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on International Trade |
| By: | Akin-Olagunju, O.; Yusuf, S.; Okoruwa, V. |
| Abstract: | The importance of Sanitary and Phytosanitary (SPS) standard stems from its usefulness in ensuring plant, animal and human safety. However, stringency and multiplicity of the export standards stand in the way of achieving gains of trade globalization and true competitiveness by developing countries that are mostly exporters of primary agricultural produce. To this end, this study analyzed the effect of stringency of SPS standards on the competitiveness of cocoa exporters from the perspectives of individual importing countries and harmonized standards. The study found out that the increasingly stringent global standards improved trade rather than hampering it, exporting countries lost huge revenue in the absence of harmonization and exporters competitiveness was dependent on market type and scale of trade. The study recommended that cocoa exporting countries should take care of hindrances to supply-side factors, engage in country and market-specific negotiations on standards harmonization at the WTO and get involved in inter-governmental engagements. Keywords: SPS measures, harmonization, competitiveness, cocoa, international trade JEL: C23, F14, F18, Q17, Q18 Acknowledgement : |
| Keywords: | International Relations/Trade |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277463&r=int |
| By: | Donal Smith; Christine Arriola; Caitlyn Carrico; Frank van Tongeren |
| Abstract: | This paper provides estimates of the potential trade effects of an exit of the United Kingdom (UK) from the European Union (EU) on exports and production at the sectoral level as well as GDP in the Netherlands. Owing to the high uncertainty regarding the final trade agreement between the negotiating parties, the choice has been made to assume a worst case outcome where trade relations between the United Kingdom and EU are governed by World Trade Organization (WTO) most favoured nation (MFN) rules. In doing so, it provides an upper bound estimate of the potential negative economic impact stemming from disruptions in trade. Any final trade agreement that would result in closer relationships between the United Kingdom and the EU could reduce this negative impact. Simulations using the METRO model suggest that from an increase in tariff and non-tariff measures (NTM’s) Dutch exports to the UK would fall by 17% and GDP declines by 0.7% in the medium term compared to baseline. This effect is from the trade channel absent any change in foreign direct investment (FDI) or productivity. The Dutch agri-food sector would experience a 22% fall in its UK exports. There are some sectors that gain from the export opportunities provided by Brexit, notably financial services and transport. |
| Keywords: | Brexit, computable general equilibrium model, European Union, international trade, METRO model, Netherlands, sectoral economic effects |
| JEL: | C10 C68 F13 F14 |
| Date: | 2018–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1518-en&r=int |
| By: | Mankan M. Koné; Lota D.Tamini; Carl Gaigné |
| Abstract: | This paper aimed to extend previous real option models to features of multinational firmsÕactivities such as market competition and trade barriers. Few researchers have studied multinationalsÕ optimal switching time from export to FDI using real options, and those who have done so have ignored trade policies and strategic interactions between firms. Yet,the presence of local competitors and trade costs influences the option value of waiting. We find that FDI in host countries with uncertain demand, strong competition and few barriers to trade will likely to be delayed with respect to immediate investment. In terms of policy implications, we find that the trade and competition policies of host countries have lower deterrent effects on FDI when uncertainty is reduced. |
| Keywords: | Foreign Direct Investment; Imperfect Competition; Trade Liberalization; Real Options |
| JEL: | F23 D21 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:creacr:2017-03&r=int |
| By: | Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Based on the ‘Prebisch–Singer’ hypothesis, a strand of literature has emerged that focuses on the phenomenon of commoditisation and ‘commodity traps’ in development. Following Kaplinsky (2006), we revisit the hypothesis on a country’s terms of trade in manufacturing exports and imports. Offering high-quality products and targeting ‘niche’ markets in high-income countries are beneficial strategies for developing countries to improve their terms of trade and to escape a potential ‘commodity trap’. Barriers to entry via standards in the importing countries might even support such strategies. Non-tariff measures (NTMs) such as technical barriers to trade (TBTs) and sanitary and phytosanitary measures (SPS) are usually implemented to increase the quality of products, the production procedure or environmental and animal health in the importing countries. Based on a gravity framework controlling for multilateral resistance over the period 1998-2014, it is shown that compliance with these measures reduces the negative impact of commoditisation on their terms of trade. |
| Keywords: | terms of trade, product quality, commodity trap, commoditisation, non-tariff measures, technical barriers to trade, sanitary and phytosanitary measures |
| JEL: | F14 F13 C23 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:153&r=int |
| By: | Sabine Duvaleix-Treguer (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Charlotte Emlinger (Centre d'Etudes Prospectives et d'Informations Internationales); Carl Gaigné (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST, CREATE - CREATE); Karine Latouche (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST) |
| Abstract: | The paper questions the impact of geographical indication labels on firm export competitiveness in the French cheese and cream industry. We use firm level data from the French custom and an original dataset of firms and products concerned by Protected Designations of Origin (PDO). Our estimations show that PDO labeling allows firms to increase their price by 11.5% on average. Moreover these products are perceived by consumers as products of better quality than non-PDO products. Regarding trade margins, while the effect on trade volume (the intensive margin of trade) is not significant, PDO labeling increases the probability of serving a foreign country (the extensive margin of trade). Our estimations show that exports of PDO products would increase by 11.4% if non-EU consumers value PDO label as much as EU consumers. |
| Keywords: | product quality,trade margins,geographical indication,PDO,price |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01925630&r=int |
| By: | Mankan M. Koné; Carl Gaigné; Lota D. Tamini |
| Abstract: | We investigate whether and to what extent agricultural uncertainty drives the location of capital in the food processing industry. We show that when a risk-neutral food company has the possibility of exercising market power as both seller and buyer, the impact of agricultural uncertainty on the decision of producing abroad depends on whether the multinational makes the pricing/production decision before or after uncertainty is revealed. An econometric study is then needed to identify the mechanisms at work. The theoretical implications are tested by using a gravity model on European countriesÕ and the United StatesÕ outward FDI stock, detailed by destination country in the agri-food industry. Overall, our results suggest that a higher agricultural volatility in the home country triggers investments abroad and that a host country exhibiting low agricultural uncertainty attracts relatively more foreign capital. Moreover, international differences in agricultural uncertainty generate incentives for Vertical disintegration by food companies, especially when trade costs are sufficiently low. |
| Keywords: | Multinational firm; Uncertain input supply; Vertical fragmentation; Trade costs |
| JEL: | F23 Q13 L23 L66 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:creacr:2017-04&r=int |
| By: | Emanuel Ornelas; Marcos Ritel |
| Abstract: | We use an empirical gravity equation approach to study how nonreciprocal trade preferences (NRTPs), enacted mainly through the Generalized System of Preferences, affect the exports of the beneficiary nations. In line with existing studies, the average trade effect stemming from nonreciprocal preferences is highly unstable across specifications. However, once we allow for heterogeneous effects, results become robust and economically important. Specifically, NRTPs have a strong effect on the exports of beneficiaries when they are members of the World Trade Organization and are very poor. Not-so-poor beneficiaries also expand foreign sales, but only if they are not WTO members. For all others, the average export effects of NRTPs are mute. |
| Keywords: | trade preferences, gravity equation, trade policy, nonreciprocity, GSP |
| JEL: | F13 F14 F15 F55 O19 O24 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7304&r=int |
| By: | Lin, J. |
| Abstract: | There is hardly a debate surrounding the influence of institutional quality on a country s economy. In the last few decades, many studies have attempted to assess the effects of institutions on international trade. Yet, few studies have attempted to look at single commodities. We study the role of different institutional actors on global trade of coconuts products. The coconuts trade has its history from colonial roots and has recently been changed by the trend of branding coconuts as a healthy alternative to other oil fats. We utilize an extended gravity model to measure how institutions affect the trade performance of 26 coconut exporting countries to the top three coconut importing countries. We fail to find a significance when measuring the effect of the quality of domestic institutions on the coconut trade flow. At the same time, foreign institutions can have an influence through agreements such as the EU-ACP partnership. Acknowledgement : I would like to thank Prof. Dr. Stephan von Cramon-Taubadel for his guidance and encouragement thourghout the process of this paper. I would also like to acknolwedge Luis de los Santos for the many inspiring discussions that we've had during the past year. Thank you to Dela-Dem Doe Fiankor and Eva Hasiner for assistsing me on the specifics of the gravity model. Thanks also to everyone at GlobalFood RTG for all the thought provoking discussions! |
| Keywords: | International Relations/Trade |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277012&r=int |
| By: | Andre Jungmittag (European Commission - JRC) |
| Abstract: | Based on a review of recent economic theories dealing with the internationalisation of firms and a discussion of necessary adaptations of these theories to special features of the retail trade sector, this technical report offers an empirical analysis of the determinants of the extensive and intensive margin of retail trade FDI activities of 42 countries in 23 EU countries. Special attention is paid within a gravity model framework to the impact of service trade restrictions on both margins of retail trade internationalisation. The use of hurdle models for count data to estimate the determinants of the extensive margin takes into account that there are a lot of zero counts for the number of retail trade firms controlled by a country j in an EU country i. The estimation results for the extensive margin of retail trade FDI activities show that service trade restrictiveness increases the hurdle that at least one firm from country j controls a retail trade firm in country i. Once one firm from country j has been able to jump over this hurdle, the existing service trade restrictions are neither a relevant factor for the number of following firms from country j in that market nor for the average employment and sales of these firms. |
| Keywords: | Economic integration, multinational enterprises, foreign direct investment, entry modes, location decisions, retail trade, service trade restrictions, count data model, hurdle model |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc113769&r=int |
| By: | Dani Rodrik |
| Abstract: | Many of the exports of developing countries are channeled through global value chains (GVCs), which also act as conduits for new technologies. However, new capabilities and productive employment remain limited so far to a tiny sliver of globally integrated firms. GVCs and new technologies exhibit features that limit the upside and may even undermine developing countries’ economic performance. In particular, new technologies present a double whammy to low-income countries. First, they are generally biased towards skills and other capabilities. This bias reduces the comparative advantage of developing countries in traditionally labor-intensive manufacturing (and other) activities, and decreases their gains from trade. Second, GVCs make it harder for low-income countries to use their labor cost advantage to offset their technological disadvantage, by reducing their ability to substitute unskilled labor for other production inputs. These are two independent shocks that compound each other. The evidence to date, on the employment and trade fronts, is that the disadvantages may have more than offset the advantages. |
| Keywords: | GVCs, economic development, international trade |
| JEL: | O33 O40 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7307&r=int |
| By: | Mark Thissen (Netherlands Environmental Assessment Agency (PBL)); Maureen Lankhuizen (Vrije Universiteit Amsterdam); Frank (F.G.) van Oort (Erasmus University Rotterdam); Bart Los (University of Groningen); Dario Diodato (Harvard Kennedey School) |
| Abstract: | This paper introduces the EUREGIO database: the first time-series (annual, 2000-2010) of global IO tables with regional detail for the entire large trading bloc of the European Union. The construction of this database, which allows for regional analysis at the level of so-called NUTS2 regions, is presented in detail for its methodology and applications. The tables merge data from WIOD (the 2013 release) with, regional economic accounts, and interregional trade estimates developed by PBL Netherlands Environmental Assessment Agency, complemented with survey-based regional input-output data for a limited number of countries. All used data are survey data and only non-behavioral assumptions have been made to estimate the EUREGIO dataset. These two general rules of data construction allow empirical analyses focused on impacts of changes in behavior (of economies, firms, policies) without endogenously having this behavior embedded already by construction. The tables are publicly available to the research community, from the Dutch government open data website. In this project, both a regional trade database, and production and consumption data of different actors in different regions, were used. The focus is thus intentionally on the regionalization of both trade and the regional use and supply of products by different economic actors. The paper is organized around the successive steps of the data construction: (1) adjustment of WIOD, (2) regional information, (3) Construction of tables, (4) conclusions on the usefulness of this type of regional IO tables with an overview of current applications of the EUREGIO database. |
| Keywords: | Input-output analysis; European regions; trade; relatedness |
| JEL: | P25 R13 R15 F14 F15 |
| Date: | 2018–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20180084&r=int |
| By: | Asche, Frank (Institute for Sustainable Food Systems and School of Forestry Resources and Conservation, University of Florida and Department of Industrial Economics, University of Stavanger); Straume, Hans-Martin (Department of Economics, BI Norwegian Business School); Vårdal, Erling (University of Bergen, Department of Economics) |
| Abstract: | In recent years trade with highly perishable agricultural products like fresh fish, berries and cut flowers has increased substantially. The perishability of these products appears to challenge conventional wisdom when it comes to food trade, which emphasizes the importance of large shipments to reduce transportation costs. In this paper, gravity models and several margins of trade are estimated for the trade with fresh salmon, a highly perishable product. The results indicate that increased geographical distance have a larger negative effect than what is generally reported in the literature. Most interestingly, the number of exporters and the shipment frequency increase while there is little impact on shipment size when trade increase. Hence, freshness and possibly avoidance of losses by not selling products by the expiration date seem to be emphasized rather than economies of scale in transportation. |
| Keywords: | gravity model; transaction level data; margins of trade; perishable products |
| JEL: | F14 Q22 |
| Date: | 2018–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bergec:2018_004&r=int |
| By: | Njangang, Henri; Nawo, Larissa |
| Abstract: | Despite the large volume of studies on the direct impact of foreign direct investment on economic growth, the results remain inconclusive. This has led researchers to examine the channels through which FDI affects economic growth. Evidence suggests that institution quality can improve economic growth by increasing foreign direct investment in the host countries. As governance quality is improving in African countries during the last decade, the aim of this study is to investigate the relationship between foreign direct investment, governance quality and economic growth in 51 African countries over the period 1998-2015. The empirical evidence is based on Generalized Method of Moments. The following findings are established. First, there is an unconditional positive effect of foreign direct investment on economic growth in African countries. We also find a positive and significant relationship between governance quality and economic growth. Second, these findings are still robust when we use the composite governance quality indicators. Three, when regards at interaction terms between governance quality and foreign direct investment, we find a convincing evidence that governance quality moderate favorably the effect of FDI on economic growth. Four, the moderate effect of governance quality on foreign direct investment and growth nexus still robust with composite governance quality indicators. Overall this study has established net direct positive and significant effect of foreign direct investment on economic growth and that this effect is enhanced by good governance. The major implication from our study is that African countries should improve their governance quality to benefit more from FDI in terms of achieving better growth outcomes. |
| Keywords: | FDI, governance, economic growth, Africa, GMM |
| JEL: | F23 G30 O55 |
| Date: | 2018–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90136&r=int |
| By: | Hanif, Muhammad |
| Abstract: | Pakistan is facing a persistent trade deficit, resulting in foreign debts—leading to compromise on national policies and sovereignty. This study analyzes international trade of Pakistan with a special focus on exports. The analysis is conducted by various lenses including goods traded, trading partners (in exports as well as imports), trading regions (including Australian, Asian, African, European and American regions) and economic cooperation organizations including Organization of Islamic Cooperation-OIC, Economic Cooperation Organization-ECO, and Association of Islamic Developing countries (D-8). International trade Data is extracted from State bank of Pakistan for 12 years (Jul-03 to Jun-15). Findings suggest Pakistan has trade linkages with multiple countries, across various regions, however, the volume of exports is significantly low than potential, as well as, than the volume of imports—resulting in trade deficit. The major import partners are China, UAE, Singapore, Saudi Arabia and Kuwait, while major export-partners of Pakistan are United States of America, China, Afghanistan, United Kingdom, United Arab Emirates and Germany. Pakistan needs to capitalize on less-expensive young population (rising in skills), low cost (indigenous) raw material, basic industrial infrastructure and agricultural and natural resources, etc. to achieve higher economic growth and exports. Policy makers need to encourage exports in less focused regions including Centrel Asia, Middle East, Africa, Australia and South America. To the best of author’s knowledge, this is first ever effort to present a comprehensive analysis of international trade of Pakistan and suggest measures to improve the state of affairs, in recent years. |
| Keywords: | International trade, Exports, Imports, Pakistan |
| JEL: | F10 F14 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55540&r=int |
| By: | Stefan Jestl (The Vienna Institute for International Economic Studies, wiiw); Sebastian Leitner (The Vienna Institute for International Economic Studies, wiiw); Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | This paper analyses the contribution of immigration, trade and FDI to wage inequality of native workers in a sample of old and new EU Member States between 2008 and 2013. Methodologically, we use the regression-based Shapley value decomposition approach of Shorrocks (2013) to filter out their relative importance. We find that globalisation has very mixed effects and generally contributes little to wage inequality. Regarding their relative contributions, immigration and FDI are key contributors to wage inequality in old EU Member States, while trade is the key source of wage inequality in new EU Member States. For immigration, the associated increase in wage inequality is strongest and most consistent among Southern EU Member States. We also show that immigration, trade and FDI have different effects across the wage distribution that are however strongest at its centre. For trade and FDI, we also find sporadic inequality-reducing effects that are strongest at the top of the wage distribution. |
| Keywords: | wage inequality, trade, FDI, immigration, Shapley value decomposition |
| JEL: | J31 O15 F16 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:154&r=int |
| By: | Álvarez, Inmaculada C.; Barbero, Javier; Rodríguez-Pose, Andrés; Zofío, José L. |
| Abstract: | This article examines the extent to which national institutional quality affects bilateral sectoral trade flows, as well as whether the conditioning role of institutions for trade has been waxing or waning with time. Based on a new trade theory framework, we derive a sectoral gravity equation, including novel variables corresponding to the exporter’s labour competitiveness levels, along with importer’s price indices and sectoral incomes, and analyse industry specific bilateral trade flows of 186 countries for the period 1996-2012. We address potential endogeneity and econometric drawbacks by means of Poisson Pseudo-Maximum Likelihood estimation methods. The results indicate that both the institutional conditions at destination and the institutional distance between exporting and importing countries are relevant factors for bilateral trade. Moreover, the effect associated to institutional conditions at destination moderately increases over time. This is a robust outcome across economic sectors, with higher values for agriculture and raw materials than for manufacturing and services. |
| Keywords: | international trade; gravity equation; institutional quality; public policy |
| JEL: | R14 J01 |
| Date: | 2018–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:85637&r=int |
| By: | Onno Kuik (IVM, VU Amsterdam); FrŽdŽric Branger (CIRED); Philippe Quirion (CIRED, CNRS) |
| Abstract: | Pioneering domestic environmental regulation may foster the creation of new eco-industries. These industries could benefit from a competitive advantage in the global market place. This article examines empirical evidence of the impact of domestic renewable energy policies on the export performance of renewable energy products (wind and solar PV). We use a gravity model of international trade with a balanced dataset of 49 (for wind) and 40 (for PV) countries covering the period 1995-2013. The stringency of renewable energy policies are proxied by installed capacities. Our econometric model shows evidence of competitive advantage positively correlated with domestic renewable energy policies, sustained in the wind industry but brief in the solar PV industry. We suggest that the reason for the dynamic difference lies in the underlying technologies involved in the two industries. |
| Keywords: | Competitive Advantage, Gravity Model, Wind Industry, Solar PV Industry, Green Growth |
| JEL: | F14 K32 Q42 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:fae:ppaper:2018.07&r=int |
| By: | Mattia Di Ubaldo (Economic and Social Research Institute); Martina Lawless (Economic and Social Research Institute); Iulia Siedschlag (Economic and Social Research Institute) |
| Abstract: | As well as their direct effects on output and employment, the attraction of foreign direct investment is sometimes argued to provide further economic benefits through spillover effects that potentially increase the productivity performance of domestic firms. Empirical evidence on these indirect effects has however tended to be mixed. This paper uses Irish firm-level data on both manufacturing and services firms to re-examine and update evidence on intra-industry and intra-region spillovers and then extends the previous research by examining if spillovers are more likely to occur through supply chain linkages. In addition, we consider the heterogeneity of investors and allow the spillover effects to differ for foreign affiliates owned by EU and non-EU based parent companies. Finally, we examine the role of domestic firms’ absorptive capacity in conditioning the effects of spillovers from multinationals on their productivity. Overall, we find limited evidence or a negative link between the presence of foreign-owned firms and the productivity of domestic firms in the same industry or the same region. Examining forward and backward linkages through supply chains indicates that on average, selling to foreign-owned firms had a positive effect while buying from foreign owned firms had a negative effect on the average productivity of domestic firms. Finally, considering the absorptive capacity of domestic firms and allowing the spillover effects to differ depending on the origin of the parent companies, we find that the positive productivity spillovers come from supply chain linkages between domestic firms investing in R&D and foreign affiliates of multinationals with headquarters based outside the EU. |
| Keywords: | absorptive capacity, Foreign direct investment, productivity spillovers |
| JEL: | D22 F23 O33 |
| Date: | 2018–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaac:16-en&r=int |
| By: | Zhang, H.; Chen, K. |
| Abstract: | Myanmar s agricultural sector has unexploited potential to underpin its economic development. This paper aims to provide a better understanding of Myanmar s agricultural export sector and its performance against neighboring agricultural exporting countries using the UN Comtrade data. The key research question is to find whether Myanmar has the revealed comparative advantages of exporting the selected agricultural commodities when comparing with its major competitors in the target market. The findings are as follows: 1) Myanmar shows low product and market diversification in the agricultural export sector in the global market; 2) Myanmar enjoys comparative advantage in the agricultural export in the global market; 3) Myanmar reveals high level of NRCAs in black gram & pigeon peas, natural rubber, sesame seeds, rice, frozen fish, while has a low NRCAs in crustacean, dried fruits; and suffers a loss of NRCAs in bananas, fish fillet, maize, nuts, and watermelon in the certain years. Acknowledgement : First and for most, it is my great pleasure to acknowledge Dr. Kevin Chen for all the help, guidance, and sharing of knowledge on all the aspects of this work. My gratitude also goes to my colleagures for precious inspirational suggestions on this study. |
| Keywords: | International Relations/Trade |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277474&r=int |
| By: | Uri Dadush; Yana Myachenkova |
| Abstract: | This paper was produced with the financial support of Compagnia di San Paolo. The trade agreements that the European Union has with North African countries – with Algeria, Egypt, Morocco and Tunisia – are often seen as having delivered disappointing results since they came into force during the 2000s. The four North African countries have seen insufficient growth in their exports to the EU, and have undergone only limited diversification. In the meantime, the EU’s exports to North Africa have grown quite rapidly. Economic growth in North Africa has been well short of what is needed to reduce chronic under-employment, especially of young people. The EU trade agreements with North Africa could generate additional, large benefits if they either directly led to or at least incentivised behind-the-border reforms to make the North African countries more competitive in international markets. Though this reform is the responsibility of the governments of North African countries, the EU could provide stronger incentives to improve the business environment. Meanwhile, in agriculture, were the North African countries able to compete with the EU on an even playing field, agriculture’s share of domestic value-added would almost certainly be significantly larger and rural poverty correspondingly lower than at present. Nevertheless, the agreements have been judged too harshly. They helped generate large amounts of trade, though not enough was done on the domestic front to derive the maximum benefit from them. Moreover, the domestic and international environment has been unfavourable, impeding North Africa’s progress. Over much of the relevant period, the EU grew sluggishly, and North African countries faced sharply increasing competition on European markets from China and the eastern Europe countries that joined the EU in 2004 and after. Generally, countries that acceded to the EU have done much better than the countries of North Africa. While the countries of North Africa are not EU candidates, there is much that they and the EU can learn from the example of the former accession countries in terms of how a new generation of trade agreements between the EU and North Africa could be deeper and more comprehensive than currently, and could be accompanied by increased aid for trade. |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polcon:28517&r=int |
| By: | Jambor, A.; Toth, A.T.; Koroshegyi, D. |
| Abstract: | Comparative advantage is an important indicator in the analysis of international trade flow, however, in empirical studies on agriculture it is often neglected. In this article we aim to analyse comparative advantage in global spices trade and to test stability of trade indices as well as to identify the determinants behind different country performances. Our paper draws global spices trade data from the period 1991 to 2015. Results suggest that global spice trade is pretty much concentrated with Guatemala, Sri Lanka and India obtaining the highest comparative advantages in 1991-2015. However, duration and stability tests indicate that trade advantages have weakened for the majority of the countries concerned. Our model runs show that factor endowments, agricultural value added and regional trade agreements are negatively, while land as well as labour productivity are positively related to comparative advantages in global spices trade. Acknowledgement : This paper was supported by the National Research, Development and Innovation Office Grant No. 119669 titled Competitiveness of Agriculture in International Trade: A Global Perspective as well as the UNKP-17-4-III-BCE-7 New National Excellence Program of the Ministry of Human Capacities of Hungary. |
| Keywords: | International Relations/Trade |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277195&r=int |
| By: | Patricia Tovar (Departamento de Economía de la Pontificia Universidad Católica del Perú) |
| Abstract: | I test the predictions of Bagwell and Staiger´s (1999) theory of the effects of preferential liberalization on import protection imposed against non-member countries. In contrast to the existing literature, which has (for the most part) focused on investigating whether external tariffs rise or fall due to preferential trade liberalization, by testing the predictions of a specific model in a way that closely follows the theory, I am able to examine the channels through which those effects take place. Importantly, and unlike most existing studies, I analyze not only tariffs but also the temporary trade barrier (TTB) policies of antidumping and safeguards. I focus on Latin America and find strong support for the theoretical predictions of Bagwell and Staiger (1999). First, there is evidence of tariff complementarity: i) a larger reduction in the preferential import protection leads to a larger reduction in protection against non-members; ii) the more consumption increases, the more external protection decreases with the fall in preferential protection; and iii) the more imports from the rest of the world fall, the more external protection decreases with a preferential protection cut. Furthermore, I also find evidence of the punishment effect and the tariff discrimination effect, which arise when enforcement difficulties are incorporated into the theory. To my knowledge, this is also the first paper to test theoretical predictions that specifically arise from introducing multilateral enforcement issues. Finally, the overall results point toward a building block effect of preferential liberalization. JEL Classification-JEL: F13 |
| Keywords: | Preferential Trade Agreements, Antidumping, Tariffs , Temporary trade barriers, Multilateral Liberalization, Safeguards |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pcp:pucwps:wp00464&r=int |
| By: | Gaigné, Carl; Tamini, Lota D. |
| Abstract: | In this paper, we theoretically and empirically study the impact of environmental taxation on trade in environmental goods (EGs). Using a trade model in which the demand for and supply of EGs are endogenous, we show that the relationship between environmental taxation and demand for EGs follows a bell-shaped curve. Above a cutoff tax rate, a higher pollution tax rate can reduce the bilateral trade of EGs because there are too many low-productivity suppliers of EGs. Our empirical results confirm our main findings using data regarding the EU-27 countries. We also theoretically and empirically show that environmental taxation has a monotonically positive impact on the extensive margin of trade. Furthermore, we show that if countries apply an environmental tax rate equals to the “optimal” tax rate, 4.03% (e.g., the tax rate maximizing international trade of EGs), then trade in EGs would experience an increase of 22 percentage points. |
| Keywords: | International Relations/Trade |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ags:inrasl:280620&r=int |
| By: | Giuseppe Berlingieri; Frank Pisch; Claudia Steinwender |
| Abstract: | We study whether and how the technological importance of an input - measured by its cost share - is related to the decision of whether to "make" or "buy" that input. Using detailed French international trade data and an instrumental variable approach based on self-constructed IO tables, we show that French multinationals vertically integrate those inputs that have high cost shares. A stylized incomplete contracting model with both ex ante and ex post inefficiencies explains why: technologically more important inputs are "made" when transaction cost economics type forces (TCE; favoring integration) overpower property rights type forces (PRT; favouring outsourcing). Additional results related to the contracting environment and headquarters intensity consistent with our theoretical framework show that both TCE and PRT type forces are needed to fully explain the empirical patterns in the data |
| Keywords: | vertical integration, supply chains, direct requirements, input output relationship, intrafirm trade |
| JEL: | F10 F14 L16 L23 O14 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1583&r=int |
| By: | Grumiller, Jan; Grohs, Hannes; Raza, Werner; Staritz, Cornelia; Tröster, Bernhard |
| Abstract: | This policy note presents policy recommendations for a sustainable development strategy targeting the Ivorian and Ghanaian cocoa processing sectors. Against the backdrop of a comparatively small share of processed cocoa exports and limited opportunities in the cocoa global value chain, industrial policies should primarily seek to leverage the increasing opportunities in the local and regional as well as in niche global export markets to further promote local value added and linkages through the processing of cocoa beans. This is particularly important in the context of the Economic Partnership Agreements (EPAs) that both countries have negotiated with the EU. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:oefsep:242018&r=int |
| By: | Hertel, T.; Baldos, U.; Moore, F. |
| Abstract: | This paper explores the interplay between the biophysical and economic geographies of climate change impacts on agriculture. Towards this end, we employ a statistical meta-analysis which encompasses all studies available to the IPCC-AR5 report. This permits us to isolate specific elements of the biophysical geography of climate impacts, such as the role of initial temperature, and differential patterns of warming across the globe. We combine these climate impact estimates with the GTAP model of global trade in order to estimate the national welfare changes which are decomposed into three components: the direct (biophysical impact) contribution to welfare, the terms of trade effect, and the allocative efficiency effect. We find that the terms of trade interact in a significant way with the biophysical geography of climate impacts. Specifically, when we remove the biophysical geography, the terms of trade impacts are greatly diminished. And when we allow the biophysical impacts to vary across the empirically-estimated uncertainty range, taken from the meta-analysis, we find that the welfare consequences are highly asymmetric, with much larger losses at the low end of the yield distribution than gains at the high end. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277066&r=int |
| By: | Davidson, Carl (Michigan State University, Department of Economics); Matusz, Steven (Michigan State University, Department of Economics); Chun Zhu, Susan (Michigan State University, Department of Economics); Heyman, Fredrik (Research Institute of Industrial Economics; Stockholm, Sweden; Department of Economics; Lund University; Lund Sweden); Sjoholm, Fredrik (Research Institute of Industrial Economics; Stockholm, Sweden; Department of Economics; Lund University; Lund Sweden) |
| Abstract: | Globalization might affect the mix of jobs available in an economy and the rate at which workers gain skills. We develop a model in which firms differ in terms of productivity and skills and use the model to examine how globalization affects the wage distribution and the career path of workers as they move up the jobs ladder. There are two types of skills that determine a worker’s productivity in the model: the ability to work with the appropriate technology and the ability to facilitate international commerce. Workers imperfectly acquire these skills on the job. Firms cannot costlessly observe the skills embodied in a worker but can observe each potential recruit’s employment history. In equilibrium, firms self-select into groups that use different networks to fill vacancies. Our results indicate that although falling trade costs may result in greater wage inequality, if trade costs are initially high, it can also lead to a wider path up the jobs ladders and less time spent in entry level jobs. The key assumptions and predictions are confirmed in data on recruitments and job mobility in Sweden. |
| Keywords: | Job Ladders; Globalization; Wages; Inequality; Export |
| JEL: | F10 F20 J30 |
| Date: | 2018–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:msuecw:2018_008&r=int |
| By: | Balogh, J.M. |
| Abstract: | In recent decades, New World has increased their wine export to European markets and became considerable market players. Therefore, it is important to investigate whether the major New World wine producers are able to exploit its market power at the Old World s markets. The paper investigates the pricing behavior of major New World wine exporters in their most significant European destination markets using a pricing-to-market (PTM) model in respect of asymmetric effect of exchange rate changes between 2000 and 2016. First, the results suggest that Chile was able to apply price discrimination across Danish, German, Dutch, the UK wine markets. Second, South Africa set their prices in Belgian, Dutch and Swedish markets while the USA discriminated their wine prices in Denmark and Sweden. In contrast, this advantage was not observable in a case of Argentina, Australia. Third, the local-currency price stability was explored in case of Belgium, the Czech Republic and France (Chilean wine prices), Denmark, Germany (South African wine prices) and Germany, UK (US wine prices). Furthermore, the analysis of the asymmetric effects of exchange rates suggests that depreciation of the exporter s currency relative to the Euro had not a significant impact on wine import prices. Acknowledgement : |
| Keywords: | Demand and Price Analysis |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276995&r=int |
| By: | Bongardt, Annette; Torres, Francisco |
| Abstract: | For a global player like the EU, it must adequately respond to US unilateral actions and not give in to threats in order to preserve its credibility. However, it is not in its interest to let trade conflicts escalate and be drawn into trade wars. It is worth noting that through the bilateral rules established in the context of a comprehensive trade agreement, the EU not only influences global norms and standards but that those in turn feed back into the EU’s economic order in a way that traditional trade agreements have not. They can therefore either reinforce the European model or weaken it. |
| JEL: | L81 |
| Date: | 2018–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:90573&r=int |
| By: | Miklós Koren; Márton Csillag |
| Abstract: | We build a model of technology choice with heterogeneous firms and workers to study how imported technology affects wages. Imported machines increase the productivity of worker-firm matches, but are more expensive than domestic ones. More productive firms and more skilled workers are hence more likely to use an imported machine. We study trade liberalization in the model, which makes imported machines cheaper. Both the direct and the equilibrium implications of trade liberalization increase the returns to skill. We use linked employer-employee data on Hungarian machine operators for 1992-2003 to test the predictions of the model. Machine operators exposed to imported machines earn higher wages than similar workers at similar firms. The returns to skill have increased in our sample between 1992 and 2000. A quarter of the increase can be attributed to greater exposure to imported machines. Our results suggest that imported machines can help propagate skill-biased technical change. |
| Date: | 2017–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:ceu:econwp:2017_1&r=int |
| By: | Sharma, S.K.; Das, A. |
| Abstract: | Developing countries are demanding substantial reduction in trade distorting domestic support to agriculture sector by developed countries. Under the existing rules of the AoA, many developing countries are facing lack of policy space to implement measures like price support to increase the income of farmers. Some members of WTO circulated a proposal (EU-Brazil proposal) on OTDS, which seeks a cap on trade distorting spending. This study critically examines the implications of EU-Brazil proposal regarding OTDS on the flexibility for developing and developed countries member to provide domestic support to agriculture. The results of this study show that EU-Brazil proposal is likely to result in steep reduction in policy space for the developing countries. It will further curtail the limited and already insufficient policy space for implementing agricultural policies which are compatible with the socio-economic situation prevailing in the developing country members. On the other hand, USA and EU will undertake negligible or no reduction in trade distorting support to agriculture sector and these countries will preserve their existing flexibilities in future as well. Contrary to Doha Declaration, this proposal would provide special and differential treatment to EU and USA. Acknowledgement : |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277493&r=int |
| By: | Dorota Pasi?ska (Instytut Ekonomiki Rolnictwa i Gospodarki ?ywno?ciowej -Pa?stwowy Instytut Badawczy (Institute of Agricultural and Food Economics - National Research Institute)) |
| Abstract: | The main objective of the article is to present changes in the Polish goose meat market in the years 2012-2017 in the context of changes in the global goose meat market. Poland is one of the largest producers and exporters of goose meat in the world. In the analysed period, the production and sale of goose meat in Poland was of seasonal change, which, most probably in the case of availability of goose meat in retail trade will change, since buyers? preferences are changing and the demand for niche types of poultry meat is growing. At the turn of 2016/2017, Poland was affected by avian influenza which had a negative impact on the production of and trade in goose meat. In 2013, Poland was the fifth largest global producer of goose meat. The structure of the global export of goose meat and offal (total) is very concentrated. In the analysed period, its largest global exporter was Hungary with the share ranging from 34% to 47% while Poland was ranked second with the share ranging from 31% to 37%. |
| Keywords: | goose market, international trade, goose production, Poland, world |
| JEL: | Q11 Q17 Q13 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:8110378&r=int |
| By: | ANDO Mitsuyo; URATA Shujiro |
| Abstract: | This paper examines determinants of free trade agreement (FTA) utilization for Japan's imports in 2015, focusing on preferential margins and restrictiveness of rules of origin (ROOs). First, the paper descriptively investigates features of FTA utilization for Japan's imports, using finely disaggregated data that allow us to identify imports under each FTA scheme. The paper also investigates features of ROOs in Japan's 12 FTAs by FTA and by product. We then focus on preferential margins and ROOs' restrictiveness to quantitatively analyze the determinants of FTA utilization on Japan's imports, considering most-favored-nation (MFN) tariffs and non-tariff measures (NTMs). Our quantitative analysis demonstrates that restrictive ROOs in Japan's FTAs lower the FTA utilization rate, while preferential margins raise it. In addition, we reveal that the effects of ROOs differ among by type of ROO. In particular, negative effects are notably larger for "change-in-tariff classification (CTC) and value-added (VA) rules", which require satisfying both CTC and VA rules, compared with the simple "CTC rule" or the selective "CTC or VA rule." Also, among CTC rules, the magnitude of negative effects tends to be larger for "change-in-chapter (CC) rule" than "change-in-heading (CH) rule". Our results suggest that restrictive ROOs impede trade, and thus it is important to apply user-friendly ROOs with less restrictiveness to promote FTA utilization. |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:18078&r=int |
| By: | Banu Demir Pakel; Beata Smarzynska Javorcik |
| Abstract: | Estimates of the trade elasticity based on actual trade policy changes are scarce, and the few that exist are all over the place. This paper offers a setting where an exogenous increase in a border tax can be used to estimate the trade elasticity. It shows theoretically and empirically that if evasion of border taxes is not taken into account, the trade elasticity is estimated with a large downward bias, leading to miscalculation of gains from trade. The paper also contributes to the literature by proposing two new methods of detecting evasion of border taxes. |
| Keywords: | trade elasticity, tax evasion, trade financing, border taxes, Benford's law |
| JEL: | F10 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7266&r=int |
| By: | Stark, Oded; Byra, Łukasz |
| Abstract: | A country that experiences a shortage of workers with particular skills naturally considers two responses: import skills or produce them. Skill import may result in large-scale migration, which will not be to the liking of the natives. Skill production will require financial incentives, which will not be to the liking of the ministry of finance. In this paper we suggest a third response: impose a substantial migration admission fee, “import” fee-paying workers regardless of their skills, and use the revenue from the fee to subsidize the acquisition of the required skills by the natives. We calculate the minimal fee that will remedy the shortage of workers with particular skills with fewer migrants than under the skill “import” policy. |
| Keywords: | Institutional and Behavioral Economics, Labor and Human Capital |
| Date: | 2018–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:280261&r=int |
| By: | Tröster, Bernhard; Grohs, Hannes; Grumiller, Jan; Raza, Werner; Staritz, Cornelia; von Arnim, Rudi |
| Abstract: | The Economic Partnership Agreements (EPAs) between the EU and African, Caribbean and Pacific (ACP) countries mark a new era in the economic relations between both sides. Reciprocal tariff liberalization will however result in asymmetric market opening by ACP partners, which will entail negative, though small, macroeconomic effects for these countries in the short to medium term. In order to deliver upon the promised tangible benefits of EPAs in the longer term, the EU should implement strong policy responses in three key areas: (i) coping with adjustment costs, (ii) promoting productive development, and (iii) fostering trade-related institutional capacities in the public sector and civil society, including an effective monitoring process for EPA implementation. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:oefsep:232018&r=int |
| By: | Ogunlesi, Ayodeji |
| Abstract: | Public expenditure on the agricultural sector targeted towards raising investments for increased agricultural productivity has been low in most countries in Sub-Saharan Africa (SSA). Also, existing empirical evidence on the impact of fiscal and trade policies on the improvement of agricultural systems remains mixed and inconclusive. In view of the above, this study employs a three-variable Panel Structural Vector Error Correction Model (PSVECM) in capturing the dynamic structure of the possible relationships among agricultural productivity, fiscal and trade policies in 37 selected countries within SSA, using annual data from 1990 to 2016. In imposing short- and long-run identifying restrictions, the cointegration structure of the PSVECM reveals an instantaneous impact of government expenditure and terms of trade on crop production in the transitory period. Likewise, terms of trade has a permanent significant effect on crop production and government expenditure within the reviewed period in SSA. The impulse response and variance decomposition analysis trace out a mixed result of both short and long run significant and fluctuating relationships among government expenditure, terms of trade and crop production in SSA. This finding implies that fiscal and trade policies are crucial in influencing agricultural productivity; and recommends that policymakers should adopt expansionary fiscal (in line with the Keynesian theory) and trade policies which stimulate both short and long run agricultural productivity growth in countries within SSA |
| Keywords: | Crop Production, Government Expenditure, Terms of Trade, Panel Analysis |
| JEL: | E61 Q17 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90202&r=int |
| By: | Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Two Forces of ‘Globalisation’ and Their Impact on Labour Markets in Western Europe 2005-2014 This paper investigates with a joint approach the impact of immigration and different measures of ‘offshoring’ on the labour demand and demand elasticities of native workers in four different occupational groups managers/professionals, clerks, craft workers and manual workers. It shows that of all measures of globalisation considered immigration has the most consistent and strongest negative effect on the employment of native workers, particularly on managers/professionals, clerks and manual workers. The employment effects of offshoring differ by the measure used and are positive for craft workers but, in contrast to what is typically found in the literature, negative for the high-skilled group of managers/professionals. Furthermore, immigration and offshoring both impact on natives’ labour demand elasticities but the effect differs by occupational group. Thus, while the immigration of craft workers reduces labour demand elasticities for native craft workers, the immigration of managers/professionals and clerks has the opposite effect on native workers in the same occupations. Furthermore, we test for cross effects of migration and outsourcing between the different occupational groups. |
| Keywords: | offshoring, immigration, labour demand, labour demand elasticity, occupations |
| JEL: | F16 F22 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:156&r=int |
| By: | Varian, Brian D. |
| Abstract: | The Ford thesis argued that there was a short-term causal relationship between British overseas investment and British merchandise exports in the late nineteenth century. However, economic historians since Ford have found little empirical evidence in support of this argument. Using data on bilateral British lending, this article finds that such a relationship did exist, with British ex ante lending preceding merchandise exports by 2 years. A case study of New Zealand, which had an extraordinarily high share of Britain in its imports, reveals that the relationship was conditional upon the lending being allocated to social overhead capital. |
| Keywords: | Britain; gold standard; New Zealand; overseas investment; trade |
| JEL: | F21 N73 N77 |
| Date: | 2017–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:68925&r=int |
| By: | Sabine Duvaleix-Treguer (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Charlotte Emlinger (Centre d'Etudes Prospectives et d'Informations Internationales); Carl Gaigné (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Karine Latouche (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST) |
| Abstract: | Les Appellations d'origine protégées (AOP) garantissent que toutes les étapes de production d'un produit ont été réalisées selon un savoir-faire reconnu attaché à un territoire. Ce cadre, hérité des appellations d'origine françaises et italiennes et harmonisé au niveau européen depuis 1992, est très différent de celui des pays anglo-saxons qui privilégient le système des marques, ce qui rend le sujet sensible dans les négociations commerciales. Au-delà de ces différends, quelle est l'incidence de ces AOP sur les performances des entreprises exportatrices ? Cette Lettre présente les résultats d'une étude associant le CEPII et l'INRA portant sur les fromages français qui montre que les produits AOP sont reconnus par les consommateurs étrangers comme des produits de qualité. Cette qualité perçue permet à ces produits d'être vendus sur un plus grand nombre de marchés à des prix plus élevés. En revanche, elle ne permet pas d'accroître la quantité exportée. |
| Keywords: | marge du commerce,prices,quality,competitiveness,prix,qualité,appellation d'origine protegée,appellation d'origine contrôlée,compétitivité |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01929033&r=int |
| By: | Soheir Tarek (Faculty of Management Technology, German University in Cairo); Hebatallah Ghoneim (Faculty of Management Technology, German University in Cairo) |
| Abstract: | Foreign Direct Investment (FDI) is usually considered an important catalyst for economic growth in developing countries. FDI plays an important role in transferring technology from developed to emerging economies, it also stimulates domestic investments and enhances human as well as physical capital in the host countries. This paper also aims at identifying the effect of FDI on the Egyptian economy. The analysis is carried out using an OLS regression model with three variables. Time series data for FDI inflows, gross capital formation (GCF) and labor force (LF) were gathered for Egypt over the period 1990-2014. After gathering the results of both the single and multiple regressions, some policy recommendations are suggested to enhance and maximize the effect of FDI on economic growth in Egypt. |
| Keywords: | Economic Growth, Egypt, Developing countries, Foreign Direct Investment |
| JEL: | F21 F43 O40 O55 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:guc:wpaper:49&r=int |
| By: | Kai A. Konrad; Marcel Thum |
| Abstract: | In the context of international tax coordination incomplete information is one of the well-known frictions that can lead to bargaining failure and might explain a lack of observed coordination. We consider international negotiations about tax coordination under complete and incomplete information. We identify the conditions for multilateral negotiations to be more likely to be successful than gradual/sequential negotiation approaches and compare different routes of sequential bargaining. Under plausible conditions, full-scale global coordination is least likely to emerge if the negotiations take place sequentially, and if the negotiations with the most unpredictable country take place last. |
| Keywords: | tax competition, tax cooperation, multilateral negotiations, sequential negotiations, ultimatum bargaining, acceptance uncertainty |
| JEL: | H25 H77 F52 F55 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7305&r=int |
| By: | Sayan Banerjee (Chandragupt Institute of Management Patna) |
| Abstract: | To get to a final industrial product the consequent value chain always involves changes from left ? the basic raw materials to the right- the final product .Not getting into the technological nitty gritty this paper is an humble attempt to understand this shift in value chain of an industrial product with aspects like export portfolio and national innovation systems of different countries. This paper has tried to build up the narrative of ( Ling & Tang ,2009) by revisiting their perspectives with aspects like innovation systems and export portfolio .On this basis an attempt has been made to conceptualise a pertinent innovation policy of different category of countries based on economic and other factors. The aim of this paper is to help in the process of understanding of optimum innovation policies through various assorted aspects which can be interlinked with various innovation activities of a country. |
| Keywords: | National Innovation System, theory of competitive advantage,theory of comparative advantage |
| JEL: | M16 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:8109945&r=int |
| By: | Grumiller, Jan; Arndt, Christoph; Grohs, Hannes; Raza, Werner; Staritz, Cornelia; Tröster, Bernhard |
| Abstract: | This policy note presents policy recommendations for a sustainable development strategy targeting the Ivorian and Ghanaian mango sectors. Based on a GVC and SWOT analysis, we conclude that the mango sectors in both countries yield significant potential for promoting socially inclusive and environmentally sustainable production and employment. To this end, in both countries, a stronger focus on industrial policies targeting the key challenges in the respective mango sector is however needed. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:oefsep:252018&r=int |
| By: | Abel FRANCOIS (University of Lille); Sophie PANEL (IRSEM); Laurent WEILL (LaRGE Research Center, Université de Strasbourg) |
| Abstract: | Since political uncertainty is greater in dictatorship than in democracy, we test the hypothesis that foreign investors scrutinize public information on dictator to assess this risk. In particular, we assume they use five suitable dictators’ characteristics: age, political experience, education level, education in economics, and prior experience in business. We perform fixed effects estimations to explain FDI inflows on an unbalanced panel of 100 dictatorial countries from 1973 to 2008. We find that educated dictators are more attractive to foreign investors. We obtain strong evidence that greater educational attainment of the leader favors FDI. We also find evidence that education in economics of the leader enhances FDI. By contrast, age, political experience, and prior experience in business have no relationship with FDI. Our results are robust to several tests and checks, including the comparison with democracies. |
| Keywords: | foreign direct investment, dictatorship, leader characteristics, political risk. Classification-JEL F21, F23. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:lar:wpaper:2018-05&r=int |
| By: | Camara, A.; Goundan, A.; Fofana, I.; Badiane, O. |
| Abstract: | Groundnut is the most common cash crop and the main source of income for farmers in Senegal. Groundnut exports, so far marginal, have increased significantly in recent years. This new dynamic motivated Senegalese Government to introduce an exit tax on groundnut exports in the 2017 Finance Act. Empirical analyses produced so far paid little attention to countries like Senegal which have a weak market power on the global groundnut market. This study uses the multi-sectoral general equilibrium model to contribute to apprehend ex-ante global and distributive effects of the tax on groundnut exports in Senegal. Findings indicate that economic activity will slow down and the well-being of the population will deteriorate with the enforcement of the groundnut export tax. Producers and processors suffer the most adverse effects of the export tax. Economic activities and rural area populations also pay the high price. These negative effects are cancelled when tax revenue is used primarily to compensate the losers. However, economic activities that are subject to increased competition from abroad benefit from the export tax by improving their price competitiveness. Acknowledgement : |
| Keywords: | International Relations/Trade |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277560&r=int |