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on International Trade |
| By: | Rogelio Mercado, Jr.; Ryan Jacildo; Sanchita Basu Das |
| Abstract: | This paper assesses the covariation between global value chains (GVCs) and multinational corporates (MNCs) with US dollar share in trade invoicing for Asia and Pacific economies. Using the Boz et al. (2020) dataset, the empirical analysis exploits cross-sectional heterogeneities that could explain the region’s high share of exports and imports invoiced in the US dollar. The results show that Asia and Pacific economies with greater GVC participation tend to have higher share of their exports and imports invoiced in US dollars, in contrast with non-regional economies wherein economies with higher GVC have significantly lower share of exports and imports invoiced in US dollar. In addition, Asia and Pacific economies with more MNCs usually have a significantly higher share of exports invoiced in US dollar. Among other reasons, one factor could be due to less trade integration among the Asian countries considered in the paper and absence of an alternative strong regional currency. Trade exposure of these countries continue to remain significant with the US and Europe. The findings offer new empirical evidence in the context of the Asia and Pacific region as well as relevance of the presence of MNCs. |
| Keywords: | International trade invoicing, dominant currency paradigm, GVCs and MNCs |
| JEL: | F14 F31 F41 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-05&r=int |
| By: | Léa Marchal (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, IC Migrations - Institut Convergences Migrations [Aubervilliers], UP1 - Université Paris 1 Panthéon-Sorbonne); Giulia Sabbadini (DICE - Düsseldorf Institute for Competition Economics - Heinrich Heine Universität Düsseldorf = Heinrich Heine University [Düsseldorf]) |
| Abstract: | This paper studies whether firms employing immigrant workers are more resilient to an increase in competition in their export markets. Exploiting the surge of Chinese imports following its accession to the World Trade Organization and using a sample of French manufacturing exporters from 2002 to 2015, we find that an increase in the growth rate of Chinese competition in a foreign market has a negative effect on both the two-year survival and growth rate of sales of French exporters on that foreign market. This negative effect on firm performance is mitigated by the employment of immigrant workers. |
| Keywords: | Firm Heterogeneity Immigrant workers Import competition Productivity JEL Codes: F14 F22 F16, Firm, Heterogeneity, Immigrant workers, Import competition, Productivity JEL Codes: F14 F22 F16 |
| Date: | 2022–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03905523&r=int |
| By: | Charlotte Emlinger (CEPII - Centre d'études prospectives et d'informations internationales); Karine Latouche (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | Geographical indications (GI) aim at promoting and protecting the names of agricultural products and foodstuffs according to their origin. The European GI system has been a contentious issue in European trade relationships for a long time, as shown by the different complaints submitted to the WTO dispute settlement body (by the US in 1999 and by Australia in 2003). The inclusion of GI in bilateral agreements has thus a non-negligible negotiation cost for the EU. The objective of this paper is to estimate the impact of the inclusion of GIs in bilateral agreements on French exports of foodstuffs. Results show that GIs foster exports of French agri-food firms. The recognition of GIs in trade agreements increases both the intensive and extensive margins of trade, as well as unit values for these products. This outcome is mainly driven by the PDO denomination, the oldest and most renowned geographical indication. |
| Keywords: | Bilateral trade agreements, Firm level data, Export performance, Trade margins |
| Date: | 2022–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03941460&r=int |
| By: | Geoffrey R. Dunbar; Walter Steingress; Ben Tomlin |
| Abstract: | This paper quantifies the impact of hurricanes on seaborne international trade to the United States. Using geocoded hurricane data mapped to satellite tracking data for commercial ships, we identify hurricane intersections on sea-trade routes between U.S. and foreign ports. Matching the timing of hurricane–trade route intersections with monthly U.S. port-level trade data, we isolate the unanticipated effects of a hurricane hitting a trade route using two separate identification schemes: an event study and a local projection. Our estimates imply that a hurricane reduces route-specific monthly U.S. import flows by 5.4% to 16.0%, leading to an aggregate loss of 1.15% to 3.42% of annual U.S. west coast imports for an average storm season. We find no evidence of trade catching up in the months following a hurricane nor any evidence of rerouting to other ports or other transportation modes (e.g., air). Using our estimates in combination with climate scenarios from the Intergovernmental Panel on Climate Change, we quantify a range of costs of future hurricane disruptions that could occur if trade routes remain fixed. |
| Keywords: | Climate change; International topics |
| JEL: | C22 C5 F14 F18 Q54 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:23-8&r=int |
| By: | Kossi-Messanh Agbekponou (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Angela Cheptea (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Karine Latouche (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | The present paper investigates the link between the participation of French agri-food firms to retailer-driven value chains and their integration in global value chains (GVCs). We propose an empirical methodology based on the econometric estimation of firms' extensive trade margins with multivariate models. We combine firm-level data from the AMADEUS database, French customs and the exhaustive list of firms certified with the private International Featured Standard (IFS) over the period 2006-2011. Our results show that firms that participate to retailer-driven value chains (IFS-certified firms) are by 5.83 percentage points more likely to integrate GVCs, i.e. to jointly import and export, than other firms in the sector. These results are confirmed by alternative estimations. Moreover, we show that the integration in GVCs is primarily driven by the higher probability to export of these firms. |
| Keywords: | Global value chains, Retailers, Private standards, Multivariate econometric models |
| Date: | 2022–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03941386&r=int |
| By: | Catão, Luis A. V. (Inter-American Development Bank); de Faria, Pedro (University of Groningen); Martins, António (ISEG); Portela, Miguel (University of Minho) |
| Abstract: | Using a new panel dataset of about 140 thousand Portuguese firms during 2006-2019, we measure the effects of globalization on firm-level performance along four dimensions: ownership of capital, employment of foreign-seasoned managers, and participation in export and import markets. Once at least one of these channels is active, firms are larger, less leveraged, employ better qualified workers, and pay higher hourly wages. We also uncover a pecking order of effects, with export-market participation having generally larger positive effects on productivity and negative effects on unit labor costs. All four channels interact, sometimes complementing, sometimes substituting one another. For instance, foreign ownership boosts exports at the extensive margin while being an importer and/or having a foreign-experienced manager help at the intensive margin; conversely, the marginal productivity gains of foreign-ownership are greatly reduced when the firm is already an exporter. Breaking down the effects of each channel by firm size, we show that smaller firms stand the most to gain from export market participation and foreign-ownership. |
| Keywords: | foreign direct investment, entrepreneurship, trade, productivity, wages, labor costs, leverage, firm size distribution |
| JEL: | D22 D24 F23 G34 J3 L20 M10 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15903&r=int |
| By: | Akira Sasahara (Faculty of Economics, Keio University); Yumin Sui (Faculty of Economics, Keio University (Student)); Emily Taguchi (Department of Economics, University of Cologne (Student)) |
| Abstract: | This paper investigates the effects of globalization?measured by an increase in immigration and in imports from China?on labor market outcomes in Japan. We attempt to identify the causal links using a shift-share instrument based on previous settlement patterns of migrants for immigration shocks, and the one based on previous spatial allocation of sectoral employment for import shocks. The results suggest limited impact of these variables on wages, however, significant effects are found in the late 1990s, suggesting their interactions with Japan fs Lost Decade. |
| Keywords: | immigration, China trade shock, wages, Japan |
| JEL: | F16 F22 F66 |
| Date: | 2023–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2023-002&r=int |
| By: | - |
| Abstract: | United States trade in goods sustained the recovery that began in 2021. In the first six months of 2022, goods exports increased by 21% compared to the prior-year period, while goods imports rose by 22%. Trade in services has not fully recovered, as major service industries such as travel and transport are still experiencing the lingering effects of the COVID-19 pandemic. United States-Latin America and the Caribbean Trade Developments 2022 provides an overview of selected developments in trade relations between the United States and Latin America and the Caribbean. In light of the global focus on the climate crisis and the specific emphasis of President Biden’s trade policy agenda on advancing on a sustainable environment and climate path, this report includes a section on United States trade in circular economy goods. |
| Keywords: | COMERCIO INTERNACIONAL, RELACIONES ECONOMICAS INTERNACIONALES, POLITICA COMERCIAL, COMERCIO DE SERVICIOS, BIENES DE CONSUMO, ECONOMIA VERDE, DESARROLLO SOSTENIBLE, MERCADOS, EXPORTACIONES, COMPETENCIA, ACUERDOS ECONOMICOS, INTERNATIONAL TRADE, INTERNATIONAL ECONOMIC RELATIONS, TRADE POLICY, TRADE IN SERVICES, CONSUMER GOODS, GREEN ECONOMY, SUSTAINABLE DEVELOPMENT, MARKETS, EXPORTS, COMPETITION, ECONOMIC AGREEMENTS |
| Date: | 2023–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col896:48644&r=int |
| By: | Kim, Bawoo (Korea Institute for Industrial Economics and Trade); Yang, Jooyoung (Korea Institute for Industrial Economics and Trade) |
| Abstract: | From the 1990s to the late 2000s, the production of goods was divided among several countries on the basis of efficiency, and trade based on the global value chain developed around the world. As manufacturing process were split between links on the global value chain, trade in intermediate goods such as parts and materials increased six-fold between 1990 and 2015, and as of 2018, the share of intermediate goods in global trade accounted for more than half of the total commodities trade. Korea is an active participant in the global value chain, lowering production costs and investing in overseas markets. Growing protectionism represented by the trade conflict between the U.S. and China adds constraints to the production process fragmentation, complicating firms’ sourcing strategies for intermediate inputs. This paper examines changes in the supply chains of major Korean industries given changes in the international environment and analyzes industrial characteristics. |
| Keywords: | global value chain; supply chain; Korea; manufacturing |
| JEL: | F20 F52 L52 L62 |
| Date: | 2021–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieter:2021_010&r=int |
| By: | Kossi-Messanh Agbekponou (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Angela Cheptea (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Karine Latouche (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | This paper analyzes the extent to which the quality of the exported food products affect the firms' position in global value chains (GVCs). Extending the theoretical framework of Chor et al. (2021), we argue that the quality upgrading allows firms to span more production stages in GVCs by importing products with a lower level of processing (more upstream), and exporting a goods with higher level of processing (more downstream). Expansion along GVCs through quality upgrading is accompanied by increased input purchases, assets, profits and value added in production. These theoretical predictions are tested using firm-level data on the French agri-food industry. In line with recent work, we identify two-way traders as firms that participate in GVCs and assess their position along the chain through the level of transformation of traded goods. We link the matched French Customs-AMADEUS 2000-2018 data with the US input-output table converted to the NACE Rev.2 level, which identifies agri-food industries at a very detailed level, and compute upstreamness indicators for each industry and firm, following recent approaches in the literature. We find empirical evidence broadly supportive of our key predictions. |
| Keywords: | Global value chains, Production line position, Quality upgrading, Upstreamness, Agri-food industry |
| Date: | 2022–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03941494&r=int |
| By: | Alonso González Marentis; Annelies Deuss |
| Abstract: | Regional Trade Agreements (RTAs) have become the major route for countries to reduce trade barriers and open new markets. To fully assess the current state of market opening for agricultural products and examine the potential impacts of RTAs, access to up-to-date and consistent information on preferential tariffs is crucial. There are multiple databases that collect information on preferential tariffs; however, it is not always easy to identify how these databases differ in terms of their data collection, treatment and representation, nor which database is the most appropriate for a specific type of analysis. This practical guide aims to help trade negotiators, policy makers, researchers, and private sector actors to identify which international or national database to use for their analysis of preferential tariffs on agricultural products. |
| Keywords: | International organisations, Preferential market access, Regional Trade Agreements, Trade liberalisation, Trade policy |
| JEL: | F13 F53 Q17 |
| Date: | 2023–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:191-en&r=int |
| By: | Carolina Lennon (Department of Economics, Vienna University of Economics and Business); Alyssa Schneebaum (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | Global firms have a higher share of female employees than domestic non-exporters. To explain this fact, this paper tests whether international trade and FDI are channels through which norms regarding gender (in)equality are transmitted from customers and investors to firms. We employ pooled cross-sectional data from 2007 - 2016 for around 28, 000 firms in 104 different countries. We compare global versus non-global firms in the same market to study the infuence of firms' exposure to gender norms in commercial partner countries. The results show a race to the top for low- and mid-level jobs and the opposite for top managerial positions. |
| Keywords: | globalization, international trade, FDI, gender, transmission of social norms |
| JEL: | F66 D22 F42 J16 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp331&r=int |
| By: | Häberli, Christian; Kostetsky, Bogdan |
| Abstract: | We publish today the January 2023 report on the outcome of the project "Repairing Broken Food Trade Routes Ukraine – Africa”. It covers: Threats which are imposed by Russia to Global Food Security (by means of wheat weaponisation) Impact of war on Ukrainian agribusiness EU-Ukraine agri-shipments cooperation and challenges Report also recaptures the January 2023 developments of grain export shipments from Ukraine. This project has received funding from the European Union's Horizon 2020 research and innovation programme “Making Agricultural Trade Sustainable” (MATS) programme (https://sustainable-agri-trade.eu/). The role of MATS/WTI in this programme is to identify and explore “broken” Ukrainian - African food trade routes due to the Russian invasion of Ukraine. Starting with a food trade flow chart pre- and post-24 February 2022, it will assess, first, whether Ukrainian (or African) traders can again supply these products (Output 1). Failing that, whether the new EU-financed “Crisis Management” (or another) programme can possibly make up for lost Ukrainian agrifood exports (Output 2). It will also identify alternative exporters (if any) which might already have filled in agrifood demand in Africa (Output 3). Importantly, the Project also looks at the potential effect of these developments on competing farm production in Africa (Output 4). For further information and/or offer to assist in project implementation, please write to Christian Häberli (Christian.Haeberli@wti.org) or to Bogdan Kostetsky (bogdan.kostetsky@gmail.com). |
| Date: | 2023–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:wti:papers:1387&r=int |
| By: | Ali Moghaddasi Kelishomi; Roberto Nisticò |
| Abstract: | This paper examines how trade sanctions affect the allocation of workers across formal and informal employment. We analyse the case of the unexpected and unprecedented trade sanctions imposed on Iran in 2012. We use a difference-in-differences approach and compare the probability of working in the informal sector before and after 2012 for individuals employed in industries with pre-existing different levels of exposure to international trade. |
| Keywords: | International trade, Informal work, Labour market, Economic sanctions, Trade |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2023-19&r=int |
| By: | Emmanuel Dhyne (Economics and Research Department, National Bank of Belgium and University of Mons); Philipp Ludwig (Department of Economics, KU Leuven); Hylke Vandenbussche (Department of Economics, KU Leuven) |
| Abstract: | Low export participation of firms across countries is typically related to high entry costs allowing only the most productive firms to serve foreign markets. In this paper, we move beyond individual firm characteristics to explain export participation and investigate whether firms’ domestic network linkages can facilitate export entry. Firms receive information from business interactions with experienced exporters which lowers sunk entry costs and allows them to enter the foreign market. Using rich data of buyer-seller linkages in the Belgian production network, we find that network heterogeneity is a key determinant of the extensive margin of trade. Each additional export signal received via network linkages increases the entry probability by 0.4 – 1.6 percentage points, giving firms with suitable networks a key advantage in accessing foreign markets. The marginal impact of network effects decreases in network size which we attribute to negative assortative matching in the underlying network formation process. |
| Keywords: | : export, learning about demand, networks |
| JEL: | F14 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202301-429&r=int |
| By: | Bee Yan Aw; Yi Lee; Hylke Vandenbussche |
| Abstract: | This paper develops an empirical model of consumer taste in twenty-nine Belgium food industries for the period from 1998-2005 to generate a “taste distance” measure of over 1, 800 firm-product exports to 53 country destinations. We estimate consumer taste using a control function approach and perform a decomposition of export revenues of firm-products to establish the importance of representative consumer taste relative to quality and marginal cost in export success. We find substantial taste heterogeneity in food exports across destination countries. Overall, in the large majority of food exports, consumer taste is an important and separate demand determinant to explain export revenues. Depending on the product, taste for a product explains between 4-30% of export revenues. Thus, any taste shock due to events such as pandemics or climate change, may induce substantial changes in export profitability of firms. |
| Keywords: | consumer taste, quality, productivity, exports, firm-product, food |
| JEL: | F12 F14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10234&r=int |
| By: | Santamaría, Marta (University of Warwick); Ventura, Jaume (CREI, Universitat Pompeu Fabra and Barcelona School of Economics); YeÅŸilbayraktar, UÄŸur (Universitat Pompeu Fabra and Barcelona School of Economics) |
| Abstract: | We use the new dataset of trade flows across 269 European regions in 24 countries constructed in Santamaría et al. (2020) to systematically explore for the first time trade patterns within and across country borders. We focus on the differences between home trade, country trade and foreign trade. We document the following facts: (i) European regional trade has a strong home and country bias, (ii) geographic distance and national borders are important determinants of regional trade, but cannot explain the strong regional home bias and (iii) the home bias is heterogeneous across regions and seems to be driven by political regional borders. |
| Keywords: | JEL Codes: |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:650&r=int |
| By: | Robert Reinhardt (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This study investigates which effect earthquakes have on the inflow of foreign direct investment (FDI) within a country from a temporal, spatial and sectoral dimension. It uses a dynamic difference-indifference model of physical disaster exposure in 416 Indonesian districts between 2003 and 2019 in order to quantify the impact on investment behavior from abroad. Drawing geolocated data from a variety of sources, the results indicate that FDI inflows are temporarily reduced of around 90% in the year after the disaster. In this case study, spatial effects play a subordinate role, yet earthquake shocks affecting upstream industries tend to have substantial negative effects. Manufacturing appears to be the most affected sector. |
| Keywords: | Foreign Direct Investment, Disasters, Risk, Economic Growth, Input-Output |
| Date: | 2022–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03908250&r=int |
| By: | Robert Reinhardt (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This study investigates which effect earthquakes have on the inflow of foreign direct investment (FDI) within a country from a temporal, spatial and sectoral dimension. It uses a dynamic difference-indifference model of physical disaster exposure in 416 Indonesian districts between 2003 and 2019 in order to quantify the impact on investment behavior from abroad. Drawing geolocated data from a variety of sources, the results indicate that FDI inflows are temporarily reduced of around 90% in the year after the disaster. In this case study, spatial effects play a subordinate role, yet earthquake shocks affecting upstream industries tend to have substantial negative effects. Manufacturing appears to be the most affected sector. |
| Keywords: | Foreign Direct Investment, Disasters, Risk, Economic Growth, Input-Output |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03908250&r=int |
| By: | Christian Estmann (University of Copenhagen) |
| Abstract: | The increasing dependency on food imports for food security in the Global South implies a higher vulnerability to trade shocks. Trade barriers, such as export restrictions on stable food crops, are commonly used by developing countries in times of crisis. Surges in international food prices raise the real incomes of the farmers selling food while hurting the net food consumers. Trade restrictions may stabilise the domestic availability and price of food for net consumers in the short run. However, the question remains how liberalisation after a long period of ad-hoc export restriction influences rural producers. This working paper examines the effects of lifting a maize export ban on farmers’ food security and market behaviour in Tanzania. Using data from the National Panel Surveys over multiple waves, the study employs a difference-in-difference methodology to analyse the association at the household and district level. The results suggests that farmers who sold maize under the ban reduced their maize production and shifted to other stable crops, becoming less commercialised and disconnected from the market after liberalisation. A borderline significant negative association on household-level dietary diversity and quality is observed in regards to food security. |
| Keywords: | Food Security, Export Ban, Food Trade, Tanzania, Market Integration |
| Date: | 2023–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuderg:2320&r=int |
| By: | Hélène Ollivier (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Geoffrey Barrows (CREST - Centre de Recherche en Economie et Statistique [Bruz] - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz], X - École polytechnique) |
| Abstract: | With asymmetric climate policies, regulation in one country can be undercut by missions growth in another. Previous research finds evidence that regulation erodes the competitiveness of domestic firms and leads to higher imports, but increased imports need not imply increased emissions if domestic sales are jointly determined with export sales or if emission intensity of manufacturing adjusts endogenously to foreign demand. In this paper, we estimate for the first time how production and emissions of manufacturing firms in one country respond to foreign demand shocks in trading partner markets. Using a panel of large Indian manufacturers and an instrumental variable strategy, we find that foreign demand growth leads to higher exports, domestic sales, production, and CO2 emissions, and slightly lower emission intensity. The results imply that a representative exporter facing the average observed foreign demand growth over the period 1995-2011 would have increased CO2 emissions by 1.39% annually as a result of foreign demand growth, which translates into 6.69% total increase in CO2 emissions from Indian manufacturing over the period. Breaking down emission intensity reduction into component channels, we find some evidence of product-mix effects, but fail to reject the null of no change in technology. Back of the envelope calculations indicate that environmental regulation that doubles energy prices world-wide (except in India) would only increase CO2 emissions from India by 1.5%. Thus, while leakage fears are legitimate, the magnitude appears fairly small in the context of India. |
| Keywords: | Globalization, Trade and environment, Product mix, Technological change |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-03029861&r=int |
| By: | Stylianou Kalaitzi, Athanasia; Al-Awadhi, Ahmad; Al-Qudsi, Sulayman; Chamberlain, Trevor W. |
| Abstract: | This study examines whether export diversification can foster sustained economic growth in Kuwait, using time series analysis for the period 1980–2019 and a field survey of one hundred Kuwait business leaders engaged in import and export of goods and services. The time series analysis reveals that there is no causality between export diversification and economic growth in the short-run. However, an indirect causality runs from export diversification to economic growth, and vice versa, via imports. In the long-run, no causality runs from export diversification to economic growth, but economic growth does cause export diversification. The field survey results indicate that there is a consensus among Kuwaiti CEOs that there are positive spillover effects from exports and imports to producers of local goods and services, and that imports are conductive to economic diversification. |
| JEL: | N0 L81 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118060&r=int |
| By: | Paulina Y. Amtiran (Universitas Nusa Cendana, Kupang, Indonesia Author-2-Name: Anderias U.T. Anabuni Author-2-Workplace-Name: Universitas Nusa Cendana, Kupang, Indonesia Author-3-Name: Marianus S. Neno Author-3-Workplace-Name: Universitas Nusa Cendana, Kupang, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - This study aims to identify the appropriate strategy that can increase cross-border trade activities and policies that can be applied to reduce the negative impacts caused by parties who take advantage of cross-border trade. Methodology - The data were collected from interviews with informants and FGD. The data analysis technique is a qualitative and quantitative analysis developed within the study using EFAS, IFAS, and SWOT analysis. Findings - The study found that Indonesia and the Republic Democratic of Timor Leste (RDTL) border area have the potential and opportunity to be developed. The same cultural background causes cross-border trade interactions to occur between the two countries. Novelty - Belu Regency, as an area bordering the RDTL, has natural and economic potentials that can be developed as a center for small industrial development and a border area for cross-border trade. Type of Paper - Empirical" |
| Keywords: | Cross-border; Economy; Policy; Strategy; Trade |
| JEL: | F21 F36 G15 |
| Date: | 2022–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jber230&r=int |
| By: | Henri Casella (Auteur indépendant); Jaime de Melo (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, UNIGE - Université de Genève = University of Geneva) |
| Abstract: | The paper reports on evidence on how trade can help Africa adapt to Climate Change (CC) along three dimensions: (i) fast-onset events from short-lived extreme occurrences (floods, extreme temperatures); (ii) slow-onset events (rise in average temperatures and sea-level rise); (iii) trade facilitation policies. • Fast onset events: Trade reduces the amplitude of extreme events like a drought. But policy reactions to large shocks can increase the amplitude of the shock. During the South African drought of 2015-6, policies had spillovers in neighboring countries. Following the 2008-09 financial crisis, export restrictions by major crop exporters and reduction in tariffs by importers amplified the shock. Policy coordination is needed to control spillover effects. |
| Keywords: | Climate change, adaptation, Africa, Environmental goods |
| Date: | 2022–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03937172&r=int |
| By: | Oswald-Egg, Maria Esther (ETH Zurich); Siegenthaler, Michael (ETH Zurich) |
| Abstract: | Does better access to foreign workers reduce firms' willingness to provide general skills training to unskilled workers? We analyze how the opening of the Swiss labor market to workers from the European Union affected the number of apprenticeship positions that firms provide. We exploit that the availability of foreign workers increased more in firms close to the border because they gained unrestricted access to cross-border workers from Switzerland's neighboring countries. Our Difference-in-Differences estimates suggest that firm-provided training to unskilled workers and access to foreign workers are not necessarily substitutes: opening the borders did not have a statistically significant effect on apprenticeship provision. Using unique data on firms' costs and motives to train apprentices, we show that the greater availability of foreign workers reduced firms' incentive to train because hiring skilled workers externally became cheaper, among others because new hires became more productive from the start. Positive impacts on firm growth worked in the opposite direction. |
| Keywords: | apprenticeships, cross-border workers, firm-provided training, free movement of workers, hiring costs, immigration, immigration policy, labor mobility, vocational education and training |
| JEL: | J24 J63 M53 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15902&r=int |
| By: | Portes, Jonathan (King's College London); Springford, John (Centre for European Reform) |
| Abstract: | The end of free movement and the introduction of the post-Brexit migration system represents a major structural change to the UK labour market. We provide a descriptive assessment of the impact on a sectoral basis. We examine how overall labour force growth has differed between sectors, both overall and in terms of the extent to which this growth was driven by migrant workers, both from the EU and from outside the EU, prior to the pandemic. This allows us to construct counterfactuals, which we contrast with observed outturns, as well as with data on visas issued by sector under the new system. Our analysis suggests that, although migration overall is currently running at least at pre-pandemic levels, the post-Brexit migration system has produced, as designed, a clear break with pre-Brexit trends, reducing labour supply for some sectors. There remains a substantial "shortfall" in migration for work, even taking of the impact of the pandemic. However, these impacts differ very considerably between sectors. In lower-skilled sectors, work-related migration under free movement does not appear to have been replaced by additional visa issuance under the new system. Meanwhile, in higher skilled sectors, increased visa issuance has increased, and does appear to be consistent with levels of migration that are broadly in line with pre-pandemic, pre-Brexit trends. |
| Keywords: | migration, labour markets, Brexit |
| JEL: | F22 J48 J61 J68 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15883&r=int |
| By: | Emmanuel Dhyne (Economics and Research Department, National Bank of Belgium and University of Mons); Ayumu Ken Kikkawa (University of British Columbia Sauder School of Business, 2053 Main Mall, Vancouver, BC V6T 1Z2, Canada); Magne Mogstad (University of Chicago, 1126 East 59th Street, Chicago, IL 60637, USA); Felix Tintelnot (University of Chicago, 1126 East 59th Street, Chicago, IL 60637, USA) |
| Abstract: | We use Belgian data on domestic firm-to-firm transactions and ask how the measurement of the share of imports in final consumption is affected when one uses data recorded at higher levels of aggregation. We find that aggregating detailed firm-to-firm transaction data to the firm level and imposing homogeneity assumptions in the composition of firms’ input and output do not substantially affect the measurement of the share of imports in final consumption. However, using the national IO tables alone may understate the share of imports in final consumption and, thereby, the gains from trade. |
| Keywords: | : Import content, firm-to-firm linkages, sectoral linkages |
| JEL: | F10 F14 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202301-430&r=int |
| By: | Xiang Ding |
| Abstract: | I develop a theory of joint production to quantify aggregate economies of scope. In US manufacturing data, increased export demand in one industry raises a firm’s sales in its other industries that share knowledge inputs like R&D and software. I estimate that knowledge inputs contribute to economies of scope through their scalability and partial non-rivalry within the firm. On average a 10 percent increase in output in one industry lowers prices in other industries by 0.4 percent. Such economies of scope manifest disproportionately among knowledge proximate industries and imply large spillover impacts of recent US-China trade policy on producer prices. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:23-02&r=int |
| By: | Han, Jung Min (Korea Institute for Industrial Economics and Trade) |
| Abstract: | As of May 2021, Korea’s exports recorded a 23.4 percent year over year increase.This upturn is considered to be the result of the recovery and rebound from the COVID-19-induced recession. Factors that have contributed to this upturn include the activity in the so-called “untact” (contact-free) economy, the reflexive benefits of heightened environmental concern, and the potential for realizing growth utilizing new economic growth engines. Healthy performance in the areas of biohealth, rechargeable batteries, and other new export growth engines are contributing greatly to the positive trend in exports. Though exports are expected to remain steady this year, the second half of 2021 is expected to show a relative slowdown due to the base effect of the previous year and reduced demand for products that benefited from the untact economy. This analytical brief describes necessary policy steps to take in preparation for the post-COVID global trade environment. |
| Keywords: | COVID-19; Korea; climate change; climate policy; environmental policy; exports; recession; recovery; business cycles; green energy; contact-free economy |
| JEL: | F10 F44 H12 L52 L53 L62 L63 L65 L68 O24 |
| Date: | 2021–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietia:2021_012&r=int |
| By: | Filippo Bontadini; Mercedes Campio; Marco Duenas |
| Abstract: | We propose a novel measure to investigate firms' product specialisation: product coreness, that captures the centrality of exported products within the firm's export basket. We study product coreness using firm-product level data between 2018 and 2020 for Colombia, Ecuador, and Peru. Three main findings emerge from our analysis. First, the composition of firms' export baskets changes relatively little from one year to the other, and products far from the firm's core competencies, with low coreness, are more likely to be dropped. Second, higher coreness is associated with larger export flows at the firm level. Third, such firm-level patterns also have implications at the aggregate level: products that are, on average, exported with higher coreness have higher export flows at the country level, which holds across all levels of product complexity. Therefore, the paper shows that how closely a product fits within a firm's capabilities is important for economic performance at both the firm and country level. We explore these issues within an econometric framework, finding robust evidence both across our three countries and for each country separately. |
| Keywords: | International Trade; Diversification; Capabilities; COVID-19. |
| Date: | 2023–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2023/09&r=int |
| By: | Lim, Soyoung (Korea Institute for Industrial Economics and Trade); Yang, Jooyoung (Korea Institute for Industrial Economics and Trade) |
| Abstract: | On July 14, 2021, the European Commission announced its Fit for 55 package to reach the EU’s climate target of cutting emissions by 55 percent by 2030. A Carbon Border Adjustment Mechanism (CBAM) legislative proposal was introduced as part of this package. The proposal describes the mechanism and scope of CBAM, emissions calculation methods, and exclusions. It follows the method by which Emissions Trading Schemes (ETS) operate for EU importers. During a transitional phase, imports must be accompanied by a mandatory reporting of carbon data. Starting in 2026, following the conclusion of a transitional period, importers will be required to buy certificates with carbon prices determined by the EU ETS. Through an examination of Korea’s domestic ETS and an identification of the country’s strengths, this analytical brief explores ways to minimize the potentially negative impacts of ETS on Korean industries. |
| Keywords: | CBAM; carbon border adjustment mechanism; carbon tax; carbon pricing; emissions trading scheme; ETS; climate change; greenhouse gas; GHG; environmental policy; carbon policy; EU; Korea; industrial policy |
| JEL: | F02 F13 F18 F23 F51 F53 F64 H12 H87 K32 L52 Q01 Q27 Q28 Q37 Q38 Q52 Q54 |
| Date: | 2021–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietia:2021_016&r=int |
| By: | Vincent Chatellier (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | This hearing by the Senate's Economic Affairs Committee was part of a roundtable discussion on the impact of the war in Ukraine on agricultural markets and food sovereignty. Chaired by Sophie Primas, this round table also gave the floor to Sébastien Windsor (President of the Permanent Assembly of Chambers of Agriculture) and Thierry Pouch (Head of the Studies, References and Prospects Department of the APCA). The purpose of this intervention was to propose an analysis of the external trade of the EU-27 and France in the agri-food sector, with particular emphasis on trade relations with Russia and Ukraine. The minutes of this hearing are available here: https://www.senat.fr/compte-rendu-commissions/20220314/ecos.html#toc3 ; the video of the hearing is available here: https://videos.senat.fr/video.2870723_62 3095a921464.table-ronde-sur-l-impact-de- la-guerre-en-ukraine-sur-les-marches-agr icoles-et-la-souverainete-alimen |
| Abstract: | Cette audition par la Commission des Affaires économiques du Sénat s'inscrit dans le cadre d'une table-ronde portant sur l'impact de la guerre en Ukraine sur les marchés agricoles et la souveraineté alimentaire. Placée sous la Présidence de Sophie Primas, cette table-ronde a également donné la parole à Sébastien Windsor (Président de l'Assemblée permanente des chambres d'agriculture) et à Thierry Pouch (Chef du service Études, références et prospective de l'APCA). Cette intervention avait pour objectif de proposer une analyse sur le commerce extérieur de l'UE-27 et da France dans le domaine agroalimentaire, en insistant notamment sur les relations commerciales entretenues avec la Russie et l'Ukraine. Le compte rendu de cette audition est disponible ici : https://www.senat.fr/compte-rendu-commissions/20220314/ecos.html#toc3 ; la vidéo de l'audition est disponible ici : https://videos.senat.fr/video.2870723_62 3095a921464.table-ronde-sur-l-impact-de- la-guerre-en-ukraine-sur-les-marches-agr icoles-et-la-souverainete-alimen |
| Keywords: | Agricultural sectors, Agri-food trade, Competitiveness, Russia, Filières agricoles, Commerce agroalimentaire, Compétitivité, UE-27, France, Russie, Ukraine |
| Date: | 2022–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03942532&r=int |
| By: | Kim, Kyoung You (Korea Institute for Industrial Economics and Trade); Cho, Cheul (Korea Institute for Industrial Economics and Trade) |
| Abstract: | Due to the large proportion of emissions which the transportation sector accounts for and the comparative ease with which emissions from this sector can be managed, key countries are tightening emissions regulations in the transportation sector. To this end, various proclamations have been made and many policies have been proposed. Korea has announced robust measures to achieve a carbon-neutral automotive sector by 2050. But carbon neutrality regulations put in place during the transition from ICE vehicles to electric-powered vehicles must consider Korea’s industrial competitiveness and the global market strategies of Korean companies. As Korea’s automotive sector relies heavily on foreign markets, carbon neutral strategies must track international trends. At the same time, the country needs to develop and pursue appropriate strategies that will minimize negative impacts to its domestic industries. This paper explores measures to accelerate growth in the industrial ecosystem of the electric-powered vehicle sector while also supporting a smooth transition to carbon neutrality. |
| Keywords: | automotive industry; auto industry; exports; vehicle exports; carbon neutrality; climate change; emissions; electric vehicles; industrial structure; net zero; environmental policy; industrial policy; industrial strategy; export policy; export strategy; innovation; innovation policy |
| JEL: | E22 E23 E61 F02 F13 F23 F64 L16 L22 L52 L53 L62 O33 O38 Q52 Q55 Q58 |
| Date: | 2021–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietia:2021_017&r=int |
| By: | Akihito Asano; Michiru Sakane |
| Abstract: | When some sectors are more heavily protected than others, will removing lightly protected sectors' tariffs improve welfare? We argue that this second-best question is highly relevant in Japan, wherein its government made some exceptions to the across-the-board tariff elimination during the Trans-Pacific Partnership negotiations. We have calibrated a specific factor model with multiple import-competing sectors to the 2015 Japanese economy and conducted some counterfactual exercises. Although the partial tariff removal policy in question barely affects Japanese welfare, when it is combined with the agricultural sector tariff removal (across-the-board tariff elimination) the effect on Japanese welfare is made positive. Furthermore, the positive welfare effect more than doubles if it is combined with the removal of the subsidy in the agricultural sector. Both of these findings indicate the severity of the existing distortion stemming from the Japanese agricultural sector protection as well as the importance of lowering the protection to render the non-agricultural sector tariff removal meritorious. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:tcr:wpaper:e177&r=int |
| By: | Vincent Chatellier (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | This hearing by the Senate's Economic Affairs Committee was part of the production of a report entitled "The Competitiveness of the French Farm" (https://www.senat.fr/rap/r21-905/r21-9051.pdf). At the request of the senators who drafted this report (Laurent Duplomb, Pierre Louault and Serge Mérillou), the purpose of this intervention was to propose an analysis of France's foreign trade in the agri-food sector, with a particular focus on five products: cow's milk, chicken, wheat, tomatoes and apples. |
| Abstract: | Cette audition par la Commission des Affaires économiques du Sénat s'inscrit dans le cadre de la production d'un rapport ayant pour titre « La compétitivité de la ferme France » (https://www.senat.fr/rap/r21-905/r21-9051.pdf). A la demande des sénateurs, rédacteurs de ce rapport (Laurent Duplomb, Pierre Louault et Serge Mérillou), cette intervention avait pour objectif de proposer une analyse sur le commerce extérieur de la France dans le domaine agroalimentaire, en ciblant plus particulièrement 5 produits : le lait de vache, le poulet, le blé, les tomates et les pommes. |
| Keywords: | Agricultural sectors, Competitiveness, Trade, Milk, Wheat, Chicken, Tomatoes, Apples, Filières agricoles, Compétitivité, Echanges, Lait, Blé, Poulet, Tomates, Pommes |
| Date: | 2022–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03942473&r=int |
| By: | Luca Pieroni; Melcior Rosselló Roig; Luca Salmasi (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Gilberto Turati (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore) |
| Abstract: | We estimate the effect of granting legal status to immigrant women on voluntary abortions. We exploit the 2007 EU enlargement as an exogenous shock to legal status for Romanian and Bulgarian women, considering Italy as a destination country. Using a standard Difference-in-Differences model, we estimate a decline between 60% and 70% in voluntary pregnancy termination (VPT) rates for the new EU citizens from the two Eastern countries. We also introduce a novel framework to separate the total effect of the enlargement into a “citizenship” effect due to (legal or illegal) migrants already present in Italy and a “selection” effect due to new flows of immigrants. We show that the findings are robust to several alternative explanations. The drop in abortions points to legal status as a way to empower immigrant women. |
| Keywords: | Immigration, Abortions, Legal status, EU Enlargement. |
| JEL: | F22 K37 I12 J13 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie1:def126&r=int |
| By: | Ahrens, Achim (Economic and Social Research Institute, Dublin); Beerli, Andreas (ETH Zurich); Hangartner, Dominik (Stanford University); Kurer, Selina (ETH Zurich); Siegenthaler, Michael (ETH Zurich) |
| Abstract: | Refugees, and immigrants more generally, often do not have access to all jobs in the labor market. We argue that restrictions on employment opportunities help explain why immigrants have lower employment and wages than native citizens. To test this hypothesis, we leverage refugees' exogenous geographic assignment in Switzerland, within-canton variation in labor market restrictions, and linked register data 1999–2016. We document large negative employment and earnings effects of banning refugees from working in the first months after arrival, from working in certain sectors and regions, and from prioritizing residents over refugees. Consistent with an effect of outside options on wages, removing 10% of jobs reduces refugees' hourly wages by 2.8% and increases the wage gap to similar host-country citizens in similar jobs by 2.2%. Furthermore, we show that restrictions reduce refugees' earnings even after they cease applying. Restrictions do not spur refugee emigration nor improve earnings of non-refugee immigrants. |
| Keywords: | labor market integration, migration, labor market policies, labor market institutions, monopsony, refugees, employment, wages, outside options, employment opportunities |
| JEL: | J08 J31 J42 J61 J68 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15901&r=int |
| By: | Jelnov, Pavel (Leibniz University of Hannover) |
| Abstract: | This paper takes advantage of a natural experiment, in which Soviet Jewish immigrants were quasi-randomly allocated of to the U.S. and Israel. I find that young women who immigrated as children follow similar fertility profiles in the two host countries. In Israel, they are also similar to native-born women by exercising almost no selection into motherhood and postnatal labor force participation. By contrast, and away from native-born American women, immigrants to the U.S. either combine family and career or become low-educated non-working mothers. This non-trivial segregation arises from a combination of the American Dream with origin-determined fertility norms. |
| Keywords: | immigration, Soviet Jews, female labor force participation, immigrant fertility |
| JEL: | J13 J61 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15847&r=int |
| By: | Magli, Martina |
| Abstract: | I provide new empirical evidence on the direct and indirect impact of services offshoring on local employment and wages, using a unique dataset on firms in the UK for the period 2000-2015. Exploiting variation in firms’ services offshoring across labour markets, I show positive aggregate local labour employment and wage elasticity to services offshoring. Spillovers from offshoring to non-offshoring firms explain the positive results, and services offshoring complementary to firms’ production has a larger effect than the offshoring competing with firms’ outputs. Finally, I show that services offshoring widens firms’ employment and wage dispersion within local labour markets. |
| Keywords: | services offshoring; local labour market; spillover effect; quantile analysis |
| JEL: | F10 F16 J20 |
| Date: | 2022–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118048&r=int |
| By: | Davide Furceri; Ms. Elif C Arbatli Saxegaard; Jeanne Verrier; Melih Firat |
| Abstract: | We examine three main channels through which U.S. monetary policy shocks affect firm investment in foreign countries: (1) the balance sheet channel; (2) the financial channel of the exchange rate; and (3) the trade channel. For this purpose, we use quarterly firm-level data for 63 advanced economies (AEs) and emerging market and developing economies (EMDEs) over 1996-2016. Our results suggest an important and independent role for all three key channels. U.S. monetary policy shocks have larger effects on investment for firms that are more leveraged (balance sheet channel), for firms that have a higher share of debt in foreign currency (financial channel of the exchange rate), and for firms that operate in sectors with higher export dependence (trade channel). Back-of-the-envelope calculations suggest that the balance sheet channel is the most important channel of transmission of U.S. monetary policy shocks on aggregate firm investment. |
| Keywords: | U.S. monetary policy shocks; international spillovers; investment; firm heterogeneity.; shock spillover; balance sheet channel; spillover channel; trade channel; level data; Financial statements; Exchange rates; Spillovers; Exports; Exchange rate arrangements; Global |
| Date: | 2022–09–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/191&r=int |
| By: | Claude Crampes (TSE-R - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Nils-Henrik M. von Der Fehr (UiO - University of Oslo) |
| Abstract: | Reaping the full benefits from cross-border interconnection typically requires reinforcement of national networks. When the relevant parts of the networks are complements, a lack of coordination between national transmission system operators typically results in investment below optimal levels in both interconnectors and national infrastructure. A subsidy to financially sustain interconnector building is not sufficient to restore optimality; indeed, even when possible, such subsidisation may have to be restrained so as not to encourage cross-border capacities that will not be fully utilised due to lack of investment in national systems. |
| Keywords: | Electrical grid, Interconnector, Externality, Regulation, Regional, Cooperation |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03942457&r=int |
| By: | Kim, Dongsoo (Korea Institute for Industrial Economics and Trade); Park, Jaegon (Korea Institute for Industrial Economics and Trade); Sakong, Mok (Korea Institute for Industrial Economics and Trade); Cho, Eun Kyo (Korea Institute for Industrial Economics and Trade); Park, Kayoung (Korea Institute for Industrial Economics and Trade); Park, Sohee (Korea Institute for Industrial Economics and Trade); Han, Jung Min (Korea Institute for Industrial Economics and Trade) |
| Abstract: | The purpose of this study is to determine the business conditions of Korean companies in China. For this, a business survey was conducted from October to November 2020 by the Korean Institute for Industrial Economics and Trade (KIET) and the Korean Chamber of Commerce in China. The scale of Korean direct investment in China as well as Korea-China trade has increased rapidly over 28 years since the normalization of Sino-Korean diplomatic relations, but it is necessary to gather basic statistics on Korean enterprises in China in the mid- to long-term. This survey on the business environment and actual conditions of Korean enterprises shall be regularly conducted to establish basic facts and future changes in the business environment. The behavior of Korean companies shall also be studied. The Korea Institute of Industrial Economics and Trade organized a survey on the business environment and actual conditions of Chinese enterprises; the Beijing office of the Korean Chamber of Commerce was in charge of the survey as co-organizer. KIET planned and conducted the survey together with the Korean Chamber of Commerce in China. The survey is divided into written surveys and in-depth telephone surveys. |
| Keywords: | business conditions; employment; China; Korea; business survey; business environment |
| JEL: | D22 L10 L25 |
| Date: | 2021–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieter:2021_004&r=int |
| By: | Bansak, Cynthia; Dziadula, Eva; Zavodny, Madeline |
| Abstract: | This study examines the impact of having a clear path to lawful permanent resident status, or a "green card, " and naturalized citizenship on marital status and spousal characteristics among Chinese immigrants in the United States. A series of U.S. policy changes in the early 1990s made all mainland Chinese immigrants already present in the country eligible for a green card. We examine the effect of those policy changes on Chinese immigrants' marriage market outcomes relative to other East Asian immigrants. Using 1990 and 2000 U.S. Census data, we find that the share of Chinese immigrants who are married increased after they became automatically eligible for a green card. In particular, highly educated Chinese immigrants became relatively more likely to be married with a spouse living with them and relatively less likely to be married with a spouse living elsewhere. This pattern suggests that some Chinese spouses immigrated after their husband or wife received legal status, or spousal chain migration occurred. We also find that highly educated Chinese immigrants benefited in the marriage market in terms of spousal education and earnings, but less-educated Chinese immigrants did not. Meanwhile, less-educated Chinese-born women became relatively more likely to marry a U.S. native. |
| Keywords: | immigration, marriage markets, assortative matching, legal status, China |
| JEL: | J12 J15 K37 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1233&r=int |
| By: | Ali Ubaid (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique); Mazhar Mughal (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique, ESC PAU - Ecole Supérieure de Commerce, Pau Business School); Lionel de Boisdeffre (Institut national de la statistique et des études économiques (INSEE)) |
| Abstract: | This study investigates how the receipt and amount of domestic or international transfers influences household decisions regarding farm investment and the selection of capital and labor-intensive crops. We develop a conceptual framework to postulate that even though recipient households may have the possibility to employ the additional income to raise their agricultural investment, the investment falls in the short run if labor constraints arising from the migrant member's absence are binding and capital accumulation is suboptimal. Employing a set of endogenous treatment estimations, we empirically test this hypothesis on data on 5, 636 rural households from Pakistan. Our findings show a substantial difference between recipient and nonrecipient households in terms of their economic behavior. Recipient households make 99.64% less agricultural investment and obtain 82% less production compared to non-recipient households. The estimates are found to be robust when tested with alternate empirical techniques Heckman Selection and matching. The impact is stronger in case of households which receive domestic transfers, with 99.87% less farm investment and 77% less production than non-recipient households. Remittances result in a decrease in production of both capitaland labor-intensive crops, reflecting a decline in overall farm activity. Similar farm investment and cropping patterns are observed relative to the amount of remittances received. The results are robust to different model specifications and estimation procedures. |
| Keywords: | Migration Remittances Agriculture Investment Cropping Patterns Instrumental Variable PSM., Migration, Remittances, Agriculture Investment, Cropping Patterns, Instrumental Variable |
| Date: | 2023–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03930637&r=int |
| By: | Simone Bertoli (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, IRD - Institut de Recherche pour le Développement, IUF - Institut Universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Morgane Laouénan (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po); Jérôme Valette (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, UP1 - Université Paris 1 Panthéon-Sorbonne, IC Migrations - Institut Convergences Migrations [Aubervilliers]) |
| Abstract: | We provide evidence that Hispanic citizens receive significantly longer sentences than non-Hispanic citizens in the Federal Criminal Justice System in the United States when a higher number of illegal aliens are apprehended along the southwest border. Apprehensions can increase the salience of Hispanic ethnic identity, which is associated with persistent negative stereotypes, and can also deteriorate attitudes toward Hispanics. We rule out concerns that apprehensions might be conveying legally relevant information to judges. Thus, we provide direct evidence for timevarying discrimination toward Hispanic defendants. Our estimated effect is only at play for defendants without a heavy previous criminal record. |
| Keywords: | Immigration, Ethnic identity, Discrimination, Attitudes, Salience, Sentences |
| Date: | 2023–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cdiwps:hal-03960312&r=int |