|
on Transition Economics |
| By: | Mathilde Muñoz |
| Abstract: | This paper studies how differences in labor market regulations shape countries' comparative advantage in the cross-border provision of labor-intensive services, using administrative data in Europe for the last two decades. I exploit exogenous variation in labor taxes and minimum wages faced by exporting firms engaged in a large European trade program. Firms from different countries compete to supply the same physical service in the same location but their employees are subject to different payroll taxes and minimum wages. These rules varied across countries, sectors, and over time. Reduced-form country case-studies as well as model-implied gravity estimates show evidence of large trade responses to lower labor taxes and minimum wages, with an elasticity that is around one. The Bolkestein directive, by exempting foreign firms from all labor regulations in the destination country, would have doubled exports of physical services from Eastern European countries, rationalizing the wave of protests in high-wage countries that led to the withdrawal of the proposal. |
| JEL: | F14 H25 J23 J31 J8 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31876&r=tra |
| By: | Blaziene, Inga; Karnite, Raita; Moskvina, Julija |
| Abstract: | This is a comparative country report of Latvia and Lithuania for the project DEFEN-CE: Social Dialogue in Defence of Vulnerable Groups in Post-COVID-19 Labour Markets. DEFEN-CE is a research project funded by the Directorate-General for Employment, the European Commission (Grant number: VS/2021/0196). The project investigates the experience of various stakeholders with the design and implementation of COVID-19-related policies relevant to work and employment in EU Member States (Finland, Sweden, Netherlands, Germany, Latvia, Lithuania, Czechia, Slovakia, Italy, and Spain) and two candidate countries, Serbia and Turkey. The aim of the project is to identify the role of social dialogue in facilitating policy implementation that addresses the labour market situation of vulnerable groups in the post-COVID-19 labour markets. With this aim in mind, the report seeks to answer three main research questions from a comparative perspective, emphasising similarities and differences between Latvia’s and Lithuania’s pandemic response, industrial relations (with a key focus on social dialogue structures and interactions), policy design, and protection of vulnerable groups. 1. What public policy and social dialogue measures targeting selected vulnerable groups were implemented for employment and social protection during the COVID-19 pandemic between 2020 and 2022? 2. To what extent and how did social dialogue play a role in the implementation of social and employment rights of selected vulnerable groups during the COVID-19 pandemic between 2020 and 2022? 3. What lessons and opportunities does the COVID-19 pandemic yield for strengthening social dialogue in the studied countries? The report mixes analysis and findings based on the construction of country-specific Defence-Databases (one for Latvia and one for Lithuania) and qualitative interviews with national stakeholders. The respective database contains information on almost 60 countries-specific Covid-19 policies that have been gathered from international databases (e.g., Eurofound, Eurostat, and ICTWSS), national and international policy documents and legislation, reports from trade unions and employers’ organisations, and academic literature. The interviews that complement the general information provided from the databases were conducted with representatives from trade unions, employers’ organisations and the government. In total, 10 interviews were done in Latvia, and 10 interviews were done in Lithuania (see Annex 1 and 2). Interview data were analysed based on qualitative content analysis using the DEFEN-CE coding scheme. |
| Date: | 2023–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:qa6yt&r=tra |
| By: | Mengqi Wang; Mrs. Swarnali A Hannan |
| Abstract: | The paper builds a unique industry-level dataset by combining Mexico’s nationally sourced inputoutput data (INEGI) with cross-country sources (WIOD, UN Comtrade). Using this dataset to exploit higher supply linkages across a larger number of industries than what is available in cross-country sources, the paper estimates the trade diversion effect on Mexico’s exports to the U.S. from two episodes, with a focus on the first: the U.S.-China trade tension in 2018 and the U.S. sanctions on Russia in 2014. Difference-in-differences, local projections and few other empirical methodologies are used. For the first episode, the paper finds higher trade diversion effects than estimates in literature. Output tariff plays an important role, and there is some evidence of a positive impact through downstream tariffs. The effects are stronger when nationally sourced input-output data is used compared to those derived from cross-country sources. Importantly, the magnitude of trade diversion across industries does not depend on Mexico’s industry-level trade exposure to the U.S., but rather on the U.S. tariff changes on Chinese goods, the decrease in imports from China, product substitutability with Chinese products, and (weakly) on Mexico’s GVC integration. Similarly, for the second episode, the paper finds positive trade diversion effects. Overall, the findings suggest that trade diversion effect might be higher than previously thought and the proper accounting of dataset and supply linkages makes a difference. |
| Keywords: | input-output linkages; trade diversion; U.S.-China trade tensions |
| Date: | 2023–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/234&r=tra |
| By: | Ning Meng; Feicheng Wang |
| Abstract: | This paper explores an under-researched margin of firms’ export adjustments in response to negative trade policy shocks: export reallocation across markets. Using detailed Chinese customs data spanning from 2000 to 2015 and a difference-in-differences approach, we compare export dynamics between multi-destination exporters that were subject to antidumping (AD) duties and those that were not affected. Our empirical results show that, on average, AD duties reduced firms’ entry into new markets and increased their exit from existing markets. These effects were less pronounced for exports to high-income destinations and high-quality products. Continuing exporters, however, raised their exports to non-AD markets after being affected by AD duties and this effect was stronger for high-income destination exports. Further analysis underscores the role of quality upgrading in explaining the trade-promoting effect of AD duties in third countries. Our findings reconcile the seemingly contradictory trade diversion and tariff echoing effects of AD duties documented in earlier studies. |
| Keywords: | antidumping, multi-destination firms, within-firm adjustment, quality |
| JEL: | F13 F14 F51 F61 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10752&r=tra |
| By: | Sharofiddinov Husniddin; Moinul Islam; Koji Kotani |
| Abstract: | Land reforms have been reported to impact agriculture, economic performances and indicators of countries along with water users and allocations. However, little is known about how land fragmentation (consolidation) in land-reform processes affects water availability. This research investigates a question “how the number of water users is related with irrigation water allocation in land reforms, †hypothesizing that an increase in the number of water users through land fragmentation poses negative threats on the water allocation through a mediation of irrigation types. We conduct empirical analyses for irrigation water demand and availability, utilizing panel data for 25 years from 13 districts in Sugd province, Tajikistan. Two main results are obtained: First, the irrigated areas are main drivers that increase irrigation water demand in comparison to any other factors, and the impact by pump irrigated areas is approximately 1.6 times as large as that by gravity irrigated areas. Second, the increasing number of water users under land fragmentation in Tajikistan tends to reduce irrigation water availability, and the magnitude in reduction under pump irrigation is more significant than that under gravity irrigation. Overall, this research establishes that irrigations and the number of water users through land reforms matter for a change in the water allocation, and the interactions particularly pose the idiosyncratic threats on the irrigation water availability. Thus, it is advisable to reconsider ongoing land-reform policies considering possible negative externality of land fragmentation as well as irrigation for food security and water sustainability in agriculture. |
| Keywords: | Land reform, irrigation water, number of water users, pump irrigation, gravity irrigation |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2023-5&r=tra |
| By: | Kim, Dongsoo (Korea Institute for Industrial Economics and Trade); Jeon, Jeonggil (Korea Institute for Industrial Economics and Trade) |
| Abstract: | As of the end of 2022, Taiwan surpassed both South Korea and Japan in terms of gross domestic product (GDP) per capita, a first since South Korea caught up with and then surpassed Taiwan 19 years ago. Even as many economies have struggled in the wake of the twin shocks of the COVID-19 pandemic and the Russian invasion of Ukraine, Taiwan achieved steadfast economic growth from 2020 through 2022. The stability of Taiwan’s growth has been all the more remarkable amid the rapid and volatile reconfiguration of global supply chains against the looming backdrop of escalating United States-China tensions. Like South Korea, Taiwan has a heavily export-oriented economy that is also centered chiefly on semiconductors. Taiwan is also similarly dependent on China for both its industries and its trade but has managed to maintain a stable trade balance thus far. Compared to South Korea, the Taiwanese economy is also a more favorable host for small and medium-sized enterprises (SMEs), which contribute significantly to the nation’s competitiveness. The Taiwanese semiconductor industry boasts an evenly balanced ecosystem of chip design, manufacturing, packaging, and testing. The nation’s multiple science parks, led by the one at Hsinchu, are connected by open innovation networks through which researchers can move freely. The political stability of Taiwan has also buttressed its competitive industries, providing effective visions for new industry growth and timely legislative support, notably the most recent law on semiconductors. Taiwan’s self-positioning in trade with China and policy centered on important manufacturing industries, including semiconductors, carries many lessons for South Korea. It is time for Korea to analyze Taiwan’s success and ascertain what makes its Taiwanese competitors so competitive and successful. Thank you for reading this abstract of a report from the Korea Institute for Industrial Economics and Trade! Visit us on YouTube: https://www.youtube.com/watch?v=Q36v30l5CV0 Visit us on Instagram: https://www.instagram.com/worldkiet/ Visit our website: http://www.kiet.re.kr/en |
| Keywords: | Taiwan; Taiwanese economy; exports; semiconductors; chips; supply chains; export competitiveness; innovation; open innovation; economic security; US-China conflict; manufacturing; manufacturing competitiveness; manufacturing innovation; innovation clusters |
| JEL: | F02 F10 F13 F18 F23 F51 F52 O11 O14 O24 O25 O32 O38 |
| Date: | 2023–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietrp:2023_014&r=tra |
| By: | Kahancová, Marta; Brunnerová, Simona; Holubová, Barbora; Martišková, Monika |
| Abstract: | This report is part of the EC-funded research project DEFEN-CE: Social Dialogue in Defence of Vulnerable Groups in Post-COVID-19 Labour Markets (VS/2021/0196). It scrutinizes how social partners influenced COVID-19-related policy responses towards vulnerable groups in the labour market, and whether this experience created opportunities for strengthening social dialogue in general. The empirical focus is on Czechia and Slovakia as representatives of embedded neoliberal countries. This means liberalizing labour market policies during their economic transition starting in the 1990s, but at the same time, anchoring some institutional mechanisms of policy-making, including social dialogue at the national level. The analysis is based on new empirical data in two dimensions: • primary data on policy measures relevant for the vulnerable groups in the labour market, categorized in a standard database of the most important COVID-19 measures relevant for vulnerable groups. • 19 original semi-structured interviews with employer organizations, trade unions, governments, and NGOs in Czechia and Slovakia, implemented in 2022-2023. |
| Date: | 2023–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:cvprx&r=tra |
| By: | Kokas, Deeksha (Nanyang Technological University, Singapore); Lopez-Acevedo, Gladys (World Bank); Vu, Ha (affiliation not available) |
| Abstract: | Are the labor market changes from exports specific to exporting industries, or do they dissipate throughout the economy? To analyze this question, we study the case of Vietnam. Vietnam exported a total of $356B, making it the number 18 exporter in the world in 2021. Recent studies show provinces in Vietnam with greater exposure to tariff reductions observe greater rates of poverty decline and gains in wages and employment. We extend this literature by estimating the impact of exports propagated through domestic production linkages in Vietnam between 2010 and 2019. We find that direct exposure to exports has a limited impact, except for wages. When considering supply chain linkages, the impact on wages and income is more significant, especially for those in foreign sector and in the lowest income bracket. College premium decreases, and the gender wage gap narrows. With respect to employment variables, direct exposure to exports leads to increased employment and reduced inactivity and these findings remain consistent when accounting for supply chain linkages. The gains in employment are concentrated in workers with no schooling, while employment rate falls for more skilled workers. |
| Keywords: | inequality, labor markets, international trade, poverty, jobs |
| JEL: | F16 J16 O19 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16566&r=tra |