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on International Trade |
| By: | Ufer, Danielle J.; Padilla, Samantha; Link, Noah |
| Abstract: | The emergence of new animal product suppliers, new and amended trade agreements, changes in consumer preferences, and growth in consumption among developing markets have influenced the global trade performance and position of U.S. agricultural commodities over the past two decades. Exports represent a significant market for U.S. animal agricultural industries and products, with global market volatility and competition directly affecting U.S. producers. The purpose of this study was to determine the position and competitiveness of U.S. meat, poultry, and dairy exports relative to major competitors from 2000 to 2021. The authors conducted an overview analysis of global animal product trade and U.S. competitiveness in aggregate meat and dairy trade, identifying key competitors, markets, trade events, barriers, and agreements. The U.S. market position and export competitiveness of four major animal products—beef, pork, chicken, and select dairy products—were analyzed using trade indices and export shares. Authors also identified influential market and trade events and trade agreements that affected the U.S. position in the four commodity markets. This report contributes to the understanding of how global changes have affected animal commodities. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Agricultural Finance, Demand and Price Analysis, International Relations/Trade, Livestock Production/Industries, Marketing, Political Economy |
| Date: | 2023–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:ags:usdami:335422 |
| By: | David Crowe; Łukasz Rawdanowicz |
| Abstract: | The paper reviews selected implications of trade integration via global value chains (GVC) and identifies gaps in understanding of GVC risks. Despite recent significant progress, many GVC risks remain unknown. The paper also discusses pros and cons of possible strategies to minimise GVC risks and specific measures that are debated in the literature. None of the proposed strategies is a silver bullet and best measures are likely to vary across products and sectors. Most actions to improve resilience lie with firms rather than governments. There is less controversy about governments taking a more proactive role in co-ordinating data collection, analysing GVC risks and collaborating with private firms to promote standards of conduct. In contrast, there is less agreement about governments using financial incentives, regulatory requirements and direct government control to reshape GVCs. Government intervention risks creating costly distortions without minimising economic volatility and improving national security, and making international co-operation regarding social and environmental goals more difficult. |
| Keywords: | diversification, friend-shoring, global value chains, globalisation, international trade, national security, re-shoring, resilience, strategic dependency |
| JEL: | F10 F12 F13 F51 F52 |
| Date: | 2023–06–23 |
| URL: | https://d.repec.org/n?u=RePEc:oec:ecoaaa:1762-en |
| By: | Usman Qadir (Pakistan Institute of Development Economics Islamabad) |
| Abstract: | The notion that positive trade gaps, or trade surpluses (with exports exceeding imports) are good for the domestic economy is a concept that has its roots in mercantilist thinking[1] of 16th century Europe. Global trading patterns have undergone a shift since then, MNCs and global production networks have come to the fore, and services now accounting for majority of developed country exports, and mercantilist view are no longer in vogue. Despite this trend, negative trade gaps, or trade deficits remain a matter of concern for developing countries such as Pakistan. However, the reasoning behind this view is related to the strain placed on the current account of the domestic economy. |
| Keywords: | Pakistan's Import |
| Date: | 2022 |
| URL: | https://d.repec.org/n?u=RePEc:pid:monogr:2022:2 |
| By: | Huang, Keer |
| Abstract: | As the scope of the rules on subsidies and countervailing measures has expanded from trade to investment, the area of global subsidy regulation is now experiencing new developments as well as challenges. This Perspective calls attention to the need to improve the regulation of OFDI subsidies. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:colfdi:356 |
| By: | Léa Marchal (Centre d'Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne & Institut Convergences Migrations); Guzmán Ourens (Department of Economics - Tilburg University); Giulia Sabbadini (Düsseldorf Institute for Competition Economics) |
| Abstract: | This article shows that wage inequalities between native and immigrant workers depends on the export activity of the employing firm. We build a model with heterogeneous firms and workers showing that white-collar immigrants capture an informational rent in exporting firms that help them close the wage gap with natives. We use French employer-employee data for the manufacturing sector from 2005 to 2015 to support this mechanism. We show that wages react to changes in export intensity when the export destination coincides with the region of origin of immigrant workers |
| Keywords: | Export; Firm; Immigrants; Wage inequality |
| JEL: | F14 F22 F16 |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:mse:cesdoc:23010 |
| By: | Bernard Hoekman; Xinquan Tu; Robert Wolfe |
| Abstract: | China, the EU and the U.S. are the world’s largest traders, and many of the tensions in the trading system arise in the relations among them. Our premise is that reforming WTO is a necessary condition for the organization to be a more salient forum for the three large economies to address trade tensions, and that agreement among these three trade powers in turn is necessary to resolve the problems of the WTO. After a brief discussion of the global challenges that ought to be on the WTO agenda and of the systemic context, we discuss both how China understands WTO reform, and how the other two leading powers see the China problem in the WTO. We consider how the three see transparency, plurilateral negotiations, economic development differences, fisheries and industrial subsidies, WTO working practices, and dispute settlement. We conclude by considering the implications of our analysis for fostering cooperation between the three major trade powers in the WTO. |
| Keywords: | All the best, World Trade Organization, China, policy spillovers, trade conflict, multilateral cooperation, WTO reform, trade agreements, dispute settlement |
| Date: | 2022–09 |
| URL: | https://d.repec.org/n?u=RePEc:rsc:rsceui:2022/59 |
| By: | Yoshimichi Murakami (Research Institute for Economics and Business Administration, Kobe University, JAPAN) |
| Abstract: | This study analyzes the causal effects of the depth of regional trade agreements (RTAs) measured by the coverage and legal enforceability of WTO-plus and WTO-extra policy areas on the production networks trade in all 33 Latin American and Caribbean (LAC) countries from 1990 to 2016, using a structural gravity model. The study constructs a unique dataset on the indexes of the depth, breadth, and core depth of all RTAs in force that include at least two LAC countries, based on a World Bank database on RTAs’ contents. Results indicate that both depth and breadth of RTAs have positive effects on the intra-regional parts and components exports in the LAC region. However, the effects are substantially heterogeneous by the type of agreements and the characteristics of country-pairs. The depth of custom unions among Latin American countries, mainly the Southern Common Market (MERCOSUR), has positive effects, whereas the depth and breadth of plurilateral free trade agreements with developed countries outside the region (e.g., the United States or European countries) have negative effects. These findings are robust to the use of the mirror import data, the use of three-year interval data, and the inclusion of future values that controls for reverse causality. |
| Keywords: | Depth and breadth of regional trade agreements; Parts and components exports; Heterogeneous effects; Latin American and Caribbean countries; Structural gravity model |
| JEL: | F13 F14 F15 O54 |
| Date: | 2023–03 |
| URL: | https://d.repec.org/n?u=RePEc:kob:dpaper:dp2023-09 |
| By: | Hutter, Christian (Institute for Employment Research (IAB), Nuremberg, Germany); Stepanok, Ignat (Institute for Employment Research (IAB), Nuremberg, Germany); Weber, Enzo (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Regensburg) |
| Abstract: | "The war in Ukraine triggered a global trade shock, with German exports to Russia also collapsing abruptly. Using this break, we analyse whether the exports were redirected to other destinations. We divide the world market into three regions: domestic, eurozone, and the rest of the world (ROW). In a panel model of German industries, we find that higher export exposure to Russia meant lower sales to the ROW after the war began. This was offset by higher sales in the eurozone and domestic markets. The effects occurred quickly but later receded. We find no production decline due to the trade shock." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Open-Access-Publikation |
| JEL: | E23 F14 |
| Date: | 2023–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabdpa:202307 |
| By: | Adam, Antonis; Tsarsitalidou, Sofia |
| Abstract: | We examine whether a country leader’s diplomatic visit to the USA affects the Foreign Direct Investment inflow. The literature so far has found inconclusive results regarding diplomatic relations' effect on international flows. We use a dynamic Inverse Probability Weighting Regression Adjustment framework to examine this relationship and estimate the causal effect of foreign visits. Our results indicate that a visit to the US increases the country’s total FDI inflows by up to one percentage point per annum, with a cumulative effect reaching 2.5 percentage points six years after the visit. However, this is a short-run effect as it disappears in the subsequent years. Furthermore, our first-stage results shed light on the profile of the leaders that visit the US. Our findings are consistent with the view that foreign visits act as signals to investors regarding the country’s political risk. |
| Keywords: | FDI; foreign visits; inverse probability weighting |
| JEL: | F21 H80 |
| Date: | 2023–05–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:119368 |
| By: | Görg, Holger (Kiel Institute for the World Economy); Jacobs, Anna (University of Bielefeld); Meuchelböck, Saskia (Kiel Institute for the World Economy) |
| Abstract: | In this paper, we use a novel firm level dataset for Germany to investigate the effect of sanctions on export behaviour and performance of German firms. More specifically, we study the sanctions imposed by the EU against Russia in 2014 in response to the annexation of Crimea and Russia's countermeasures. We find a substantial negative effect on both the extensive and intensive margin of German exports. While the negative effects are strongest for firms exporting products subject to trade restrictions, we provide further evidence on the indirect effects of sanctions. Analysing the impact on broader measures of firm performance, we document that the cost of sanctions is heterogeneous across firms but overall modest. Our results reveal that the negative impact of the shock was concentrated primarily among a small number of firms that were highly dependent on Russia as an export market and those directly affected by the sanctions. |
| Keywords: | sanctions, foreign policy, trade, firm behaviour, Germany |
| JEL: | F1 F14 F51 L25 |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp16146 |
| 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); Guzmán Ourens (Tilburg University [Tilburg] - Netspar); Giulia Sabbadini (DICE - Düsseldorf Institute for Competition Economics - Heinrich Heine Universität Düsseldorf = Heinrich Heine University [Düsseldorf]) |
| Abstract: | This article shows that wage inequalities between native and immigrant workers depends on the export activity of the employing firm. We build a model with heterogeneous firms and workers showing that white-collar immigrants capture an informational rent in exporting firms that help them close the wage gap with natives. We use French employer-employee data for the manufacturing sector from 2005 to 2015 to support this mechanism. We show that wages react to changes in export intensity when the export destination coincides with the region of origin of immigrant workers. |
| Keywords: | Export, Firm, Immigrants, Wage inequality |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:cesptp:halshs-04118839 |
| By: | Pietro Masina |
| Abstract: | At the 47th G7 summit held in Cornwall in June 2021, President Biden announced a US-led multilateral plan to counter the Chinese Belt and Road Initiative (BRI). This plan was named “Build Back Better World” (B3W), mimicking the Build Back Better initiative adopted at home by the Biden Administration to revive the post-Covid American economy. A few months later on 1 December 2021 the European Union launched its own response to the Chinese BRI with a 300-billion-euro project called Global Gateway, seemingly coordinated with the American B3W. This paper locates the two Western initiatives in the context of a global quest for hegemony in which China has successfully challenged the existing geopolitical frameworks in Africa, Latin America and – even more importantly – in East and Southeast Asia. The Belt and Road Initiative was announced by President Xi Jinping in 2013 as a modern Silk Road, making clear China’s ambition to return to its historical role as a world superpower. To improve infrastructure to facilitate world trade (and obviously trade with China) was the official aim of the ambitious plan. After almost a decade since its launch, however, it is evident that the project was not only about infrastructure. It responded to the needs of a rapidly expanding economy in transition from a global manufacturing hub to an industrially advanced country. The BRI simultaneously addressed three major challenges: finding profitable investment opportunities for the immense Chinese financial reserves of foreign currencies; securing strategic commodities; and opening new markets for Chinese exports. The BRI also was (and still is) a major international foreign policy initiative aimed at projecting China into a leadership role in a context of declining American hegemonic power. The American Build Back Better World (B3W) and the European Global Gateway will not only need to compete with China in terms of trade and infrastructure, but also with China’s quest for hegemony that sees its main leverage in her regional prominence in East Asia. |
| Keywords: | Europe in the World |
| Date: | 2022–09 |
| URL: | https://d.repec.org/n?u=RePEc:rsc:rsceui:2022/09 |
| By: | Hong, Sungwoo (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | Based on the findings of the value chain analysis conducted on major Latin American countries, it suggests that these countries may have derived certain economic benefits. This can be attributed to the increased exports to the United States and China, where Latin American countries served as substitute countries for imports during the intensifying competition between the two nations. Amidst the U.S.-China hegemony race and the supply chain disruptions caused by the COVID-19 pandemic, there is a notable shift in focus. Particularly, the United States is actively working to establish secure and stable supply chains, primarily centered around its own country and allied nations, with the intention of reducing dependence on China. As part of this process, the United States advocates for reshoring or near-shoring, which involves relocating production facilities to its home country or neighboring nations. Additionally, the U.S. is implementing various incentives to support this objective. If near-shoring takes place in Latin America, they can be regarded as favorable locations for establishing a foothold to access North America or securing key minerals. Additionally, Latin American countries with substantial backward linkages should be prioritized in trade with the United States. Among them, Mexico and Brazil, which exhibit relatively high levels of backward linkage within Latin America, are considered suitable hubs due to their capacity for generating significant foreign added value in their exports to the United States. |
| Keywords: | GVC; Latin America |
| Date: | 2023–05–25 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:2023_017 |
| By: | Chung, Chul (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Bonggeun (Seoul National University); Chung, Minchirl (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 우리나라가 체결한 많은 자유무역협정(FTA)이 과연 우리 삶의 질을 어떻게 변화시켰는지에 대해 체계적으로 분석한 연구가 흔치 않다. 본 연구는 무역자유화에 따른 수입품목의 다양성 확대와 가격하락에 따른 소비자들의 품질 선택의 폭이 넓어지는 점에 착안하여, 품질 다양성과 소비자의 질적 대응을 중심으로 실증분석을 수행하고 정책시사점을 제시한다. This study investigates the impact of domestic price changes due to external shocks such as trade liberalization or global inflation on quality diversity and consumer welfare. Free trade agreements (FTAs) can reduce the prices of imported goods through tariff elimination or reduction, making it crucial to evaluate academically and in terms of policy how this price reduction affects consumer welfare. In contrast to prior literature on trade liberalization, this study emphasizes the role of quality diversity in explaining its impact on consumer welfare. We focus on how consumers’ qualitative responses to price changes, such as selecting high-quality products when prices decrease due to tariff reductions or responding to price increases due to tobacco taxes by adjusting the quality of their purchases, can influence consumer welfare. This study also provides policy implications regarding the impact of trade liberalization on consumer welfare. Using time-series data on wine and cigarettes in South Korea, this research estimated price elasticities and separated them into consumers’ quantitative and qualitative responses to price changes. The results indicate that the qualitative margin accounts for as much as 40% of the total, demonstrating that consumers’ qualitative responses to price changes are quite significant. We also found a statistically significant consumer behavior mechanism of quality shading in response to price increases for both wine and cigarette consumption, suggesting that consumers’ qualitative responses are as important as their quantitative responses. Moreover, we found that price reductions not only increase the consumption quantity of the same product but also lead to a shift to higher quality products, further enhancing consumers’ welfare. For the first time in the literature, we analyzed qualitative margins by income level and found that the price elasticity is higher for lower-income consumers, and most of it can be attributed to qualitative responses. These empirical findings suggest that consumers can adjust their spending on a particular good through qualitative adjustments while maintaining their overall consumption, particularly in response to rapid inflation. This response mechanism is particularly more effective for low-income households.(the rest omitted) |
| Keywords: | Free trade; trade policy; trade liberalization; consumer welfare; consumer response; product diversity; quality selection |
| Date: | 2023–05–25 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwp:2022_015 |
| By: | KIM, Jongduk (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | This study revisits the definition of trade in services, explores the translation of service statistics into the Korean Standard Industry Classification (KSIC), proposes a method to estimate Korea's services trade by mode of service supply under the WTO trade agreement, and seeks ways to collect data on digital trade in services. It classifies the objectives pertaining to the enhancement of Korea's service trade statistics into short-term, medium-term, and long-term agendas. |
| Keywords: | services trade; mode of supply; industrial classifications |
| Date: | 2023–05–25 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:2023_018 |
| By: | Mary Amiti (Federal Reserve Bank of New York. 33 Liberty Street, New York, NY 10045); Cédric Duprez (National Bank of Belgium and University of Mons); Jozef Konings (Nazarbayev University Graduate School of Business and KULeuven); John Van Reenen (London School of Economics and MIT.) |
| Abstract: | Despite competition concerns over the increasing dominance of global corporations, many argue that productivity spillovers from multinationals to domestic firms justify pro-FDI policies. For the first time, we use firm-to-firm transaction data in a developed country to examine the impact of forming a new relationship with a multinational, and find a TFP increase of about 8% three or more years after the event. Sales to other buyers, trade and customer quality also increase. However, we also document that starting to supply other “superstar firms” such as those who heavily export or are very large also increases performance by similar amounts, even if the superstar is a non-multinational. Placebos on starting relationships with smaller firms and novel identification strategies relying solely on demand shocks to superstar firms support a causal interpretation. A model of technology transfer rationalizes these effects and also correctly predicts (i) falls in post-event markups; (ii) the type of firms who form superstar relationships and (iii) bigger treatment effects from superstars intensive in R&D, IT and/or human capital. In addition to productivity spillovers, we document the transmission of “relationship capabilities” and “dating agency” effects as the increase in new buyers is particularly strong within the superstar firm’s existing network. These results suggest an important role for raising productivity through the supply chains of superstar firms regardless of their multinational status. |
| Keywords: | Productivity, FDI, spillovers. |
| JEL: | F23 O30 F21 |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202306-437 |
| By: | Isaac K. Ofori; Andreas Freytag; Simplice A. Asongu |
| Abstract: | This study examines the contingency and threshold effects of economic freedom in the economic globalisation (EG) and inclusive green growth (IGG) relationship in Africa. Based on macro data for 22 African countries and the Driscoll-Kraay standard errors with fixed effects instrumental variable regression, the following findings are established. First, Africa’s mostly unfree economic setting, conditions EG to reduce IGG. Second, when we disaggregate EG into its financial and trade globalisation components, we find that the IGG-impeding net effect of the latter is rather striking. Third evidence from our threshold analysis suggests that by improving Africa’s mostly unfree economic architecture to 60% (moderately free) or 80% (free), the IGG-deteriorating net effects of EG are mitigated (but not nullified). We conclude that unless effort is made to improve Africa’s economic architecture level, the envisaged IGG gains of economic globalisation might prove elusive. |
| Keywords: | Africa, economic freedom, economic globalisation, inclusive green growth |
| JEL: | F14 F40 O56 Q01 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_10489 |
| By: | Lee, Cheolwon (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Cho Rong (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 본 연구는 러시아와 우크라이나 간 전쟁 발발 이후 EU의 대러시아 제재가 중동부유럽 국가에 미치는 영향을 다각도로 분석하고, 우리의 대중동부유럽 경제관계에 대한 시사점을 도출하는 데 그 목적이 있다. 본 연구는 크게 다음과 같은 세 가지 이슈로 구성되어 있다. 첫째, 중동부유럽 국가가 러시아와 얼마나 밀접한 경제관계를 맺고 있는지, 둘째, 그에 따라 러시아발 지정학적 위기가 중동부유럽 경제에 어떠한 영향을 미치는지, 마지막 셋째, 한국 기업과 정부는 중동부유럽과의 경제관계에 어떻게 대응해야 하는지이다. 현지 진출기업 면담 결과, 러시아-우크라이나 전쟁 발발 이후 중동부유럽 진출 우리 기업의 비즈니스 환경 변화는 공급망 문제, 에너지 가격 급등, 고용난 등의 부문에서 가장 두드러지게 나타난 것으로 드러났다. The Russia-Ukraine war and EU sanctions against Russia are having a negative impact not only on Russia but also on the overall EU economy, and these negative effects are expected to continue into 2023 as the war prolongs. Central and Eastern European countries, which enjoy relatively strong trade, business and energy-related links with Russia, have been hit particularly hard. Central and Eastern European countries bordering Russia and Ukraine are relatively dependent on Russia for energy, and are expected to suffer the greatest economic damage in terms of trade relations. Policies toward Russia in Central and Eastern Europe have maintained various stances depending on country, ranging from Poland, which consistently maintains an anti-Russian stance, to Hungary, a typical pro-Russian country, or have recently undergone a change in stance. Central and Eastern European countries located on the EU border or those close to Russia and have some legacy of past socialist alliances, regardless of their pro-Russian or anti-Russian ties, generally have close economic ties with Russia. Therefore, after the invasion of Ukraine, the EU’s sanctions on Russia will inevitably have a serious impact on the Central and Eastern European countries in various sectors such as trade, investment, and finance as well as the energy sector, which is expected to suffer a direct short-term impact. In 2004 and 2007, Korean companies entered Central and Eastern Europe in large numbers including the four Visegrad countries (Poland, Czech Republic, Slovakia, Hungary), set production bases in Europe, and then made further investments. The Visegrad V4 countries represent the largest export market for Korea in the EU, accounting for 28.3% of its exports to the EU in 2020. As such, Central and Eastern Europe, where Korea has the most active economic cooperation in Europe, is expected to suffer the most serious and diverse negative impacts from geopolitical crises, including the recent Russia-Ukraine war.(the rest omitted) |
| Keywords: | 경제협력; 해외직접투자; 대러시아 제재; 중동부유럽 경제; Economic cooperation; foreign direct investment; sanctions against Russia; Central and Eastern European economy |
| Date: | 2022–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepre:2022_011 |
| By: | Rodrigo Adão; Arnaud Costinot; Dave Donaldson |
| Abstract: | The primary motivation behind quantitative modeling in international trade and many other fields is to shed light on the economic consequences of policy changes. To help assess and potentially strengthen the credibility of such quantitative predictions we introduce an IV-based goodness-of-fit measure that provides the basis for testing causal predictions in arbitrary general-equilibrium environments as well as for estimating the average misspecification in these predictions. As an illustration of how to use our IV-based goodness-of-fit measure in practice, we revisit the welfare consequences of Trump’s trade war predicted by Fajgelbaum et al. (2020). |
| Keywords: | model testing and validation, computational general equilibrium, international trade, economic geography |
| JEL: | C52 F10 R10 E17 C68 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_10484 |
| By: | Fariha Kamal; Jessica McCloskey; Wei Ouyang (Bureau of Economic Analysis) |
| Abstract: | This paper describes the construction of two confidential crosswalk files enabling a comprehensive identification of multinational firms in the U.S. economy. The effort combines firm-level surveys on direct investment conducted by the U.S. Bureau of Economic Analysis (BEA) and the U.S. Census Bureau’s Business Register (BR) spanning the universe of employer businesses from 1997 to 2017. First, the parent crosswalk links BEA firm-level surveys on U.S. direct investment abroad and the BR. Second, the affiliate crosswalk links BEA firm-level surveys on foreign direct investment in the United States and the BR. Using these newly available links, we distinguish between U.S.- and foreign-owned multinational firms and describe their prevalence and economic activities in the national economy, by sector, and by geography. |
| JEL: | F10 F14 F23 |
| Date: | 2022–09 |
| URL: | https://d.repec.org/n?u=RePEc:bea:wpaper:0202 |
| By: | Stefania Miricola; Armando Rungi; Gianluca Santoni |
| Abstract: | In this contribution, we investigate the role of ownership chains developed by multinational enterprises across different national borders. First, we document that parent companies control a majority (58%) of foreign subsidiaries through indirect control relationships involving at least two countries along an ownership chain. Therefore, we hypothesize that locations along ownership chains are driven by the existence of communication costs to transmit management decisions. In line with motivating evidence, we develop a theoretical model for competition on corporate control that considers the possibility that parent companies in the origin countries can delegate their monitoring activities in final subsidiaries to middlemen subsidiaries that are located in intermediate jurisdictions. Our model returns us a two-step empirical strategy with two gravity equations: i) a triangular gravity for establishing a middleman by the parent, conditional on final investments' locations; ii) a classical gravity for the location of final investments. First estimates confirm the predictions that ease of communication at the country level shapes the heterogeneous locations of subsidiaries along global ownership chains. |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2305.12857 |
| By: | Koo, Kyong Hyun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | This study uses worker-level longitudinal panel data and trade data to conduct an analysis of the performance of Korea's employment insurance system in supporting trade-affected workers. We find that the rapid economic growth of China and Vietnam since the 2000s has subjected some Korean industries to heightened import competition. The Korean workers who were employed in these industries in their earlier careers tended to experience a long-term (10-year) decline in the growth rate of labor income and a relative deterioration in their employment security as the probability of involuntary job separation increased. With an increased probability of involuntary job separation, workers in import-competing industries were more likely to receive unemployment benefits. This implies that the unemployment benefit system in Korea was relatively effective in the short term to alleviate employment shocks triggered by trade shocks. Nevertheless, the trade adjustment support function of the unemployment benefit system had certain limitations in that the receipt of unemployment benefits could not ultimately counteract the downward trend in long-term labor income for workers in import-competing industries. In contrast to unemployment benefits, government-supported vocational training holds the potential to increase the long-term earnings of workers more exposed to import competition. However, workers employed in import-competing industries were not more likely to participate in government-supported vocational training; on the contrary, workers in export-expanding industries were more likely to participate in government-supported vocational training. This finding implies that the jobs of workers in import-intensive industries were less likely to be covered by employment insurance than those in export-intensive industries. Consequently, workers in import-intensive industries, who are at greater risk of trade shocks, may be less safeguarded than their counterparts in export-growing industries under the prevailing employment insurance system. |
| Keywords: | Trade Shock; Trade Adjustment Assistance; Unemployment Benefit; Vocational Training |
| Date: | 2023–05–26 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:2023_019 |
| By: | Berger, Axel; Bolmer, Ann-Margret; Gitt, Florian; Olekseyuk, Zoryana; Metz, Marius; Robardet, Guillaume; Schäfer, Julia; Schneider, Marie-Lisa; Schönberg, Frank |
| Abstract: | More than 110 Members of the World Trade Organization (WTO), many of them developing countries and least-developed countries (LDCs), are negotiating a plurilateral Agreement on Investment Facilitation for Development (IFD). In contract to existing bilateral investment treaties that establish sweeping rules on investment protection and liberalisation, the IFD Agreement aims at increasing the transparency, predictability and efficiency of investment frameworks as well as improving inter-governmental coordination and international cooperation on investment matters. In view of the fact that WTO Members aim at concluding the negotiations by mid-2023, discussions are under way on how the IFD Agreement can successfully be implemented in developing countries, and LDCs in particular. The IFD Agreement includes a comprehensive section on Special and Differential Treatment, which grants developing countries and LDCs longer timeframes as well as technical assistance and capacity development to support implementation. The Agreement also foresees so-called needs assessments at the country level to evaluate countries' readiness and support needs to implement the IFD Agreement. While such needs assessments have been extensively used in the context of the WTO Trade Facilitation Agreement (TFA), we lack insights into how such needs assessments can be operationalised in the context of investment facilitation and what kind of implementation challenges are prevalent, in particular in LDCs. To assess implementation gaps, barriers to successful implementation as well as national and international support actions, we conducted pilot needs assessments covering a selected group of IFD Agreement measures with a broad range of stakeholders in three LDCs, namely Lao People's Democratic Republic (Lao PDR), Togo and Zambia. Our pilots indicate that 13 selected provisions of the IFD Agreement have not been sufficiently implemented across the three LDCs. In particular, 64 per cent of analysed provisions have only partially been implement, while the rest have not been implemented at all. These findings underline that, in order to benefit from the IFD Agreement, LDCs need substantial implementation support from the international community. The most striking, commonly identified barriers hindering the full implementation are lack of cooperation and coordination among investment-competent agencies, poor information management for investors as well as limited digitalisation and automatisation. To overcome these barriers, nationally identified actions may focus mainly on the creation of a single information portal for foreign investors and a single-window system to improve authorisation procedures, as well as a clarification of mandates and functions of relevant ministries and institutions. Our research also underlines the importance of a whole-of-government and multi-stakeholder approach. The establishment of a National Investment Facilitation Committee may prove to be an effective instrument to ensure coordination and communication between involved stakeholders. International support should complement national actions with technical assistance and capacity development in investment-related topics, improving information and communication technology (ICT) infrastructures and digitalised processes, as well as fostering the international exchange of best practices. Our pilot needs assessments emphasise that the WTO Secretariat and the negotiating Members should strengthen outreach activities to promote knowledge about the WTO IFD Agreement among national-level stakeholders. In general, our pilots underline that needs assessments are an important instrument for identifying persistent implementation gaps and tailoring technical assistance and capacity development to the demands of Members, especially LDCs. |
| Keywords: | Investment Facilitation, FDI, Investment Agreement, WTO, LDC, investment regime, needs assessments, implementation gaps, technical assisstance, capacity building |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:72023 |
| By: | Hong, Sungwoo (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Seungho (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Jino (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Park, Mi Sook (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Guzmán, Alenka (Universidad Autónoma Metropolitana-Iztapalapa) |
| Abstract: | 본 보고서는 중남미 주요국의 글로벌 가치사슬 구축 현황과 미·중 경쟁이 중남미에 미친 영향을 분석한 연구이다. 이를 위해 중남미 역내에서 일어나고 있는 미·중 경쟁의 양상을 조사하고, 수출부가가치 분해 방법론을 이용해 중남미의 가치사슬을 분석하였다. 분석결과 미·중 경쟁으로 중남미는 미국과의 전방 연계가 더욱 강화되었으며 광업, 농업, 전자전기 등 다양한 부문에서 연계의 정도가 높게 나타났다. 반면 중국과의 전방 연계는 광업만을 중심으로 형성된 것으로 분석되었다. 향후 우리나라가 중남미에서 일어날 니어쇼어링의 기회를 이용하기 위해서는 미국과의 전후방 연계가 높은 멕시코, 브라질과 같은 국가를 거점국으로 고려할 필요가 있다. Competition between the U.S. and China has intensified since the imposition of tariffs in 2018, and can be observed across various sectors. The competition between the U.S. and China, originating in the trade sector, is now expanding into areas such as technology, ideology, and supply chains. As globalization progresses and the global division of labor continues to evolve, the impact of U.S.-China competition becomes increasingly complex and widespread due to the naturally established global value chain involving various stakeholders. This study examines the current state of U.S.-China competition in Latin America and analyzes its effects on the global value chain of the region. Chapter 2 explores the different types of competition between the U.S. and China in Latin America. This is achieved by reviewing their investments in Latin America and public funds, as well as summarizing the recently announced U.S. initiatives in the region. The review shows that U.S. investment in Latin America and ODA aims to create forward links to the United States and China in the value chain of the region. Notably, while the U.S. has prioritized Official Development Assistance (ODA) through development cooperation agencies, China has focused on Other Official Flows (OOF) through state-run banks. However, the United States is likely to encourage private investment due to the limitations of securing ODA resources.In response to China’s initiatives in Latin America, including the Belt and Road Initiative and the China-CELAC Forum, the Biden administration announced a new cooperation initiative for the region. Besides the ongoing challenges of economic growth, poverty, anticorruption, and rule of law in Latin America, the Biden administration’s initiative aims to promote leadership in the areas of environment, labor, and digital economy. Furthermore, the initiative highlights the differences between China’s cooperation efforts and the valueoriented approach promoted by the United States. It serves to check China’s influence, emphasize partnerships with major allies, international organizations, businesses, foundations, and civil society, and promote a multilateral approach. (the rest omitted) |
| Keywords: | 경제안보; 경제협력; economic security; economic cooperation |
| Date: | 2022–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieppa:2022_021 |
| By: | Ghulam Mustafa (Pakistan Institute of Development Economics); Saqib Hussain (Pakistan Institute of Development Economics) |
| Abstract: | Lowering exports is considered as one of the paramount reasons of widening trade deficit of Pakistan, which has become a long-standing challenge that country is facing since the beginning of the century. During the last two decades, the contribution of exports in GDP has been declined from 16 to 10% (World Bank, 2021). If we look at Pakistan’s share in global trade, it is dropped from 0.15% in 2005 to 0.12% in 2021. Export competitiveness of Pakistan is shrinking, while the competitors like Bangladesh, India, and Vietnam are experiencing expansion in export competitiveness. The stagnancy in Pakistan’s exports brings about a number of challenges like increasing current account deficit, burden of foreign debt, exchange rate, and other macroeconomic problems (Government of Pakistan, 2021-22; Defever et al., 2020). Various reasons of declining export are suggested by the economists and researchers. To gather concrete evidence, a comprehensive desk review or literature review is required to unleash what factors are bringing down Pakistan’ exports. For that purpose, the underlying piece of research aims to weave up a review of existing literature on exports and unfolds the significant factors which influence exports. |
| Keywords: | Exports Stagnant, Literature Review |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:pid:kbrief:2023:99 |
| By: | Cho, Seung Jin (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Shin, Minlee (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 한국과 호주는 핵심광물과 수소 분야의 상호보완적 경쟁력을 바탕으로 양국간 협력 필요성이 증대되고 있다. 본 보고서에서는 호주의 핵심광물 및 수소 분야 정책과 대외협력 현황을 분석하였다. 이를 바탕으로 한국과 호주의 핵심광물 및 수소 분야의 공급망 협력 방안을 도출하였다. The U.S.-China rivalry and COVID-19 have increased the supply chain's vulnerability and reshaped the global value chain. The weaponization of resources, such as Russia's natural gas export restrictions in response to the war in Ukraine, demonstrates that the government must take urgent measures to stabilize the supply chain. Korea relies entirely on critical minerals such as lithium, cobalt, nickel, and rare earths from other countries because these minerals are essential for the electric vehicle and secondary battery industry. Moreover, Korea will increasingly rely on hydrogen imports to achieve carbon neutrality by 2050. Korea and Australia signed a memorandum of understanding on December 2021 for cooperation in the area of critical mineral supply chains, carbon-neutral technology and a clean hydrogen economy. Australia is the world's largest producer of lithium and contains large deposits of other critical minerals such as nickel, of which it has the largest reserves in the world. Australia has a favorable geographical environment for producing hydrogen. Australia also has the advantage of being relatively close to Korea, and is one of the countries expected to become a major hydrogen-exporting country. From Australia’s point of view, Korea offers a stable demand for critical minerals and hydrogen. Therefore, bilateral cooperation to stabilize the supply chain is expected to increase. Accordingly, this study analyzes Australia’s policy on critical minerals and hydrogen, and the current status of international cooperation. Based on this, effective measures to strengthen the supply chain cooperation between Korea and Australia are derived. The Australian government announced its critical minerals strategy in 2019 and 2022. This critical minerals strategy and modern manufacturing initiative were launched to boost the weak indigenous manufacturing sector. The Australian government is also aiming to boost the capacity of downstream industries by leveraging its strengths in the mining sector of critical minerals. This policy is also found in Western Australia’s Future Battery Industry Strategy and Critical Minerals and High-tech Metal Strategy announced by the state government. In addition, the Australian Government has announced the National Hydrogen Strategy in 2019 under the vision of becoming a leading country in the global hydrogen industry by 2030.(the rest omitted) |
| Keywords: | 경제협력; 경제안보; 한국; 호주; 공급망; 핵심광물; 탄소중립; Economic Cooperation; Economic Security; Korea; Australia; Supply Chain; Core Minerals; Carbon Neutrality |
| Date: | 2022–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepre:2022_010 |
| By: | Crescenzi, Riccardo; Ganau, Roberto; Storper, Michael |
| Abstract: | New research shows a positive link between Outward FDI and domestic employment in USA local labor markets where investing companies are located. Job creation at home and abroad are complementary, especially in less developed regions. Investment Promotion Agencies should facilitate active internationalization of domestic firms while reinforcing their local linkages. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:colfdi:350 |
| By: | Christian Dustmann; Yannis Kastis; Ian Preston |
| Abstract: | This paper investigates the relationship between immigration and inequality in the UK over the past forty years. This is a period when the share of foreign-born in the UK population increased from 5.3% in 1975 to 13.4% in 2015. We evaluate the impact immigration had on wage inequality in the UK through two channels: the first is the effect on the earnings distribution of the natives and the second is the effect on the composition of the wage-earning population. We find both effects to be very small. We decompose wage inequality into inequality within the immigrant and native group and inequality between the two groups. We find inequality among immigrants to be consistently higher than inequality among natives. We also examine the impact of immigration on the fiscal budget, and the potentially unequal impact of the ensuing tax implications on natives. In the UK, where immigrants are net fiscal contributors, this is not a factor that aggravates economic inequality. Even though the impact of immigration is found to be small, the way it is perceived across different population groups in the UK varies; a fact mostly attributed to racial and cultural concerns rather than perceived economic competition. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_10486 |
| By: | Kimberly A. Clausing (Peterson Institute for International Economics; University of California, Berkeley); Luis Garicano Bruegel; University of Chicago Booth School of Business (Bruegel; University of Chicago Booth School of Business); Catherine Wolfram |
| Abstract: | Under the 2022 Inflation Reduction Act, the United States has for the first time implemented a methane emissions fee as a backstop to new methane regulations in the oil and gas sectors. The European Union is also implementing methane regulations on fossil energy. Methane is a short-lived but potent greenhouse gas, and reducing it is imperative for limiting global temperature rise to the 1.5°C target. Among the primary sources of methane emissions (including agriculture, fossil fuels, and waste), the oil and gas sectors have the greatest low-cost abatement potential. Clausing and colleagues recommend that the United States and the European Union coordinate their methane reduction policies and eventually impose border adjustments on imports from countries that fail to raise their standards. The aim would be to encourage oil and gas exporters to adopt comparable regulations or, if they fail to do so, pay a border adjustment fee on exports to the two jurisdictions. A US-EU methane border adjustment policy in oil and gas would reduce methane emissions by an estimated 15 to 45 percent worldwide, while having an indiscernible effect on key energy prices US and EU households face. With time, most major energy importers would ideally join the coalition of countries cooperating on both stringent domestic regulations on oil and gas production and border adjustments on any dirty, nonregulating exporters. Such an international agreement would help defuse frictions caused by differing climate policies and increase incentives for ambitious climate policy action worldwide. |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:iie:pbrief:pb23-7 |
| By: | Subhayu Bandyopadhyay; Khusrav Gaibulloev; Todd Sandler |
| Abstract: | The paper presents a two-country model in which a destination country chooses its immigration quota and proactive counterterrorism actions in response to immigration from a terror-plagued source country. After the destination country fixes its two policies, immigrants decide between supplying labor or conducting terrorist attacks, which helps determine equilibrium labor supply and wages. The analysis accounts for the marginal disutility of lost rights/freedoms stemming from stricter counterterror measures as well the inherent radicalization of migrants. Comparative statics involve changes to those two parameters. For example, an enhanced importance attached to lost rights is shown to limit immigration quotas and counterterrorism actions. In contrast, increased source-country radicalization reduces immigration quotas but has an ambiguous effect on optimal proactive measures. Extensions involving defensive policies and destination-country citizens radicalization are considered. |
| Keywords: | immigration; terrorism; counterterrorism; rights; freedoms; radicalization; labor market equilibrium |
| JEL: | H56 F22 H87 |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedlwp:96348 |
| By: | Opertti, Fabrizio; Volpe Martincus, Christian |
| Abstract: | This Perspective proposes a consistent set of evidence-based strategies to effectively promote FDI in the new, more uncertain global environment characterized by the digital transformation, the introduction of a rising number of policy interventions, the greater awareness of global supply chains' vulnerabilities, and the sustainability and inclusiveness imperatives. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:colfdi:355 |
| By: | Sommerfeld, Katrin |
| Abstract: | Labour markets in the European Union are increasingly facing labour shortages. This ZEW Policy Brief argues that immigration from third countries should be increased to alleviate bottlenecks in the supply of workers to the economy. On the one hand, immigration policies should target high-skilled individuals and those trained in shortage occupations and allow them to search for a job from within the EU. On the other hand, low-skilled employees also appear to contribute to mitigating labour shortages. This is because labour shortages are also present in some low-skill occupations, and because additional immigrant workers could "free up" native workers to work in shortage occupations or push natives into better jobs. Therefore, this ZEW policy brief recommends enabling the immigration of such individuals when they have a job offer available. Broader policy measures should be put into place to facilitate the recognition of foreign qualifications. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewpbs:052023 |
| By: | Wermelinger, Martin |
| Abstract: | FDI can support sustainable development, but benefits are not automatic. This Perspective explores public policy considerations to increase the positive impacts of FDI - ranging from policy coherence, regulatory balance and smart use of tax incentives to the role of investment promotion agencies and the donor community as facilitators. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:colfdi:354 |
| By: | Susan Helper; Abdul Munasib (Bureau of Economic Analysis) |
| Abstract: | Most economic theories of value-chain governance examine one transaction at a time and focus on transaction type as the key determinant of governance. We instead consider several transactions jointly, suggesting that lead firms experience economies of scope in developing relational contracts with suppliers. A key determinant of governance is thus organization strategy (e.g., Toyota collaborates with all suppliers, including commodity-suppliers). Using U.S. Customs data on every component imported by vehicle manufacturers, we find that Japanese vehicle manufacturers have half as many suppliers per part as U.S. vehicle manufacturers and 70 percent longer relationships, even after controlling for product attributes. |
| JEL: | D23 L2 |
| Date: | 2022–04 |
| URL: | https://d.repec.org/n?u=RePEc:bea:wpaper:0195 |
| By: | Gunadi, Christian |
| Abstract: | The provision of healthcare in the United States is increasingly more reliant on immigrant workers. In this paper, I examine the impact of Secure Communities, a major immigration enforcement program that was designed to check the immigration status of all individuals arrested by local police, on staffing in nursing homes. Using difference-in-differences strategy that exploits staggered activation of Secure Communities across U.S counties, I found that the program reduced direct-care staff hours per resident day by 0.082, an approximately 2.2% decline relative to the mean of treatment counties in the baseline period. This finding suggests that stringent immigration enforcement may exacerbate the healthcare worker shortage in the United States. |
| Keywords: | Staffing, Nursing Homes, Secure Communities, Immigration |
| JEL: | K37 J61 I11 J2 J15 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1286 |
| By: | Nath, Ela; Klingebiel, Stephan |
| Abstract: | This Policy Brief examines the geopoliticisation of development cooperation within the Indo-Pacific region. First, we discuss the emergence of Indo-Pacific strategies and how these intersect with geopolitics and development cooperation amongst traditional develop-ment actors such as the United States and the Euro-pean Union. Second, we examine how these narratives have shaped the development cooperation approaches of China and India, both significant geopolitical actors. Third, we look at how these dynamics have played out in key regions of the Indo-Pacific, especially Southeast Asia, South Asia, and the Pacific Islands. We argue that while geopolitical competition brings opportunity to these regions, this opportunity needs to be strategically managed to deliver positive development outcomes. Geopolitics has always been a factor in development debates and development cooperation historically, and we should not expect this to change (Power, 2019; Liao & Lee, 2022). In the last decade, this competition has heightened with China's global rise - economically, strategically, and geopolitically. As China became perceived as a potential competitor to traditional global and regional powers such as the United States, the European Union, Japan, or Australia, we saw a rise in strategies to manage, balance, or counter this rise. Consequently, emerging Indo-Pacific frameworks and strategies are shaping and dominating the discourse on global geopolitics, including development cooperation. As a result of sharp geopolitical competition, develop-ment cooperation has become a contested space. China's powerful rise and the subsequent proliferation of Indo-Pacific strategies to counter this rise are key drivers of this dynamic. While this competition can breed division, between and within countries and regions, it can also give rise to increased multipolarity, partner country agency, and positive competition towards development outcomes. Competition and the numerous new strategies, resources, and initiatives that come with it, can offer opportunity for partner countries to secure resources and commitment toward their own development agenda. Rather than being "forced" to choose sides, countries and regions can and are using geostrategic competition to their advantage. Competition provides choice, a seat at the table, and opportunities for decision-making. However, taking ownership and direction over these strategies and resources can challenge partner countries and regions. Hedging is one option but carries risks, especially when politics get in the way, and development gains may be subsequently compromised. While there is a plethora of Indo-Pacific strategies that articulate visions for the region and ways powers should strengthen economic, diplomatic, security, and development ties with the Indo-Pacific countries, Indo-Pacific countries themselves should also have their own strategies, which outline their vision and objectives for engagement with great powers and other actors who seek and vie for their partnership. |
| Keywords: | Indo-Pacific region, China, India, development policy, development cooperation, foreign aid, geopolitics, USA, EU, Germany |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:82023 |
| By: | Vlados, Charis (Democritus University of Thrace, Department of Economics) |
| Abstract: | This integrative review introduces the correlative and evolutionary perspective of SWOT as a strategic analysis mechanism of geoeconomics. We use the Regional Comprehensive Economic Partnership (RCEP) as a case study. Thus, we establish the emerging challenges and threats by correlating the comparative strengths and weaknesses of the RCEP, its members, and the global system. We conclude that this evolutionary approach of SWOT in geoeconomics can contribute to a holistic understanding of the current phase of the new globalization. It appears that evolutionary geoeconomics studies dialectically opposing views and interests. In this direction, we find that the vision and ambitions of the RCEP do not delve into significant socioeconomic depth compared to other multilateral organizations. This fact poses strategic risks to this new trade bloc’s longevity and socioeconomic sustainability. At the same time, we examine how these geostrategic dimensions are linked to the gradual construction of the broader framework of the new perspective of global socioeconomic development. |
| Keywords: | Evolutionary Geoeconomics; Correlative SWOT Analysis; RCEP; Socioeconomic Development; Global Liberalism |
| JEL: | B52 F59 |
| Date: | 2023–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:ris:duthrp:2023_001 |
| By: | Destek, Mehmet Akif; Sohag, Kazi; Aydın, Sercan; Destek, Gamze |
| Abstract: | It is well acknowledged that achieving sustainable development goals without negatively impacting a country's economic activity is complicated. The question of whether foreign or domestic capital can be used to address the financial demands of the nations who lack the financial resources for a green transformation should now be resolved. Based on this, the main goal of this research is to analyze the impacts of domestic and foreign capital on carbon emissions for a heterogeneous panel of 42 countries for the period from 1990 to 2017. Aside from capital accumulation, the environmental impact of elements such as economic growth, urbanization, trade openness, and energy usage are also studied. The newly developed quantile via moment approach is utilized to isolate the impacts according to the countries' emission levels. Finally, the impact of these variables on the recently constructed sustainable development index is investigated in order to ensure its robustness. The findings of the study reveal that the environmental efficiency of domestic capital accumulation in countries with low emission levels is higher than in countries with high emission levels. Foreign capital, on the other hand, has no substantial effect on emission levels in all quantiles. |
| Keywords: | Stock market capitalization; foreign direct investment; carbon emissions, sustainable development |
| JEL: | Q5 Q58 |
| Date: | 2022–09–21 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:117551 |
| By: | Park, Joungho (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kang, Boogyun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Hyun, Seungsoo (Korea Institute for National Unification); Jeh, Sunghoon (Hankuk University of Foreign Studies) |
| Abstract: | This study comprehensively examines the development of Russia's strategic relationship with China amidst intensifying strategic competition among the United States, China, and Russia. Specifically, we analyze the fundamental meaning and direction of Russia's strategy toward China in the process of shaping a new global order, and the key features and characteristics of cooperation between the two countries in a wide range of fields spanning politics, diplomacy, security, military, economy, society, and culture. Accordingly, this research aims to draw valuable policy insights for Korea based on evaluation of the direction and level of Russia-China cooperation from the Russian perspective. In this respect, this study is composed of the following four parts. Part II examines Russia's perception of China and its policy direction, as well as evaluates the prospects of Russia-China relations. Part III conducts an in-depth analysis of the opportunities and constraints associated with Russia-China cooperation in the fields of advanced technology, energy, and finance, which are key strategic areas for strengthening Russia's economic security amidst intense Western sanctions against its economy. In Part IV, we explore the current status and characteristics of cooperation in the fields of education and research, culture and arts, mass media, tourism, etc. Part V presents policy implications for Korea, particularly suggesting promising directions and tasks for the Northern Policy given the major turning point in the changing external environment. |
| Keywords: | Russia-China Relations; US-China-Russia Strategic Competition |
| Date: | 2023–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:2023_020 |
| By: | Tamara Sheldon; Rubal Dua (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | We offer the most comprehensive analysis to date of global plug-in electric vehicle (PEV) subsidies. We accomplish this by estimating vehicle choice models for 23 countries using 2010–2019 sales data and using counterfactual simulations to assess the cost-effectiveness of PEV incentives. |
| Keywords: | Alternative fuels, Carbon market, Clean technology, Climate change |
| Date: | 2023–06–06 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp02 |
| By: | Moon, Jin-Young (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Yoon, Sang-Ha (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Park , Jiwon (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Na, Seung Kwon (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Sunghee (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | ESG, which stands for Environmental, Social, and Governance, has gained significant importance in recent years. Adoption of Paris Agreement and Sustainable Development Goals and efforts to recover from COVID-19 have contributed to this global trend. Businesses and regulators are now placing more emphasis on the sustainability of economic activities and transparent disclosure of ESG information. In light of this, our study focuses on examining global ESG policy trends and supply chain due diligence regulations. We also compare ESG scores of firms across major countries and analyze the impacts of ESG performances on employment and productivity. Based on our findings, we aim to provide recommendations and implications for the government and private sector to address ESG in practice. |
| Keywords: | ESG; Sustainability; Supply Chain Due Diligence; ESG Scores |
| Date: | 2023–06–02 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:2023_021 |