcile the distance elasticity of trade with its two components: the elasticity of trade to trade costs and the elasticity of trade costs to distance. In a second stage, we use these estimates to quantify the trade and welfare effects associated with the openings of the Suez and Panama Canals. We also perform the counterfactual exercise of closing the Panama Canal in 2012 to evaluate its current welfare effect. |
| Keywords: | Distance elasticity;Distance Puzzle;Gravity;Suez Canal;Panama Canal;Welfare effects of trade |
| JEL: | F14 F15 N70 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2016-29&r=int |
| By: | Caroline Freund (Peterson Institute for International Economics); Theodore H. Moran (Peterson Institute for International Economics) |
| Abstract: | This paper investigates three cases—Malaysia, Costa Rica, and Morocco—in which host authorities were successful in using foreign direct investment to change the export profile of the domestic economy. Each case highlights the importance of first-mover firms, and clusters of follower firms, in oligopolistic industries, whose emergence changes the revealed comparative advantage of the domestic economy. The results from these three cases are shown to be consistent with a broader body of econometric analysis. An important implication is that small emerging markets may be better equipped to transform their production structures and stimulate exports with foreign direct investment than by promoting broad domestic entrepreneurship. The authors find that policy changes in the host country can have very large effects if they alter the entry of multinationals or the behavior of large firms. |
| Keywords: | Foreign direct investment, development, integration, supply chains |
| JEL: | F23 F12 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp17-1&r=int |
| By: | Chia-Lin Chang (Department of Applied Economics Department of Finance National Chung Hsing University, Taiwan.); Michael McAleer; Ju-Ting Tang |
| Abstract: | With the advent of globalization, economic and financial interactions among countries have become widespread. Given technological advancements, the factors of production can no longer be considered to be just labor and capital. In the pursuit of economic growth, every country has sensibly invested in international cooperation, learning, innovation, technology diffusion and knowledge, and outward direct investment. In this paper, we use a panel data set of 40 countries from 1981 to 2008 and a negative binomial model, using a novel set of cross-border patents and joint patents as proxy variables for technology diffusion, in order to investigate such diffusion. The empirical results suggest that, if it is desired to shift from foreign to domestic technology, it is necessary to increase expenditure on R&D for business enterprises and higher education, exports and technology. If the focus is on increasing bilateral technology diffusion, it is necessary to increase expenditure on R&D for higher education and technology. It is also found that outward foreign direct investment has no significant impact on either joint or cross-border patents, whereas inward foreign direct investment has a significant negative impact on cross-border patents but no impact on joint patents. Moreover, government expenditure on higher education has a significant impact on both cross-border and joint patents. |
| Keywords: | International technology diffusion, Exports, Imports, Joint patent, Cross-border patent, R&D, Negative binomial panel data. |
| JEL: | F14 F21 O30 O57 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:1702&r=int |
| By: | Camilo Umana Dajud |
| Abstract: | Travel visas impose additional costs to firms when engaging in international trade. This paper exploits a natural experiment provided by Schengen agreements to document a causal impact and examine how much trade in goods is affected. I show that visas have a large negative impact on bilateral trade flows. The introduction of a visa to enter the Schengen Space considerably reduced bilateral trade flows between Ecuador and Bolivia and members of the Schengen space. I also find that the negative impact of visas is much larger for differentiated than for homogeneous products and that visas reduce the number of new products exported to a given market. By applying a general equilibrium framework, the paper shows that removing visas would increase welfare by nearly 10% for some sub-Saharan African countries and by 1,5 % on average for developing countries. For policy makers this paper highlights the importance of including visa facilitation schemes into the provisions of trade agreements and other economic partnerships. |
| Keywords: | International Trade;Trade Costs;Visas |
| JEL: | F14 F23 F63 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2016-30&r=int |
| By: | Dauth, Wolfgang; Findeisen, Sebastian; Südekum, Jens |
| Abstract: | The German economy exhibits rising service and declining manufacturing employment. But this decline is much sharper in import-competing than in export-oriented branches. We first document the individual-level job transitions behind those trends. They are not driven by manufacturing workers who smoothly switch to services. The observed shifts are entirely due to young entrants and returnees from non-employment. We then investigate if rising trade with China and Eastern Europe causally affected those labor flows. Exploiting variation across industries and regions, we find that globalization did not speed up the manufacturing decline in Germany. It even retained those jobs in the economy. |
| Keywords: | labor markets; Manufacturing; structural transformation; Trade |
| JEL: | F16 J21 R11 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11791&r=int |
| By: | Gary Clyde Hufbauer (Peterson Institute for International Economics); Zhiyao (Lucy) Lu (Peterson Institute for International Economics) |
| Abstract: | Border tax adjustments—achieved by denying business deductions for imported goods and services and excluding exports of goods and services from the tax base—will be hotly debated as a key feature of the cash flow tax proposed in the Blueprint of House Speaker Paul Ryan and Ways and Means Committee Chair Kevin Brady. This Policy Brief examines border tax adjustments from the perspective of their compatibility with World Trade Organization (WTO) rules, their possible impact on the dollar exchange rate, and the resulting effects on tax incidence brought by exchange rate movements. The authors conclude that not only are dogmatic assertions on the WTO compatibility of BTAs unwarranted but also are confident predictions of the induced exchange rate impact. The Trump administration and Congress will need to evaluate BTAs from different angles, realizing that decisions taken will carry the US economy into uncertain terrain. |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:iie:pbrief:pb17-3&r=int |
| By: | Brink, Lars |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | Agricultural and Food Policy, International Development, International Relations/Trade, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:250095&r=int |
| By: | Sultan Orazbayev |
| Abstract: | Face-to-face contact, even temporary one, helps researchers form personal ties and transfer tacit knowledge. The ability of researchers to colocate, including attendance at international conferences, workshops and seminars, is affected by the administrative barriers to international mobility. This paper uses a gravity-style empirical framework to examine the link between international knowledge flows and immigration policies. The results suggest that the paper walls erected by such policies reduce not just the mobility of individuals, but also the diffusion of knowledge. A moderately restrictive mobility barrier reduces incoming and outgoing knowledge flows by about 0.8-1.3% per year. The effect of knowledge-exporting country's policy persists for nearly 10 years. There is also a short-term asymmetry: diffusion of recent knowledge is affected more by the immigration policy of a knowledge-exporter rather than a knowledge-importer. |
| Keywords: | diffusion of knowledge; academic mobility; immigration policy; visa policy; migration |
| JEL: | F10 F29 O33 R10 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:see:wpaper:2017:1&r=int |
| By: | Alessandro Olper; Daniele Curzi; Jo Swinnen |
| Abstract: | We study the causal effect of trade liberalization on child mortality by exploiting 41 policy reform experiments in the 1960-2010 period. The Synthetic Control Method for comparative case studies allows to compare at the country level the trajectory of post-reform health outcomes of treated countries (those which experienced trade liberalization) with the trajectory of a combination of similar but untreated countries. In contrast with previous findings, we find that the effect of trade liberalization on health outcomes displays a huge heterogeneity, both in the direction and the magnitude of the estimated effect. Among the 41 investigated cases, 19 displayed a significant reduction in child mortality after trade liberalization. In 19 cases there was no significant effect, while in three cases we found a significant worsening in child mortality after trade liberalization. Trade reforms in democracies, in middle income countries and which reduced taxation in agriculture reduce child mortality more. |
| Keywords: | Trade liberalization, Child Mortality, Synthetic Control Method |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:567787&r=int |
| By: | Amrita Saha (Department of Economics, University of Sussex) |
| Abstract: | The objective of this paper is to quantify Lobbying Effectiveness for trade policy. I introduce this measure into Grossman and Helpman’s (1994, American Economic Review 84: 833–850) model of protection-for-sale (PFS). Two alternate factors are suggested to explain differences in lobbying effectiveness across sectors; first, predisposition of the government to supply protection (owing arguably to a perception bias to certain lobby groups that present their policy stance better); and second, the ability to organize and lobby for protection (based on market structure). Applying this framework to Indian data, I begin by estimating the traditional PFS model with a new measure of political organization. Then using panel data, I estimate lobbying effectiveness measures for the manufacturing sector. Additionally, I examine the political economy determinants of lobbying effectiveness in the context of Indian trade policy. The findings are a first for India and suggest an overall strong competition effect than any free-riding in lobbying for trade policy. First, for the most effective sectors, a high output to import ratio translates to higher trade protection; for the least effective/ineffective sectors, higher output to import ratio translates to lower trade protection. Second, sectors with geographically concentrated firms are more effective in lobbying, and effectiveness declines with an increase in product substitutability within sectors. |
| Keywords: | lobbying effectiveness; trade policy; India |
| JEL: | F13 F14 F5 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:0417&r=int |
| By: | Brink, Lars; Orden, David |
| Keywords: | Agricultural and Food Policy, International Relations/Trade, Production Economics, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iats16:253002&r=int |
| By: | Adrian Blundell-Wignall; Caroline Roulet |
| Abstract: | This paper estimates a dynamic foreign direct investment (FDI) gravity model to explore the impact of corruption in general and the OECD Anti-Bribery Convention in particular. The evidence from previous studies in both domains is mixed, probably due to econometric inconsistencies and misuse of data. The more robust findings are that corruption has an insignificant or even positive effect on FDI in the general population. However, adherence to the OECD Anti-Bribery Convention has a clear negative impact on FDI—countries that adhere reduce investments in corrupt destinations. |
| Keywords: | corrumption, foreign direct investment, institutions, law |
| JEL: | F21 F23 |
| Date: | 2017–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaaa:2017/1-en&r=int |
| By: | Adriana Peluffo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Ernesto Silva (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | Innovation and export decisions are closely interlinked. Both activities contribute to firm performance in various ways: exporting provides a wider market to sell products, while innovation provides new and better products to supply those markets and/or more efficient ways to reduce costs. The connection of innovation and exporting is of major interest to developing countries aiming to achieve higher growth and wellbeing given foreign markets are both a new challenge and a source of knowledge for firms. This study analyzes how different types of innovation affect export behavior at the firm level, as well as the consequence of exporting on further innovation activities. We use an unbalanced panel of Uruguayan manufacturing firms which provides information from 2000 to 2012. We use logistic regression and matching with difference-in-differences techniques. Using LOGIT models, we find that previous innovation increases the probability of exporting. Unlike other studies, productivity-enhancing (or cost-reducing) innovation shows a stronger correlation than product innovation. However, using Matching and Difference-in-Differences we were not able to establish a causality link from innovation to exporting. We find no consistent evidence of an impact of previous exports on innovation activities. |
| Keywords: | product innovation, process innovation, exporting |
| JEL: | F14 D21 C23 O31 O33 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-07-16&r=int |
| By: | Volchkova, Natalya |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | International Development, International Relations/Trade, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:250097&r=int |
| By: | Shaik, Saleem |
| Abstract: | The impacts of trade and trade risk on efficiency and productivity of Asia and Sub-Saharan Africa agriculture sector is examined using an extended stochastic frontier analysis econometric model. The extended models links the random and one-sided error term of stochastic frontier analysis to technical efficiency and productivity, respectively. The model estimates primal production function equation, efficiency function equation and productivity function equation, simultaneously. A panel of 17 Asian countries and 32 Sub-Saharan African countries from 1970 to 2010 shows differential impact of trade openness, short-term and long-term trade openness risk on efficiency and productivity. |
| Keywords: | Trade and Trade risk, Stochastic frontier analysis, Efficiency and Productivity, Asian and Sub-Saharan African, 1970-2010, International Relations/Trade, Production Economics, Productivity Analysis, Research Methods/ Statistical Methods, Risk and Uncertainty, C4, O3, O5, Q1, |
| Date: | 2017–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252788&r=int |
| By: | Atababayev, ElchinR. |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | Agricultural and Food Policy, International Development, International Relations/Trade, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249952&r=int |
| By: | Emine Boz; Gita Gopinath; Mikkel Plagborg-Møller |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:qsh:wpaper:489661&r=int |
| By: | Matchanov, Hokim |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | International Development, International Relations/Trade, |
| Date: | 2016–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249979&r=int |
| By: | Stratan, Alexandru |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | Agricultural and Food Policy, International Development, International Relations/Trade, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249972&r=int |
| By: | Dries, Liesbeth |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | Agricultural and Food Policy, Production Economics, |
| Date: | 2016–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:250099&r=int |
| By: | Perez-Restrepo, Camilo; Roldan-Perez, Adriana |
| Abstract: | The establishment of a Free Trade Area of the Asia-Pacific (FTAAP) is one of the priorities of the Asia-Pacific Economic Cooperation (APEC) to enhance regional economic integration beyond the Bogor Goals, as reflected in the Beijing Roadmap for APEC in 2014. There are multiple pathways that could converge into the FTAAP, and these include the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). This paper discusses the potential of the Pacific Alliance (PA) to provide an additional pathway that also contributes to the FTAAP process and regional integration in Asia-Pacific. The analysis suggests that the PA can be considered a comprehensive mechanism that is in line with the Bogor Goals, and its achievements in areas such as market access, services, investment, and new generation issues suggest that it is a WTO+ agreement. However, there are issues that would need to be negotiated among its members--such as intellectual property, labor, and environmental protection--for the PA to profile itself as a pathway equivalent to the TPP. The PA, however, is more comprehensive than the RCEP. The analysis also suggests that despite having only four members, the PA is a "living agreement" and is open to other APEC economies for membership and, therefore, has the potential to become a region-wide agreement. This paper encourages PA members to formulate a common Asia-Pacific strategy as a necessary step to further integrate the region and be able to contribute to the realization of the FTAAP. Formulating the strategy is one of the most important challenges for the economies of PA members and, at the same time, one of their greatest opportunities to become a driving force for regional integration in the Asia-Pacific region. |
| Keywords: | Free Trade Area of the Asia-Pacific (FTAAP), regional integration, Asia-Pacific Economic Cooperation (APEC), Regional Comprehensive Economic Partnership, Trans-Pacific Partnership, TPP, free trade area, Pacific Alliance, RCEP |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:phd:pjdevt:pjd_2014-2015_vol__41-42_nos__1-2a&r=int |
| By: | Perekhozhuk, Oleksandr |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | Crop Production/Industries, Research Methods/ Statistical Methods, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249967&r=int |
| By: | Kobuta, Iryna |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | Agricultural and Food Policy, International Development, International Relations/Trade, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249864&r=int |
| By: | Pomfret, Richard |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | International Development, International Relations/Trade, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:250096&r=int |
| By: | Djuric, Ivan; Svanidze, Miranda; Grau, Aaron; Götz, Linde; Glauben, Thomas |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | Crop Production/Industries, International Development, International Relations/Trade, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249966&r=int |
| By: | Cham, Tamsir (The Islamic Research and Teaching Institute (IRTI)) |
| Abstract: | This paper assesses the benefits of a currency union by using the West African Monetary Zone (WAMZ) and the traditional gravity model approach. This is the first investigative study on WAMZ’s impact on trade using a modified gravity model approach that incorporates the instability index, which characterizes the zone. This approach is useful in checking the impact of a single currency on trade enhancement and the impact of the instability index on economic growth. Using an Ordinary Least Squares (OLS) with different specifications of the gravity model and panel data set consisting of bilateral trade observations on 9 countries from 1980-2014, the empirical findings supported the hypothesis that currency unions do have a significant positive impact on trade flows. The results indicated that impact of the currency union on trade in the West African countries considered exceeds 20 percent. It therefore suffices to state that a currency union leads to trade enhancement. |
| Keywords: | Currency Union; Gravity Model; Trade |
| JEL: | E52 E63 F15 F43 |
| Date: | 2016–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:irtipp:2016_002&r=int |
| By: | Rasulov, Aziz |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | Agricultural and Food Policy, International Development, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249955&r=int |
| By: | Tilekeyev, Kanat; Mogilevskii, Roman; Bolotbekova, Aida; Dzhumaeva, Shoola |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | International Development, International Relations/Trade, Livestock Production/Industries, Marketing, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249954&r=int |
| By: | Bakari, Sayef; MABROUKI, Mohamed |
| Abstract: | This paper analyzes the relationship between economic growth, export and import in Morocco. VAR modeling techniques and Granger causality are used in empirical work. The study showed a causal effect ranging from economic growth in exports. Evidence shows that economic growth favors exports. While, there is no effect that goes for export growth. |
| Keywords: | Economic growth, Exports, Imports, VAR, Causality, Morocco. |
| JEL: | F0 F1 F14 |
| Date: | 2016–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76440&r=int |
| By: | Prema-chandra Athukorala; C. Veeramani |
| Abstract: | This paper examines the emerging patterns and economic implications of Indian overseas direct investment (ODI) from a historical perspective. The novelty of the analysis lies in its specific focus on the implications of the liberalization reforms initiated in the early 1990s and the resultant changes in the overall investment climate for the internationalisation of domestic companies. The findings cast doubts on the popular perception that the recent surge in ODI from India is an unmixed economic blessing, a sign of “coming of age” of the Indian companies in global business. Given the remaining distortion in the domestic investment climate, the net national gains from these investments could be much less than what the reported absolute numbers suggest. |
| Keywords: | India, overseas direct investment, foreign direct investment, multinational enterprise |
| JEL: | F21 L23 O53 F23 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2016-04&r=int |
| By: | Mamajanova, Tuygunoy; Otamurodov, Shavkat |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | International Development, International Relations/Trade, |
| Date: | 2016–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:250066&r=int |
| By: | Patrick Alexander; Jean-Philippe Cayen; Alex Proulx |
| Abstract: | We estimate two new equations for Canadian non-commodity exports (NCX) that incorporate three important changes relative to the current equation used at the Bank of Canada. First, we develop two new foreign activity measures (FAMs), which add new components to the FAM currently used at the Bank of Canada. The first measure adds US exports and US government expenditures, and the second adds US industrial production. These new FAMs calibrate the weights on the various components based on the 2014 World Input-Ouput Database to avoid the instability problem that arises when the equations are estimated. Second, we add a new variable to the equations, the trend of Canada’s manufacturing share of output, to control for structural or competitiveness factors that affect Canada’s global import market share. Third, the relative price of exports is determined by a new measure of the Canadian real effective exchange rate developed by Barnett, Charbonneau and Poulin-Bellisle (2016). We find that the new equations improve the in-sample fit and the out-of-sample forecast accuracy relative to the current equation specified in “LENS,” a forecasting model used at the Bank of Canada. |
| Keywords: | Balance of payments and components, Exchange rates, International topics |
| JEL: | F10 F14 F17 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocadp:17-1&r=int |
| By: | Hasanov, Shavkat |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | Agricultural and Food Policy, International Development, International Relations/Trade, Production Economics, |
| Date: | 2016–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249978&r=int |
| By: | Rylko, Dmitri |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | Food Security and Poverty, International Development, International Relations/Trade, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249909&r=int |
| By: | Norbek, Nurmatov |
| Abstract: | The selected paper presented at the IAMO Samarkand Conference |
| Keywords: | International Development, International Relations/Trade, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249953&r=int |
| By: | Herrell, Kevin M.; Tewari, Rachna; Mehlhorn, Joey |
| Abstract: | Global demand for coffee has increased significantly due to emphasis placed on value creation throughout the coffee supply chain, increased consumption in emerging economies, and changes in consumer preference. The specialty coffee industry, in particular, has highlighted the economic effects on individual participants from producers to consumers. In an attempt to encourage a more equitable income distribution along the supply chain, organizations such as Fair Trade Coffee have emerged to address the welfare of producers. A simple regression analysis can be used to determine the impact of Fair Trade Certification on producer premiums obtained through these non-traditional distribution channels. The Fair Trade Model will also be evaluated based on historical market data related to the evolution of the specialty coffee industry, including similar trade models that have emerged due to increased awareness brought about by Fair Trade Coffee. This preliminary study will serve as a platform for future studies that will determine the overall impact of Honduran Fair Trade Coffee Certification on producer welfare. |
| Keywords: | Coffee, Fair Trade, Income Distribution, Supply Chain, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Crop Production/Industries, International Relations/Trade, Marketing, Risk and Uncertainty, Q13, Q17, |
| Date: | 2017–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252729&r=int |
| By: | Kostadinov, Anton |
| Abstract: | China’s striving to ensure food security for its large population, and that problem I well known. In about one fifth of global population is living in China, in the same time should relay only 1/15 from rural land and 8% of fresh water. China’s population grows not only as a numbers, but also it is urbanizing in a large scale, the disposable incomes are also growing. It all means that food consuming pattern in China is also changing, and food consumption in the country will grow in both dimension – as a quantity and as a quality. EU – China trade relations are complicated and protectionism could be seen in both sides. EU have large trade deficits with China. The most member states have also large deficits, but not Germany and Finland. EU member states have very different positions about trade relations with China. In the food sector EU experiences overproduction, closed markets in Russian Federation, and internal market tensions. Furthermore, EU has placed a strong emphasis on speeding up Free trade agreements with so dynamic Asian countries, including China, but there are no plausible results yet. |
| Keywords: | China,EU food trade,food security |
| JEL: | F15 F42 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esconf:149572&r=int |
| By: | Zhao Chen; Sandra Poncet; Ruixiang Xiong |
| Abstract: | We provide evidence that the development of city commercial banks (CCBs) across China has alleviated the restraining effect of China's domestic financial market inefficiency on the export activity of domestic private firms. Looking at the export behavior of 260 cities between 1997 and 2012 we confirm the well-established under-performance of domestic private firms in financially more vulnerable sectors compared to foreign affiliates in China. We show that a larger number of city commercial banks' branches raises domestic private firms' export disproportionately more in financially dependent sectors, so as to reduce the systematic disadvantage of domestic private firms over foreign-owned firms in export markets related to their greater financial exclusion. We however find that the private firms export performance has deteriorated relative to that of state-owned firms casting doubt on the capacity of development of CCBs to put an end to the systematic bias of lending in favor of the state sector. |
| Keywords: | City Commercial Banks;Local Fnancial Development;China;Financial Constraints;Export Performance |
| JEL: | F10 F14 F36 G32 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2016-27&r=int |
| By: | Piatnytskyi, Valeriy |
| Keywords: | International Development, International Relations/Trade, |
| Date: | 2016–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iamc16:249908&r=int |
| By: | Yeboah, Osei; Naanwaab, Cephas; Shaik, Saleem; Legesse, Befikadu; Odom, Phillipa |
| Abstract: | Over the years, there have been a number of issues pertaining to the import of beef into U.S economy. The price of beef has recorded steady increase in recent years. Internal factors such as input for raising cattle and external factors like import quota, tariffs and prices of related animal products may have accounted for the high prices of beef. Country of Origin Labeling (COOL) is a labeling U.S. Farm Bill law passed in 2008 by the United States Congress demanding meat, fruits, vegetables and peanuts to be labeled as to their country of origin. The implementation of country of origin labeling has become one of the controversial issues in the US beef industry and even Canada. The main objective of the study is to determine whether the impact of COOL is serving as an import quota on U.S. beef imports. This is achieved by employing a partial equilibrium analysis to model U.S. import demand for U.S. beef imports. This paper develops an Import Demand model for the U.S. Beef Sector to evaluate if COOL serves as an import quota for U.S. beef imports. The randomized effect model and the OLS regression were estimated. Unrestricted model to test the homogeneity and symmetry conditions: b) Restricted model with homogeneity and symmetry imposed along with a dummy variable COOL taking the value as “1” for pre-COOL, otherwise, “0.The analysis employed a partial equilibrium model to model the import demand function of beef imports. Controlling for other variables that affect the volume of imports, the estimated coefficients of MCOOL was consistently negative in all the Models. This negative effect implied that following the execution of mandatory labeling, there has been a significant increase in the imports of beef into the U.S. from the exporting countries under both the restricted models. |
| Keywords: | Beef, Mandatory, Country of Origin Labeling, Import Demand Model, & Regression Models., Agricultural and Food Policy, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252807&r=int |
| By: | Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | In the 7th of May 2016 print edition of DER SPIEGEL, an article (also available on May 6th in digital form) under the headline “Free trade: “We’re not commodities” - An unprecedented counter-movement has brought the TTIP Agreement to the brink of collapse, their success based on a new professionalism” was published, which promulgated a view that certain non-governmental organizations, supported by a study from Tufts University, were developing a professional and sound refutation of TTIP which claims to show negative welfare, income and employment effects for Germany and indeed the EU as a whole. The expert opinions referred to in the DER SPIEGEL article are Mr. Thilo Bode, Chairman of (German) foodwatch, who has written an anti-TTIP book, the so-called Tufts TTIP paper which shows negative income effects for the EU (in reality this paper is from Capaldo, who’s only indirectly connected to Tufts University) and the “secret” paper from the London School of Economics which, it is alleged, also shows negative effects for the United Kingdom as a result of TTIP. The LSE paper does not show negative effects as a result of TTIP as a whole as the article in DER SPIEGEL would suggest. What is withheld from the readers of DER SPIEGEL is that there is an official TTIP-analysis for the UK from CEPR. The claim made by the article that even the most optimistic TTIP studies show real income growth of only 0.5% is wrong by a factor of 10. The TTIP-study Jungmittag/Welfens (EIIW Paper 212), which has been available to DER SPIEGEL for months, was not referred to, despite important findings. An internet paradox is formulated here as a hypothesis, under which the quality of reporting sinks in the digital age, which in turn weakens the quality of decision-making in democracies putting them at a distinct disadvantage in an ideological competition with autocracies. |
| Keywords: | Trade, TTIP, International Economics, EU, Journalism |
| JEL: | F13 F43 O47 O52 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei213&r=int |
| By: | Ahad, Muhammad; Khan, Wali |
| Abstract: | This research investigates the relationship between globalization, environment degradation, industrial production, energy consumption and economic growth over the period of 1972-2015 for Bangladesh. The long run relationship between variables is examined using ARDL bound test and combined cointegration approach. These cointegration approaches predict the long run relationship between underlying variables. The empirical findings demonstrate that globalization, industrial production and energy consumption drives environmental degradation positively, but economic growth pushes environmental degradation negatively in the long run as well as short run. Further, the direction of causality is examined by VECM Granger causality which shows bidirectional causality between energy consumption and environment degradation, economic growth and environment degradation, industrial production and economic growth, and energy consumption and economic growth for both short-long run. Our results suggest a unidirectional causality runs from environmental degradation and energy consumption to industrial production. The empirics of Innovative Accounting Approach (IAA) confirm the findings of VECM Granger causality. Our findings suggest that Policymakers may focus on imports of advance technology and export led growth strategy to control environmental pollution. |
| Keywords: | Globalization, Environment Degradation, Bangladesh |
| JEL: | F64 Q4 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76278&r=int |