|
on International Trade |
| By: | Facundo Albornoz; Emanuel Ornelas; Irene Brambilla |
| Abstract: | We study how firms react to unexpected increases in import tariffs. We identify our results from a sudden removal of American preferential tariffs applied on Argentine imports under the Generalized System of Preferences, which reflected American retaliation to a dispute over intellectual property between the two countries. Critical for identification, the tariff hike affected a third of Argentine exports enjoying preferential access in the American market, but did nothing to the other two thirds. We find that the higher tariffs reduced export participation of affected Argentine firms in the US market, whereas resilient exporters dealt with the cost increase by reshuffling their export baskets away from the products whose tariffs increased. In fact, affected firms were more likely both to drop suspended products from their export basket and to start exporting new (non-suspended) products to the US. Interestingly, the extensive margin effects carry over third markets, where policy did not change: after the policy shock, affected firms selling to the US were less likely to export to other markets. This happened, however, only for firms that also exited the American market. Those findings reveal the nuanced consequences of tariff preferences on the behavior of exporting firms, highlighting that their effect tend to spill over other products and other markets. |
| Keywords: | Tariffs, GSP, exporting firms, multiproduct firms, third-market effects |
| JEL: | F13 F14 F55 F63 O19 O24 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4316&r=all |
| By: | Federico Bernini; Ezequiel Garcia Lembergman |
| Abstract: | In recent decades, the relative importance of non-tariff measures has increased as part of the countries' trade policy. In this paper, we study the impact of non-automatic import licenses (NAIL) on firms' performance. We use a comprehensive data of Argentinian firms between 2000 and 2011 and exploit exogenous variability in the timing of the import barriers imposed to Argentinian products. Not surprisingly, we find that trade barriers reduce imports for those firms that are more exposed to the policy. A firm at the fifty percentile of exposure to NAILS (15% of its imported inputs) reduce its total imports 7.5%. While larger firms are able to attenuate the impact by changing the bundle of inputs, smaller firms experience higher declines in amount of imports. The negative effect of NAILs on imports yields to a considerably decline in firms' total exports. A firm at the fifty percentile of exposure to NAILS reduce its exports in 5.5%. This implies that the elasticity of exports with respect to imports is 0.75. The negative impact of NAILs is relatively higher for exporters of differentiated goods to destinations outside the Mercosur and for smaller firms. Our results suggest that the application of non-technical barriers to imports made Argentinian firms less competitive in export markets. |
| Keywords: | Import licensing, Exports, Impact evaluation |
| JEL: | D22 F10 F13 F14 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4314&r=all |
| By: | Sonali Chowdhry; Gabriel J. Felbermayr |
| Abstract: | In 2011, the EU-South Korea Free Trade Agreement (EUKFTA) entered into force. With its focus on non-tariff barriers (NTBs), it is a leading example of a deep new generation agreement. Using detailed French customs data for the period 2000 to 2016, we investigate how exporters of different size have benefitted from the agreement. Applying a diff-in-diff strategy that makes use of the rich dimensionality of the data, we find that firms with larger pre-FTA sizes benefit more from the FTA than firms at the lower end of the size distribution, both at the extensive (product) and the intensive margins of trade. The latter finding is in surprising contrast to leading theories of firm-level behavior. Moreover, we find that our main result is driven by NTB reductions rather than tariff cuts. In shedding light on the distributional effects of trade agreements within exporters, our findings highlight the need for effective SME-chapters in FTAs. |
| Keywords: | trade policy, firm heterogeneity, firm size distribution, non-tariff barriers |
| JEL: | F13 F14 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8951&r=all |
| By: | Léa Marchal (Université Paris 1 Panthéon-Sorbonne - Centre d'Economie de la Sorbonne (CES)); Giulia Sabbadini (Graduate Institute of International and Development Studies - The Geneva Graduate Institute) |
| Abstract: | This paper investigate whether the employment of immigrant workers affects the performance of firms in their export markets when they are facing an increase in import competition. Exploiting the surge of Chinese imports following its accession to the World Trade Organization and using a sample of French manufacturing exporters from 2002 to 2015, we find that an increase in the growth rate of Chinese imports in a market has a negative effect on both the survival probability of firms and the growth rate of sales on that market. This negative effect on firm performance is mitigated by the employment of immigrant workers |
| Keywords: | Firm; Heterogeneity; Immigrant workers; Import competition; Productivity |
| JEL: | F14 F22 F16 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:21007&r=all |
| By: | Kris James Mitchener; Kirsten Wandschneider; Kevin Hjortshøj O'Rourke |
| Abstract: | We document the outbreak of a trade war after the U.S. adopted the Smoot-Hawley tariff in June 1930. U.S. trade partners initially protested the possible implementation of the sweeping tariff legislation, with many eventually choosing to retaliate by increasing their tariffs on imports from the United States. Using a new quarterly dataset on bilateral trade for 99 countries during the interwar period, we show that U.S. exports to countries that protested fell by between 15 and 22 percent, while U.S. exports to retaliators fell by 28-33 percent. Furthermore, using a second new dataset on U.S. exports at the product-level, we find that the most important U.S. exports to retaliating markets were particularly affected, suggesting a possible mechanism whereby the U.S. was targeted despite countries’ MFN obligations. The retaliators’ welfare gains from trade fell by roughly 8-17%. |
| Keywords: | trade wars, gravity model, Smoot-Hawley, Great Depression |
| JEL: | F13 F14 N70 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8966&r=all |
| By: | Akira Okada; Yasuhiro Shirata |
| Abstract: | We investigate the formation of Free Trade Agreement (FTA) in a competing importers framework with $n$ countries. We show that (i) FTA formation causes a negative externality to non-participants, (ii) a non-participant is willing to join an FTA, and (iii) new participation may decrease the welfare of incumbent participants. A unique subgame perfect equilibrium of a sequential FTA formation game does not achieve global free trade under an open-access rule where a new applicant needs consent of members for accession, currently employed by many open regionalism agreements including APEC. We further show that global FTA is a unique subgame perfect equilibrium under an open-access rule without consent. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.16118&r=all |
| By: | Simon J. Evenett; Bernard Hoekman; Nadia Rocha and Michele Ruta |
| Abstract: | In the first two months of 2021, the production of COVID-19 vaccines has suffered setbacks delaying the implementation of national inoculation strategies. These delays have revealed the concentration of vaccine manufacture in a small club of producer nations, which in turn has implications for the degree to which cross-border value chains can deter more aggressive forms of Vaccine Nationalism, such as export curbs. This paper documents the existence of this club, taking account of not just the production of final vaccines but also the ingredients of and items needed to manufacture and distribute COVID-19 vaccines. During 2017-19, vaccine producing nations sourced 88% of their key vaccine ingredients from other vaccine producing trading partners. Combined with the growing number of mutations of COVID-19 and the realization that this coronavirus is likely to become a permanent endemic global health threat, this finding calls for a rethink of the policy calculus towards ramping up the production and distribution of COVID-19 vaccines, its ingredients, and the various items needed to deliver them. The more approved vaccines that are safely produced, the smaller will be the temptation to succumb to zero-sum Vaccine Nationalism. |
| Keywords: | COVID-19, vaccines, value chains, Vaccine Nationalism, trade policy, export restrictions, mRNA, lipids, nitrile gloves, syringes, vials., export curb, export ban, mRNA, lipids, nitrile gloves, syringes, vials |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2021/36&r=all |
| By: | Fred Gale |
| Abstract: | Abstract China is adopting stricter food safety measures that apply to both imported and domestically produced food. This study is the first to compile and analyze China’s refusals of imported food in order to assess regulatory compliance problems identified by inspectors at the Chinese border. China rejected less than 1 percent of imported food shipments from all countries and regions during 2006-19. The rate of refusal varies from year to year. Some potential exporters may be deterred from selling to China due to risks of heightened scrutiny at certain times, strict requirements for documentation and labeling, and standards that may require reformulation of products. The European Union (EU) had the largest number of refusals of any exporter, mainly because its food exports to China are predominantly processed and packaged products, which China refuses more frequently. China’s refusal rate of U.S. foods was slightly less than the average for all countries and regions. |
| Keywords: | Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade, Political Economy |
| Date: | 2021–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usdami:310202&r=all |
| By: | Francesco Nucci (Sapienza University); Filomena Pietrovito (University of Molise); Alberto Franco Pozzolo (Roma Tre University) |
| Abstract: | Growing evidence suggests that a large share of international trade transactions are made through intermediaries and that whether firms use them or not depends on different factors. In this paper, we investigate whether credit constraints introduce a degree of difference among firms in their mode of importing. To begin, we develop a simple analytical framework highlighting the possible links between credit constraints and reliance on import intermediaries, and then use firm-level data from 66 developing and developed countries to test the model's predictions. The results show that credit-constrained firms exhibit a higher probability of importing their inputs using an intermediary, while unconstrained firms are more likely to import directly. Our results also establish that the impact of credit constraints on the probability of indirect importing is amplified for firms with a higher distance from their international sourcing network. Moreover, if firms face other types of frictions to imports, then the probability that credit-constrained firms rely on intermediaries is estimated to be higher. The frictions we consider relate to the degree of regulatory burden and the extent of documentary compliance, time to import and other costs involved in import activities. |
| Keywords: | Firms' Import Mode; Trade Intermediaries; Financial Constraints |
| JEL: | F10 F14 F36 G20 |
| Date: | 2021–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:471&r=all |
| By: | Matteo Gomellini (Banca d'Italia, Servizio Struttura Economica, Divisione Storia Economica) |
| Abstract: | This paper summarizes and partially revisits the analyses and the results of some studies, carried out in the recent past, on the measurement of the intensity and effects of tradebarriers in Italian history. Firstly, the main turning points in Italian trade policy between 1861 and the end of the 20th century are identified, and secondly, a trade cost index that gauges the impediments to bilateral trade is computed (Jacks, Meissner and Novy 2011). The index quantifies the impact of national and international protectionism on the growth of foreign trade. Finally, the gains from trade are estimated via a counterfactual exercise (Arkolakis et al. 2012). The benefits of trade are evaluated over time using GDP as a metric and comparing two scenarios – the real one versus a hypothetical regime of autarchy – characterized by different degres of openness. |
| Keywords: | Italia, barriere agli scambi, politica commerciale, protezionismo, gains from trade |
| JEL: | F1 N7 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:workqs:qse_46&r=all |
| By: | Santeramo, Fabio Gaetano; Miljkovic, Dragan; Lamonaca, Emilia |
| Abstract: | Climate change, the agri-food sector and trade are closely related. This contribution aims at present issues related to the economic impacts of climate changes on international trade. The agri-food sector is one of the most hit by changes in climate, and it is also responsible of substantial environmental impacts. In a globalised world, these effects do not alter only the agri-food domestic markets but propagate across countries. While climate change may trigger changes in trade patterns by altering food availability and access as well as comparative advantages across countries, trade itself may constitute an adaptation strategy. Our note provides elements to be considered in the future debate that will likely be focused on the interrelations between, climate change, trade and global value chains of agri-food products. |
| Keywords: | Adaptation; development; global value chain; trade |
| JEL: | F17 Q17 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106754&r=all |
| By: | Osea Giuntella; Lorenzo Rotunno; Luca Stella (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore) |
| Abstract: | Using longitudinal data from the German Socio-Economic Panel, we analyze the effects of exposure to trade on the fertility and marital behavior of German workers. We find that individuals working in sectors that were more affected by import competition from Eastern Europe and suffered worse labor market outcomes were less likely to have children. In contrast, workers in sectors that benefited from increased exports had better employment prospects and higher fertility. These effects are driven by low-educated and married men, and reflect changes in the likelihood of having any child (extensive margin). While among workers exposed to import competition there is evidence of some fertility postponement, we find a significant reduction of completed fertility. There is instead little evidence of any significant effect on marital behavior. |
| Keywords: | International Trade, Labor Market Outcomes, Fertility, Marriage. |
| JEL: | F14 F16 J13 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie1:def100&r=all |
| By: | Rodolfo G. Campos (Banco de España); Jacopo Timini (Banco de España) |
| Abstract: | We estimate the impact of MERCOSUR on trade flows and on gains from trade for its member countries using a standard modern general equilibrium quantitative structural gravity model. We find a highly heterogeneous impact on bilateral trade flows and gains from trade. We estimate that gains from trade attributable to MERCOSUR are equivalent to a 4.0 % increase in per-capita consumption for Argentina. For the other countries, gains from trade are smaller: 0.8 % for Uruguay, 0.5 % for Paraguay, and 0.3 % for Brazil. We study whether Brazil would benefit from withdrawing from MERCOSUR and signing a trade agreement with a different trade bloc but conclude that net gains from such a switch would be small, if any. |
| Keywords: | general equilibrium, international trade, MERCOSUR, structural gravity model, trade agreements |
| JEL: | F13 F14 F15 F62 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2114&r=all |
| By: | Pramila Crivelli; Stefano Inama; Jonas Kasteng |
| Abstract: | Governments are increasingly entering FTAs and mega-regionals to secure market access for their firms. Utilization rates are used to monitor whether firms are using these FTAs. This paper is part of a recent stream of studies to dash out enduring myths that preferences are not used when preferential MFN rates are low or for unknown or vague reasons. Contrary to this sort of conventional wisdom this study advocates that low utilization rate is a valuable and unequivocal sign that reform of rules of origin and related administrative procedures is needed to make the FTA attractive and meaningful to the private sector. By using a “repeated offender” methodology this paper identifies a series of product specific rules of origin (PSROs) causing low utilization rates. Such PSROs are the candidate for reforms towards more lenient requirements that are commercially viable for firms. |
| Keywords: | Free Trade Agreements, Trade Preferences, Rules of Origin, Product-Specific Rules of Origin, Preference Utilization Rates |
| JEL: | F13 F14 F15 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2021/21&r=all |
| By: | Rafael Dix-Carneiro (Duke University and NBER); João Paulo Pessoa (São Paulo School of Economics); Ricardo Reyes-Heroles (Federal Reserve Board); Sharon Traiberman (New York University) |
| Abstract: | We study the role of global trade imbalances in shaping the adjustment dynamics in response to trade shocks. We build and estimate a general equilibrium, multicountry, multisector model of trade with two key ingredients: 1) consumption-saving decisions in each country commanded by representative households, leading to endogenous trade imbalances, and 2) labor market frictions across and within sectors, leading to unemployment dynamics and sluggish transitions to shocks. We use the estimated model to study the behavior of labor markets in response to globalization shocks, including shocks to technology, trade costs, and intertemporal preferences (savings gluts). We find that modeling trade imbalances changes both qualitatively and quantitatively the short- and long-run implications of globalization shocks for labor reallocation and unemployment dynamics. In a series of empirical applications, we study the labor market effects of shocks accrued to the global economy, their implications for the gains from trade, and we revisit the “China Shock” through the lens of our model. We show that the U.S. enjoys a 2.2 percent gain in response to globalization shocks. These gains would have been 73 percent larger in the absence of the global savings glut, but they would have been 40 percent smaller in a balanced-trade world. |
| Keywords: | Globalization, Trade Imbalances, Labor Markets, Unemployment |
| JEL: | F16 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:21-345&r=all |
| By: | Pierre-Xavier Meschi (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon); Antonin Ricard (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon); Ernesto Tapia Moore |
| Abstract: | This article aims to determine whether pre-internationalization conditions improve the performance of first-time exporting small and medium-sized enterprises (SMEs). Two pre-internationalization conditions are discussed here: firm performance and age at internationalization. Building on the aspiration-level performance model of March and Shapira (1992) with sequential internationalization and international new-ventures approaches, this article develops two research hypotheses proposing an effective alignment with pre-internationalization performance and age at internationalization. These research hypotheses are examined using a panel database of 522 French SMEs that began export operations for the first time in 2014. The statistical results partially support our first hypothesis by showing that early-internationalizing SMEs with a lower performance relative to their peers significantly increase their post-internationalization performance. Contrary to what we predicted in our second hypothesis, we observe that late-internationalizing SMEs, which deliver a much higher performance than their historical aspirations, significantly reduce their post-internationalization performance. |
| Keywords: | Aspiration-level performance model,Early internationalization,First-time exporting SME,Internationalization process,Late internationalization,Social and historical aspirations |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03082746&r=all |
| By: | Demena, B.A.; Benalcazar Jativa, G.; Reta, A.S.; Kimararungu, P.B.; van Bergeijk, P.A.G. |
| Abstract: | We meta-analyse 36 primary studies on determinants of the effectiveness of economic sanctions published over the years 1985-2018, using the Protocol of the Meta-Analysis in Economics Research-network. We investigate the impact of trade linkage, sanction duration and prior relations on sanction success. While the descriptive analysis and weighted averages suggest that the impact of the three variables of interest is significant and conforms to a priori theoretical expectations, our econometric analysis uncovers significant publication bias in the results. Bias is significant and large for the three variables of interest and the genuine impact of these variables on success and failure of sanctions after correction for publication bias is insignificant. Moreover, we find that bias in this literature increases over time. |
| Keywords: | economic sanctions, success, failure, meta-analysis, trade linkage, sanction duration, prior relations, heterogeneity |
| JEL: | F14 |
| Date: | 2021–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:ems:euriss:135342&r=all |
| By: | Klaaren, Jonathan |
| Abstract: | Influenced by processes of globalization and localization, many fields of social and commercial practice – including legal services – across Africa are undergoing rapid transformation. It should come as no surprise that these processes of globalization and transformation include the ongoing transformation of corporate lawyering. Lawyers from Johannesburg to Algiers – not to mention Khartoum and Ouagadougou – are experiencing and participating in rapid global change in their profession and everyday work. This paper identifies some of the questions and issues that emerge from this process, as well as providing a vignette of the South African corporate legal sector and tentatively outlining the emergence of an African corporate lawyering field. It does so in order to propose a research agenda into the trends and potential pathways of growth in this field. It does so in four steps, moving from a theoretical frame to one of the Global South to a portrait of the South African jurisdiction and ending with an agenda for African corporate lawyering. |
| Date: | 2021–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:qw4d8&r=all |
| By: | Douglas Nelson |
| Abstract: | The rise of China as a genuine world power, economically and militarily, constitutes the gravest challenge faced by the liberal international order constructed in the aftermath of the Great Depression and the Second World War. A major source of strain in the trade relations between China and the other core members of the liberal world trading system is its extensive use of state-owned enterprises as an instrument of general (domestic) economic policy. This paper builds on Ruggie’s theory of embedded liberalism and the theory of economic policy to characterize the political and economic difficulties and opportunities in moving toward a new regime for dealing with subsidies. The conclusion sketches some goals such a regime should seek to embody. |
| Keywords: | China, subsidies, countervailing duties, multilateral rules, dispute settlement |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2021/33&r=all |
| By: | , AISDL |
| Abstract: | In recent years investors tend to divert their investment to emerging economies in the Association of Southeast Asian Nations (ASEAN), especially during the U.S.-China trade war. The present study adopts the Weighted Least Square (WLS) and PROCESS macro tool to examine the effects of foreign ownership and growth opportunity on financial performance of Vietnamese listed firms over the period 2011-2018. Our findings show that foreign ownership plays as moderator variable in the relationship between short-term and long-term performance of firms. Empirical results also reveal that mediating effects of growth opportunity on short-term and long-term performance are different before and after the trade war. These findings have important implications for investors and managers in the ASEAN countries. |
| Date: | 2020–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:7w2m9&r=all |
| By: | Luisito BERTINELLI; Olivier CARDI; Romain RESTOUT |
| Abstract: | Motivated by recent evidence pointing at an increasing contribution of asymmetric shocks across sectors to economic fluctuations, we explore the labor market effects of technology shocks biased toward the traded sector. Our VAR evidence for seventeen OECD countries reveals that the non-traded sector alone drives the increase in total hours worked following a technology shock that increases permanently traded relative to non-traded TFP. The shock gives rise to a reallocation of labor which contributes to 35% on average of the rise in non-traded hours worked. Both labor reallocation and variations in labor income shares are found empirically connected with factor-biased technological change. Our quantitative analysis shows that a two-sector open econ- omy model with flexible prices can reproduce the labor market effects we document empirically once we allow for technological change biased toward labor together with additional specific elements. When calibrating the model to country-specific data, its ability to account for the cross-country reallocation and redistributive effects we esti- mate increases once we let factor-biased technological change vary between sectors and across countries.. |
| Keywords: | Sector-biased technology shocks; Factor-augmenting effciency; Open economy; Labor reallocation; CES production function; Labor income share. |
| JEL: | E25 E32 F11 F41 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2021-09&r=all |
| By: | Maximilian Todtenhaupt; Johannes Voget |
| Abstract: | We investigate how changes in firm productivity after M&As are affected by differences in profit taxation between the target and the acquirer. We argue that tax differentials distort the efficient allocation of productive factors following an M&A and thus inhibit the realization of productivity improvements. Using firm-level data on inputs and outputs of production as well as on corporate M&As, we show that the absolute tax differential between the locations of two merging firms reduces the subsequent total factor productivity gain. This effect is concentrated in horizontal M&As and less pronounced when firms can use international profit shifting to attenuate effective differences in taxation. |
| Keywords: | M&A, productivity, international taxation |
| JEL: | F23 H25 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8967&r=all |
| By: | Kusmantini, Titik; Mardiana, Tri; Pramudita, Rendy |
| Abstract: | This study aims to analyze the effect of business intelligence on competitive advantage through knowledge sharing and organizational innovation in export companies in the Special Region of Yogyakarta. The list of companies was obtained from the Industry and Trade Office. The variables used in this research were business intelligence, competitive advantage, knowledge sharing, and organizational innovation. This study uses a sample of 83 companies, using puporsive sampling technique and data analysis techniques using Partial Least Square (PLS). The results of this study indicate that Business Intelligence has a positive effect on three other variables, namely knowledge sharing, organizational innovation, and competitive advantage, and that knowledge sharing and organizational innovation have a positive effect on competitive advantage. In addition, knowledge sharing and organizational innovation are able to mediate the effect of Business Intelligence on competitive advantage. |
| Date: | 2021–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:rup9f&r=all |
| By: | Daniel Nachtigall (OECD); Jane Ellis (OECD) |
| Abstract: | This paper assesses quantitative estimates based on economic modelling studies of the economic and environmental benefits from different forms of international co-ordination on carbon pricing. Forms of international co-ordination include: harmonising carbon prices (e.g. through linking carbon markets), extending the coverage of pricing schemes, phasing out fossil fuel subsidies, developing international sectoral agreements, and establishing co-ordination mechanisms to mitigate carbon leakage. All forms of international co-operation on carbon pricing can deliver benefits, both economic (e.g. lower mitigation costs) and/or environmental (e.g. reducing GHG emissions and carbon leakage). Benefits tend to be higher with broader participation of countries, broader coverage of emissions and sectors and more ambitious policy goals. Most, but not all, countries gain economic benefits from international co-operation, and these benefits vary significantly across countries and regions. Complementary measures outside co-operation on carbon pricing (e.g. technology transfers) could ensure that co-operation provides economic benefits for all countries. |
| Keywords: | Border carbon adjustment, Climate change mitigation, Climate-economy-modelling, Fossil fuel subsidy reforms, Harmonising carbon prices, International Co-operation, Sectoral agreements |
| JEL: | F18 H23 Q54 Q56 Q58 |
| Date: | 2021–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:173-en&r=all |
| By: | Slichter, David; Taveras, Elisa; Monge, Daniela |
| Abstract: | We use information on the occupation choices and earnings of immigrants to measure differences in specific skills between workers from rich and poor countries. We have several findings. First, the skills which rich country workers specialize in mirror the skills which high-income individuals specialize in. Second, rich country workers have the greatest advantage in skills related to the ability to generate ideas (like creativity and critical thinking) rather than scientific or technical knowledge. Third, the skills in which rich country workers have the greatest advantage align closely with the skills used in management occupations. Fourth, workers from rich countries are more varied in their skills (e.g., what one Canadian is good at is different from what another Canadian is). These findings do not appear to be accounted for by the non-randomness of immigration or mismeasurement of skills. Overall, our results suggest that rich country workers have skills particularly well-adapted to production processes involving the coordinated efforts of large groups of people. |
| Keywords: | skills, immigration, development |
| JEL: | J24 O15 |
| Date: | 2021–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106050&r=all |
| By: | Giorgia Giovannetti; Marco Sanfilippo; Arianna Vivoli |
| Abstract: | This paper analyses the impact of trade liberalization on local labour markets in Ethiopia, with a focus on the gender dimension of employment. By exploiting rich micro-level data on Ethiopian workers, we evaluate the effect of the Ethiopian trade reforms on the changes and composition of employment, adopting as unit of analysis Ethiopian districts. We find that districts more exposed to trade liberalization experienced reductions in their employment levels, especially in female employment. |
| Keywords: | Tariffs, Employment, Structural transformation, Gender, Ethiopia |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2021-59&r=all |
| By: | Can, Muhlis; Ben Jebli, Mehdi; Brusselaers, Jan |
| Abstract: | Environmental degradation has constantly increased over the years, and has become one of the main contributors to climate change. For this reason, researchers are increasingly on the lookout for parameters that positively impact environmental quality. Green Products are widely accepted as one of the vital tools to minimize the environmental degradation. This paper introduces a new index which is called the Green Openness Index. The index represents the importance of Green Products in a region by means of a measure of trade in Green Products. This new index revisits the trade-environment nexus in a case study of 31 Economic Co-operation and Development (OECD) countries over the period 2007-2017. The empirical findings provide evidence that Environmental Kuznets Curve hypothesis is valid, by means of Fully modified and Dynamic Ordinary Least Squares regression analysis. As such, the new index also opens up a wide span of opportunities for future research, as the index can be used as explanatory variable in numerous different research questions and fields of research. Additionally, the results demonstrate that the presence of Green Products in trade reduces a country’s ecological footprint. This is essential information for practitioners and policy makers involved in the design of sustainable development policies. |
| Keywords: | Green Openness Index, Green Products, Environmental Friendly Products,Environmental degradation |
| JEL: | F18 O1 O44 Q5 Q56 |
| Date: | 2021–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106730&r=all |
| By: | Cristina Cattaneo (RFF†CMCC European Institute on Economics and the Environment (EIEE), Centro Euro†Mediterraneo sui Cambiamenti Climatici); Timothy Foreman (RFF†CMCC European Institute on Economics and the Environment (EIEE), Centro Euro†Mediterraneo sui Cambiamenti Climatici) |
| Abstract: | A number of factors contribute to interstate conflicts. One social element that has received little attention in the literature is the role of international migration. At the same time, the contribution of climate stress on interstate disputes has been underresearched. This paper analyses if climate stress represents a direct driver of interstate disputes and, at the same time, an indirect driver to conflicts through its effect on international migration. To do so, we use climate shocks to instrument for migration flows in a gravity setting in order to study its causal effect on international conflict. We find that a 1% increase in climate-induced migration increases the probability that the destination of the flows initiates conflict against the origin by 0.001 percentage points over a mean incidence of conflict of 0.13 percentage point per year. The results are consistent across different migration datasets and different specifications of defining the initiator in the conflict. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:2109&r=all |
| By: | Shafik Hebous; Alexander D Klemm; Yuou Wu |
| Abstract: | Profit shifting by multinational enterprises—through manipulation of transfer prices of related-party trade, intragroup lending, or the location of intangibles—affects international flows, raising the question of its impact on the current account and external balances. This paper approaches this question theoretically and empirically. In theory, profit shifting distorts the components of the current account and bilateral current account balances but leaves a country’s aggregate net balance unaffected. There is, however, a real effect on current account balances, because taxes are paid to different jurisdictions. Moreover—in practice—the measured current account could change, because not all transactions are equally easy to track. Our panel empirical results broadly confirm that the current account balance tends to be, on average, unaffected by profit shifting, but taking heterogeneity into account we find that both the real tax effect and mismeasurement strengthen income balances—and thus the current account—in investment hubs. |
| Date: | 2021–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2021/041&r=all |
| By: | Nadar, Anand |
| Abstract: | This research investigates the causality between FDI and GDP per capital in the context of India. Using WDI data from 1970-2019, We applied two types of Granger causality tests: long-run causality and shortrun causality tests. For the long-run causality, we applied pairwise Granger causality test, and for shortrun, we performed the Wald test approach under VECM (Vector Error Correction Model). The long-run causality test indicates that there is a unidirectional causality running from FDI to GDP per capita, implying that FDI causes the GDP per capita to change and not vice-versa. The short-run causality test indicates that there is no causality between FDI and GDP per capita, suggesting that, in the short-run, FDI and GDP per capita does not cause each other. The central policy conclusion from this study is that although FDI does not cause GDP per capita in the short-run, it causes in the long-run. Therefore, according to our study, India should attract FDI to sustain a long-run growth of GDP per capita. |
| Keywords: | GDP per capita; Granger causality; FDI; India; VECM |
| JEL: | F0 F1 F2 |
| Date: | 2021–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106826&r=all |
| By: | Nicolas Berman (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Mathieu Couttenier (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Antoine Leblois (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Raphaël Soubeyran (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Date: | 2020–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03109467&r=all |