nep-int New Economics Papers
on International Trade
Issue of 2019‒11‒04
25 papers chosen by
Luca Salvatici
Università degli studi Roma Tre

  1. Domestic and foreign investment in advanced economies. The role of industry integration By Teresa Sastre; Laura Heras Recuero
  2. TBTs, Firm Organization and Labour Structure - The Effect of Technical Barriers to Trade on Skills By Giorgio Barba Navaretti; Lionel Gérard Fontagné; Gianluca Orefice; Giovanni Pica; Anna Cecilia Rosso
  3. Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy By Alberto Cavallo; Gita Gopinath; Brent Neiman; Jenny Tang
  4. Reopening Pandora's Box in Search of a WTO-Compatible Industrial Policy? The Brazil-Taxation Dispute By Emanuel Ornelas; Laura Puccio
  5. Service Imports, Workforce Composition, and Firm Performance: Evidence from Finnish Microdata By Ariu, Andrea; Nilsson Hakkala, Katariina; Jensen, J. Bradford; Tamminen, Saara
  6. Emerging Trade Battlefield with China: Export Competition and Firm’s Coping Strategies By Nilsson Hakkala, Katariina; Pan, Yao
  7. Exchange Rates and Intra- and Inter-Firm Trade in Japan By KATO Atsuyuki
  8. Going global: Chinese natural resource policies and their impacts on Latin America By Küblböck, Karin; Tröster, Bernhard; Ambach, Christoph
  10. A strategic-relational approach to analyzing industrial policy regimes within global production networks: The Ethiopian Leather and Leather Products Sector By Grumiller, Jan
  11. Natural Resource Exports, Foreign Aid and Terrorism By Simplice A. Asongu
  12. Import Competition and Industry Location in a Small-Country Model of Productivity Growth By Colin Davis; Ken-ichi Hashimoto
  13. Industrial robotics and product(ion) quality By Timothy DeStefano; Koen De Backer; Jung Ran Suh
  14. Margins of Fair Trade Wines Along the Supply Chain: Evidence from South African Wine on the U.S. Market By Back, Robin M.; Niklas,Britta; Liu, Xinyang; Storchmann, Karl; Vink, Nick
  15. How Globalization has Changed Diplomacy By Sophie Nanyonga
  16. Import competition and firm productivity: Evidence from German manufacturing By Bräuer, Richard; Mertens, Matthias; Slavtchev, Viktor
  17. Immigrants’ Changing Labor Market Assimilation in the United States during the Age of Mass Migration By William J. Collins; Ariell Zimran
  18. THE EURASIAN DIMENSION: DOES EAEU-ASEAN FORMAT HAVE A FUTURE? By Alexander S. Korolev; Hryhorii M. Kalachyhin
  19. Heterogeneous Impact of Import Competition on Firm Organization: Evidence from Japanese firm-level data By MATSUURA Toshiyuki
  20. International Migration Processes and its Impact on the Georgian Labor Market By Nanuli Okruashvili; Lela Bakhtadze
  21. The Influence of Foreign Direct Investments on the Economic Development of the Country By Nanuli Okruashvili; Lela Bakhtadze
  22. FDI and regional development policy By Iammarino, Simona
  23. Globalisation and Female Economic Participation in Sub-Saharan Africa By Simplice A. Asongu; Uchenna R. Efobi; Belmondo V. Tanankem; Evans S. Osabuohien
  24. MNE and where to find them: An intertemporal perspective on the global ownership network By Grosskurth, Philipp
  25. Measuring the Balassa-Samuelson Effect: A guidance Note on the RPROD Database By Cécile Couharde; Anne-Laure Delatte; Carl Grekou; Valérie Mignon; Florian Morvillier

  1. By: Teresa Sastre (Banco de España); Laura Heras Recuero (Banco de España)
    Abstract: Previous research using country or firm data has been inconclusive on the sign of the relation between domestic and foreign investment. Though several hypotheses have been formulated, the factors determining the sign of this relationship are not clearly identified yet. In this paper we explore the role of industry integration in determining the relation between outward foreign direct investment (FDI) and domestic investment by using disaggregated data at the industry level and several indicators of industry integration. The proportion of intangible investment is used as a proxy of horizontal integration and several measures of participation in Global Value Chains (GVCs) as proxies of vertical integration. The empirical results confirm that the relationship between outward FDI and domestic investment is very varied and differs across industries and countries. That relation is positive (complementary) for those industries with low intensity in intangible investment and high forward integration in GVCs –two features of vertically integrated industries– and becomes negative for those industries with high intangible investment (usually more horizontally integrated).
    Keywords: investment, foreign direct investment, vertical and horizontal integration, global value chains
    JEL: E22 F21
    Date: 2019–10
  2. By: Giorgio Barba Navaretti; Lionel Gérard Fontagné; Gianluca Orefice; Giovanni Pica; Anna Cecilia Rosso
    Abstract: Trade shocks in export markets may affect the employment composition and the organization of exporting firms. In particular, the imposition of new technological standards in destination markets may force exporters to adjust the firm’s organization to comply and cope with the additional complexity of the new production process. This paper investigates the effects on firms’ organization of shocks induced by the introduction of Technical Barriers to Trade (TBTs) in exporting countries. It relies on the Specific Trade Concern (STC) data released by the WTO to identify trade-restrictive TBT measures, combined with matched employer-employee data for the population of French exporters over the period 1995-2010. It also exploits information on the list of product-destinations served by each French exporter. Controlling for tariffs and for a given state of technology in the sector of the firm, it finds that exporters respond to increased complexity associated with restrictive Technical Barriers to Trade at destination by raising the share of managers at the expense of blue collars, white collars and professionals. This paper is related to the growing literature exploring how firms organize production in hierarchies to economize on their use of knowledge. It is also related to the well beaten literature on the labour market effects of trade, but from the perspective of exports rather than imports.
    Keywords: skill composition, labor demand, job polarization, trade barriers
    JEL: F13 F16 J82
    Date: 2019
  3. By: Alberto Cavallo; Gita Gopinath; Brent Neiman; Jenny Tang
    Abstract: We use micro data collected at the border and at retailers to characterize the effects of recent changes in US trade policy -- particularly the tariffs placed on imports from China -- on importers, consumers, and exporters. We start by documenting that the tariffs were almost fully passed through to total prices paid by importers, suggesting that incidence has fallen largely on the United States. Since we estimate the response of prices to exchange rates to be far more muted, the recent depreciation of China’s renminbi is unlikely to alter this conclusion. Next, using product-level data from several large retailers, we demonstrate that the tariffs’ impact on retail prices is more mixed. Some affected product categories have seen sharp price increases, but the difference between affected and unaffected products is generally quite modest, suggesting that retail margins have fallen. These retailers' imports increased after the initial announcement of possible tariffs, but before their full implementation, so the intermediate passthrough of tariffs to their prices may not persist. Finally, in contrast to the case of foreign exporters facing US tariffs, we show that US exporters lowered their prices on goods subjected to foreign retaliatory tariffs compared to exports of non-targeted goods.
    JEL: F01 F13 F14 F4
    Date: 2019–10
  4. By: Emanuel Ornelas; Laura Puccio
    Abstract: The Brazil-Taxation dispute concerns the complaints taken to the World Trade Organisation by the European Union and Japan against seven different Brazilian industrial subsidy programmes. One concerned the automotive sector and represents a clear case of policies dictated by strong domestic political-economy forces, with little attention to impacts on consumers or imports. The ensuing WTO dispute raises important issues concerning the WTO-compatibility of subsidy measures. In particular, the Appellate Body (AB) reversed the panel findings with respect to two issues: the extent to which subsidy measures can be exempted from complying with National Treatment rules under the General Agreement on Tariffs and Trade, and the identification of local content requirements (LCRs), which are prohibited under the Agreement on Subsidies and Countervailing Measures (SCM). In particular, the AB considered that subsidies, if not based on discriminatory taxation, could be justified under the GATT and could have some discriminatory elements without violating the National Treatment disciplines. Furthermore, it concluded that legitimate eligibility criteria under a subsidy programme should not be construed as prohibited LCRs under the SCM. However, the test devised by the AB to distinguish legitimate eligibility criteria from prohibited LCRs could facilitate circumvention of the LCRs prohibition under the SCM.
    Keywords: trade policy, dispute settlement, industry subsidies, international trade rules, national treatment, local content requirements
    JEL: F13 F53 F51
    Date: 2019
  5. By: Ariu, Andrea; Nilsson Hakkala, Katariina; Jensen, J. Bradford; Tamminen, Saara
    Abstract: Abstract This paper uses unique Finnish firm-level micro data on service imports, workforce composition, and firm characteristics to examine changes in employment composition and performance of Finnish service importers during a period of a significant increase in services imports (2002–2012). We use world service export supply shocks, which we allocate to firms based on their highly specialized service input structure, as an instrument to identify the impact of service offshoring. We find that firms that increase imports of service inputs reduce employment of low-skill service workers, increase employment of (high-skilled) managers, and improve their performance in terms of sales (turnover), assets, service exports, and firm survival. The employment composition and performance responses to service imports differ across firms in the manufacturing sector and those in the service sector.
    Keywords: Service offshoring, Employment, Firm performance
    JEL: F10 F14 L80
    Date: 2019–10–30
  6. By: Nilsson Hakkala, Katariina; Pan, Yao
    Abstract: Abstract This paper analyzes how intensified Chinese export competition affects the exports and product ranges of firms from Finland. Using a novel identification strategy that exploits changes in Chinese export policies, we find that Chinese export competition reduces aggregate product-level exports. Firm-level analysis further shows that Chinese competition leads to substantial price cuts to retain market shares, especially for homogeneous products. In addition, we also discover that firms respond to the increased level of Chinese export competition by dropping their marginal products. Taken together, these results highlight the importance of export competition with China for developed countries.
    Keywords: Trade flows, Export competition, Firm-level, Product mix, China
    JEL: F14 F15 F61 L25
    Date: 2019–10–30
  7. By: KATO Atsuyuki
    Abstract: This study examines the effects of exchange rate changes on intra- and inter-firm trade using a rich, firm-level dataset of the Japanese manufacturing sector during the period 2009-2015. We estimate trade between overseas affiliates of Japanese manufacturing firms and their parent firms and other firms in Japan by applying the Poisson pseudo maximum likelihood method to firm level export and import data. Our results reveal that export from Japanese-affiliated overseas firms to Japan is not sensitive to exchange rate changes. This applies for both intra- and inter-firm transactions. On the other hand, exchange rate changes affect the import behavior of overseas affiliates from their parent firms and other firms in Japan. Appreciation in the value of the yen increases exports from the parent firms to their overseas affiliates, while decreasing exports from other firms in Japan to those overseas affiliates.
    Date: 2019–10
  8. By: Küblböck, Karin; Tröster, Bernhard; Ambach, Christoph
    Abstract: China is today the second-largest economy after the US and the world-leading export nation. The economic and political development of China in the past decades has had a big impact on other parts of the world. The Chinese demand for natural resources has dramatically changed trade volumes and structures in many resource-producing countries. Even though China has recently shifted its internal economic focus away from export manufacturing towards a more consumption and service-based economy, securing the supply of primary commodities remains one of China's main priorities. It is today the world's major consumer of iron ore, steel, coal, zinc, lead, tin, nickel, copper and aluminium. As part of this trend, the relationship between Latin America and the Caribbean (LAC) and China has also intensified over the last two decades. The value of total trade between China and all LAC countries has increased twentyfold since 2000. Taking out Mexico from the LAC dataset reveals that China has become the most important single export market for the remaining LAC countries. Chinese Foreign Direct Investment in LAC has grown significantly since 2000. It has been particularly dynamic from 2010 onwards and is directed primarily towards the raw materials sector. Chinese policy banks have become the largest lender in Latin America in the past two decades, providing more financing to the region than the World Bank and the Inter-American Development Bank (IDB) combined. This paper looks at the role of China in Latin America with a focus on natural resources, and, in particular, minerals. It first describes the evolving economic and diplomatic relations between China and LAC and depicts the main Chinese actors in this region, before giving an overview of developments in the areas of trade, finance and investments. It concludes that if the relationship with China is to contribute to inclusive development in LAC, the countries in the region have to coordinate their efforts in order to obtain greater benefits from the new economic relations.
    Keywords: China,Latin America,Trade,Finance,Foreign Direct Investment,Mining
    Date: 2019
  9. By: ANA CECILIA PARADA ROJAS (Instituto Politécnico Nacional); Humberto Ríos Bolívar (Instituto Politécnico Nacional); Jorge Omar Razo De Anda (Instituto Politécnico Nacional)
    Abstract: During periods of remarkable trade openness, increase income inequality in many countries. This paper analyzes how factors that influence inequality due to commercial globalization interact each other. For which a reliable Classifier Tree -selected through a modeling process of bootstrapping- is built, it has 14 knowledge rules and classifies 84% of the observations correctly. This model indicates that inequality?s changes into a country, due greater economic integration, depend principally on the labor market? structure ?in agricultural countries and urbanization processes (industrialization) it reduces depending in turn on the rule of law; on the other hand, in countries with a strong service sector and good trade terms it increases in periods of stagnation or with low levels of high technology exports.
    Keywords: Income Inequality, Globalization, International Trade, Data Mining, Classification and Regression Tree (CART)
    JEL: C44 D33 F00
    Date: 2019–07
  10. By: Grumiller, Jan
    Abstract: This paper contributes to debates regarding the lack of theorization of the state and the overemphasis on lead firms in studies of global value chains (GVCs) and global production networks (GPNs). This paper combines the GVC/GPN frameworks with a strategic-relational approach (SRA), a SRA conceptualization of the developmental state, and literature about the embeddedness of firms. Empirically, the paper analyzes the conflictual relationship between firms and the state's strategies that structure and re-structure the development, industrial policy regime, and GVC/GPN integration of the Ethiopian leather and leather products (LLP) industry.
    Keywords: global value chains,developmental state,embedded autonomy,network embeddedness
    Date: 2019
  11. By: Simplice A. Asongu (Yaoundé/Cameroon)
    Abstract: Linkages between foreign aid, terrorism and natural resource (fuel and iron ore) exports are investigated in this study. The focus is on 78 developing countries with data for the period 1984 to 2008. The generalised method of moment is employed as empirical strategy. Three main foreign aid variables are used for the analysis, namely: bilateral aid, multilateral aid and total aid. The corresponding terrorism variables employed are: domestic terrorism, transnational terrorism, unclear terrorism and total terrorism. The following findings are established. First, the criteria informing the validity of specifications corresponding to iron ore exports do not hold. Second, there is evidence of convergence in fuel exports. Third, whereas the unconditional impacts of aid dynamics are not significant, the unconditional impacts of terrorism dynamics are consistently positive on fuel exports. Fourth, the interaction between terrorism and aid dynamics consistently display negative signs, with corresponding modifying aid thresholds within respective ranges. Unexpected signs are elicited and policy implications discussed. Given the unexpected results, an extended analysis is performed in which net effects are computed. These net effects are constitutive of the unconditional effect from terrorism and the conditional impacts from the interaction between foreign aid and terrorism dynamics. Based on the extended analysis, bilateral aid and total aid modulate terrorism dynamics to induce net positive effects on fuel exports while multilateral aid moderates terrorism dynamics to engender negative net effects on fuel exports. The research improves extant knowledge on nexuses between resources, terrorism and foreign aid.
    Keywords: Foreign Aid; Exports; Natural Resources; Terrorism; Economic Development
    JEL: F40 F23 F35 Q34 O40
    Date: 2019–01
  12. By: Colin Davis; Ken-ichi Hashimoto
    Abstract: We study the effects of import competition on industry locations patterns in a small open economy with two regions. Domestic productivity growth converges to the international rate through firm-level investment in process innovation. With firms locating production and innovation in their lowest cost locations, the concentration of industry in the larger region is linked with firm-level innovation through an import competition effect that is increasing in the market share of imported goods and the productivity differential of domestic firms with the rest of the world. We show that increased import competition, through either a larger number of imported goods or a faster international rate of productivity growth, leads to greater industry concentration by reducing domestic market entry and decreasing the relative productivity of domestic firms. We also consider the implications of improved regional and international economic integration.
    Date: 2019–10
  13. By: Timothy DeStefano; Koen De Backer; Jung Ran Suh
    Abstract: The following report examines the importance of industrial robotics as a driver of production and trade quality. In an attempt to peer below the aggregate surface of traditional industrial GVC indicators, the paper relies on 6 digit product level trade data to assess the extent to which industrial robotics influence the quality of exported and imported goods for developed and emerging economies over the last two decades. The results demonstrate that robotics contribute to increasing quality of exports however the effect is somewhat nuanced between high income and emerging economies. For high-income countries the diffusion of robots is linked with an increase in within product quality, however for emerging economies quality gains appear to be somewhat more pronounced between products. At the same time, robotics appear to have little or no effect on import quality or on the concentration of exports and products for either type of economy.
    Date: 2019–11–04
  14. By: Back, Robin M.; Niklas,Britta; Liu, Xinyang; Storchmann, Karl; Vink, Nick
    Abstract: In this paper, we analyze profit margins and mark-ups of Fair Trade (FT) wines sold in the United States. We are particularly interested in whether and to what extent the FT cost impulse in production is passed on along the supply chain. We draw on a limited sample of about 470 South African wines sold in Connecticut and New Jersey in the fall of 2016; about 90 of them are certified FT. For these wines we have FOB export prices, wholesale prices, and retail prices, which allows us to compute wholesale and retail margins and analyze the FT treatment effect. We run OLS, 2SLS and Propensity Score Matching models and find evidence of asymmetrical pricing behavior. While wholesalers seem to fully pass-through the FT cost effect, retailers appear to amplify the cost effect. As a result, at the retail level, FT wines yield significantly higher margins than their non-FT counterparts
    Keywords: Agricultural and Food Policy, Industrial Organization
    Date: 2019
  15. By: Sophie Nanyonga (Ankara Yildirim Beyazit University, Ankara, Turkey)
    Abstract: Globalization, which refers to the changes in time and space is perhaps one of the most significant events in this century. It has brought with it, unique changes in communication, trade, mobility, international security, and migration. Some have argued that its impact has further weakened the place and role of the state in international politics, given many actors who have emerged in this process. This paper seeks to examine how the changes in time and space are affecting diplomatic relations among states. While it is true that several actors are today playing some roles previously reserved for the state, the field of diplomacy seems to have been protected from non-state actors as government representatives still dominate diplomatic channels. By looking at events such as the Gulf Cooperation Council’s role in the Yemen Political crisis and Economic Community of West African States’ role in Gambia’s political turmoil, a new form of regionalized diplomacy is seen. The case of the Syrian crisis also has realized a shift from bilateral to multilateral diplomacy. The writer argues that the changes in space have had little effect on diplomacy but rather the changes in time, largely associated with the rapid flow of information have transformed how diplomacy is practiced today. The paper adopts a qualitative research approach and relies on data from secondary sources like textbooks, among others.
    Keywords: diplomacy, globalization, international relations, integration, communication
    Date: 2019–08
  16. By: Bräuer, Richard; Mertens, Matthias; Slavtchev, Viktor
    Abstract: This study analyses empirically the effects of import competition on firm productivity (TFPQ) using administrative firm-level panel data from German manufacturing. We find that only import competition from high-income countries is associated with positive incentives for firms to invest in productivity improvement, whereas import competition from middle- and low-income countries is not. To rationalise these findings, we further look at the characteristics of imports from the two types of countries and the effects on R&D, employment and sales. We provide evidence that imports from high-income countries are relatively capital-intensive and technologically more sophisticated goods, at which German firms tend to be relatively good. Costly investment in productivity appears feasible reaction to such type of competition and we find no evidence for downscaling. Imports from middle- and low-wage countries are relatively labour-intensive and technologically less sophisticated goods, at which German firms tend to generally be at disadvantage. In this case, there are no incentives to invest in innovation and productivity and firms tend to decline in sales and employment.
    Keywords: productivity,multi-product firms,import competition
    JEL: D22 D24 F10 F14 F60 F61 L25
    Date: 2019
  17. By: William J. Collins; Ariell Zimran
    Abstract: Whether immigrants advance in labor markets relative to natives as they gain experience is a fundamental question in the economics of immigration. For the US, it has been difficult to answer this question for the period when the immigration rate was at its historical peak, between the 1840s and 1920s. We develop new datasets of linked census records for foreign- and native-born men in 1850-80 and 1900-30. We find that for the nineteenth century cohort, there is evidence of substantial “catching up” by immigrants in terms of occupational status, but for the twentieth century cohort there is not. These changes do not reflect the shift in source countries from Northern and Western Europe to Southern and Eastern Europe. Instead, we find that natives had advantages in upgrading relative to immigrants conditional on initial occupation in both periods, but that by 1900, natives were less concentrated than previously in jobs with low upward mobility (farming) and more concentrated in jobs with lower initial status but higher upward mobility. The difference in assimilation over time is thus rooted in a sizable change in native men’s occupational distribution between 1850 and 1900. These results revise the oversimplified but influential view that historical immigrants “worked their way up” in the American labor market.
    JEL: J61 J62 N11 N12 N13 N14
    Date: 2019–10
  18. By: Alexander S. Korolev (National Research University Higher School of Economics); Hryhorii M. Kalachyhin (National Research University Higher School of Economics)
    Abstract: The crisis in relations with the West and the subsequent sanctions hampered the development of Moscow’s cooperation with a number of foreign partners. Under these conditions, the role of the EAEU as an agent for promoting Russia's foreign trade interests has dramatically increased, including the formation of Greater Eurasian Partnership, Moscow’s flagship initiative. Russia’s officials have repeatedly stressed that ASEAN is one of the major pillars of the emerging geostrategic space. The 3rd ASEAN-Russian Federation Summit on Strategic Partnership held in Singapore in November 2018 resulted in signing of Memorandum of Understanding (MOU) between ASEAN and Eurasian Economic Commission (EEC) on Economic Cooperation which aims to unlock the potential of cooperation between two integration blocks. The paper addresses the following question – to what extent can Russia-ASEAN strategic partnership create a positive spillover effect on the EAEU-ASEAN ties and trigger the Greater Eurasian Partnership concept. In doing so, the paper focuses on factors which stand behind ASEAN’s rising interest in Eurasian space, EAEU’s strive to develop relationships with Association and the limits of bilateral cooperation in a broader Greater Eurasian framework. It is concluded that the full engagement of ASEAN member states into Eurasian initiatives (even taking into account their successful implementation) depends on several factors. Firstly, to what extent EAEU member states can eliminate structural problems - institutional imbalances, limited export supplies, internal disagreements between the participants. Secondly, it will depend on whether Russia and ASEAN will be able to back up the status of strategic partnership with economic projects. Finally, will the EAEU partners be able to offer ASEAN an attractive interaction format, for example, the Great Eurasian Partnership, which needs to be conceptually filled and linked with ASEAN key initiatives and plans
    Keywords: EAEU, ASEAN, Russia, Greater Eurasian Partnership, free trade agreement, strategic partnership
    JEL: Z
    Date: 2019
  19. By: MATSUURA Toshiyuki
    Abstract: This paper empirically investigates the effect of import competition on within-firm employment reorganization using Japanese firm-level data sets. We conduct a firm-level examination of whether the import competition against low wage countries leads to the shift from manufacturing activity to non-manufacturing activity, such as headquarter services or R&D. Moreover, we explore the heterogeneity of impacts of import competition according to firm size and export status. We find that competition from Chinese imports induces manufacturing firms to increase their share of service workers, especially those workers that engage in wholesale & retail, and in other service activities.
    Date: 2019–10
  20. By: Nanuli Okruashvili (IvaneJavakhishvili, Tbilisi, State University, Department of Marketing); Lela Bakhtadze (IvaneJavakhishvili, Tbilisi, State University,Department of international economics and economic teaching history)
    Abstract: The purpose of the presented paper is to analyze the impact of international migration processes on the labor market of Georgia, to develop methodological and practical recommendations on the basis of which the efficiency of the labor market will be increased. The authors of the work have identified the theoretical and practical, conceptual and organizational problems existing in the field of international migration, and worked out the specific ways of solving them.The article discusses the international migration processes of the new millennium, social, cultural and economic aspects of international migration and development in Georgia, the problems identified in the state regulation of labor migration, the scale of labor migration and the current state of its study. In the article, the authors reviewed the scope and current state of international migration, its impact on the Georgian labor market, long-term results of labor mobility. The goals , strengths and weaknesses of the migration policy of the Government of Georgiaare analyzed, the basic directions and mechanisms of its realization. It analyzes the fact that, only by effective marketing of the labor market, of the country will make maximum use of the global challenges, associated with international migration processes. The authors have estimated systems of specific measures that will ensure the effective functioning of the Georgian labor market in the growth of international migration and the full involvement of the country in integration processes.
    Keywords: International Business, International Migration, Labor Market, Migration Policy, Marketing of the Labor Market
    JEL: F00 F66 F22
    Date: 2019–07
  21. By: Nanuli Okruashvili (IvaneJavakhishvili, Tbilisi, State University, Department of Marketing); Lela Bakhtadze (IvaneJavakhishvili, Tbilisi, State University,Department of international economics and economic teaching history)
    Abstract: In modern epoch the process of financial globalization requires the assessment of the economic consequences of regional integration and free movement of capital in the countries. The reason for this is the fact that the stable economic growth of the country directly depends on inflows and outflows of the capital. Georgia is a small transformational country with open economy heavily depending on the existing economic conditions of the region. The article has studied foreign demands and direct impacts of foreign investment on the economic development of the country. The goal of the research is to determine the priority areas and fields for direct foreign investment in Georgia, to reveal positive and negative influences attracting direct foreign investments as well as develop recommendations stimulating direct foreign investments in the country.In the article comprehensively studied the reasons for the decrease in investment.The authors of the research have compiled and systematized information about the investment market of Georgia, revealed theoretical and practical, conceptual and organizational problems, existing in. One of the reasons for the reduction of direct foreign investments by authors is the low level of development and use of investment marketing, which determines the country's low level of competitiveness in the global investment market. Accordingly, Based on systematic analysis of the global investment market, have been worked out specific methodological recommendations, that are related to developing effective marketing strategies for increasing the improvement of the investment climate and investment image of Georgia and its competitiveness on the global investment market.
    Keywords: Foreign Direct Investments, Foreign Demand, Inflow of Investments, Stimulate Investments, Investment Marketing
    JEL: F00 F21 F63
    Date: 2019–07
  22. By: Iammarino, Simona
    Abstract: The transformations in the worldwide division of labour brought about by globalisation and technological change have shown an unintended negative effect, particularly evident in advanced economic systems: uneven spatial distribution of wealth and rising within-country inequality. Although the latter has featured prominently in recent academic and policy debates, in this paper we argue that the relevance of connectivity (here proxied by foreign capital investments, FDI) for regional economic development is still underestimated and suffers from a nation-biased perspective. As a consequence, the relationship between the spatial inequality spurred by the global division of labour and the changes in the structural advantages of regions remains to be fully understood in its implications for economic growth, territorial resilience and industrial policy. Furthermore, even though connectivity entails bi-directional links – i.e. with regions being simultaneously receivers and senders – attractiveness to foreign capital has long been at the centre of policy attention whilst internationalisation through investment abroad has been disregarded, and sometimes purposely ignored, in regional development policy agendas. We use three broad-brushed European case-studies to discuss some guiding principles for a place-sensitive regional policy eager to integrate the connectivity dimension in pursuing local economic development and territorial equity.
    Keywords: FDI; multinational enterprises; regions; connectivity; regional development policy
    JEL: F21 F23 O1 O52 R11 R58
    Date: 2018–10–29
  23. By: Simplice A. Asongu (Yaoundé/Cameroon); Uchenna R. Efobi (CEPDeR, Covenant University, Ota, Nigeria); Belmondo V. Tanankem (MINEPAT, Cameroon); Evans S. Osabuohien (CEPDeR, Covenant University, Ota, Nigeria)
    Abstract: This study assesses the relationship between globalisation and the economic participation of women (EPW) in 47 Sub-Saharan African countries for the period 1990-2013. EPW is measured with the female labour force participation and employment rates. The empirical evidence is based on Panel-corrected Standard Errors and Fixed Effects regressions. The findings show that the positive effect of the overall globalisation index on EPW is dampened by its political component and driven by its economic and social components, with a higher positive magnitude from the former or economic globalisation. For the most part, the findings are robust to the control for several structural and institutional characteristics. An extended analysis by unbundling globalisation shows that the positive incidence of social globalisation is driven by information flow (compared to personal contact and cultural proximity) while the positive effect of economic globalisation is driven by actual flows (relative to restrictions). Policy implications are discussed with some emphasis on how to elevate women’s social status and potentially reduce their victimisation to male dominance.
    Keywords: Globalisation; female; gender; inequality; inclusive development; labour force participation; Africa
    JEL: E60 F40 F59 D60 O55
    Date: 2019–01
  24. By: Grosskurth, Philipp
    Abstract: This paper introduces a simple procedure to construct ownership maps in Stata, uses a new method to map the development of the global network of multinational business groups over time and investigates the development of core components of the network. Based on Bureau van Dijk's ORBIS database, a full panel of ownership structures from 2000-2018 is reconstructed. The data is subjected to a descriptive analysis and subsequently used to identify key locations within the network. Ownership structures are used to identify outliers in the network even in the absence of financial data on the firm level. The identified locations largely overlap with results in the literature, but also point towards previously overlooked destinations. The aggregate ownership network at the country level is used to provide an intertemporal perspective on countries' development paths within the global network of multinational companies and sheds new light on MNE's expansion paths.
    Keywords: MNE,ORBIS,ownership,control,business groups,conduit countries,visualization,network analysis,corporate strategy,firm-level data,country index,complexity
    JEL: H25 F23 G30
    Date: 2019
  25. By: Cécile Couharde; Anne-Laure Delatte; Carl Grekou; Valérie Mignon; Florian Morvillier
    Abstract: This guidance note outlines the construction and contents of RPROD. This new database developed by CEPII complements the EQCHANGE database, by providing additional measures of the Balassa-Samuelson effect. RPROD delivers the following indicators computed for each country included in the database, and relative to its main trading partners: (i) GDP per capita, (ii) labor productivity, (iii) consumer-price-to-producer-price ratio, (iv) three-sectors' value-added deflator, and (v) six-sectors' value-added deflator. These different measures are publicly available (, with the aim to contribute to the investigation of the Balassa-Samuelson hypothesis, and to the comparison of estimated equilibrium real exchange rates and currency misalignments across alternative proxies of this effect.
    Keywords: Balassa-Samuelson;Relative Productivity;Tradables;Non-tradables
    JEL: F31 F41
    Date: 2019–10

This nep-int issue is ©2019 by Luca Salvatici. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.