|
on International Trade |
| By: | Gabriel J. Felbermayr; Hendrik Mahlkow; Alexander-Nikolai Sandkamp |
| Abstract: | With ever-increasing political tensions between China and Russia on one side and the EU and the US on the other, it only seems a matter of time until protectionist policies cause a decoupling of global value chains. This paper uses a computable general equilibrium trade model calibrated with the latest version of the GTAP database to simulate the effect of doubling non-tariff barriers - both unilateral and reciprocal - between the two blocks on trade and welfare. Imposing trade barriers almost completely eliminates bilateral imports. In addition, changes in price levels lead to higher imports and lower exports of the imposing country group from and to the rest of the world. The targeted country group increases exports to the rest of the world and reduces imports. Welfare falls in all countries involved, suggesting that governments should strive to cooperate rather than turning away from each other. By imposing a trade war on Russia, the political West could inflict severe damage on the Russian economy because of the latter’s smaller relative size. |
| Keywords: | trade, non-tariff barriers, global value chains, quantitative trade model, China, Russia, European Union |
| JEL: | F11 F13 F14 F17 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9721&r= |
| By: | Jaime de Melo (UNIGE - Université de Genève, FERDI - Fondation pour les Etudes et Recherches sur le Développement International, CEPR - Center for Economic Policy Research - CEPR); Jean-Marc Solleder (UNIGE - Université de Genève) |
| Abstract: | Strong participation in Global Supply Chains (GSCs) (aka Global Value Chains (GVCs)) is an indication of the structural transformation at the heart of the ‘Africa we want' described in African Union's Agenda 2063 project. We discuss challenges at measuring GSCs and report new input- output based measures (upstreamness and downstreamness of exports) at several levels: across countries, regions, and sectors over the period 1995-2015. We also report participation measures based on firm-level data and new estimates of factors affecting participation of sectors in GVCs over the period 1995-2015. On average, for both Africa and MENA, exports have a low content of imported intermediates and exports undergo further transformation in destination countries before reaching consumers. Compared with other regions, both Africa and MENA mostly engage in supply chain trade with countries outside their respective region. Firm-level estimates for several countries show that African firms are scarcely engaged in supply chain trade. In sum, in spite of regional trade agreements focussing on reducing trade barriers to intra-regional trade, regional value chains have failed to develop in both regions. [...] |
| Keywords: | Trade policy,Global value chains,Digitalization,Servicification,Trade costs,National date infrastructure,Sub-Saharan Africa,Middle-East and North Africa |
| Date: | 2022–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03649085&r= |
| By: | , Le Thanh Tung |
| Abstract: | This paper aims to test the Kuznets hypothesis regarding the existence of the inverted U-curve in the relationship between FDI and income inequality with an international sample. Some economists have recently expressed concern that the globalization of the production process can promote inequality and create social problems. Whether foreign resources might be related to unequal income distribution in emerging economies remains an open question. In order to fill the research gap, the paper tries to examine the impact of foreign direct investment on inequality in 33 emerging economies between 1980 and 2019. There are two methods including OLS and 2-SLS estimations are employed to estimate the coefficients of the variables. Where the 2-SLS methodology employs instrumental variables to solve the endogenous phenomenon in the study function. The results indicate that both the FDI-inequality nexus and the income-inequality nexus are non-linear effects that confirm the Kuznets curve hypothesis and that improved infrastructure and trade openness can reduce inequality in this group of economies. Finally, the result also suggests that emerging economies need to persevere to FDI attracting strategy because there is a threshold that FDI will ultimately reduce inequality in these economies. |
| Date: | 2022–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:34fmy&r= |
| By: | Hinder, Nicola |
| Abstract: | International trade in agricultural and food commodities is essential to global food and nutrition security. Trade is enhanced by systems-based and science-based approaches to regulation that address risks to animal and plant biosecurity, zoonotic disease, food safety and nutrition. The World Trade Organization Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) recognises the ‘three sisters’ – the Codex Alimentarius Commission (Codex), the World Organisation for Animal Health (OIE), and the International Plant Protection Convention (IPPC) – as the international standard-setting bodies squarely at the centre of this nexus between biosecurity, health and trade. The standards set by these bodies are integral to maintaining a transparent rules-based trading environment and reducing risk for those operating in the increasingly connected global value chain. I will explore how the work of the three sisters intersect to influence food import and export systems, continuing to adapt in a changing world, and I will discuss Australia’s crucial role in promoting science-based standards and guidance that facilitate trade in safe food, with a focus on the important role Australia plays in contributing to the work of Codex. |
| Keywords: | International Relations/Trade |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cfcp21:320501&r= |
| By: | Xuan Nguyen (Department of Economics, Deakin University, Geelong, Victoria, Australia); Yuqing Xing (National Graduate Institute for Policy Studies, Tokyo, Japan) |
| Abstract: | Why do some firms in developing countries (South) choose to be contract manufacturers of multinational corporations in developed countries (North) instead of independently developing home-grown products to compete with the latter? In this paper, we provide an explanation through the lens of global value chains (GVCs). To this end, we develop an international duopoly model in which a Southern firm seeks to enter a global market dominated by a Northern conglomerate, either by having a competing product or participating in the GVC managed by the latter. We show that in a broad range of parameterizations, the North-South GVC arrangement yields a win-win solution for the firms, and hence it can justify the active involvement of Southern firms in the GVCs led by Northern conglomerates as a means to boost exports from the South, even though firms from the South have low productivity. |
| Keywords: | Global value chain; export; oligopoly; North; South. |
| URL: | http://d.repec.org/n?u=RePEc:ngi:dpaper:22-04&r= |
| By: | Simola, Heli |
| Abstract: | Russia's brutal military aggression on Ukraine has led to extensive economic sanctions by Western countries and the withdrawal of many foreign companies from Russian markets. The isolation of Russia from the international community has substantially restricted its access to advanced technologies and eroded the country's economic growth potential. Our analysis suggests that Russia has fairly limited possibilities for import substitution in high-technology sectors. China, which could play a key role as an alternative source for inputs, has seen its share of Russian imports, including high-tech inputs, increase substantially in recent years. The extent to which China is willing to support Russia in the current situation remains unclear, however. |
| Keywords: | Russia,trade,sanctions,import substitution |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofitb:32022&r= |
| By: | Jean-Bosco Lange Muzaliwa (ISC BUKAVU - Institut Supérieur de Commerce de Bukavu); Marthe Mugisho (ISC BUKAVU - Institut Supérieur de Commerce de Bukavu) |
| Abstract: | We did an analysis of DRC exports and imports with the rest of the world. Due to the lack of data in recent years, our observations covered 4 years (2016-2019). In order to know the balance of the trade balance of the DRC, our main question was: «what is the contribution of the DRC in international trade? ». To answer this question, the data were collected on the basis of the documentation of the annual reports of the Central Bank of Congo. They were treated by the comparative method. The latter consisted of comparing the import and export statistics of the DRC, on the basis of tables and transforming the data collected into indices and rates of variations to facilitate understanding. The analyses showed that most of the DRC's exports come from the primary sector (mining products, hydrocarbons, agricultural products). This primary sector generated 95% of export earnings. The DRC's trade balance was negative in 2016 but improved in 2017 and even more in 2018, however it decreased significantly in 2019, among other things, because of the impact of Covid-19. The DRC was found to have a trade surplus. However, this trade surplus must guarantee a higher employment rate, an improved standard of living. |
| Abstract: | Nous avons fait une analyse d'exportations et importations de la RDC avec le reste du monde. Par manque de données sur les années récentes, nos observations ont porté sur 4 années (2016-2019). Dans l'objectif d'analyser le solde de la balance commerciale de la RDC, notre question principale a été de savoir : « quelle est la contribution de la RDC dans le commerce international ? ». Pour répondre à cette question, les données ont été recueillies sur base de la documentation des rapports annuels de la Banque Centrale du Congo. Elles ont été traitées par la méthode comparative. Cette dernière a consisté à procéder aux comparaisons des statistiques d'importations et d'exportations de la RDC, sur base des tableaux et en transformant les données collectées en indices et en taux des variations pour faciliter la compréhension. Les analyses ont démontré que l'essentiel d'exportations de la RDC vient du secteur primaire (produits miniers, hydrocarbures, produits agricoles). Ce secteur primaire a mobilisé 95% de recettes d'exportations. La balance commerciale de la RDC a été négative en 2016, mais s'est améliorée en 2017 et encore davantage en 2018, néanmoins elle a baissé sensiblement en 2019, entre autres, à cause de l'impact de Covid-19. Il a été constaté que la RDC présente un excédent commercial. Toutefois, encore faut-il que cet excédent commercial garantisse un taux d'emploi plus élevé, un niveau de vie améliorée. Pour y arriver, les bénéfices résultants des échanges commerciaux doivent utilisés rationnellement et avec un objectif d'un développement global. |
| Keywords: | Statistics,import-export,international trade,DRC JEL Classification : F10 Paper type : Empirical research |
| Date: | 2022–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03633252&r= |
| By: | Kannan, Elumalai; Kumar, Anjani |
| Abstract: | This paper analyses the dynamics of comparative advantage in India’s agricultural exports over the period 2001 to 2019. In order to analyze the pattern of export specialization, we use the revealed comparative advantage index, and its variant, the revealed symmetric comparative advantage index. We use the Markov transition matrix to examine the product mobility of comparative advantage. Our results show that the extent of agricultural trade openness has remained constant over time and that there has been little change in the composition of agricultural exports. Between 2017 and 2019, two products—semi- or wholly milled rice, and frozen shrimps and prawns—accounted for one-third of all exports. Analysis of the mobility of comparative advantage reveals little mobility of products from the lowest to the highest decile. There is a 65.8 percent probability that a product will stay in the first decile even after nearly two decades. A high degree of persistence of export specialization implies a much greater probability of starting and ending up in the highest decile. Policy should aim at diversification of the agricultural export basket through a product-specific focus that is based on export demand and the exploration of new markets. |
| Keywords: | INDIA; SOUTH ASIA; ASIA; agriculture; exports; dynamics; agricultural trade; trade; agricultural trade specialization; trade openness; revealed comparative advantage; mobility of comparative advantage |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2116&r= |
| By: | Mai, Nhat Chi |
| Abstract: | With the process of Vietnam's reform and opening up, Vietnam's economy has made remarkable achievements. Vietnam's manufacturing industry, taking advantage of the new liberal policies, has also achieved rapid development. Sufficient and cheap labor force, advantageous geographical location, preferential foreign investment policies, and friendly international trade environment with the technological upgrading of manufacturing industry are all the advantages of Vietnam in attracting manufacturing industry. However, there are structural difficulties in the Vietnam's economy. Vietnam's economy is highly dependent on foreign trade and foreign investment, and its trade commodities are mainly assembly and processing with low added value. Compared with China, Vietnam also has obvious disadvantages in the scale of domestic market and supply chain. To some extent, Vietnam's manufacturing industry is integrated into China's supply chain network. |
| Date: | 2021–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:e9avy&r= |
| By: | Spirin, Victor |
| Abstract: | One of the main questions of specific factors theory is whether it is possible to achieve a redistribution of gains from trade such that everybody in both trading countries win. This theory explicitly assumes that the trading partners possess identical technologies, and the difference in the amount of goods produced is solely due to the differences in factor endowments. In effect, opening to trade between two countries with different factor endowments is an optimization problem that redistributes labor between the types of goods produced given the available capital. In this optimization problem both trade participants benefit from free trade, and it is possible to make everybody win. But if the two countries possess different technologies, the result is quite the opposite. The optimization problem leads to the destruction of capital in the country with less efficient technology. While the main conclusions of the theory – the owners of export-oriented factor of production win and capital-abundant country will export capital-intensive goods and vice versa – will hold, the country with less efficient pre-trade technology will lose the technology altogether, and the total output of that country will fall as a result of free trade. |
| Keywords: | Free trade, Specific factors model, Vanek-Reinert effect, International economics. |
| JEL: | F11 F63 |
| Date: | 2022–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112937&r= |
| By: | Feld, Lars P.; Köhler, Ekkehard A.; Palhuca, Leonardo; Schaltegger, Christoph A. |
| Abstract: | Previous empirical studies suggest that decentralization, measured by the number of government layers, is associated with less foreign direct investment (FDI). With an improved dataset on tax autonomy of sub-federal government tiers, we present evidence that fiscal decentralization (de facto) does not reduce FDI. If local governments can set their tax rates and bases independently, they attract more FDI. Analyzing 83,458 corporate cross-border acquisitions (CBA), between 148 source and 187 host countries from 1997 to 2014, we also find that takeovers between two countries increase with size, cultural similarities and common borders of two economies. Shared institutions such as membership in a customs union facilitate CBA. These results apply for high-income hosts but not for middle-income countries. |
| Keywords: | Fiscal Decentralization,Cross-Border Acquisition (CBA),Foreign Direct Investment (FDI),Tax Autonomy |
| JEL: | G34 H25 H71 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:aluord:2204&r= |
| By: | Philipp Herkenhoff; Sebastian Krautheim; Finn Ole Semrau; Frauke Steglich |
| Abstract: | Firms are under increasing pressure to meet stakeholders’ demand for Corporate Social Responsibility (CSR) along their global value chains. We study the incentives for and investments in CSR at different stages of the production process. We analyze a model of sequential production with incomplete contracts where CSR by independent suppliers differentiates the final product in the eyes of caring consumers. The model predicts an increasing CSR profile for suppliers along the value chain: from upstream suppliers with low CSR to downstream suppliers with higher CSR. We confirm this prediction using Indian firm-level data. We compute a firm’s value chain position combining product-level information in our data with the World Input-Output Database. We find that more downstream firms have higher CSR expenditures as measured by a combination of staff welfare spending and social community spending. |
| Keywords: | corporate social responsibility, global value chains, incomplete contracts, property rights theory, GVC positioning, India, emerging markets |
| JEL: | D23 F12 F14 F18 F61 F63 L23 M14 O12 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9498&r= |
| By: | Hongyi Chen (Hong Kong Institute for Monetary and Financial Research); Peter Tillmann (University of Giessen) |
| Abstract: | Lockdowns imposed to fight the Covid-19 pandemic have cross-border effects. In this paper, we estimate the empirical magnitude of lockdown spillovers in a set of panel local projections. We use daily indicators of economic activity such as stock returns, effective exchange rates, NO2 emissions, mobility and maritime container trade. Lockdown shocks originating in the most important trading partners have a strong and significant adverse effect on economic activity in the home economy. For stock prices and exports, the spillovers can even be larger than the effect of domestic lockdown shocks. The results are robust with respect to alternative country weights used to construct foreign shocks, i.e. weights based on foreign direct investment or the connectedness through value chains. We find that lockdown spillovers have been particularly strong during the first wave of the pandemic. Countries with a higher export share are particularly exposed to lockdown spillovers. |
| Keywords: | panel local projections, lockdown shocks, spillovers, Covid-19, pandemic |
| JEL: | E32 F14 F20 F36 F42 F44 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202215&r= |
| By: | Damiano Pregaldini; Uschi Backes-Gellner |
| Abstract: | We investigate how the adjustment of middle-skilled workers to immigration depends on the specificity of their occupational skill bundles. We combine the 2002 opening of the Swiss labor market to EU workers with register data on the location and occupation of these workers. In comparison to previous studies, we find counterintuitive results: the sudden inflow of EU workers increased the employment of native middle-skilled workers with specific occupational skills and, at the same time, reduced their occupational mobility. These results can be explained by the inflow of EU workers reducing existing skill gaps and alleviating firms' capacity restrictions, thereby improving job-worker matches and reducing the need for occupational changes of native workers. |
| Keywords: | migration, cross-border workers, occupational skill specificity |
| JEL: | J15 J24 J62 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:iso:educat:0193&r= |
| By: | Ashwani Bishnoi; Pravakar Sahoo (Institute of Economic Growth, Delhi) |
| Abstract: | China’s flagship project Belt and Road Initiative (BRI) launched in 2013 is meant to reshape global networks of transport infrastructure further integrating China with Asia, Europe and Africa having significant implications on trade, investment and economic and political ties of China vis-à-vis with other countries. The paper also highlights the economic as well as strategic implications of BRI on India. Overall, there has been significant increase in Chinese outward investment during the post-BRI period and most of the outward investment has been directed towards countries which are participating in BRI. Though the objectives of the projects undertaken in different countries varies, the overall objective is to develop transportation, logistics and communications which would reduce trade and transaction cost for China’s trade, give more market access to Chinese markets and ensure stable supply of energy and other resources. There is strong possibility of trade diversion due to BRI affecting competing countries like India. |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:awe:wpaper:411&r= |
| By: | Jackie M.L. Chan; Michael Irlacher; Michael Koch |
| Abstract: | This paper investigates the effects of mergers on the product mix of multiproduct firms. Thus, we open the black box of post-merger efficiency improvements to reveal a new margin of adjustment along the product dimension. We analyze horizontal mergers in a theoretical model where oligopolistic firms employ a flexible manufacturing technology and allocate assets between differentiated varieties. After a merger, acquirers drop products from their consolidated domestic product portfolio and reallocate assets towards core varieties. We further demonstrate that such merger-induced efficiency gains imply greater activity in foreign markets. Using detailed Danish register data, we document novel facts regarding mergers and multiproduct firms and find empirical evidence strongly supporting the model’s predictions. Our results show that the number of domestic products of the post-merger acquirer falls relative to the sum of the premerger acquirer and target, that skewness of domestic sales rises towards core products, and that export activity increases. |
| Keywords: | multiproduct firms, horizontal mergers, flexible manufacturing, exports, product mix, event study |
| JEL: | F12 F14 G34 L22 L25 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9722&r= |
| By: | Ms. Natasha X Che; Xuege Zhang |
| Abstract: | This paper studies the relationship between export structure and growth performance. We design an export recommendation system using a collaborative filtering algorithm based on countries' revealed comparative advantages. The system is used to produce export portfolio recommendations covering over 190 economies and over 30 years. We find that economies with their export structure more aligned with the recommended export structure achieve better growth performance, in terms of both higher GDP growth rate and lower growth volatility. These findings demonstrate that export structure matters for obtaining high and stable growth. Our recommendation system can serve as a practical tool for policymakers seeking actionable insights on their countries’ export potential and diversification strategies that may be complex and hard to quantify. |
| Keywords: | export diversification, comparative advantage, machine learning, collaborative filtering, economic growth, international trade; export structure; export portfolio recommendation; export recommendation system; performance export portfolio; export potential; Exports; Comparative advantage; Export diversification; Human capital; Total factor productivity; Global; East Asia |
| Date: | 2022–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/075&r= |
| By: | Cristina Constantinescu; Ana Margarida Fernandes; Arti Grover; Stavros Poupakis; Santiago Reyes |
| Abstract: | This paper analyzes the initial impact and recovery of globally engaged firms from the COVID-19 crisis. It uses rich survey data of nearly 65,000 firm-year observations in 45 countries spanning three waves of data collection. The findings are organized in a series of stylized facts, which suggest that although the pandemic had an immediate adverse impact on most firms, the globally engaged ones are recovering faster, possibly due to their higher capabilities. Among globally engaged firms, those directly involved with international markets show better recovery than the ones that were indirectly involved. These results mask wide variation by firm traits, sectoral attributes, and country characteristics. At the core of the recovery of globally engaged firms is their heightened response to the crisis by finding novel ways to adapt supply chains even in the presence of lockdowns and uncertainty. These firms swiftly digitalized, introduced new products and changed their markets and sources of inputs. Over and above their capabilities, global engagement cushions firms against shocks. Policymakers could therefore facilitate global linkages by providing information on potential markets and products, by making production flexible in terms of facilitating remote work, reducing the rigidity of contracts; and incentivizing financial institutions to issue instruments that reduce uncertainty risk. |
| Keywords: | Covid-19, crisis, firms, recovery, trade, exporters, global value chains |
| JEL: | D22 F14 L20 L25 O10 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9711&r= |
| By: | Ciani, Andrea (European Commission); Nardo, Michela (European Commission) |
| Abstract: | We map companies belonging to the semiconductor value chain at the world level and investigate the turnover of the companies by jurisdiction of their ultimate owner. Total turnover for the top-10 companies, with respect to revenue, among the manufacturers of semiconductors amounts to 266 Billion EUR for year 2020. The same group of companies accounts for 87% of market capitalization of this industry in 2021. Our coverage is uneven across jurisdictions. We have a richer coverage for Europe than for the US and China, given the interest in analysing the European landscape. Data on turnover by segment shows that EU-owned companies represent a relevant share of the input suppliers for the production of semiconductors (evidence confirmed by De Jong, 2020, as well as by Kleinhans and Baisakova, 2020). Indeed EU companies are among the largest suppliers of chemicals and gases in this supply chain, accounting for 34% of world turnover in 2020. US companies are leaders in the production of equipment used for the production of semiconductors with 31% of the turnover, closely followed by European ones with 27%. The picture changes when looking at the turnover of EU-owned chip producers (foundries) and chip designers (fabless companies), which is negligible. Taiwanese firms share with South Korean manufacturers the leadership in the foundry segment. |
| Keywords: | Semiconductors, Europe, Companies, Ownership |
| JEL: | F23 F10 L63 G32 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:jrs:wpaper:202203&r= |
| By: | Michael Bleaney; Mo Tian |
| Abstract: | The ratio of trade to GDP is often used as a summary measure of a country’s openness to the rest of the world. It is well known that the trade/GDP ratio is affected by relatively time-invariant factors, such as country size and remoteness from trading partners, that can largely be controlled for in cross-country panels by using country fixed effects. It is shown here that there are also other important, time-varying influences on the trade/GDP ratio that have been little investigated, such as the prices of commodity exports and imports, the real effective exchange rate and the ratio of investment to GDP. These factors are shown to be significant, and not only in the short run, and need to be taken into account in estimating the long-run effects of transport costs or trade policy on the trade/GDP ratio. |
| Keywords: | trade openness; real exchange rate; commodity prices; investment |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:2022-01&r= |
| By: | Mohammed Eddaou (Université Mohammed Premier [Oujda]) |
| Abstract: | Since 2007, the majority of FDI flows to Morocco, an average of 74%, have come from developed countries. This reality of FDI in Morocco leads to questions about the determinants of its attractiveness. In fact, the location of multinational firms could emanate either from a rational choice based on the advantages of Morocco, or from a systemic choice linked to the economic policy of the countries and their economic diplomacy. In our paper, we have tried to answer the question: What is the relationship between the economic diplomacy of developed countries and FDI flows to Morocco? In order to provide theoretical insight on our main question, and in the face of this relative reality on the determinants of FDI flows, we have opted for scientific realism as an epistemological position, and the hypothetico-deductive approach as a research approach. A review of the literature has allowed us to explain the flow of FDI to Morocco by the components of economic diplomacy, like the need for fiscal adjustment in developed countries and the military power of the latter on an international scale. To study our research hypotheses, we constructed a sample of panel data from 2007 to 2020 (T=14) covering 6 original developed countries (France, Netherlands, Germany, Italy, Canada and Sweden). As data sources, we used statistics from the University of Sherbrooke, data from Organisation for Economic Cooperation and Development, and data from Moroccan Exchange Office. With the existence of longitudinal data that are represented by a double dimension: individual and temporal, we are obliged to pass by an empirical analysis of the data by using panel data econometrics. The procedure followed to achieve this technique is composed of three steps. The first step is to determine the panel structure using a sequential testing procedure. Then in the second step, calculate the VIF (variance inflation factor) to avoid multicollinearity, and in the third step, use the estimation method related to the result of the procedure. The study conducted an empirical examination to test the relationship between the need for fiscal adjustment in developed countries, their military power and FDI flows to Morocco. The sequential testing procedure led us to a fixed effect econometric model. The results of the study show that the power of developed countries and their need for fiscal adjustment cause FDI flows to Morocco. This means that the economic diplomacy of developed countries causes FDI flows to Morocco. The results of our research are not in line with the conclusions of previous studies on the determinants of FDI in Morocco. Their views of FDI ignores the existence of a real world in which capital movements are only achieved through a coalitional game between unequally strong carrier states. This research suggests that Morocco should invest more in military spending to exceed the military strength of the countries that represent the origin of the substitute FDI. It also suggests that Morocco should take advantage of its current military strength to create new and sustainable localisation and internalisation opportunities for Moroccan-based multinational firms, and to reduce the country's eventual fiscal adjustment needs. |
| Abstract: | Depuis l'année 2007, la majorité des flux des IDE au Maroc, soit 74% en moyenne, proviennent des pays développés. Cette réalité des IDE au Maroc conduit à se poser des questions sur les déterminants de leur attractivité. Dans le cadre de notre article, nous avons essayé de répondre à la question suivante : Quelle est la relation entre la diplomatie économique des pays développés et les flux des IDE au Maroc ? Devant cette réalité relative sur les déterminants des flux des IDE, nous avons opté pour le réalisme scientifique en tant que positionnement épistémologique et la démarche hypothéticodéductive en tant que démarche de recherche. Une revue de littérature nous a permis d'expliquer le flux des IDE au Maroc par les composantes de la diplomatie économique à savoir le besoin de redressement budgétaire et la puissance militaire des pays développés. Les résultats de l'étude montrent que la puissance des pays développés et leur besoin de redressement budgétaire causent les flux des IDE au Maroc. |
| Date: | 2022–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03625483&r= |
| By: | Bárcena-Ruiz, Juan Carlos; Sagasta, Amagoia |
| Abstract: | This paper analyzes firms’ incentives to engage in environmental corporate social responsibility (ECSR) in an international market under imperfect competition. We find that in the absence of environmental taxes firms do not adopt ECSR. However, the implementation of environmental taxes by governments encourages firms to adopt ECSR under local damage. Consumers, producers, and environmentalists are better off if firms decide to be environmentally responsible than if they decide not to. We also find that the decision to adopt ECSR depends on transboundary pollution. Under global damage firms engage in ECSR only if they are highly concerned about the environment. This means that the existence of transboundary pollution negatively affects the incentives of firms to be environmentally friendly. Finally, we find that when governments cooperatively determine their environmental taxes, firms engage in ECSR under both local and global damage. Thus, under global damage firms have greater incentives to be environmentally friendly when governments cooperate on environmental policies than when they do not. |
| Keywords: | Environmental corporate social responsibility; environmental tax; international trade; transboundary pollution. |
| JEL: | D43 L13 L22 Q56 |
| Date: | 2021–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112583&r= |
| By: | Swati Dhingra; Gianmarco I. P. Ottaviano; Thomas Sampson |
| Abstract: | The UK's vote to leave the European Union in 2016 triggered economic reactions that will define the country's future for years to come. Why does leaving the EU have such a profound impact - and how do economists estimate it? The Insights series is an introduction to the work of the Centre for Economic Performance. While the centre's roots are in labour economics, it has been an interdisciplinary research centre, since it was set up in 1990. Each Insight explains how economists go about investigating the big questions in each topic, the contribution CEP researchers have made to both academic understanding and policy-making - and the questions that are still to be answered. |
| Keywords: | Brexit |
| Date: | 2021–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepins:01&r= |
| By: | Hendriks, Johannes Jurgens; Bonga-Bonga, Lumengo |
| Abstract: | This paper tests whether the PPP theory holds between trading partners, depending on the volume of trade and trade friction, such as exchange control. The test is applied between South Africa, a country that applies an exchange control policy, and its trading partners. The paper uses the quantile unit root test and quantile cointegration regression approach to test for the strong and weak-form PPP hypothesis. Strong evidence of the weak-form PPP hypothesis is found for high export countries over all quantiles. Specifically, weak-form PPP is found in China, the United States, Japan and the United Kingdom, whereas evidence of PPP, in general, was found to be lacking. The paper finds evidence that PPP is more likely to exist between countries with more significant trade volumes. |
| Keywords: | purchasing power parity, quantile, exchange rates |
| JEL: | C22 F31 |
| Date: | 2022–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112915&r= |
| By: | Roy, Devesh; Boss, Ruchira; Pradhan, Mamata; Ajmani, Manmeet |
| Abstract: | The paper attempts to fill a knowledge gap by examining India’s pulse complex, consisting of production, consumption, and trade policies. India’s pulse policies are anchored in a cereal-centric farming system and prioritize national self-sufficiency as well as the mitigation of relative price increases in food. On the farmer side, government policy includes price support (a minimum support price [MSP]) for different pulses initially without procurement, but later backed by public procurement. The MSP plus procurement elicited a comparatively high supply response. Without procurement, the MSP worked only to anchor prices and benefit traders at the farmers’ expense. By not accounting for the needed risk premium (for a supply response) the MSP kept domestic production low. Even as the world’s largest importer of pulses, the scale of pulse imports in India have generally not been large enough to cool its markets and bring down domestic prices. Instantaneous supply adjustments by exporters in response to trade policy changes are difficult. |
| Keywords: | INDIA; SOUTH ASIA; ASIA; grain legumes; policies; trade; agricultural production; consumption; trade; cereals; food prices |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2113&r= |
| By: | Abe, Naohito; Rao, D.S. Prasada |
| Abstract: | We advocate the multilateral Walsh index as a viable alternative to the Gini-Eltetö-Köves-Szulc (GEKS) and Geary-Khamis methods used in the Penn World Table and the International Comparison Program (ICP). We show that it is the only symmetric average fixed basket price index that satisfies transitivity, country symmetry, and invariance to proportional changes in quantities. Simplicity and its superior axiomatic properties including identity and monotonicity, and with associated substitution bias comparable to that of the GEKS_Fisher index, and plausibility and comparability of results based on the 2017 ICP data make the multilateral Walsh method an ideal choice for international price comparisons. |
| Keywords: | Price comparisons, Transitivity, Proportionality, Real expenditures |
| JEL: | E31 C43 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:hit:rcesrs:dp22-1_v2&r= |
| By: | Antonio Ciccone; Jan Nimczik |
| Abstract: | After the end of World War II in 1945, millions of refugees arrived in what in 1949 became the Federal Republic of Germany. We examine their effect on today’s productivity, wages, income, rents, education, and population density at the municipality level. Our identification strategy is based on a spatial discontinuity in refugee settlement at the border between the French and US occupation zones in the South-West of post-war Germany. These occupation zones were established in 1945 and dissolved in 1949. The spatial discontinuity arose because the US zone admitted refugees during the 1945-1949 occupation period whereas the French zone restricted access. By 1950, refugee settlement had raised population density on the former US side of the 1945-1949 border significantly above density on the former French side. Before the war, there never had been significant differences in population density. The higher density on the former US side persists entirely in 2020 and coincides with higher rents as well as higher productivity, wages, and education levels. We examine whether today’s economic differences across the former border are the result of the difference in refugee admission; the legacy of other policy differences between the 1945-1949 occupation zones; or the consequence of socio-economic differences predating WWII. Taken together, our results indicate that today’s economic differences are the result of agglomeration effects triggered by the arrival of refugees in the former US zone. We estimate that exposure to the arrival of refugees raised income per capita by around 13% and hourly wages by around 10%. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9679&r= |
| By: | Zouheir EL-SAHLI; Mouyad ALSAMARA |
| Abstract: | We investigate the effects of the Covid-19 pandemic on small and medium-sized enterprises (SMEs) in four non-oil-exporting MENA countries (Jordan, Morocco, Tunisia, and Egypt). Using data from a recent enterprise survey, we highlight several new findings. MENA SMEs resorted to wage and work hours reductions more readily than layoffs in the wake of the pandemic. Within SMEs, larger firms are more resilient, recover faster, and adapt more often. On the sector level, the accommodation and food services sector is the worst affected in most outcomes. There is, however, clear recovery in Q2 (versus Q1) 2021 across sectors and countries. Furthermore, SMEs that switch to remote work are less likely to face closures, recover faster, and adapt more frequently, signaling higher resilience and adaptability. On the other hand, participation in government assistance programs does not improve firm outcomes, whereas firms that participate in international trade are more resilient and adaptable in the face of the shock. The results of the study carry very important policy implications to support SMEs in developing countries in time of extreme exogenous shocks. |
| Keywords: | Afrique |
| JEL: | Q |
| Date: | 2022–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:avg:wpaper:en13928&r= |
| By: | Ganguly, Shrimoyee; Acharyya, Rajat |
| Abstract: | This paper theoretically examines the effect of an expansionary monetary policy on export quality and its ramifications on the aggregate employment of the unskilled workers in a competitive general equilibrium framework of a small open economy. This issue assumes relevance since monetary policies are often pursued by the central bank of an economy to manage exchange rate fluctuations under a managed float regime, which may have adverse consequences for export-quality choices and thereby for export growth given the growing preference of buyers in richer nations for higher qualities of goods they consume. Under optimal allocation of wealth over a portfolio of cash, domestic assets and foreign assets, we show that an increase in the domestic money supply affects the choice of export-quality primarily in two ways. One is through larger investment, capital formation and consequent endowment effect; the other is through changes in the nominal exchange rate. Under less price-elastic demand for a non-traded good, the export quality is upgraded when higher quality varieties of the export good are relatively capital intensive. On the other hand, though the expansionary monetary policy may raise the aggregate employment of unskilled workers due to its endowment effect, may lower it through changes in the quality of the export good. The overall effect is thus ambiguous. A larger initial size of bequests has a similar effect. |
| Keywords: | Monetary Policy, Export Quality, Exchange rate, Unemployment, Portfolio choice |
| JEL: | E24 E5 F11 |
| Date: | 2022–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112891&r= |
| By: | Berger, Eva M.; Bialek, Sylwia; Garnadt, Niklas; Grimm, Veronika; Other, Lars; Salzmann, Leonard; Schnitzer, Monika; Truger, Achim; Wieland, Volker |
| Abstract: | [Introduction] The Russian war of aggression against Ukraine since 24 February 2022 has intensified the discussion of Europe's reliance on energy imports from Russia. A ban on Russian imports of oil, natural gas and coal has already been imposed by the United States, while the United Kingdom plans to cease imports of oil and coal from Russia by the end of 2022. The European Commission has announced on 5 April 2022 to ban coal imports from Russia (Europäische Kommission, 2022a). It has been wrestling with the idea of an oil and gas embargo against Russia. At the same time, Russia may decide to stop its energy exports to countries that are imposing sanctions. The German Federal Government is currently opposing an energy embargo against Russia (BMWK, 2022a). However, the Federal Ministry for Economic Affairs and Climate Action (BMWK) is working on a strategy to reduce energy imports from Russia (BMWK, 2022b, 2022c). The urgency to reduce dependency on Russian gas seemed to have increased particularly after the Russian president announced Russia would accept only the Russian currency Ruble for energy exports - even though the issue seems to have been solved by energy importers opening accounts at the Gazprom bank. On 30 March 2022 the BMWK has declared early warning, i.e., the first of three crises levels according to the emergency plan for gas (BMWK, 2022d), which is based on the EU regulation 2017/1938 concerning measures to safeguard the security of gas supply (BMWK, 2022d). The crisis level of early warning primarily serves at improving information flows and cooperation between the relevant authorities; currently, no market intervention is undertaken. In this paper we first give an overview of the German and European reliance on energy imports from Russia with a focus on gas imports (Section II) and we discuss price effects (Section II.1), alternative suppliers of natural gas (Section II.2), and the potential for saving and replacing natural gas (Section II.3). In Section III, we provide an overview of estimates of the consequences on the economic outlook if the conflict intensifies. Section IV concludes. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:svrwwp:012022&r= |
| By: | Gábor Túry (Institute of World Economics, Centre for Economic and Regional Studies, ELRN); Magdolna Sass (Institute of World Economics, Centre for Economic and Regional Studies, ELRN); Ágnes Szunomár (Institute of World Economics, Centre for Economic and Regional Studies, ELRN) |
| Abstract: | The COVID-19 pandemic has brought over a related economic crisis, which affected firms differently. The paper concentrates on the impact of the pandemic on foreign-owned subsidiaries operating in Hungary in the automotive and electronics industries. Based on interviews with the representatives of fifteen such companies, we analysed the extent of the impact of the crisis on these firms and their crisis handling measures, including their reliance on state support. Our results are mainly in line with findings from the international literature, but with certain new elements. We found that not only the industry but the activity itself is also important from the point of view of the impact of the crisis. We have also shown that foreign-owned subsidiaries are seldom in need for state financial support. In Hungary, as well as in other countries, layoff is the last resort for handling the crisis. We showed signs of increasing solidarity in handling the crisis at the company level. |
| Keywords: | economic crisis, foreign-owned subsidiaries, automotive and electronics industries, Hungary |
| JEL: | F23 H12 L62 L63 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:iwe:workpr:266&r= |
| By: | Katarzyna Anna Bilicka; André Seidel |
| Abstract: | To understand how global firm networks operate, we need consistent information on their activities, unbiased by their reporting choices. In this paper, we collect a novel dataset on the light that factories emit at night for a large sample of car manufacturing plants. We show that nightlight data can measure activity at such a granular level, using annual firm financial data and high-frequency data related to Covid-19 pandemic production shocks. We use this data to quantify the extent of misreported global operations of these car manufacturing firms and examine differences between sources of nightlight. |
| Keywords: | multinational firms, nightlight data, global firm networks |
| JEL: | H32 H26 F23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9701&r= |
| By: | Cyril Chalendard; Ana Margarida Fernandes; Gael Raballand; Bob Rijkers |
| Abstract: | This paper presents a new methodology to detect corruption in customs and applies it to Madagascar’s main port. Manipulation of assignment of import declarations to inspectors is identified by measuring deviations from random assignment prescribed by official rules. Deviant declarations are more at risk of tax evasion, yet less likely to be deemed fraudulent by inspectors, who also clear them faster. An intervention in which inspector assignment was delegated to a third party validates the approach, but also triggered a novel manifestation of manipulation that rejuvenated systemic corruption. Tax revenue losses associated with the corruption scheme are approximately 3 percent of total taxes collected and highly concentrated among a select few inspectors and brokers. |
| Keywords: | corruption, tax enforcement, tariff evasion, trade policy |
| JEL: | F13 D73 H26 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9489&r= |
| By: | Gale, David; O’Donnell, Katherine |
| Abstract: | Invertebrate and pathogen pests present a significant risk to global plant health, and this threat is ever rising due to the growing global trade of plant material and, increasingly, as evidence suggests that climate change is influencing pest establishment in new locations. Sentinel plants within botanic gardens and arboreta can play a vital role in providing information on future and/or unknown threats. The objective of the International Plant Sentinel Network (IPSN) is to act as an early warning system to recognise new and emerging pest and pathogen risks, through the development of national and international partnerships between plant protection scientists and botanic gardens and arboreta. There are currently 71 members of IPSN. They include the Australian National Botanic Gardens (Canberra), Kings Park and Botanic Garden (Perth), Royal Botanic Gardens Victoria, National Arboretum Canberra, Royal Botanic Garden Sydney, Royal Tasmanian Botanical Gardens, and the Botanic Gardens and State Herbarium of South Australia. As part of the project ‘Establishing a Program of Plant Pest Surveillance in Australian Botanic Gardens and Arboreta’, which is funded through the Australian Government’s Agricultural Competitiveness White Paper – the Government’s plan for stronger farmers and a stronger economy – Plant Health Australia has had the opportunity to develop connections with the IPSN to build capacity and knowledge, locally and abroad. |
| Keywords: | Food Security and Poverty |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cfcp21:320502&r= |
| By: | Niels Johannesen |
| Abstract: | This paper studies how the global minimum tax shapes national tax policies and welfare in a formal model of international tax competition with heterogeneous countries. The net welfare effect is generally ambiguous from the perspective of non-havens. On the one hand, the global minimum tax raises their welfare by curbing profit shifting, which boosts government revenue. One the other hand, it lowers their welfare by increasing equilibrium tax rates in havens, which transfers real resources from non-haven firms to haven governments. The net welfare effect is unambiguously positive when the global minimum rate is so high that profit shifting ends. |
| Keywords: | profit shifting, international taxation, global minimum tax, tax avoidance multinational firms |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9527&r= |
| By: | Jonathan Wadsworth |
| Abstract: | People move to a new country for many reasons. How do these individual stories of seeking fresh opportunities play out over time both for those arriving and for the communities they move into? Economists are particularly interested in how immigration affects wages, employment, housing and public services. The Insights series is an introduction to the work of the Centre for Economic Performance. While the centre's roots are in labour economics, it has been an interdisciplinary research centre, since it was set up in 1990. Each Insight explains how economists go about investigating the big questions in each topic, the contribution CEP researchers have made to both academic understanding and policy-making - and the questions that are still to be answered. |
| Keywords: | Immigration |
| Date: | 2021–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepins:03&r= |
| By: | Vicini, Andrea; Ventroni, Matteo; Vicini, Matteo |
| Abstract: | The scope of the paper provides a different view than the current debate that tracks the historical trajectory of the relationship between China and Africa. The widely discussed economic influence of China in Africa comes from the end of WWII and has not been built in the last decade, as has been recently reported in many parts of the press. To understand this international relationship, it is important to put the events in the right historical perspective. This aspect is particularly true for a nation like China, which has a long-term vision for its diplomacy with respect to Western countries. However, the main economic and political connections between China and Africa and their mutual influences are examined in detail |
| Keywords: | China, Africa, international relations, economics, underdevelopment, diplomacy. |
| JEL: | F2 F5 F54 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112880&r= |
| By: | Anger, Silke (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Bamberg ; IZA); Bassetto, Jacopo (Institute for Employment Research (IAB), Nuremberg, Germany ; University of Trento); Sandner, Malte (Institute for Employment Research (IAB), Nuremberg, Germany) |
| Abstract: | "This paper exploits a reform that facilitated the recognition of foreign occupational qualifications for non-EU immigrants in Germany. Using detailed administrative social security and survey data in a dfference-in-differences design, we find that the reform increased the share of non-EU immigrants with occupational recognition by 5 percentage points, raising their employment in regulated occupations (e.g., nurses) by 18.6 percent after the reform. Moreover, despite the large inflow of non-EU immigrants in regulated occupations, we find no evidence that these immigrants had lower skills or that they received lower wages." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Open-Access-Publikation |
| JEL: | F22 J24 J31 J62 |
| Date: | 2022–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:202211&r= |
| By: | Muhammad Javid; Fakhri Hasanov (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | International labor migration has played a key role in the development of both advanced and developing countries. Many developing countries in Asia have relied on labor migration, mainly to the oil-rich Gulf region, to reduce both unemployment and poverty (Naseem 2007). Mansoor and Quillin (2006) explain that poverty, unemployment and low wages in developing countries are the main drivers of migration from these countries. Higher wages and the potential for improved standards of living and professional development in resource-rich countries are pull factors for migration. |
| Keywords: | Agent Based modeling, Analytics, Applied Research, Autometrics |
| Date: | 2022–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2022-dp05&r= |
| By: | Alice Sindzingre (CEPN - Centre d'Economie de l'Université Paris Nord - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPC - Université Paris Cité - Université Sorbonne Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord, LAM - Les Afriques dans le monde - IRD - Institut de Recherche pour le Développement - Université Bordeaux Montaigne - Institut d'Études Politiques [IEP] - Bordeaux - IEP Bordeaux - Sciences Po Bordeaux - Institut d'études politiques de Bordeaux - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Une question récurrente dans la littérature sur les relations entre la Chine et l'Afrique Sub-Saharienne est de comprendre si l'engagement chinois constitue un paradigme alternatif aux modèles « mainstream » relatifs aux théories ou politiques économiquespar exemple ceux promus par les institutions financières internationales. La Chine a en effet été analysée comme un modèle de développement original partageant de nombreux éléments avec ceux ayant caractérisés les Etats « développementaux » est-asiatiques, notamment des politiques économiques interventionnistes (politiques industrielles). Dans ce contexte, cet article argue que les principaux domaines des relations économiques Chine-Afriquecommerce, investissement et financement du développement-n'illustrent pas le modèle de la Chine comme Etat « développemental », étant surtout animés par des motivations de marché ou de coopération au développement. Certaines de leurs dimensions, cependant, illustrent le modèle développemental spécifique de la Chine. |
| Abstract: | An emerging question in the literature on the relationship between China and Sub-Saharan Africa is as to whether Chinese engagements provide for developing economies an alternative paradigm to mainstream models of economic theories and policies, an example being the framework promoted by the international financial institutions (IFIs). China has indeed been analyzed as an original model of development that has shared many core elements with those having characterized the East Asian "developmental states"notably active state intervention (industrial policies), in contrast with the IFIs framework. Against this background, it is argued that the main domains of China-Sub-Saharan African economic relationshipstrade, investment, development financegenerally do not illustrate the model of China as a developmental state, being mainly driven by market or development cooperation motives. In some dimensions, however, they illustrate China's specific developmental model. |
| Keywords: | China-Africa economic relationships,developmental states,foreign policy,industrial policies |
| Date: | 2021–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03625159&r= |
| By: | Pingali, Prabhu |
| Abstract: | Global food systems have gone through periodic transformtions over the past sixty years: the Green Revolution, the Livestock Revolution, and the globalisation of food trade are some of the epochal events observed. The nature and magnitude of biosecurity risks have evolved with the rising intensity and complexity of agriculture and food systems. While transboundary crop pests continue to challenge global food security, zoonotic diseases are rising as risks to human health. The global movement of goods and people has further expanded biosecurity risks, in terms of scale and intensity of impacts. Rising global temperatures will further exacerbate the risks associated with transboundary pest and zoonotic diseases. COVID-19 provides an important example of food systems impacts from a global health shock. Policy and management opportunities for managing biosecurity risks and rebuilding food system resilience need urgent assessment and global action. |
| Keywords: | Food Security and Poverty |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cfcp21:320487&r= |
| By: | Kigabo-Rusuhuzwa, Thomas (University of Rwanda); Heshmati, Almas (Jönköping University, Sogang University) |
| Abstract: | This paper investigates the East African Community (EAC) partner states' readiness for a common currency. It uses recent data to assess the impact of policy coordination in the region during the last seven years of East African Monetary Union's protocol implementation. Despite some similarities in the structures of EAC economies, EAC member states remain susceptible to asymmetric shocks. Inflation is in the process of converging in EAC, but the speed of convergence is slow. Time is needed for preparing and for harmonizing policy before adopting the common currency. Adopting a common currency will lead to considerable costs for EAC countries. |
| Keywords: | East African Community, monetary union, common currency, policy harmonization, convergence, regional integration |
| JEL: | E42 F33 N17 O23 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15210&r= |