nep-int New Economics Papers
on International Trade
Issue of 2017‒12‒11
39 papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. Estimating the Effects of Non-discriminatory Trade Policies within Structural Gravity Models By Heid, Benedikt; Larch, Mario; Yotov, Yoto
  2. International Fisheries Access Agreements and Trade By Tatyana Chesnokova; Stephanie F. McWhinnie
  3. The Causal Impact of Migration on US Trade: Evidence from Political Refugees By Walter Steingress
  4. Three essays on trade policies in developing countries By Choi, Yoonho
  5. Services in Global Value Chains: Trade patterns and gains from specialisation By Sébastien Miroudot; Charles Cadestin
  6. What's Behind the Figures? Quantifying the Cross-Country Exporter Productivity Gap By Kozo Kiyota; Toshiyuki Matsuura; Lionel Nesta
  7. Labor market imperfections, markups and productivity in multinationals and exporters By Sabien (S.) Dobbelaere; Kozo Kiyota
  8. European Union’s SPS and TBT Measures, Gender Specific Obstacles and Agricultural Employment By Kareem, Fatima Olanike
  9. Labor market imperfections, markups and productivity in multinationals and exporters By Sabien Dobbelaere; Kozo Kiyota
  10. Global Value Chains and Structural Upgrading By Roman Stöllinger
  11. Electrical and electronics manufacturing in Thailand exploring challenges and good practices in the workplace By Errighi, Lorenza.; Bodwell, Charles.
  12. Do emigrants self-select along cultural traits? Evidence from the MENA Countries By Frédéric Docquier; Aysıt Tansel; Riccardo Turati
  13. Markup Heterogeneity, Export Status and the Establishment of the Euro By Sarah Guillou; Lionel Nesta
  14. Foreign Ownership and Intra-Firm Union Density in Germany By Jirjahn, Uwe
  15. Do emigrants self-select along cultural traits? Evidence from the MENA countries By Frédéric Docquier; Aysit Tansel; Riccardo Turati
  16. U.S. Job Flows and the China Shock By Brian J. Asquith; Sanjana Goswami; David Neumark; Antonio Rodriguez-Lopez
  17. Geography, Search Frictions and Trade Costs By Theodore Papageorgiou; Myrto Kalouptsidi; Giulia Brancaccio
  18. Trade relations between Colombia and the European Union: an analysis of the index of revealed comparative advantage and import intensity By Jaime Ahcar; David Alejandro Rodríguez
  19. The Import of "Cultural Goods" and Emigration: an Unexplored Relation. By Lanati, Marco; Venturini, Alessandra
  20. Factor endowment -- commodity output relationships in a three-factor, two-good general equilibrium trade model By Yoshiaki Nakada
  21. Learning and the Value of Trade Relationships By Ryan Monarch; Tim Schmidt-Eisenlohr
  22. Transatlantic Trade in Services: Investigating Bilateral Asymmetries in EU-U.S. Trade Statistics By Kristy Howell; Robert Obrzut; Olaf Nowak
  23. Vulnerability from trade in Vietnam By Emiliano Magrini; Pierluigi Montalbano; L. Alan Winters
  24. Do emigrants self-select along cultural traits? Evidence from the MENA countries By Frédéric Docquiera; Aysit Tansel; Riccardo Turati
  25. Move away from BITs framework: A need for multilateral investment treaty? By Forere, Malebakeng
  26. The Organization of Global Supply Networks By Loredana Fattorini; Armando Rungi; Zhen Zhu
  27. Beyond being Good Neighbors: Proximity to International Markets Matter More for India Pakistan Peace By Mamoon, Dawood
  28. Economic Effects of Brexit on the European Economy By Gabriel Felbermayr; Clemens Fuest; Jasmin Katrin Gröschl; Daniel Stöhlker
  29. The True Cost of BREXIT for the UK: A Research Note By Paul J.J. Welfens
  30. The Effect of Import Competition on Employment in Canada: Evidence from the 'China Shock' By Alexander Murray
  31. Economic globalisation, inequality and the role of social protection By Alexandre Kolev; Caroline Tassot
  32. Foreign Investment and Domestic Productivity: Identifying Knowledge Spillovers and Competition Effects By Vadym Volosovych; Carolina Villegas Sanchez; Bent Sorensen; Sebnem Kalemli-Ozcan
  33. The Changing Geography of Innovation and the Role of Multinational Enterprises By Davide Castellani
  34. Supplier Search and Re-Matching in Global Sourcing: Theory and Evidence from China By Fabrice Defever; Christian Fischer; Jens Suedekum
  35. Location of R&D abroad. An analysis on Global Cities By Davide Castellani; Katiuscia Lavoratori
  36. The Effects of Immigration on NHS Waiting Times By Osea Giuntella; Catia Nicodemo; Carlos Vargas Silva
  37. Migration Networks and Location Decisions: Evidence from U.S. Mass Migration By Bryan Stuart; Evan Taylor
  38. Migration, political institutions, and social networks By Catia Batista; Julia Seither; Pedro C. Vicente
  39. Unilateral and Multilateral Sanctions: A Network Approach By Sumit Joshi; Ahmed Saber Mahmud

  1. By: Heid, Benedikt (University of Adelaide); Larch, Mario (University of Bayreuth); Yotov, Yoto (Drexel University)
    Abstract: We propose a simple method to identify the effects of unilateral and non-discriminatory trade policies on bilateral trade within a theoretically-consistent empirical gravity model. Specifically, we argue that structural gravity estimations should be performed with data that include not only international trade flows but also intra-national trade flows. The use of intra-national sales allows identification of the effects of non-discriminatory trade policies on the importer side (e.g. most favored nation tariffs) and on the exporter side (e.g. export subsidies), even in the presence of exporter and importer fixed effects. An important byproduct of our approach is that it can be used to recover estimates of the export-supply elasticity and of the import-demand elasticity. We demonstrate the effectiveness of our techniques in the case of MFN tariffs and "Time to Export" as representative determinants of trade on the importer and on the exporter side, respectively. Our methods can be extended to quantify the impact on trade of any country-specific characteristics as well as any non-trade policies.
    Keywords: Gravity Model; Non-discriminatory Trade Policies; Tariffs; Subsidies; Time to Export; Trade Elasticity of Substitution
    JEL: F10 F13 F14 F47
    Date: 2017–10–23
    URL: http://d.repec.org/n?u=RePEc:ris:drxlwp:2017_010&r=int
  2. By: Tatyana Chesnokova (Waseda Institute for Advanced Study, Waseda University,Tokyo, Japan.); Stephanie F. McWhinnie (School of Economics, University of Adelaide)
    Abstract: International fishery access agreements allow fishermen from one country to harvest fish in another country's waters. We empirically examine, using a unique global panel dataset, why countries sign fisheries access agreements with each other and compare these to the characteristics of countries that choose the path of international trade. We show that access agreements and fish exports are driven by two key motives: a pattern of comparative advantage in fishing, which depends on fish stocks and fishing capacities; and gravity factors of economic size and distance. Our results suggest that most gravity factors work similarly for agreements and exports: larger countries that are closer to each other are more likely to sign access agreements or to trade. However, the pattern of advantage is determined differently: source countries with larger fishing capacity are more likely to export fish, while source countries with lower fishing capacity are more likely to sign agreements.
    Keywords: International fisheries, access agreements, international trade, empirical
    JEL: Q22 Q27 F13 F14 F18
    Date: 2017–10
    URL: http://d.repec.org/n?u=RePEc:adl:wpaper:2017-11&r=int
  3. By: Walter Steingress
    Abstract: Immigrants can increase international trade by shifting preferences towards the goods of their country of origin and by reducing bilateral transaction costs. Using geographical variation across U.S. states for the period 2008 to 2013, I estimate the respective causal impact of immigrants on U.S. exports and imports. I address endogeneity and reverse causality by exploiting the exogenous allocation of political refugees within the U.S. refugee resettlement program that prevents immigrants from choosing the destination location. I find that a 10 percent increase in recent immigrants to a U.S. state raises imports from those immigrants’ country of origin by 1.2 percent and exports by 0.8 percent.
    Keywords: International topics, Regional economic developments
    JEL: F14 F22 J61
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:bca:bocawp:17-49&r=int
  4. By: Choi, Yoonho
    Abstract: During the past decade, foreign exchange reserves of China and Japan have increased dramatically. For instance, China’s foreign exchange reserve rose from $954.6 billion in January 2007 to $3.5 trillion in April 2016. China and Japan seem to hold large foreign reserves, much more than are necessary to facilitate their imports. The WTO regulates only tariff and various non-tariff barriers but has made little effort to regulate the bilateral exchange rates because exchange rate practices are within the purview of the IMF. At present, the World Trade Organization (WTO) does not treat currency devaluation as a protective trade policy. In my dissertation, I have chosen three topics in the area of international economics. The first chapter argues that currency devaluation is equivalent to an import tariff, and hence currency devaluation should be treated as a trade policy instrument. The second chapter considers the employment effects of currency devaluations in a Keynesian open economy. Currency devaluation may decrease domestic employment and increase the social welfare. Under plausible conditions, the optimal policy is to get rid of domestic unemployment in input sectors. The third chapter investigates the effects of public capital investment in the export sector for the labor movement and capital formation and identifies the contribution of public capital and other economic factors to the productivity growth rate in the firm sector. We show that the optimal tariffs are positive but decrease to the steady state level.
    Date: 2017–01–01
    URL: http://d.repec.org/n?u=RePEc:isu:genstf:201701010800006507&r=int
  5. By: Sébastien Miroudot (OECD); Charles Cadestin (OECD)
    Abstract: Within global value chains (GVCs), services and manufacturing activities are intertwined. This report further investigates the role played by services in GVCs by looking at patterns of specialisation in 23 services industries over the period 2000-2014. Relying on the concept of revealed comparative advantage, it highlights that all countries have a comparative advantage in specific services industries, either in services within manufacturing value chains or in services exported as final products to consumers. A value-added approach is important to analyse the specialisation in services. In addition, there are tangible productivity gains out of this specialisation, as well as gains in terms of employment. Finally, empirical results suggest that services trade restrictiveness negatively affects bilateral flows of service value-added within GVCs. Both domestic reforms and the reduction of barriers in partner countries can benefit services sectors and the activities that rely on services inputs.
    Keywords: global value chains, productivity, revealed comparative advantage, Services, servicification, trade in services, trade in value-added
    JEL: F13 F14 F23 L80
    Date: 2017–12–06
    URL: http://d.repec.org/n?u=RePEc:oec:traaab:208-en&r=int
  6. By: Kozo Kiyota (Keio Economic Observatory, Keio University); Toshiyuki Matsuura (Keio Economic Observatory, Keio University); Lionel Nesta (Université Côte d'Azur; GREDEG CNRS; OFCE Sciences Po.; SKEMA Business School)
    Abstract: We present a simple framework that allows us to examine the cross-country exporter productivity gap without accessing confidential firm-level data. This gap depends on the three readily available statistics: the productivity gap between two countries; the export participation rates; and export premia. This gap holds irrespective of the data generating process and independent of sunk costs of entering domestic markets. Under specific conditions, allocative efficiency may affect the exporter productivity gap. Additional assumptions on the log-normality of the productivity distribution of firms allow one to recover the export threshold and heterogeneity parameters. The empirical analysis globally validates this exercise.
    Keywords: International productivity gap, Export premia, Competitiveness, Meta analysis
    JEL: F1 D24
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:gre:wpaper:2017-33&r=int
  7. By: Sabien (S.) Dobbelaere (Vrije Universiteit Amsterdam, The Netherlands; Tinbergen Institute, The Netherlands; Institute of Labor Economics (IZA), Germany; Tinbergen Institute, The Netherlands); Kozo Kiyota (Keio University, Japan; Research Institute of Economy, Trade and Industry (RIETI), Japan)
    Abstract: This paper examines the links between the internationalization mode of firms and market imperfections in product and labor markets. We develop a framework for modelling heterogeneity across firms in terms of (i) product market power (price-cost markups), (ii) labor market imperfections (workers' bargaining power during worker-firm negotiations or firm's degree of wage-setting power) and (iii) revenue productivity. We apply this framework to analyze whether the pricing behavior of firms in product and labor markets differs across firms that engage in different forms of internationalization. Engagement in international activities is found to matter for determining not only the type of imperfections in product and labor markets but also the degree of imperfections. Clear differences in behavior between firms that serve the foreign market either through exporting or through FDI are observed. Being an exporter introduces allocative inefficiencies in product as well as labor markets as we find export status to be positively correlated with both product market power (markups) and market power consolidated on the labor supply side (workers' bargaining power). But exporting firms where search frictions are inducing wages to vary with revenue are less able to exploit wage-setting power. Firms with foreign subsidiaries, on the other hand, seem to reduce price distortions in product and labor markets. In addition, we observe heterogeneous returns to being an exporter/MNE within an industry and also discern cross-industry differences.
    Keywords: Rent sharing; monopsony; price-cost mark-ups; productivity; exporting; multinational firms; panel data
    JEL: C23 D24 F14 F16 J50 L13
    Date: 2017–12–01
    URL: http://d.repec.org/n?u=RePEc:tin:wpaper:20170114&r=int
  8. By: Kareem, Fatima Olanike
    Abstract: We investigate the implications of EU non-tariff barriers in the form sanitary and phyto-sanitary (SPS) measures and technical barriers to trade (TBT) on gender relations in the agricultural labour market between 1995 and 2012. Our results indicate that women are disproportionately disadvantaged in the agricultural sector not only because of the inimical effect of the non-tariff measure, but more so because of their unequal access to opportunities such as gender inequality in secondary schooling the heavy burden of reproduction actives which makes them less available for gainful employment. However, gender parity achieved in primary education and increased access to time saving infrastructure increases their share of employment in the agricultural sector. Thus, proactive measures aimed at infrastructure investment that reduces women care burdens and building the educational capacity of women to effectively deal with such non-tariff barriers, could work to remove these gender specific obstacles, enable women respond to employment opportunities and minimise any gender disparity caused by trade.
    Keywords: Non-tariff measures,Sanitary and phyto-sanitary measures,Technical barriers to trade,Employment,Gender,European Union
    JEL: F13 F14 F16 J16 J43
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:zbw:esprep:171726&r=int
  9. By: Sabien Dobbelaere (VU Amsterdam; Tinbergen Institute, The Netherlands); Kozo Kiyota (Keio University; Research Institute of Economy, Trade and Industry (RIETI), Japan)
    Abstract: This paper examines the links between the internationalization mode of firms and market imperfections in product and labor markets. We develop a framework for modelling heterogeneity across firms in terms of (i) product market power (price-cost markups), (ii) labor market imperfections (workers' bargaining power during worker-firm negotiations or firm's degree of wage-setting power) and (iii) revenue productivity. We apply this framework to analyze whether the pricing behavior of firms in product and labor markets differs across firms that engage in different forms of internationalization. Engagement in international activities is found to matter for determining not only the type of imperfections in product and labor markets but also the degree of imperfections. Clear differences in behavior between firms that serve the foreign market either through exporting or through FDI are observed. Being an exporter introduces allocative inefficiencies in product as well as labor markets as we find export status to be positively correlated with both product market power (markups) and market power consolidated on the labor supply side (workers' bargaining power). But exporting firms where search frictions are inducing wages to vary with revenue are less able to exploit wage-setting power. Firms with foreign subsidiaries, on the other hand, seem to reduce price distortions in product and labor markets. In addition, we observe heterogeneous returns to being an exporter/MNE within an industry and also discern cross-industry differences.
    Keywords: Rent sharing; monopsony; price-cost mark-ups; productivity; exporting; multinational firms; panel data
    JEL: C23 D24 F14 F16 J50 L13
    Date: 2017–12–01
    URL: http://d.repec.org/n?u=RePEc:tin:wpaper:20170113&r=int
  10. By: Roman Stöllinger (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Global value chains (GVCs) are increasingly seen as a part of the industrial policy toolkit as they facilitate the entry into global markets and MNEs have greater incentives to share knowledge within their production network. Making use of international input-output data for 53 countries, this paper investigates econometrically how countries’ participation in GVCs affects structural upgrading. A sizeable structural change bonus arising from increasing GVC trade is identified for emerging and transition economies. However, this bonus is not stronger for GVC trade than for trade in general. Therefore, the role of GVCs as an industrial policy tool should not be overestimated.
    Keywords: structural upgrading, global value chains, cross-country production sharing, industrial policy, emerging and transition economies
    JEL: F12 O14 O25
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:wii:wpaper:138&r=int
  11. By: Errighi, Lorenza.; Bodwell, Charles.
    Abstract: The electronics and electrical (E&E) industry, strongly supported by international trade and investment, has been an important export revenue and employment contributor to the Thai economy over the last three decades. However, as the country develops and more cost-competitive regional neighbours emerge, the Thai E&E industry faces upgrading challenges related to skilled labour gaps. This paper serves as an entry point to explore decent work challenges in Thailand’s E&E Industry. It is based on a desk review of employment-related challenges found at both industry and national level, complemented by good practice examples.
    Keywords: electronics industry, electrical industry, good practices, decent work, Thailand
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:ilo:ilowps:994967593402676&r=int
  12. By: Frédéric Docquier (FNRS & IRES, Université Catholique de Louvain, Belgium; FERDI, France); Aysıt Tansel (Department of Economics, Middle East Technical University, Ankara, Turkey; Institute for the Study of Labor (IZA) Bonn, Germany; Economic Research Forum (ERF) Cairo, Egypt); Riccardo Turati (IRES, Université Catholique de Louvain, Belgium)
    Abstract: This paper empirically investigates whether emigrants from MENA countries self-select on cultural traits such as religiosity and gender-egalitarian attitudes.To do so, we use Gallup World Poll data on individual opinions and beliefs, migration aspirations,short-run migration plans, and preferred destination choices. We find that individuals who intend to emigrate to OECD, high-income countries exhibit significantly lower levels of religiosity than the rest of the population.They also share more gender-egalitarian views, although the effect only holds among the young (aged 15 to 30), among single women, and in countries with a Sunni minority. For countries mostly affected by Arab Spring, since 2011 the degree of cultural selection has decreased. Nevertheless,the aggregate effects of cultural selection should not be overestimated. Overall, self-selection along cultural traits has limited (albeit non negligible) effects on the average characteristics of the population left behind, and on the cultural distance between natives and immigrants in the OECD countries.
    Keywords: International migration, self-selection, cultural traits, gender-egalitarian attitudes, religiosity, MENA region.
    JEL: F22 O15 J61 Z10
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:met:wpaper:1713&r=int
  13. By: Sarah Guillou (OFCE Sciences Po. Paris); Lionel Nesta (Université Côte d'Azur; GREDEG CNRS; OFCE Sciences Po. Paris; SKEMA Business School)
    Abstract: We investigate the effects of the establishment of the euro on the markups of French manufacturing firms. Merging firm-level census data with customs data, we estimate time-varying firm-specific markups and distinguish between eurozone exporters from other firms between 1995 and 2007. We find that the establishment of the euro has had a pronounced pro-competitive impact by reducing firm markups by 14 percentage points. By reducing export costs, the euro represented an opportunity for eurozone exporters to increase their margins relative to other firms. Quantile regressions show that the euro has led to a reduction in the variance of markups.
    Keywords: Markups, Heterogeneity, Euro, Competition, Export Destination
    JEL: C5 D43 L16 L60
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:gre:wpaper:2017-35&r=int
  14. By: Jirjahn, Uwe
    Abstract: From a theoretical viewpoint the relationship between foreign ownership and unionization is ambiguous. On the one hand, foreign owners have better opportunities to undermine workers’ unionization. On the other hand, workers of foreign-owned firms have an increased demand for the protection provided by unions. Which of the two opposing influences dominates can vary according to moderating circumstances. This study shows that firm size and industry-level bargaining play a moderating role. The relationship between foreign ownership and unionization is negative in larger firms whereas it is positive in smaller firms. Coverage by industry-level collective bargaining makes a positive relationship both stronger and more likely.
    Keywords: Corporate Globalization,Foreign Direct Investment,Union Membership,Firm Size,Centralized Collective Bargaining
    JEL: F23 J51 J52
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:zbw:glodps:149&r=int
  15. By: Frédéric Docquier (FNRS, UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and FERDI (France)); Aysit Tansel (Middle East Technical University (Turkey), IZA (Germany) and ERF (Egypt)); Riccardo Turati (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: This paper empirically investigates whether emigrants from MENA countries self-select on cultural traits such as religiosity and gender-egalitarian attitudes. To do so, we use Gallup World Poll data on individual opinions and beliefs, migration aspirations, short-run migration plans, and preferred destination choices. We find that individuals who intend to emigrate to OECD, high-income countries exhibit significantly lower levels of religiosity than the rest of the population. They also share more gender-egalitarian views, although the effect only holds among the young (aged 15 to 30), among single women, and in countries with a Sunni minority. For countries mostly affected by Arab Spring, since 2011 the degree of cultural selection has decreased. Nevertheless, the aggregate effects of cultural selection should not be overestimated. Overall, self-selection along cultural traits has limited (albeit non negligible) effects on the average characteristics of the population left behind, and on the cultural distance between natives and immigrants in the OECD countries.
    Keywords: International migration, self-selection, cultural traits, gender-egalitarian attitudes, religiosity, MENA region
    JEL: F22 J61 Z10
    Date: 2017–11–30
    URL: http://d.repec.org/n?u=RePEc:ctl:louvir:2017024&r=int
  16. By: Brian J. Asquith; Sanjana Goswami; David Neumark; Antonio Rodriguez-Lopez
    Abstract: International trade exposure affects job creation and destruction along the intensive margin (job flows due to expansions and contractions of firms' employment) as well as along the extensive margin (job flows due to births and deaths of firms). This paper uses 1992-2011 employment data from the {universe} of U.S. establishments to construct job flows at both the industry and commuting-zone levels, and then estimates the impact of the `China shock' on each job-flow type. The China shock is accounted for by either the increase in Chinese import penetration in the U.S., or by the U.S. policy change that granted Permanent Normal Trade Relations (PNTR) status to China. We find that the China shock affects U.S. employment mainly through deaths of establishments. At the commuting-zone level, we find evidence of large job reallocation from the Chinese-competition exposed sector to the nonexposed sector, and establish that the gross employment effects of the China shock are fundamentally different from those of a more general adverse shock affecting the U.S. demand for domestic labor.
    JEL: F14 F16 J2 J65
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:24080&r=int
  17. By: Theodore Papageorgiou (McGill); Myrto Kalouptsidi (Harvard); Giulia Brancaccio (Princeton)
    Abstract: We build a framework that models the behavior of both exporters and transportation agents (ships); its spatial equilibrium determines world trade costs and flows. Our framework has the following three novel features: trade costs are endogenous and determined jointly with trade flows; trade costs depend on the entire network of trade linkages across countries; search frictions between exporters and ships can limit trade. The model features geography, forward-looking optimizing ships and exporters and search frictions. We estimate the model using a unique database on shipping contracts, global vessel movements from satellites and detailed sea weather data. Our empirical strategy allows us to obtain the main model primitives of interest (exporter valuations and exporting costs, ship costs), but also to measure the extent of search frictions. We flexibly recover both the matching function between exporters and ships, as well as the global distribution of exporters. We use the framework to revisit a number of questions. We show that world trade elasticities are lower if the ships' optimal reaction is accounted for. We consider China's super growth to show how shocks propagate through the network of countries. Finally, we quantify the loss due to search frictions.
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:red:sed017:1105&r=int
  18. By: Jaime Ahcar; David Alejandro Rodríguez (Faculty of Economics and Management, Pontificia Universidad Javeriana Cali)
    Abstract: In May 2013 a Free Trade Agreement FTA between Colombia, Peru and the European Union entered into force. One of the expected effects of this type of accords is an intensification in the value of the bilateral trade flows. Nevertheless, the years following the implementation of the agreement were characterized by a slump in commodity prices and a downturn in global economic growth. This paper aims to determine if a shift in the revealed competitive advantage (RCAI) and import intensity (III) indices has taken place, showing some kind of sign of improvement in the bilateral trade relationship. To do this we compute the above-mentioned indicators, before and after the agreement, in order to contrast its evolution. The results show that the RCAI evolution indicates a positive impact of the agreement, while the III presents mixed results. The version here presented corresponds to the updated study.
    Keywords: Competitive advantage, Free Trade Agreement, Colombia, European Union, Trade Integration, Import Intensity
    JEL: F10 F15
    Date: 2017–12
    URL: http://d.repec.org/n?u=RePEc:ddt:wpaper:32&r=int
  19. By: Lanati, Marco; Venturini, Alessandra (University of Turin)
    Abstract: The paper examines the effect of the import of cultural goods as defined by UNESCO (2009): cultural heritage, performance, visual arts, books, audio-visual material and design on emigration decisions. The import of cultural goods, by affecting individual preferences, reduces the cost of any migration move and favors outflows towards exporting countries. A gravity model for 33 OECD destination countries and 184 sending ones has been estimated for the period 2009-2013. The issue of identification and endogeneity has been addressed through the inclusion of a comprehensive set of fixed effects and by instrumenting cultural imports with past flows and an imputed share of cultural imports à la Card (2001). The positive relationship is robust across different classifications for cultural goods, areas of destination and alternative econometric techniques.
    Date: 2017–09
    URL: http://d.repec.org/n?u=RePEc:uto:dipeco:201730&r=int
  20. By: Yoshiaki Nakada
    Abstract: We analyze the Rybczynski sign pattern, which expresses the factor endowment - commodity output relationships in a three-factor, two-good general equilibrium trade model. The relationship determines whether a strong Rybczynski result holds. We search for a sufficient condition for each Rybczynski sign pattern to hold in a systematic manner, which no other studies have derived. We assume factor-intensity ranking is constant. We use the EWS (economy-wide substitution)-ratio vector and the Hadamard product in our analysis. We show that the position of the EWS-ratio vector determines the Rybczynski sign pattern. This article provides a basis for further applications.
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1711.11429&r=int
  21. By: Ryan Monarch; Tim Schmidt-Eisenlohr
    Abstract: This paper quantifies the value of importer-exporter relationships. We show that almost 80 percent of U.S. imports take place in pre-existing relationships, with sizable heterogeneity across countries, and show that traded quantities and survival increase as relationships age. We develop a two-country general equilibrium trade model with learning that is consistent with these facts. A model-based measure of relationship value explains survival during the 2008-09 crisis. Knowledge accumulated within long-term relationships is quantitatively important: wiping out all memory from previous interactions, on average, reduces consumption by 5 percent on impact and by 48 percent over the transition back to steady state.
    Keywords: International Trade ; Firm Relationships ; Learning ; Trade Dynamics
    JEL: F11 F14 L14 D22
    Date: 2017–11–29
    URL: http://d.repec.org/n?u=RePEc:fip:fedgif:1218&r=int
  22. By: Kristy Howell; Robert Obrzut; Olaf Nowak (Bureau of Economic Analysis)
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:bea:wpaper:0147&r=int
  23. By: Emiliano Magrini (Food and Agriculture Organization, Rome); Pierluigi Montalbano (Department of Economics, University of Sussex; Department of Economics and Social Sciences, Sapienza University of Rome); L. Alan Winters (Department of Economics, University of Sussex)
    Abstract: This paper assesses vulnerability from trade in Vietnam by presenting an extended version of Ligon and Schechter’s (2003) Vulnerability as low Expected Utility (VEU) measure. It uses the VHLSS panel data covering the period 2002-06. The empirical results show that risk-induced vulnerability and heterogeneity in trade exposure matters in determining household overall vulnerability and that this is not linked to the actual manifestation of shocks. Although it does not represent, by any means, an argument against free trade, this work is relevant for policymaking since it contributes to deepen our knowledge on the subtle links between trade openness and vulnerability providing some insight on the stabilisation needs of trade reforms. These include protecting vulnerable farmers from excessive price volatility, as well as fostering their risk management strategies.
    Keywords: trade openness; vulnerability; poverty; risk; consumption behaviour; Vietnam
    JEL: F14 O12 D12 C31
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:sus:susewp:2017&r=int
  24. By: Frédéric Docquiera (FNRS & IRES, Université Catholique de Louvain (Belgium), and FERDI (France)); Aysit Tansel (Middle East Technical University, ERF & IZA); Riccardo Turati (IRES, Université Catholique de Louvain (Belgium))
    Abstract: This paper empirically investigates whether emigrants from MENA countries self-select on cultural traits such as religiosity and gender-egalitarian attitudes. To do so, we use Gallup World Poll data on individual opinions and beliefs, migration aspirations, short-run migration plans, and preferred destination choices. We find that individuals who intend to emigrate to OECD, high-income countries exhibit significantly lower levels of religiosity than the rest of the population. They also share more gender-egalitarian views, although the effect only holds among the young (aged 15 to 30), among single women, and in countries with a Sunni minority. For countries mostly affected by Arab Spring, since 2011 the degree of cultural selection has decreased. Nevertheless, the aggregate effects of cultural selection should not be overestimated. Overall, self-selection along cultural traits has limited (albeit non negligible) effects on the average characteristics of the population left behind, and on the cultural distance between natives and immigrants in the OECD countries.
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:tek:wpaper:2017/6&r=int
  25. By: Forere, Malebakeng
    Abstract: SECO Working Paper 15/2017 by Malebakeng Agnes Forere.
    Abstract: The objective of this paper is to critically evaluate the desirability of multilateral treaty that will take into account the needs of developed and developing countries alike as developed nations seek to protect their investment abroad while developing nations want to attract investment, be able to regulate and most importantly they want to limit access to international arbitration. In achieving this objective, the paper will give a snapshot of recent developments indicating a shift away from BITs framework, international investment arbitration and what was considered customary international law of investment. Following from these highlights, the paper will then consider the need of multilateral investment treaty against the current developments. Further, the paper will then discuss how such a multilateral treaty should look like in order to get a buy-in from both the developed and developing nations.
    Date: 2017–11–28
    URL: http://d.repec.org/n?u=RePEc:wti:papers:1117&r=int
  26. By: Loredana Fattorini (IMT School for advanced studies); Armando Rungi (IMT School for advanced studies); Zhen Zhu (IMT School for advanced studies)
    Abstract: In this contribution, we introduce a network approach for the organization of global production across national borders, beyond the sequential industry-level metrics proposed in the previous literature. First, we show and argue that several characteristics of global production processes would be lost in the analysis when assuming that they could be proxied as linear sequences. Hence, we propose an index that assesses the relevance of any input for the target output, including its role as an input of inputs. Thereafter, we exploit an own-built firm-level dataset of about 20,489 U.S. parent companies integrating more than 154,000 affiliates worldwide. Results show that the technological relevance of an input in a directed supply network is also a good predictor for: i) the probability that an input industry is actually integrated within a firm boundary; ii) the number of affiliates that are controlled by the parent company and active in that input industry.
    Keywords: global value chains, supply networks, vertical integration, upstreamness, firm theory
    JEL: F23 L23 L22 D57 F14
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:ial:wpaper:8/2017&r=int
  27. By: Mamoon, Dawood
    Abstract: The purpose of this paper is to examine whether greater level of international integration, increased development spending and economic growth improve relations between India and Pakistan. The analysis controls for political orientation, defence spending and population for both countries. We investigate the causal links between different measures of bilateral conflict and these variables in a time series framework running between 1950-2005 in most instances. Our results suggest that more international trade, improved budget allocation for development sector and higher growth rates have been the primary determinants of conflict mitigation between India and Pakistan. The export capabilities of both countries are key for the peace process to move forward. We also find that India Pakistan conflict is the cause of high military expenditures and low/stagnant development expenditures in Pakistan over the Last 50 years. Another important finding of the study is that a weak relationship exists between conflict mitigation and relative political orientation of both countries.
    Keywords: Inter-state conflict and trade, democracy and conflict, conflict and economic development.
    JEL: F51
    Date: 2017–12–04
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:83098&r=int
  28. By: Gabriel Felbermayr; Clemens Fuest; Jasmin Katrin Gröschl; Daniel Stöhlker
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:ces:econpr:_4&r=int
  29. By: Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: The HM Treasury analysis (2016) of the long-term benefits of EU membership for the UK implicitly argues that the associated output loss of BREXIT is 10%, while Patrick Minford has argued that a 4% output increase could be expected. More recent analysis from Rabobank suggests an output loss of 18 % for the UK in the event of a ‘no-deal’ BREXIT. The subsequent rough estimate presented here shows that real national income is likely to fall by 16% in a no-deal BREXIT – where a 2% income gain from a possible US-UK transatlantic trade and investment partnership treaty and 1% gain resulting from zero tariffs on the import of agricultural products have been included. The cumulated income loss – based on a present value-analysis – is almost three times as large as the UK output decline during the Great Depression; however, the BREXIT-related output decline would be spread over a period of about 15 years. For the lower strata of society serious problems will emerge in such a setting; it is strange that the Remainers in the UK have almost no voice in terms of political party representation. As regards power in Brussels: based on Banzhaf values (game theory), the big countries in the EU will be the winners of BREXIT; even if Scotland joins later.
    Keywords: Brexit, UK, Global Britain, EU, Disintegration
    JEL: E00 F15 E6 F5 O52
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei234&r=int
  30. By: Alexander Murray
    Abstract: In this paper, we provide a quantitative assessment of the impact on Canadian employment of a recent shock to Canada’s import supply: the rapid rise of China as a manufacturing export superpower in the late 1990s and early 2000s
    Keywords: D70, E24, F16, J21, O24
    Date: 2017–06
    URL: http://d.repec.org/n?u=RePEc:sls:resrep:1703&r=int
  31. By: Alexandre Kolev; Caroline Tassot
    Abstract: This paper examines the link between economic globalisation, social protection expenditure, and within-country income inequality. We examine the relationship using income inequality data from both the Luxembourg Income Study (LIS) and the Standardized World Income Inequality Database (SWIID). The results based on the LIS data confirm previous findings that economic globalisation, especially economic flows, associates with higher income inequality, and that social protection expenditure are negatively associated with inequality.
    Keywords: Globalisation, Income Inequality, Social Protection
    JEL: D63 H53
    Date: 2017–12–04
    URL: http://d.repec.org/n?u=RePEc:oec:devaaa:341-en&r=int
  32. By: Vadym Volosovych (Erasmus University Rotterdam); Carolina Villegas Sanchez (ESADE Business School); Bent Sorensen (University of Houston); Sebnem Kalemli-Ozcan (University of Maryland)
    Abstract: We identify knowledge spillovers from foreign investment to domestic firms using novel measures of ``closeness'' of foreign-owned and domestic and domestic firms in product space and in technology space. We rely on a new data set that spans six advanced countries connecting firms internationally in order to, a) separate competition effects on domestic firms from knowledge spillovers when domestic and foreign-owned firms are close in product space, and b) identify spillovers from foreign-owned firms that are close to domestic firms in technology space. We find strong negative competition effects on domestic firms that produce in the same {four-digit} sector as the foreign firms and positive knowledge spillovers to domestic firms operating in the same {two-digit} sector (but in different four-digit sectors). Using a measure of ``technological closeness,'' building on the work of Bloom, Schankerman, and van Reenen (2013), we find significant knowledge spillovers to firms which are close in technology space. On average, knowledge spillovers explain 60 percent of the total factor productivity improvement for domestic firms that are technologically close to foreign firms.
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:red:sed017:1194&r=int
  33. By: Davide Castellani (Henley Business School, University of Reading)
    Abstract: This paper provides descriptive evidence of the changing geography of inventive activity and the role of MNEs international R&D activities, with quite an extensive geographical coverage. Results highlight that ‘local buzz’ is crucial for the development of knowledge in local economies, and it leads to persistence in innovative activities. However, ‘global pipelines’ are also becoming a crucial element for the successful development of local knowledge. In particular, we first find that the number of regions involved in patenting has increased threefold since the 1980s. Second, despite this increase in the number of regions patenting, 70% of inventions come from the top 100 regions. Third, although the hierarchy of the top patenting regions is not immobile, the propensity to patent is quite dependent on previous innovation. Fourth, international collaboration in patenting has been steadily on the rise over the last three decades. Fifth, international R&D investments of MNEs are indeed also very concentrated in a few locations, which can also be quite distant from the MNEs headquarters’ location.
    Keywords: geography of innovation, MNEs, regions, local buzz, global pipelines
    JEL: F23 R11 O33
    Date: 2017–02
    URL: http://d.repec.org/n?u=RePEc:rdg:jhdxdp:jhd-dp2017-02&r=int
  34. By: Fabrice Defever; Christian Fischer; Jens Suedekum
    Abstract: In this paper, we consider a dynamic search-and-matching problem of a firm with its intermediate input supplier. In our model, a headquarter currently matched with a supplier, has an interest to find and collaborate with a more efficient partner. However, supplier switching through search and re-matching is costly. Given this trade-off between the fixed costs and the expected gains from continued search, the process will stop whenever the headquarter has found a sufficiently efficient supplier. Using firm-product-level data of fresh Chinese exporters to the United States, we obtain empirical evidence in line with the predictions of our theory. In particular, we find that the share of short-term collaborations is higher in industries with more supplier-cost dispersion, an indication of higher expected search opportunities.
    Keywords: input sourcing, relational contracts, supplier search
    JEL: F23 D23 L23
    Date: 2017–11
    URL: http://d.repec.org/n?u=RePEc:cep:cepdps:dp1515&r=int
  35. By: Davide Castellani (Henley Business School, University of Reading); Katiuscia Lavoratori
    Abstract: This paper investigates the determinants of the location of MNEs’ overseas R&D activities, by focusing on two major drivers. On the one hand, external location factors lead the firm to separate its activities along the value chain and geographically disperse these activities in different locations. On the other hand, the R&D location choice may be driven by the existence of internal (within-firm) linkages that motivate firms to locate their value chain activities in the same location (co-location within-firm). Using data from the fDi Markets database, the study examines 2,580 location decisions of new R&D greenfield investments made by MNEs in 110 global cities worldwide, over the period 2003-2014. Results from Conditional and Mixed Logit econometric models reveal that both external and internal factors matter. Findings confirm the strong role of external agglomeration economies, but also suggest that previous R&D and production activities of the same MNE increase the probability to locate R&D in a given global city.
    Keywords: location of international R&D, empirical methodology
    JEL: F23 O30 R30
    Date: 2017–10
    URL: http://d.repec.org/n?u=RePEc:rdg:jhdxdp:jhd-dp2017-03&r=int
  36. By: Osea Giuntella (University of Pittsburgh, IZA); Catia Nicodemo (University of Oxford, CHSEO, IZA); Carlos Vargas Silva (University of Oxford, Centre on Migration, Policy and Society (COMPAS))
    Abstract: This paper analyzes the effects of immigration on waiting times for the National Health Service (NHS) in England. Linking administrative records from Hospital Episode Statistics (2003-2012) with immigration data drawn from the UK Labour Force Survey, we find that immigration reduced waiting times for outpatient referrals and did not have significant effects on waiting times in accident and emergency departments (A&E) and elective care. The reduction in outpatient waiting times can be explained by the fact that immigration increases natives’ internal mobility and that immigrants tend to be healthier than natives who move to different areas. Conversely, we observe higher outpatient waiting times in places to which native internal migrants have moved. Finally, we find evidence that immigration increased waiting times for outpatient referrals in more deprived areas outside of London. The increase in average waiting times in more deprived areas is concentrated in the years immediately following the 2004 EU enlargement and disappears in the medium term (e.g., 3 to 4 years).
    Keywords: Immigration, waiting times, NHS, access to health care, welfare
    JEL: J61 I10
    Date: 2017–12
    URL: http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2017-13&r=int
  37. By: Bryan Stuart (George Washington University); Evan Taylor (University of Chicago)
    Abstract: This paper examines the effects of birth town migration networks on location decisions. We study over one million long-run location decisions made during two landmark migration episodes by African Americans from the U.S. South and whites from the Great Plains. We develop a new method to estimate the strength of migration networks for each receiving and sending location. Our estimates imply that when one randomly chosen African American moves from a birth town to a destination county, then 1.9 additional black migrants make the same move on average. For white migrants from the Great Plains, the average is only 0.4. Networks were particularly important in connecting black migrants with attractive employment opportunities and played a larger role in less costly moves.
    Keywords: migration networks, location decisions, social interactions, Great Migration
    JEL: J61 N32 O15 R23 Z13
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:gwi:wpaper:2017-26&r=int
  38. By: Catia Batista; Julia Seither; Pedro C. Vicente
    Abstract: What is the role of international migrants and, more specifically, of migrant networks in shaping the quality of political institutions in migrant sending countries? Our theory proposes that migration might change individual social identities and in this way intrinsic motivation for political participation, while it may also improve knowledge about better quality political institutions. Hence, international migration might increase political awareness and participation both by migrants and by other individuals in their networks. To test this hypothesis, this paper uses several survey and behavioral measures related to political participation and electoral knowledge. These data were purposely collected around the time of the 2009 elections in Mozambique. The empirical results show that the number of migrants an individual is in close contact through regular chatting within a village significantly increase political participation of residents in that village – more so than family links to migrants. Our findings are consistent with both improved knowledge about political processes, and increased intrinsic motivation for political participation being transmitted through migrant networks. JEL codes: D72, F22, O15
    Keywords: International migration, social networks, political participation, information, effects of emigration in origin countries, sub-Saharan Africa, Mozambique
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:unl:novafr:wp1701&r=int
  39. By: Sumit Joshi (George Washington University); Ahmed Saber Mahmud (Johns Hopkins University)
    Abstract: The extensive literature on efficacy of sanctions has been mainly focused on a dyadic inter- action between sender and target. In contrast, this paper examines sanctions when the sender and target are embedded in a network of linkages to other agents and each agent’s utility is a function of the size of the agent’s component. Efficacy of sanctions is then a function of two factors: the network structure binding the sender and target, and the con- cavity/convexity of utility in the component size. We consider both unilateral sanctions and multilateral sanctions. We demonstrate how the network architecture, together with the specification of utility, qualifies and sometimes reverses the main tenets of the dyadic approach. We add to the recent work on identifying network architectures that sustain cooperation via the threat of exclusion by showing that the utility specification matters. Thus the same network can be efficacious for sanctions if utility is convex in component size but not if it is concave.
    Keywords: Unilateral sanctions, Multilateral sanctions, Sender, Target, Networks, Spanning trees, Cutsets
    JEL: C72 D74 D85
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:gwi:wpaper:2017-28&r=int

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