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on International Trade |
| By: | Ling, Li; Han-ho, Kim |
| Keywords: | International Relations/Trade |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ags:asae21:329432&r=int |
| By: | Elbek, Abdullaev; Taguchi, Hiroyuki |
| Abstract: | This study evaluates the degree of global value chains (GVC)’ backward participation in manufacturing in the post-Soviet countries, and to examine its quantitative linkage with host countries’ logistics performances as a component of the service link. This study’s major contributions are to target the post-Soviet countries that has never been discussed in the context of GVC analyses, to use the UNCTAD-Eora Global Value Chain database, and to applies a structural gravity trade model setting. The statistical observations presented a positive correlation between GVC backward participation in manufacturing and income level in the post-Soviet economies. The empirical estimation by the structural gravity trade model identified the quantitative linkage between GVC backward participation and the logistics performance of the host country, and also demonstrated that the level of logistics performance accounts for 70 – 80 percent of the degree of GVC backward participation. The policy implication of this study is that there should still be a policy space for the post-Soviet economies to improve their logistics performances by removing a negative legacy from the Soviet Union. |
| Keywords: | Global value chains, Logistics performance, Post-Soviet countries, Manufacturing, UNCTAD-Eora Global Value Chain database, and Structural gravity trade model |
| JEL: | F12 F13 F14 O57 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115443&r=int |
| By: | Putra, Chandra (Asian Development Bank Institute); Narjoko, Dionisius (Asian Development Bank Institute) |
| Abstract: | We examine the impact of imported intermediates on plant productivity and the role of plant capability in explaining the heterogeneity of the impact. We use a survey database of medium-sized and large Indonesian manufacturing establishments from 2000 to 2015. Imported intermediates are presented as a proportion of total intermediates, while capability factors are represented by the plant’s age, foreign direct investment (FDI) status, exporting status, and capital intensity. We find that import intensity does not significantly affect productivity. However, the impact of import intensity on productivity is positive and significant for exporters and for plants with higher capital intensity. Meanwhile, older and FDI plants do not seem to differ in terms of productivity gain from higher import intensity compared with either younger or non-FDI plants. The result underlines the importance of plant capability in determining productivity gain from imported intermediates. Our study improves policy makers’ understanding for better outcomes in the industry, such as the purpose of trade negotiation. Our study also recommends that policy makers carefully consider implementing a restriction or ban on imported intermediates, as doing so will penalize capable firms and reduce the competitiveness of exporters in the global market. |
| Keywords: | imported intermediates; productivity; capability; technology transfer |
| JEL: | D22 D24 F14 F61 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1319&r=int |
| By: | Pierre Cotterlaz; Sébastien Jean; Vincent Vicard |
| Abstract: | We assess whether multinational enterprises played a specific role in the deterioration of the French trade balance over 2000-2018. French multinationals contribute positively to the trade balance of goods, contrary to foreign multinationals and domestic firms. Yet their declining surplus, down by nearly 2 percentage points of GDP between 2000 and 2018, explains the deterioration of the French trade balance over the past two decades. Econometric evidence shows that this does not reflect poor specialization by French multinationals in the early 2000s or their takeover by foreign investors, but rather a specific trend in the sectors they dominate, beyond the cost conditions common to all companies in France. Against a background of buildup in French FDIs, these results suggest that the internationalization strategies of French firms have been dominated by offshoring over this period, including to serve the domestic market or previous export markets. |
| Keywords: | Multinational enterprises;Trade balance;Competitiveness |
| JEL: | F15 F23 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepipb:2022-38&r=int |
| By: | Shiang, Lim Ee (Asian Development Bank Institute); Lee, Cassey (Asian Development Bank Institute) |
| Abstract: | We examine how the diversity of global engagement is related to firms’ participation in innovation input and output activities in the Malaysian manufacturing sector. We use firm-level data obtained from the World Bank’s Enterprise Survey 2015. Firms are classified into four different groups based on their engagement in global activities, i.e., foreign trade and foreign direct investment. Incidences of innovation for 10 innovation activities are computed. The incidence of innovation was used to examine the extent to which different global engagement groups participate in 10 various types of innovation activities. Logit models are used to estimate the probability of engaging in innovation input and output activities for firms with differing global engagements. Generally, the results clearly highlight that globalized firms, i.e., firms engaging in global activities, participate in innovation activity more actively than their nonglobalized counterparts, despite there being some evidence that the pattern of engagement in innovation activity varies across globalized firms. Empirical findings propose that trade policies promoting exporting and policies attracting foreign direct investment may be useful in driving firms’ participation in innovation activity. A number of export-related policies can be formulated to assist domestic firms in integrating into the global value chain. These include providing easier access to information about foreign markets, export marketing development assistance, and training programs. In addition, foreign direct investment liberalization policies may be used to attract selective foreign direct investments, and tax-related incentive policies may be formulated to encourage firms to set up in-house R&D activities for product development. |
| Keywords: | exports; foreign ownership; global engagement; innovation; R&D |
| JEL: | F61 L60 O31 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1334&r=int |
| By: | Enrico Marvasi |
| Abstract: | This paper provides an overview on the evolution of Global Value Chains (GVCs) and on how they were impacted by Covid-19. Evidence from recent studies on Italy shows that GVCs displayed a high degree of resilience, with GVC firms better equipped to face the covid-shock and suffering less in terms of closures and turnover. Moreover, reshoring and substitution of foreign suppliers with domestic ones were chosen only by a small minority of firms. GVCs will probably continue to characterize the world economy, but the uncertainty about the future developments remains high. The last part of the paper discusses the challenges and the possible GVC reconfigurations in a post-covid world. |
| Keywords: | Global Value Chains, resilience, reshoring, Covid-19, Italy. |
| JEL: | F14 F23 F60 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:271&r=int |
| By: | C\'elestin Coquid\'e; Jos\'e Lages; Dima L. Shepelyansky |
| Abstract: | From the Bretton Woods agreement in 1944 till the present day, the US dollar has been the dominant currency in the world trade. However, the rise of the Chinese economy led recently to the emergence of trade transactions in Chinese yuan. Here, we analyze mathematically how the structure of the international trade flows would favor a country to trade whether in US dollar or in Chinese yuan. The computation of the trade currency preference is based on the world trade network built from the 2010-2020 UN Comtrade data. The preference of a country to trade in US dollar or Chinese yuan is determined by two multiplicative factors: the relative weight of trade volume exchanged by the country with its direct trade partners, and the relative weight of its trade partners in the global international trade. The performed analysis, based on Ising spin interactions on the world trade network, shows that, from 2010 to present, a transition took place, and the majority of the world countries would have now a preference to trade in Chinese yuan if one only consider the world trade network structure. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2211.07180&r=int |
| By: | Funke, Michael; Wende, Adrian |
| Abstract: | The semiconductor industry stands at the center of the intensifying Sino-American trade conflict. Employing a multi-country, multi-sector general equilibrium modeling framework with imperfect competition and heterogeneous firms, we perform qualitative and quantitative analyses of protectionist semiconductor measures. The paper offers two innovations in assessing the macroeconomic impact of current trade restrictions in the semiconductor industry model. First, our model of the semiconductor industry takes into account semiconductor varieties at different technological levels with different substitutability. Second, we model trade restrictions using a novel approach to export bans on semiconductor varieties that is consistent with US policy. Our simulation results suggest that the trade restrictions imposed by the US and its allies consistently lead to a decline in Chinese GDP and welfare. The US also loses, but to a lesser extent. The effect of trade diversion favors the rest of the world. Our simulations further confirm that the US semiconductor industry is likely to be harmed by the restrictions, while China's could be strengthened. |
| Keywords: | International trade,firm heterogeneity,semiconductors,United States,China |
| JEL: | F12 F13 F41 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofitp:132022&r=int |
| By: | Urata, Shujiro (Asian Development Bank Institute); Baek, Youngmin (Asian Development Bank Institute) |
| Abstract: | We examine the foreign direct investment (FDI) spillover effects in developing countries and investigate the importance of the absorptive capacity of a firm and a country in realizing and facilitating FDI spillover. We use data obtained from the World Bank’s Enterprise Surveys for 107 countries from 2007 to 2020. We find that firms in developing countries do not benefit from horizontal FDI but benefit from forward and backward vertical FDI. We also find that firms can benefit from horizontal, forward, and backward FDI by improving the absorptive capacity of firms and host countries. Based on these findings, we present several recommendations to help firms benefit from FDI spillover. |
| Keywords: | foreign direct investment; technology transfer; absorptive capacity |
| JEL: | D22 F21 O30 R10 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1323&r=int |
| By: | Gomellini, Matteo (Department of Economic History, School of Business, Economics and Law, Göteborg University); Missiaia, Anna (Department of Economic History, School of Business, Economics and Law, Göteborg University); Pellegrino, Dario (Department of Economic History, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Globalization can create winners and losers at the spatial level within national economies. 1bis paper examines the economic impact of international trade on local economies in the case of late nineteenth-century Italy. We combine data on foreign trade at the national level with census data on manufacturing employment, and with our new estimates of agricultural employment by crop at the provincial level. Crossing this information, we compute two measures of trade exposure at the local level, namely import penetration and export ratio. We then perform a panel analysis to test whether changes in trade exposure explained provincial GDP growth. First, we detect that import penetration of agricultural products was associated with lower growth of Southern provinces. Second, we :find that Northern provinces were more able to benefit from positive export dynamics in the manufacturing sector. The latter finding might stem from a higher degree of mechanization among Northern manufacturing firms. These results suggest that trade exposure could have been a factor contributing to widening the (already existent and growing) North-South gap. |
| Keywords: | First; Globalization:; lntemational; Trade:; Regional; Development:; Italian; Economic; History |
| JEL: | F14 N13 N73 N93 R11 |
| Date: | 2022–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunhis:0030&r=int |
| By: | Pyun, Ju Hyun (Asian Development Bank Institute); Sun, Jong-in (Asian Development Bank Institute) |
| Abstract: | We examine the effect of foreign direct investment (FDI) on local firms’ productivity via human capital transfer from multinational enterprises (MNEs) to local firms. Using the firm-level data for 2010–2015 from the Republic of Korea, we identify human capital spillovers using local firms’ hired permanent foreign employees in an industry and region where MNEs and local firms operate. This identification is valid because permanent foreign workers hired by local firms tend to be visa holders from MNEs due to the Republic of Korea’s visa regulations. We find that the industry and regional FDI positively affect local firms’ productivity, particularly firms with higher growth in hiring skilled foreign employees. This human capital spillover from FDI is also more pronounced in high R&D-intensive industries. Our results are robust with various measures of skilled foreign employees hired by local firms, variations of specifications, and controlling for endogeneity issues. Our findings on positive FDI spillovers via human capital transfer to a local firm suggest that policy makers may relax unnecessary regulations for highly skilled foreign workers and provide a platform where a local firm’s manager and skilled foreign employees find each other. |
| Keywords: | FDI; firm productivity; human capital; foreign employees; technology spillover; knowledge spillover; visa status |
| JEL: | D24 F21 F23 J24 J63 O33 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1324&r=int |
| By: | Ornelas, Emanuel; Turner, John L.; Bickwit, Grant |
| Abstract: | We develop a new framework to study the welfare consequences of preferential trade agreements (PTAs) under global sourcing, incomplete contracts and endogenous matching. We uncover several new channels through which PTAs affect global welfare. Some effects stem from intensive margin changes—i.e., changes in investment and production in existing vertical chains—and from extensive margin relocations—i.e., due to the formation and destruction of vertical chains. In each case, there are potential trade-creating, trade-diverting and relationship-strengthening forces. The first two are reminiscent of the classical Vinerian approach, but take different forms under global sourcing. The third is entirely new in the regionalism literature and arises because PTAs affect the severity of hold-up problems in sourcing relationships. We characterize those forces and show circumstances when PTAs are necessarily welfare-enhancing or welfare-decreasing. In particular, we show that, because of the relationship-strengthening effect, PTAs can improve global welfare even when all types of trade-creation forces are absent. |
| Keywords: | Hold-up problem; incomplete contracts; matching; regionalism; sourcing; trade diversion |
| JEL: | F13 F15 D23 D83 I22 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115040&r=int |
| By: | Douglas A. Irwin (Peterson Institute for International Economics) |
| Abstract: | The 1980s and 1990s saw a policy revolution in developing countries in which many highly protected (if not closed) economies were opened to world trade. These reforms were largely undertaken unilaterally, but international economic institutions such as the World Bank, the International Monetary Fund, and the General Agreement on Tariffs and Trade/World Trade Organization supported these efforts. This paper examines the ways in which these institutions promoted, or failed to promote, trade policy reform during this pivotal period. |
| Keywords: | IMF, World Bank, GATT, WTO, trade reform, structural adjustment, conditional aid, tariff reduction, trade liberalization |
| JEL: | F13 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp22-19&r=int |
| By: | Anna Maria Mayda; Gianluca Orefice; Gianluca Santoni |
| Abstract: | This paper analyses the impact of skilled migrants on the innovation (patenting) activity of French firms between 1995 and 2010, and investigates the underlying mechanism. We present district-level and firm-level estimates and address endogeneity using a modified version of the shift-share instrument. Skilled migrants increase the number of patents at both the district and firm level. Large, high-productivity and capital-intensive firms benefit the most, in terms of innovation activity, from skilled immigrant workers. Importantly, we provide evidence that one channel through which the effect works is task specialization (as in Peri and Sparber, 2009). The arrival of skilled immigrants drives French skilled workers towards language-intensive, managerial tasks while foreign skilled workers specialize in technical, research-oriented tasks. This mechanism manifests itself in the estimated increase in the share of foreign inventors in patenting teams as a consequence of skilled migration. Through this channel, greater innovation is the result of productivity gains from specialization. |
| Keywords: | Skilled Immigration;Innovation;Patents |
| JEL: | F22 J61 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2022-11&r=int |
| By: | Erkko Autio (Imperial College); Mohamad D. Revindo (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Yothin Jinjarak (Asian Development Bank); Éva Komlósi (Faculty of Business and Economics, University of Pécs); Donghyun Park (Asian Development Bank); Cynthia Petalcorin (Asian Development Bank); Dandy Rafitrandi (Centre for Strategic and International Studies/CSIS); Yoshua Caesar Justinus (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Willem Smit (Asia School of Business, Fulbright University Vietnam); László Szerb (Faculty of Business and Economics, University of Pécs); Shu Tian (Asian Development Bank); Mónika Tiszberger (Faculty of Business and Economics, University of Pécs) |
| Abstract: | The speed of digitalisation is accelerating, but not everywhere at the same pace. Widening digital divides, between and within countries, may disproportionally harm local small and medium sized enterprises (SMEs) in digitally lagging host markets. Without proper policies, these actors, important for their local economies, could be denied access, dismissed from or downgraded in their participation in digitalised global value chains (GVCs). This policy brief reviews the literature and analyses entrepreneur-level, national-level and international trade-dyadic data to provide 11 evidence-based policy recommendations aimed at enhancing GVC inclusivity through (1) supra-national level alignment, (2) country-level policy adjustments and (3) firm-level interventions to stimulate digital entrepreneurship among SMEs. |
| Keywords: | gvc — t20 — global value chain — digital entrepreneurship — smes — small and medium sized enterprises |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:lpe:t20ina:202201&r=int |
| By: | Guzi, Martin; Kahanec, Martin; Mýtna Kureková, Lucia |
| Abstract: | Across European Union (EU) labor markets, immigrant and native populations exhibit disparate labor market outcomes, signifying widespread labor market hierarchies. While significant resources have been invested in migration and integration policies, it remains unclear whether these contribute to or mitigate labor market hierarchies between natives and immigrants. Using a longitudinal model based on individual-level EU LFS and country-level DEMIG POLICY and POLMIG databases, we explore variation in changes of immigration and integration policies across Western EU member states to study how they are associated with labor market hierarchies in terms of unemployment and employment quality gaps between immigrant and native populations. Our findings imply that designing less restrictive policies may help mitigate immigrant-native labor market hierarchies by reducing existing labor market disadvantages of immigrants and making the most of their potential. |
| Keywords: | decomposition,immigrant-native gaps,labor market,DEMIG POLICY database,immigrant integration,hierarchies |
| JEL: | J15 J18 J61 K37 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1198&r=int |
| By: | de Boer, Jantke; Eichler, Stefan; Rövekamp, Ingmar |
| Abstract: | We study the impact of US presidential election TV debates on intraday exchange rates of 96 currencies from 1996 to 2016. Expectations about protectionist measures are the main transmission channel of debate outcomes. Currencies of countries with high levels of bilateral foreign trade with the US depreciate if the election probability of the protectionist candidate increases during the debate. We rationalize our results in a model where a debate victory of a protectionist candidate raises expectations about future tariffs and reduces future net exports to the US, resulting in relative depreciation of currencies with high bilateral trade integration. |
| Keywords: | Exchange Rates,US Presidential Elections,TV Debates,Protectionism,Bilateral Trade Integration |
| JEL: | F31 G15 G14 D72 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tudcep:0322&r=int |
| By: | Khadka, Savin; Gopinath, Munisamy; Batarseh, Feras A. |
| Abstract: | While uncertainty effects on macroeconomic indicators such as consumption, production, and investment have been well-studied, much remains to be known about the relationship between uncertainty and international trade. Some early explorations into this topic have revealed that high economic uncertainty can have detrimental impacts on trade, but the evidence is not conclusive, particularly that on the heterogeneity of uncertainty effects across sectors. This study provides one of the first investigations into the uncertainty-agricultural trade nexus. Application of a novel data-driven methodology - anomaly detection and classification - to monthly trade data at the HS-4 level finds that imports of agricultural commodities are reduced when economic uncertainty is high. Evidence also suggests that economic policy-related uncertainty has larger and more persistent impacts on agricultural trade than structural uncertainty arising from supply-side fluctuations. Interestingly, anticipatory stock-piling occurred, like in durable goods, when uncertainty is specific to trade policy. |
| Keywords: | Agricultural and Food Policy, International Relations/Trade, Risk and Uncertainty |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatrcp:329520&r=int |
| By: | Yuping Deng (School of Economics and Trade, Hunan University and Business School, University of Western Australia); Yanrui Wu (Business School, The University of Western Australia); Helian Xu (School of Economics and Trade, Hunan University) |
| Abstract: | This paper aims to investigate the effects of the ratio of domestic value added in exports on firm-level emission intensity in China. It shows that the ratio of domestic value added in exports is negatively associated with firms’ emission discharges. This relation is more profound for firms in ordinary trade than those in processing trade. Further analysis illustrates that the observed relationship is especially prevalent in eastern regions, technology-intensive industries and non-state-owned firms. In addition, it is shown that government behavior could play a moderating role in the negative relationship between value added exports and firms’ emission discharges. |
| Keywords: | Emission discharge; value-added exports; government behaviour; China |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:22-19&r=int |
| By: | García-Suaza, Andrés; Gallego, Juan Miguel; Mayorga, Juan D.; Mondragón-Mayo, Angie; Sepúlveda, Carlos; Sarango Iturralde, Alexander |
| Abstract: | The increase in global immigration phenomena has impacted local labor markets. The process of social and economic assimilation is crucial to ensure the well-being of both natives and immigrants. This article analyzes the impacts of immigration from Venezuela to Colombia, differentiating the effects of recent and long-term immigration on natives and immigrants. We find that immigration has decreased employment and hourly wages; and increased informality, while the impact on unemployment is null. These effects are higher among immigrants in comparison with the native population. Our results show that even when adverse effects on labor market outcomes are estimated, there is evidence of adaptability to the immigration shock and that an assimilation process is taking place. |
| Keywords: | Migration; labor market; Assimilation; Colombia |
| JEL: | F22 O15 R23 J61 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:rie:riecdt:99&r=int |
| By: | Alvin, Theodore Benedict |
| Abstract: | The research of "The Relationship between the Growth of Foreign Direct Investment (FDI) on the Unemployment Rate" aims to find out whether an increase in domestic investment can reduce the unemployment rate in Indonesia, the development of foreign investment in Indonesia, what is the relationship between the growth of foreign investment and unemployment that occurred, and the contribution of foreign investment to the unemployment rate. Data analysis was carried out using descriptive methodological research by collecting data on the growth of foreign investment and also the unemployment rate that occurred in Indonesia. The conclusion of this study is the development of foreign investment with the unemployment rate in Indonesia is significantly related. When foreign investment in Indonesia increases, at the same time the unemployment rate in Indonesia decreases because the development of foreign investment has a positive influence on the unemployment rate in Indonesia. |
| Date: | 2022–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:r3ck9&r=int |
| By: | Aurelie, Janesya; Ardania, Kiara Ivana; Widjaja, Karen; Alvin, Theodore Benedict |
| Abstract: | The research of "The Relationship between the Growth of Foreign Direct Investment (FDI) on the Unemployment Rate" aims to find out whether an increase in domestic investment can reduce the unemployment rate in Indonesia, the development of foreign investment in Indonesia, what is the relationship between the growth of foreign investment and unemployment that occurred, and the contribution of foreign investment to the unemployment rate. Data analysis was carried out using descriptive methodological research by collecting data on the growth of foreign investment and also the unemployment rate that occurred in Indonesia. The conclusion of this study is the development of foreign investment with the unemployment rate in Indonesia is significantly related. When foreign investment in Indonesia increases, at the same time the unemployment rate in Indonesia decreases because the development of foreign investment has a positive influence on the unemployment rate in Indonesia. |
| Date: | 2022–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:reaqk&r=int |
| By: | Margaryan, Atom; Grigoryan, Emil; Minassian, Armen |
| Abstract: | The Belt and Road Initiative is one of the platforms for regional cooperation that enables participating countries to develop and deepen economic ties. The South Caucasus has always had great historical, political, geographical and economic significance for Iran. Through the research, we tried to find out what is the level of infrastructure development of Armenia, Azerbaijan, Georgia, Türkiye and Iran, and what is the role of Iran in the trade of South Caucasus countries and Türkiye in 2002 and 2021. Armenia-Iran economic relations have been the closest. However, Armenia and Iran have not realized the full potential of cooperation. Providing a proper infrastructural base is one of the priority steps in that direction. |
| Keywords: | Silk Road Economic Belt,Economic Cooperation,Infrastructure,South Caucasus,Iran,Transit Hub,Economic Corridors |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:opodis:202212&r=int |
| By: | Ben Atta, Oussama; Chort, Isabelle; Senne, Jean Noël |
| Abstract: | This article assesses the impact of immigrant and asylum seeker in ows on the size of the informal sector in host countries from a macroeconomic perspective. We use two indicators of informality provided by Medina and Schneider (2019) and Elgin and Oztunali (2012) combined with migration data from the OECD Interna- tional Migration Database and data on asylum seeker ows from the UNHCR for the period 1997-2017. We estimate a first-difference model, instrumenting immi- grant and asylum seeker ows by their predicted values derived from the estimation of a pseudo-gravity model. Results suggest that both immigrant and asylum seeker in ows increase the size of the informal sector at destination, but the size of the effect is very small: a one percentage point increase in the stock of immigrants as a share of population leads to an increase of the informal sector as a share of GDP of 0.05-0.06 percentage points. Unsurprisingly, the effect is about four times larger for asylum seeker ows, but remains economically insignificant. We investigate several potential channels, and find that integration policies do matter. We find no impact of imported norms or institutions, but rather that the effect is larger in destination countries with a large informal sector. Finally, we estimate a VAR model and find that the impact of in ows on informality is long-lasting. |
| Keywords: | migration,informal economy,asylum seekers,integration policies,shadow economy |
| JEL: | F22 E26 J46 K37 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1197&r=int |
| By: | Nicolò Gatti (Università della Svizzera Italiana); Fabrizio Mazzonna (Università della Svizzera Italiana); Raphaël Parchet (Università della Svizzera Italiana); Giovanni Pica (Università della Svizzera Italiana (USI) and CSEF.) |
| Abstract: | This paper investigates the impact of opening the labor market to qualified immigrants who hold fully equivalent diplomas as natives and share the same mother tongue. Leveraging the 2002 opening of the Swiss labor market to qualified workers from the European Union, we show that the policy led to a large inflow of young immigrants with highly heterogeneous effects on the wages and employment status of qualified natives. While incumbent natives experienced a wage gain and a decrease in the likelihood of becoming inactive, the opposite happened for young natives entering the labor market after the policy change. |
| Keywords: | qualified immigration, wage effects, worker substitutability, experience. |
| JEL: | F22 J08 J31 J61 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:656&r=int |
| By: | Mayank Kejriwal; Yuesheng Luo |
| Abstract: | In recent decades, trade between nations has constituted an important component of global Gross Domestic Product (GDP), with official estimates showing that it likely accounted for a quarter of total global production. While evidence of association already exists in macro-economic data between trade volume and GDP growth, there is considerably less work on whether, at the level of individual granular sectors (such as vehicles or minerals), associations exist between the complexity of trading networks and global GDP. In this paper, we explore this question by using publicly available data from the Atlas of Economic Complexity project to rigorously construct global trade networks between nations across multiple sectors, and studying the correlation between network-theoretic measures computed on these networks (such as average clustering coefficient and density) and global GDP. We find that there is indeed significant association between trade networks' complexity and global GDP across almost every sector, and that network metrics also correlate with business cycle phenomena such as the Great Recession of 2007-2008. Our results show that trade volume alone cannot explain global GDP growth, and that network science may prove to be a valuable empirical avenue for studying complexity in macro-economic phenomena such as trade. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2211.13117&r=int |
| By: | Bruno Conte; Klaus Desmet; Esteban Rossi-Hansberg |
| Abstract: | A unilateral carbon tax trades off the distortionary costs of taxation and the future gains from slowing down global warming. Because the cost is local and immediate, whereas the benefit is global and delayed, this tradeoff tends to be unfavorable to unilateral carbon taxes. We show that this logic breaks down in a world with trade and migration where economic geography is shaped by agglomeration economies and congestion forces. Using a multisector dynamic spatial integrated assessment model (S-IAM), this paper predicts that a carbon tax introduced by the European Union (EU) and rebated locally can, if not too large, increase the size of Europe’s economy by concentrating economic activity in its high-productivity non-agricultural core and by incentivizing immigration to the EU. The resulting change in the spatial distribution of economic activity improves global efficiency and welfare. A unilateral carbon tax with local rebating introduced by the US generates similar global welfare gains. Other forms of rebating can dilute or revert this positive effect. |
| JEL: | F18 H23 O13 O44 Q56 R11 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30678&r=int |
| By: | Alonso Alfaro-Urena; Benjamin Faber; Cecile Gaubert; Isabela Manelici; Jose P. Vasquez |
| Abstract: | Multinational enterprises (MNEs) increasingly impose “Responsible Sourcing” (RS) standards on their suppliers worldwide, including requirements on worker compensation, benefits and working conditions. Are these policies just “hot air” or do they impact exposed suppliers and their workers? What is the welfare incidence of RS in sourcing countries? To answer these questions, we develop a quantitative general equilibrium (GE) model of RS and combine it with a unique new database. In the theory, we show that the welfare implications of RS are ambiguous, depending on an interplay between what is akin to an export tax (+) and a labor market distortion (–). Empirically, we combine the near-universe of RS rollouts by MNE subsidiaries in Costa Rica since 2009 with firm-to-firm transactions and matched employer-employee microdata. We find that RS rollouts lead to significant reductions in firm sales and employment at exposed suppliers, an increase in their salaries to initially low-wage workers and a reduction in their low-wage employment share. We then use the estimated effects and the microdata to calibrate the model and quantify GE counterfactuals. We find that while MNE RS policies have led to significant gains among the roughly one third of low-wage workers employed at exposed suppliers ex ante, the majority of low-wage workers lose due to adverse indirect effects on their wages and the domestic price index. |
| JEL: | F15 F63 O24 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30683&r=int |
| By: | Zega, Bernad Zelig Faatulo; Chang, Evelyn Victoria; Ardiansyah, Rizqy; Adibah, Zahra Fiany Nur |
| Abstract: | Research on the relationship between the growth of Foreign Direct Investment and unemployment rate in 2009 to 2020 aims to determine the effect of Foreign Direct Investment on the unemployment rate in Indonesia. The data used in this research is secondary data. The method used is descriptive method. The conclusion of this study explains that Foreign Direct Investment has a negative and significant effect on the unemployment rate in Indonesia. |
| Date: | 2022–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:4xhwe&r=int |
| By: | Nicolò Gatti (Istituto di Economia Politica (IdEP), Facoltà di Scienze Economiche, Università della Svizzera Italiana, Svizzera); Fabrizio Mazzonna (Istituto di Economia Politica (IdEP), Facoltà di Scienze Economiche, Università della Svizzera Italiana, Svizzera); Raphaël Parchet (Istituto di Economia Politica (IdEP), Facoltà di Scienze Economiche, Università della Svizzera Italiana, Svizzera); Giovanni Pica (Istituto di Economia Politica (IdEP), Facoltà di Scienze Economiche, Università della Svizzera Italiana, Svizzera) |
| Abstract: | This paper investigates the impact of opening the labor market to qualified immigrants who hold fully equivalent diplomas as natives and share the same mother tongue. Leveraging the 2002 opening of the Swiss labor market to qualified workers from the European Union, we show that the policy led to a large inflow of young immigrants with highly heterogeneous effects on the wages and employment status of qualified natives. While incumbent natives experiences a wage gain and a decrease in the likelihood of becoming inactive, the opposite happened for young natives entering the labor market after the policy change. |
| Keywords: | iqualified immigration, wage effects, worker substitutability, experience |
| JEL: | F22 J08 J31 J61 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:lug:wpidep:2201&r=int |
| By: | Dramane Coulibaly; Blaise Gnimassoun |
| Abstract: | Emigration from developing countries to advanced countries leads to two-way capital flows. The life cycle theory predicts a contraction in savings and a deterioration of the external balance in the countries of origin. Depending on their impact on savings and investment, migrant remittances can reduce or even counterbalance this effect. We find robust empirical evidence for subSaharan African countries that only high-skilled emigration has a significant and negative impact on the current account in these countries. The brain drain induces net capital (savings) flight. We also find that highly-skilled emigrant’s contribution to remittances is less important compared to that of low-skilled emigrants. Incentives for the financing of home economies by skilled migrants would be beneficial. |
| Keywords: | international migration, saving, remittances, external imbalances, SSA. |
| JEL: | F22 F32 O55 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2022-31&r=int |
| By: | Lee G. Branstetter; Guangwei Li |
| Abstract: | Rising concern over the impact of Chinese industrial policy has led to severe trade tensions between China and some of its major trading partners. In recent years, foreign criticism has increasingly focused on the so-called "Made in China 2025" initiative. In this paper, we use information extracted from Chinese listed firms' financial reports and a difference-in-differences approach to examine how the "Made in China 2025" policy initiative has impacted firms' receipt of subsidies, R&D expenditure, patenting, productivity, and profitability. We find that while more innovation promotion subsidies seem to flow into the listed firms targeted by the policy, we see little statistical evidence of productivity improvement or increases in R&D expenditure, patenting and profitability. This paper suggests that the “Made in China 2025” initiative may have not yet achieved its target goals. |
| JEL: | O25 O32 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30676&r=int |
| By: | Amanda Ferreira Guimarães (UEM - Universidade Estadual de Maringá [Maringá]); Priscila Duarte Malanski (UEM - Universidade Estadual de Maringá [Maringá]); Sandra Mara de Alencar Schiavi (UEM - Universidade Estadual de Maringá [Maringá]); Mélise Dantas Machado Bouroullec (AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - Université Fédérale Toulouse Midi-Pyrénées - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Sustainable agrifood global value chains depend on chain governance by the lead firm and transaction governance. However, the link between them is still unclear. We therefore investigated the scientific field on "governance in agrifood global value chain" over 15 years in the Scopus and Web of Science databases through two analyses: a descriptive bibliometric and a keywords co-occurrence analysis. Our descriptive results show that the research on the theme has increased over the years, with a concentration of the papers published in countries such as the United States, the United Kingdom and the Netherlands, with emphasis on Wageningen University. The network graph showed a multidisciplinary theoreticomplcal field and four axes: chain governance; transaction governance; horizontal relationships; political and structural elements. The chain and the transaction governance are indirectly linked by the concept of upgrading, compromising sustainability's holistic view. Although the sustainability of the chain depends on both levels of governance, this bibliometric study showed that there is a gap to be filled in this topic. We propose a study in the light of both concepts, considering upgrading, vertical and horizontal relationships, as well as public policies. |
| Abstract: | Cadeias globais de valor agroalimentares sustentáveis dependem da governança da cadeia pela empresa líder e governança da transação. No entanto, a ligação entre elas ainda não está clara. Investigou-se, portanto, o campo científico sobre "governança na cadeia global de valor agroalimentar" em um período de 15 anos, nas bases de dados Scopus e Web of Science, por meio de duas análises: uma bibliométrica descritiva e uma análise de co-ocorrência de palavras-chave. Os resultados descritivos mostram que a pesquisa sobre o tema tem aumentado ao longo dos anos, com uma concentração de publicação em países como os Estados Unidos, Reino Unido e Holanda, com destaque para a Universidade de Wageningen. O gráfico de rede mostrou um campo teórico multidisciplinar e quatro eixos: governança da cadeia; governança de transações; relações horizontais; elementos políticos e estruturais. Governança da cadeia e da transação estão indiretamente ligadas pelo conceito de upgrading, comprometendo uma visão holística sobre sustentabilidade. Embora a sustentabilidade da cadeia dependa dos dois níveis de governança, este estudo bibliométrico mostrou que há uma lacuna a ser preenchida nesse tema. Propomos um estudo integrando ambos os conceitos, considerando upgrading, relações verticais e horizontais, bem como políticas públicas. |
| Keywords: | upgrading,food system,agribusiness,transition,institution,sistema alimentar,agronegócio,transição,instituição |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03853889&r=int |
| By: | Gordon H. Hanson; Pia Orrenius; Madeline Zavodny |
| Abstract: | The share of US residents who were born in Latin America and the Caribbean plateaued recently, after a half century of rapid growth. Our review of the evidence on the US immigration wave from the region suggests that it bears many similarities to the major immigration waves of the 19th and early 20th centuries, that the demographic and economic forces behind Latin American migrant inflows appear to have weakened across most sending countries, and that a continued slowdown of immigration from Latin America post-pandemic has the potential to disrupt labor-intensive sectors in many US regional labor markets. |
| JEL: | F20 J6 O15 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30666&r=int |
| By: | Patricia, Ivonne |
| Abstract: | Research on the relationship between investment growth and economic growth aims to determine the effect of Foreign Direct Investment in Indonesia on economic growth in 2009-2020. This research method uses quantitative methods with secondary data collected from various digital sources. The growth of foreign investment in Indonesia in 2009-2020 tends to be volatile and unstable. On the other hand, economic growth experienced stable growth throughout 2009-2020, although there was a decline in 2020 due to the Covid-19 pandemic. Based on the results of this study, it shows that the growth of Foreign Direct Investment in 2009-2020 does not significantly affect economic growth in Indonesia. |
| Date: | 2022–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:afphw&r=int |
| By: | Jones, Benjamin; Nguyen-Tien, Viet; Elliott, Robert J.R. |
| Abstract: | The emergence of a mass market for electric vehicles (EVs) offers development opportunities for countries that have abundant resources of cobalt, nickel, lithium, copper, aluminium and manganese. Not surprisingly, developing countries have proposed ambitious plans to expand production of these raw materials. However, an observation from the resource curse literature is that strong institutions are required if they are to mitigate the risk of poorly directed, often excessively procyclical, investment, not least because of the complexity, opacity and price volatility of many raw materials utilised by global EV value chains. This paper examines the outlook for EV demand and associated raw material usage paying attention to the drivers and sensitivities required to assess and track future market transformations. These end use shifts are then placed in the context of the broader supply chain adjustments and trends shaping the demand. For resource exporters, adapting to structural change will require fiscal, regulatory, environmental and institution reforms designed to capture shifting patterns of resource wealth in a way which takes appropriate account of comparative advantages in specific value chains and mitigates adverse environmental and social consequences from their extraction and processing. |
| Keywords: | critical materials; electric vehicle; global value chains; resource mobilisation |
| JEL: | J1 |
| Date: | 2022–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117425&r=int |
| By: | Piotr Lewandowski; Albert Park; Simone Schotte |
| Abstract: | We establish new stylised facts about the global evolution and distribution of routine and non-routine work, relaxing the common assumption that occupations are identical globally. We combine survey data and regression models to predict the country-specific routine-task intensity of occupations in 87 countries employing over 2.5 billion workers, equivalent to 75% of global employment. From 2000 to 2017, the shift away from routine work was much slower in low- and middle-income countries than in high-income countries, widening gaps in the nature of work. Low– and middle-income countries remained the dominant provider of routine work. Not accounting for differences in occupation-specific job tasks across countries leads to a significant overestimation of the role of non-routine tasks in less developed countries. |
| Keywords: | non-routine, labour, tasks, jobs, cross-country |
| JEL: | J21 J23 J24 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:wpaper:wp082022&r=int |
| By: | Afonso, Alexandre (Leiden University); Negash, Samir; Wolff, Emily Anne |
| Abstract: | Abstract. In this chapter, we review existing research analysing the relationship between immigration and welfare states. This relationship is analysed in both directions, namely how immigration affects the welfare state, and how the welfare state affects migration. The chapter focuses on 5 prominent research questions in the field, namely 1) how different welfare regimes accommodate immigrants 2) how immigration may affect political support for the welfare state 3) the fiscal effects on immigration on the welfare state 4) welfare magnets and 5) welfare chauvinism. The chapter then draws on available evidence to highlight two relevant research agendas for the future. |
| Date: | 2022–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:my64b&r=int |
| By: | Alexandra Bykova (The Vienna Institute for International Economic Studies, wiiw); Olga Pindyuk (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | This issue of the wiiw Monthly Report replaces our earlier series of the wiiw FDI Report. FDI in Central, East and Southeast Europe Data availability and preliminary results for 2021 by Alexandra Bykova The rebound seen in 2021 in FDI inflows into CESEE was in line with global trends; the figure was 14.1% up on the pre-crisis level of 2019. Latvia emerged in the leading position in per capita terms. Preliminary FDI data for 2021 are available from the most recent update of the wiiw FDI Database. This is the first of two FDI data releases planned for this year. Strong post-COVID FDI rebound likely to be short lived by Olga Pindyuk After a sharp decline in 2020, global FDI inflows picked up markedly in 2021; however, the recovery was very uneven. The FDI inflow dynamics in CESEE show considerable variation between the countries. The number of greenfield projects announced increased in over half of the CESEE countries, but the recovery is likely to be short lived. Monthly and quarterly statistics for Central, East and Southeast Europe |
| Keywords: | FDI inflows, FDI outflows, FDI stocks, FDI by instrument of financing, greenfield FDI, supply chains, near-shoring, re-shoring, business services |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:wii:mpaper:mr:2022-05&r=int |
| By: | Ludvig S. Wier; Gabriel Zucman |
| Abstract: | This paper constructs time series of global profit shifting covering the 2015–19 period, during which major international efforts were implemented to curb profit shifting. We find that (i) multinational profits grew faster than global profits, (ii) the share of multinational profits booked in tax havens remained constant at around 37 per cent, and (iii) the fraction of global corporate tax revenue lost due to profit shifting rose from 9 to 10 per cent. We extend our time series back to 1975 and document a remarkable increase of multinational profits and global profit shifting from 1975 to 2019. |
| JEL: | E25 F23 H26 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30673&r=int |
| By: | Roxana Gutierrez-Romero (School of Business and Management, Queen Mary University of London.); Nayeli Salgado (Vienna University of Economics.) |
| Abstract: | This paper evaluates the impact of the pandemic and enforcement at the United States and Mexican borders on the emigration of Guatemalans during 2017-2020. We show that the number of crossings from Guatemala fell by 10% during the pandemic according to the Survey of Migration to the Southern Border of Mexico. Yet, there was a rise of nearly 30% in the number of emigration crossings of male adults travelling with their children. By and large, the surge of emigrants travelling with their children is driven by the acute economic shock that Guatemala experienced during the pandemic. During this period air pollution fell by 4%, night light per capita by 16% and homicide rates by 40%. Unlike previous years, emigrants are not fleeing violence, but poverty as their families and municipalities experienced substantial income loss. Our findings suggest that a reduction in violence alone will not be sufficient to reduce emigration flows from Central America, but that economic recovery is needed. |
| Keywords: | Conflict, local economy, migration enforcement, Central America, pandemic |
| JEL: | C26 D74 F22 J15 K37 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:108&r=int |
| By: | Alvita, Velinda |
| Abstract: | This study of the relationship between oil palm and coal prices on the growth of the trade balance aims to find out how the development of palm oil prices and coal prices in Indonesia from year to year and to find out whether there is a relationship between palm oil prices and coal prices in Indonesia on the trade balance. The research was conducted by analyzing data on prices of palm oil and coal, as well as data on the value of the trade balance in 2009 to 2020 which was taken from data from the Central Statistics Agency (BPS), the Ministry of Energy and Mineral Resources, and the Asian Development Bank (ADB). In this study, the method used is a computable general equilibrium model. Based on the results of this study, it can be concluded that there is a relationship between the price of palm oil and coal on the growth of the trade balance where if the price of oil and coal increases, the value of exports will also increase, allowing a surplus in the trade balance. Meanwhile, if the price of palm oil and coal falls, the value of exports will also fall, allowing a deficit in the trade balance. |
| Date: | 2022–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:sw8fy&r=int |
| By: | Novia, Jessica |
| Abstract: | Abstract : This study of the relationship between oil palm and coal prices on the growth of the trade balance aims to find out how the development of palm oil prices and coal prices in Indonesia from year to year and to find out whether there is a relationship between palm oil prices and coal prices in Indonesia on the trade balance. The research was conducted by analyzing data on prices of palm oil and coal, as well as data on the value of the trade balance in 2009 to 2020 which was taken from data from the Central Statistics Agency (BPS), the Ministry of Energy and Mineral Resources, and the Asian Development Bank (ADB). In this study, the method used is a computable general equilibrium model. Based on the results of this study, it can be concluded that there is a relationship between the price of palm oil and coal on the growth of the trade balance where if the price of oil and coal increases, the value of exports will also increase, allowing a surplus in the trade balance. Meanwhile, if the price of palm oil and coal falls, the value of exports will also fall, allowing a deficit in the trade balance. |
| Date: | 2022–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:6db7q&r=int |
| By: | Agustin Benetrix (IM-TCD, Trinity College Dublin); Hayley Pallan (World Bank); Ugo Panizza (IHEID, Graduate Institute of International and Development Studies, Geneva) |
| Abstract: | This paper revisits the link between FDI and economic growth in emerging and developing economies. When we study the early decades of our sample, we find that there is no statistically significant correlation between FDI and growth for countries with average levels of education or financial depth. In line with previous contributions, we find that this correlation is positive and statistically significant for countries with sufficienty well-developed financial sectors or high levels of human capital. However, we also find that the link between FDI and growth varies over time. For more recent periods, we find a positive and statistically significant relationship between FDI and growth for the average country, with local conditions having a negative e ect on this link. We also develop a novel instrument aimed at addressing the endogeneity of FDI inflows. Instrumental variable estimates suggest that our results are unlikely to be driven by endogeneity. |
| Keywords: | FDI, Economic Growth, Human Capital, Financial Development |
| JEL: | F21 F43 C21 C26 |
| Date: | 2022–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:gii:giihei:heidwp26-2022&r=int |
| By: | Kolcava, Dennis; Smith, E. Keith; Bernauer, Thomas |
| Abstract: | Effectively governing environmental and social externalities throughout the global economy poses challenges for democratic policy-makers in the court of public opinion. Following the median voter model, as the stringency of policy proposals increases, support rises amongst some citizens and falls amongst others. We argue informational disclosure-based governance presents a potential strategy to mitigate this zero-sum logic as citizens discount policy costs while expecting substantive benefits. We focus on political efforts to increase sustainability throughout global supply chains, drawing on two original survey experiments with representative samples in the 12 largest high-income importing economies (N=24,000). Indeed, at higher levels of policy stringency, citizens expect greater benefits than costs. Further, we find that expected benefits are more strongly associated with support than costs. Lastly, we note how policy stringency promotes convergence of expected benefits across the political ideological spectrum. Hence, our findings provide insights into public preference formation towards the globalization-sustainability nexus. |
| Date: | 2022–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:2hez9&r=int |
| By: | Kim, Kijin (Asian Development Bank Institute); Ardaniel, Zemma (Asian Development Bank Institute); Kikkawa, Aiko (Asian Development Bank Institute); Endriga, Benjamin (Asian Development Bank Institute) |
| Abstract: | We examine the countercyclicality of remittance inflows to the countries in Asia and the Pacific. We also identify major determinants of remittances using gravity models of bilateral remittances. We find that bilateral remittance inflows are countercyclical against the business cycle of a remittance-receiving country relative to a sending country. The degree to which remittances are countercyclical is found to vary significantly by subregion: Central Asia and Southeast Asia, including many remittance-dependent countries, show stronger countercyclicality than other subregions. The estimated models suggest that migrant stock is a top determinant of remittances, and that an increase in bilateral remittances is explained by a higher occurrence of disasters caused by natural hazards in receiving countries, appreciation of a receiving country’s currency value against that of the sending country, lower interest rate differential (receiver–sender), greater capital account openness and higher political instability, and lower costs of remittances. This suggests that an altruistic motivation to remit prevails in the region. We also find that the countercyclicality of remittances rises when recipient countries experience more frequent disasters, a higher old-age dependence ratio, less stringent capital control, and stable political climate. |
| Keywords: | remittances; Asia and the Pacific; countercyclicality; business cycle; gravity model |
| JEL: | C23 F24 F44 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1315&r=int |
| By: | HOFFER, ADAM; Sobel, Russell (Mercury Publication) |
| Abstract: | Many, but not all, US state governments have adopted “preference policies†that give an advantage to in-state businesses (vendors) that submit bid proposals for state projects. Most preference policies are specified in a specific percentage advantage, whi |
| URL: | http://d.repec.org/n?u=RePEc:ajw:wpaper:06901&r=int |
| By: | Ali, Amjad; Ehsan, Rehan; Audi, Marc; Hamadeh, Hani Fayad |
| Abstract: | Presently, monitoring and analyzing financial integration has become a key function and requirement of the financial regulatory bodies and central banks of the countries. It has also been observed that financial integration is important to make the financial system streamlined and efficient which is eventually used to make monetary policies and to judge a country’s financial performance. Financial integration also highlights disruption in the financial system of the country if it does not work properly. This study has examined the impact of globalization on financial integration in the case of South Asian countries from 1996 to 2020. The selected South Asian countries are Bangladesh, India, Nepal, Pakistan, and Sri Lanka. Financial integration is selected as the dependent variable, whereas political instability, globalization, fiscal performance, monetary performance, and economic misery are selected as explanatory variables. PP-FC, ADF-FC, IP&S, and LLC unit root tests have been used to check the stationarity of the variables. Panel least squares and fixed-effect model have been used for examining the dependence of financial integration on selected explanatory variables. The outcomes of unit root tests show that there is the same order of integration among the selected variables of the model i.e. first difference. The results show that level of political instability has a negative and insignificant impact on financial integration. The outcome shows that monetary performance, globalization, and economic misery have positive and significant impacts on financial integration. Fiscal performance has a negative and significant impact on financial integration. Based on the results, it suggested that South countries should make stable monetary and fiscal performance with a rise in globalization to raise financial integration. Moreover, political instability and economic misery should be discouraged for higher financial integration. |
| Keywords: | globalization, financial integration, political instability, monetary performance, fiscal performance, economic misery |
| JEL: | F36 F50 F60 O23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115304&r=int |
| By: | Lysander, Joshua Jose |
| Abstract: | This study aims to determine and explain the effect of investment on levels in Indonesia during the 2009-2020 period. With the relationship between the two data presented in the form of qualitative data. So this report can illustrate whether the role of foreign investment can have a significant influence on levels in Indonesia. The conclusion of this study is that foreign investment with significant contacts, foreign investment will have an impact on employment, because foreign investment has a positive effect on employment. |
| Date: | 2022–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:v8zea&r=int |
| By: | Patricia Laurens (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel); Pierluigi Toma (University of Salento [Lecce]); Antoine Schoen (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel); Cinzia Daraio (Sapienza University of Rome - Department of Informatics and System Sciences - UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome]); Philippe Larédo (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel, University of Manchester [Manchester]) |
| Abstract: | This work explores the relationship between multinational R&D and innovation productivity among top corporate knowledge and R&D producers by adopting a twofold concept of internationalisation: (1) the firm's degree of R&D internationalisation, and (2) the firm's geographic diversification. We model the patent production process with an appropriate and robust conditional Data Envelopment Analysis (DEA) estimator, using a unique database of firms that matches financial indicators and patent information. Our results reinforce the fundamental role of internationalisation in the knowledge production process when the internationalisation process is properly and strategically managed. We interpret our empirical evidence through the theoretical lens of the learning theory of internationalisation, and we postulate that a high R&D intensity is a key driver to overcoming the challenges of internationalisation. |
| Keywords: | R&D productivity,Multinationality,Conditional efficiency,Patents,DEA modelling,multinationality,conditional efficiency,patents,DEA modelling JEL classification O32,F23,L25,C44 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03840316&r=int |