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on International Trade |
| By: | Jeffrey J. Schott (Peterson Institute for International Economics); Megan Hogan (Peterson Institute for International Economics) |
| Abstract: | South Korean exports, especially carbon-intensive products like steel, are increasingly vulnerable to both the European Union's proposed carbon border adjustment mechanism (CBAM)--set to begin on January 1, 2023--and the proposed Clean Competition Act (CCA) before the US Congress. Schott and Hogan caution that Korean exporters should not count on Korea's decade-old EU and US free trade agreements (FTAs), nor on the multilateral trading rules of the World Trade Organization (WTO), to protect them from new carbon-based import barriers in key foreign markets. The WTO and the FTAs have broad and loosely defined exemptions for environmental protection. Nor is Korea likely to be shielded by its own cap-and-trade emissions trading system (the K-ETS), because of extensive use of free allowances and large differences between EU and Korean carbon prices. While the threat the EU CBAM poses to Korean exports is imminent, passage of the CCA faces major legislative obstacles. But US imports of Korean steel and other carbon-intensive goods are still subject to climate-related duties at the US border under US unfair trade statutes. The US Department of Commerce has ruled that free allowances issued under the K-ETS (and EU ETS) are implicit subsidies that can be offset by countervailing duties. These charges are in addition to the harsh tariff-rate quotas on imported Korean steel applied under the "national security" authority of Section 232 of US trade law, which are more restrictive than measures imposed against European and other steel exporters. The authors suggest relaxing these US barriers, as they have been for shipments from Europe, in return for Korean participation in the nascent US-EU talks to establish a "Global Arrangement on Sustainable Steel and Aluminum." |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:iie:pbrief:pb22-10&r= |
| By: | Alessandro Borin (Bank of Italy); Francesco Paolo Conteduca (Bank of Italy); Enrica Di Stefano (Bank of Italy); Vanessa Gunnella (European Central Bank); Michele Mancini (European Central Bank); Ludovic Panon (Bank of Italy) |
| Abstract: | We provide a quantification of the impact through international trade of the restrictive measures and related trade disruptions following the Russian invasion of Ukraine. We first exploit the multi-sector, multi-country, general equilibrium trade model by Antr’and Chor (2018). In this framework, Russia would suffer greatly from trade disruptions. Adding restrictive measures on energy exports would further amplify this loss. For sanctioning countries, the welfare impact is modest. This result arises mainly because the used model allows for a high degree of substitutability across inputs and countries, a feature arguably unrealistic especially in the short-run. When we relax this assumption by relying on the framework proposed by Bachmann et al. (2022) extended to a multi-country setting, we show that the impact on sanctioning countries might increase markedly in the short run and would be very sensitive to small changes in countries’ possibility to diversify away from Russian energy. |
| Keywords: | war, trade disruptions, energy shock, international trade, global value chains |
| JEL: | F51 F15 F17 Q43 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_700_22&r= |
| By: | Dylan Bourny; Daniel Mirza; Camelia Turcu |
| Abstract: | In this paper, we investigate how some MNEs which spread their home culture over time and space to the rest of the world are affecting, in turn, trade flows from home. By selling products embodying cultural information related to their country of origin, those MNEs embrace the role of ambassadors of their home country. We argue that IKEA offers an ideal case to identify a multinational's culture-promotion effect on trade. We build a dataset on IKEA's presence in foreign markets between 1995 and 2015 and merge it with disaggregated product level trade between pairs of countries. We find solid evidence of an externality linked to IKEA: a setting of an IKEA new store in a destination increases trade flows by around 2% from Sweden for products that resemble to what the multinational offers (despite being completely unrelated to that multinational). This result is driven primarily by the products identified to encompass a high-cultural content. Other robustness checks and tests seem to be very much consistent with the hypothesis of IKEA promoting the Swedish culture to the world. |
| Keywords: | Export Promotion;Multinationals;Trade |
| JEL: | E22 F12 F22 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2022-06&r= |
| By: | Besedeš, Tibor; Goldbach, Stefan; Nitsch, Volker |
| Abstract: | We examine the extent to which financial sanctions imposed by Germany through its European Union and United Nations commitments cause collateral damage on Germany's trade in goods and services. Financial sanctions reduce Germany's inflows and outflows of financial assets, as well as imports and exports of goods and services. The relative effects on trade in goods and services are weaker than on financial assets, about half as large in the case of goods and two-thirds as large in the case of services. The effect on trade in goods is entirely due to episodes where financial sanctions are accompanied by export restrictions of specific goods. In the case of services trade, only exports are affected by financial sanctions once export restrictions are considered. The primary channel through which sanctions affect the three types of cross-border flows is the extensive margin. Anticipation effects are quite strong for financial assets and weak for services and goods. |
| Keywords: | sanction,restriction,cross-border transaction,trade in goods,trade in services financial flows |
| JEL: | F20 F36 F38 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:282022&r= |
| By: | Amendolagine, Vito; Crescenzi, Riccardo; Rabellotti, Roberta |
| Abstract: | This paper investigates how institutional conditions at national and regional levels shape the decisions of Multinational Enterprises (MNEs) to invest abroad by means of either acquisitions or greenfield investments. The empirical analysis covers all Foreign Direct Investment (FDI) projects in the European Union by the largest MNEs in the world to study alternative choices by the same firm and account for firm-level characteristics in investment decisions. The empirical results show that - other things being equal - MNEs prefer acquisitions to control activities in regions with stronger investment eco-systems, while they choose greenfield investments in regions with weaker systemic conditions. Moreover, the regional quality of government makes a fundamental difference to the nature of the investment projects attracted by regions: those with high quality of government can attract greenfield investments undertaken by the most productive MNEs. By improving their quality of government, local and regional policy makers can attract higher quality FDI to their constituencies, potentially breaking the vicious circle between low productivity areas and low productivity FDI. |
| Keywords: | greenfield FDI; cross-border acquisitions; firm terogeneity; regions; Europe; insitutions; European Union Horizon 2020 Programme H2020/2014-2020 (Grant Agreement n 639633-MASSIVE-ERC-2014-STG). |
| JEL: | R12 R58 F23 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115597&r= |
| By: | Gerda Dewit (Department of Economics, Finance and Accounting, Maynooth University.); Dermot Leahy (Department of Economics, Finance and Accounting, Maynooth University.) |
| Abstract: | We develop a model in which two vaccine-producing Â…rms from two developed countries supply vaccines to the developing world during a pandemic. Exporting developed countries experience a neg- ative externality from incomplete global vaccination. Both domestic and trade policies are examined. Alternative policy regimes of non-intervention, independent national policy and cooperation among exporters are considered. For each alternative, welfare levels of exporting and importing countries and global welfare are calculated. We derive conditions for cooperation among producing countries to attain higher global welfare than non-cooperation. In fact, in some circumstances cooperation among developed countries can even achieve the global optimum. Classification-F12, F13, H23, L13 |
| Keywords: | Cooperative and non-cooperative trade policy, Export promotion, Global externality, Global welfare, Pigovian subsidies |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:may:mayecw:n317-22.pdf&r= |
| By: | OECD |
| Abstract: | The impacts of the war in Ukraine will be felt severely within OECD economies, especially in border regions on the front-line of the humanitarian refugee crisis. The economic impacts, in particular those driven by rising energy prices, will also be spatially differentiated, affecting some regions more than others. Italy is no exception, with gas-intensive industries concentrated in northern regions, and wheat-based food and farming prevailing in southern regions and islands. While, overall, Russia accounted for a minor share of Italian exports, some regions and industries are more vulnerable than others to falls in bilateral trade, including destinations popular with high per-capita expenditure Russian tourists. |
| Keywords: | commodities, employment, spatial analysis, tourism, trade |
| JEL: | F16 F51 J43 O13 R11 R12 |
| Date: | 2022–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2022/08-en&r= |
| By: | Blockmans, Steven |
| Abstract: | Without any formal notification, China recently declined customs clearances for shipments from Lithuanian firms in the pharmaceutical, electronics, and food sectors, and warned multinationals of secondary sanctions if they did not sever their ties with Lithuania. These covert actions were taken in response to Lithuania’s invitation to Taiwan, which the People’s Republic of China (PRC) claims as its own territory, to open a ‘representative office’ in Vilnius. No other country has ever found itself at the receiving end of such intense and politically motivated Chinese economic pressure. These actions on the part of the PRC are politically explosive because it raises serious questions about the international conduct of the Chinese Communist Party (CCP). If it can simply wipe a country off its trade book, a state belonging to the EU’s customs territory no less, then what does it mean to be a member of the WTO, or a signatory to any other number of international agreements? And, given the lamentable state the WTO is in: could the European Commission’s newly proposed anti-coercion instrument bring any solace to Lithuania and the EU? |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:eps:cepswp:34908&r= |
| By: | Maddalena Conte; Pierre Cotterlaz; Thierry Mayer |
| Abstract: | The Gravity database gathers a set of variables useful to researchers or practitioners estimating gravity equations. Each observation corresponds to a combination of an exporting country, an importing country and a year (i.e. "origindestination-year"). The data covers all existing countries, from 1948 to 2020, and includes a wide range of potential determinants of trade flows: geographic distances, indicators of cultural proximity, trade facilitation measures, etc. |
| Keywords: | Gravity Models;Bilateral Trade;Distance |
| JEL: | F1 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2022-05&r= |
| By: | Taguchi, Hiroyuki |
| Abstract: | This study investigates the possibility of premature deindustrialization risk in Thailand, where the pressure of globalization and uneven industrial policies remain. This study adopts the latecomer index to materialize premature deindustrialization risk, which is expressed as the downward shift of the manufacturing–income relationship at the earlier level of income. The results of our empirical analysis confirm the presence of premature deindustrialization risk in Thailand’s regions as a result of globalization pressure (represented by China’s entry into the World Trade Organization) and uneven industrial policies conducted by the Thai government. Thus, the current industrial policies of the Thai government should be reconsidered to overcome premature deindustrialization risk in remote regions. |
| Keywords: | premature deindustrialization risk, Thailand, latecomer index, globalization, industrial policies, manufacturing–income relationship, import deindustrialization, inclusive growth |
| JEL: | O14 O53 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113560&r= |
| By: | Paul J. J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); David Hanrahan (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | Following the failure of the Transatlantic Trade and Investment Partnership project, the European Union and the United States have considered options on how to organize transatlantic cooperation within what may be considered an adequate framework – a different approach has been agreed in the Trade and Technology Council (TTC). Such initiatives are fundamental pillars of transatlantic economic integration. The US and the EU have indeed started a new initiative which is based on ten policy fields which have potential for enhanced cooperation; there is a triple focus, namely on common values, on options for better joint standard-setting and on cooperating in new fields, e.g. the digitalized economy. With the Russo-Ukraine War, the relevance of more transatlantic cooperation has been reinforced, not least since this military conflict indirectly raises the issue of to what extent economic relations between the West and China could also deteriorate in the medium term. While the ten areas considered by the EU and US within the framework of the TTC indeed stand for crucial fields, one should not overlook that three additional fields have been largely neglected so far: (i) ICT market integration and the transatlantic integration of internet-based markets, respectively; (ii) challenges for transatlantic cooperation – indeed win-win opportunities – in the field of climate-stabilizing innovations; and (iii) the crucial role of reducing barriers to transatlantic foreign direct investment. The latter have been shown to be of critical relevance for output dynamics and the current account-Gross Domestic Product ratio, namely in the FDI-enhanced DSGE macro model of Roeger/Welfens (2021) which allows in a new way to consider, for example, the national and international effects of product innovations and process innovations. It should also be emphasized that the international spillover effects of ICT innovations imply that there is a broader need for transatlantic policy cooperation which, paradoxically, also requires more cooperation between national governments of EU countries and the governments of US states. As regards enhanced transatlantic economic policy cooperation, new initiatives here should not mistakenly be considered a substitute for long-term cooperation in the fora of international organizations. |
| Keywords: | EU, US, Trade, Innovation, Trade and Technology Council, ICT, Win-Win, Innovation Policy, Transatlantic Cooperation |
| JEL: | F02 F13 F55 F69 O38 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei316&r= |
| By: | Mr. Andrea Pescatori; Mr. John C Bluedorn; Mr. Christoffer Koch; Silvia Albrizio; Martin Stuermer |
| Abstract: | We assess the supply-side effects on European Union (EU) economic activity if Russian gas imports were to suddenly cease. Unlike other studies, we account for the global scope of the liquefied natural gas (LNG) market. In the absence of frictions, an open-economy, multi-sector general equilibrium model suggests that the adverse economic impact on the EU shrinks five-fold if integration with the global LNG market is considered. While greater integration provides a buffer for the EU through trade, the flip side is that other LNG importers (such as Japan, South Korea, and Pakistan) see adverse effects from higher prices. |
| Keywords: | Supply disruptions; commodities; natural gas; energy; international trade; sanctions; spillovers |
| Date: | 2022–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/143&r= |
| By: | Federico Carril-Caccia (University of Granada); Jordi Paniagua (University of Valencia and Kellogg Iinstitute, University of Notre Dame); Marta Suarez-Varela (Bank of Spain) |
| Abstract: | Food insecurity is a pressing global concern and little is known of its economic outreach. This paper quantifies the effects of food crises on international forced migration (FIMs) flows using a structural gravity model. We construct a novel dataset that measures to the severity, intensity, and causes of the food crises. Results suggest that even mild food crises tend to increase international forced migration. Severe food crises skew FIM toward less developed countries. Our results are consistent with the fact that food crises tighten liquidity constraints on migration, worsening as food crises intensify. |
| Keywords: | Forced migration; Food crises; Gravity equation |
| JEL: | A1 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:inf:wpaper:2022.06&r= |
| By: | Moona Umer Hayat (MPhil Scholar, PIDE) |
| Abstract: | Pakistan has placed two export promotion schemes. These schemes have targeted products that have revealed a comparative advantage in Pakistan. Such as, almost 100 percent are targeting the footwear sector. Anti-diversification is present, as the services sector is excluded from these schemes. |
| Keywords: | Export Promotion Schemes, Quo Vadis, |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wbrief:2021:51&r= |
| By: | Luc Leruth (Tbilisi University); Adnan Mazarei (Peterson Institute for International Economics); Pierre Régibeau (European Commission); Luc Renneboog (Tilburg University) |
| Abstract: | In light of the transition away from fossil fuel-based energy, this paper highlights the importance of understanding who controls vital parts of the global supply chains of critical minerals and rare earth elements (REEs). Analysis of direct ownership does not reveal the real sources of control over the decisions of the company. To identify those sources, we use an index that measures the degree to which important shareholders can affect voting decisions. This analysis is not straightforward, because companies along the supply chain are not necessarily incorporated in the countries in which mining and production activities take place, and shareholders can exert influence through multiple layers of subsidiaries. Our analysis reveals that China's control over the global value chains involving critical minerals and REEs extends beyond what is commonly assumed. It also sheds light on environmental, social, and governance issues in the countries in which mining and/or production take place. The paper advocates increasing transparency regarding the sources of control to better assess and manage economic and geopolitical risks; enhancing recycling, to reduce dependency on foreign supply; avoiding protectionist and trade-reducing reactions; and encouraging research and development in order to speed up the adoption of technologies of substitution. |
| Keywords: | Ownership, voting power, corporate social responsibility, ESG, supply chain, recycling, rare earth elements, critical minerals, geopolitics |
| JEL: | G3 L1 L7 Q3 Q5 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp22-12&r= |
| By: | Pia Heckl (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | This paper studies gender differences in the labor market reallocation of workers in Mexico as a response to trade liberalization with China. To measure exposure to import competition, I exploit variation in the initial industry structure of Mexican local labor markets. I show that aggregate outcomes mask heterogeneous responses based on gender. Although the employment rate drops for both men and women, the former enter into unemployment while the latter leave the labor force. The results suggest that the drop in the female labor force participation rate is driven by their exit out of formal and especially informal work. |
| Keywords: | Trade, Gender Inequality, Labor Market, Informal Work, Mexico |
| JEL: | F16 J16 J21 J46 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp327&r= |
| By: | Terrence Iverson |
| Abstract: | A two-tier climate club exploits the comparative advantage of large countries to mete out punishments through trade, while taking their capacity to resist punishment as a constraint. Countries outside the coalition price carbon at a fixed fraction of the average carbon price adopted within the coalition, or face tariffs. Coalition countries abate more since doing so induces matching abatement elsewhere. If the rate at which noncoalition countries match coalition abatement goes to one, equilibrium abatement approximates the globally efficient outcome even though the coalition only internalizes damages within its borders. Even with a low match rate, the arrangement drastically reduces aggregate abatement costs. In contrast to a single-tier climate club in which many stable coalitions are possible, the stable coalition in the calibrated model is unique and consists of the US and the EU. Global abatement achieved by the stable agreement is about 40 percent of the efficient level. |
| Keywords: | international environmental agreement, climate club, trade sanctions, retaliation, incomplete participation costs, country-size heterogeneity |
| JEL: | Q54 Q56 Q58 F18 F53 H23 H41 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9831&r= |
| By: | Katherine Hoffmann Pham; Junpei Komiyama |
| Abstract: | The sea crossing from Libya to Italy is one of the world's most dangerous and politically contentious migration routes, and yet over half a million people have attempted the crossing since 2014. Leveraging data on aggregate migration flows and individual migration incidents, we estimate how migrants and smugglers have reacted to changes in border enforcement, namely the rise in interceptions by the Libyan Coast Guard starting in 2017 and the corresponding decrease in the probability of rescue at sea. We find support for a deterrence effect in which attempted crossings along the Central Mediterranean route declined, and a diversion effect in which some migrants substituted to the Western Mediterranean route. At the same time, smugglers adapted their tactics. Using a strategic model of the smuggler's choice of boat size, we estimate how smugglers trade off between the short-run payoffs to launching overcrowded boats and the long-run costs of making less successful crossing attempts under different levels of enforcement. Taken together, these analyses shed light on how the integration of incident- and flow-level datasets can inform ongoing migration policy debates and identify potential consequences of changing enforcement regimes. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2207.04480&r= |
| By: | Michel Aglietta; Guo Bai; Camille Macaire |
| Abstract: | China’s 14th Five-Year Plan aims to inaugurate a structural change from intensive accumulation to innovation-driven growth, with two basic objectives: developing the domestic consumer market for an enlarged middle class, on the one hand; on the other, promoting the Belt and Road Initiative (BRI). This is the “dual circulation” towards the 2035 long-run objective of achieving a socialist market economy, embedded into an “Eco civilization”. Concerning the domestic part of the strategy, China is pledging innovations combining political ecology and digital economy to handle climate change in pursuing an upgraded commitment to the Paris Agreement. For this ultimate goal, R&D spending is being strategically reinforced. The international part aims at restructuring globalization towards a new geopolitical order. It is structured in three hierarchically intertwined steps. The first is the economic integration of Asia within the Regional Comprehensive Economic Partnership (RCEP), the largest trade agreement worldwide. The second level is the diversified network of infrastructures linking Asia, Africa and Europe along and around the old Silk Roads. The third part is the transcontinental network linking the Atlantic and the Pacific oceans through the Artic Road and the Central and Latin America networks. To succeed, this monumental project needs multilateral cooperation to overcome the huge financial leverage it is generating. Trust will be of the essence in attracting private capital. A tentative advance in Sino-European cooperation has been occurring within an agreement to expand mutual investment opportunities. All in all, China is looking for a strategic repositioning into the global multilateral framework so that the Middle Empire returns to the center of the world. |
| Keywords: | Dual circulation;Belt and Road initiative;Go West;Central bank Digital Currency |
| JEL: | N55 N75 O53 P41 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepipb:2021-36&r= |
| By: | Heckl, Pia |
| Abstract: | This paper studies gender differences in the labor market reallocation of workers in Mexico as a response to trade liberalization with China. To measure exposure to import competition, I exploit variation in the initial industry structure of Mexican local labor markets. I show that aggregate outcomes mask heterogeneous responses based on gender. Although the employment rate drops for both men and women, the former enter into unemployment while the latter leave the labor force. The results suggest that the drop in the female labor force participation rate is driven by their exit out of formal and especially informal work. |
| Keywords: | Trade, Gender Inequality, Labor Market, Informal Work, Mexico |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:8667&r= |
| By: | Andre Jungmittag (Frankfurt University of Applied Sciences) |
| Abstract: | Parallel to the globalization of production and sales, multinational firms have partly also internationalized their research and development (R&D). In both the media and modern research on innovation, the increase in terms of the international generation, transfer and diffusion of new technologies has been described as technological globalization and techno- globalization; research has picked up the topic in scientific analysis. Based on the patent indicators suggested by Guellec and Pottelsberghe de la Potterie (2001), this contribution gives a consistent analysis of global technological cooperation as well as of the global sourcing of innovations as key elements of techno-globalization. In addition to taking stock for a cross- section of OECD countries and a time series examination for the whole of the OECD, and Germany and the Netherlands in particular, the significant drivers of techno-globalization are determined by simple correlation and regression analyses. Furthermore, simple tests for beta convergence show that there is an international convergence of the patent shares with domestic inventors and foreign applicants and also a convergence of the countries’ patent shares with an international cooperation of inventors. The analysis is completed by a view on the sectoral differences with regard to the internationalization of innovations as well as by some considerations with regard to the links between the internationalization of enterprises’ innovations and domestic employment. |
| Keywords: | Internationalization of R&D, International collaborative patents, Patent analysis, Patent cooperation, Techno-globalization |
| JEL: | O31 O32 O34 R11 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei278&r= |
| By: | César Ducruet; David Guerrero |
| Abstract: | This research discusses the different spatial configurations of the nexus between inland city and port gateway. A comparative analysis of 64 inland capital cities is proposed based on port, transport, trade, and urban indicators. The obtained trends suggest that there is a trade-off between remoteness and trade openness, which differentiates three clusters of inland cities: major logistics hubs, constrained metropolises, and underdeveloped corridors. We review more qualitatively intermodalism and port choice issues along six selected corridors. |
| Keywords: | corridor; freight flows; maritime transport; port hinterland; trade openness; urban system |
| JEL: | L90 R40 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2022-17&r= |
| By: | Michela Limardi (RIME-Lab - Recherche Interdisciplinaire en Management et Économie Lab - ULR 7396 - UA - Université d'Artois - Université de Lille, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Francesca Battista (Virginia Tech - College of Liberal Arts and Human Sciences) |
| Abstract: | Non-governmental organizations (NGOs) exert pressure on multinational enterprises (MNE) to force the application of social and environmental standards for subcontractors in developing countries. Non-governmental regulation relies on voluntary standards defined by the NGOs,or by the MNE themselves. This leads to an uncertainty and social regulation. In this respect, external pressure from NGOs constitutes a reputational risk for the company. MNEs, in turn, try to manage those risks by increasingly monitoring the environmental and social impact of their global suppliers. Two forms of non-governmental enforcement currently prevail: warning (i.e.disclosing information of a violation to the company) versus immediate punishment (i.e. penalizing a company without disclosing information). A theoretical model is developed to determine whether disclosing (or not) information to the MNE about reputational risk is more effective. The results demonstrate that MNEs with a low reputation (or a high degree of out-sourcing) will have a higher incentive to conduct inspections of its global suppliers in a warning regime. Conversely, when MNE visibility is high, disclosing information in advance does not provide additional incentives. |
| Date: | 2022–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03704334&r= |
| By: | Alho, Carlos F.B.V.; da Silva, Amanda F.; Hendriks, Chantal M.J.; Stoorvogel, Jetse J.; Oosterveer, Peter J.M.; Smaling, Eric M.A. |
| Abstract: | Food system analysis is used to understand relations between the production, distribution, and consumption of agricultural products. Many export commodities commodities are facing “consumer concerns” and certification requirement issues. In this paper, the certification requirements and schemes of two export commodities—banana and cocoa—are discussed using food system analysis. The “inclusiveness” of the food system, in terms of living wage, is also discussed. |
| Keywords: | Agricultural and Food Policy, Farm Management |
| Date: | 2022–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:unadrs:322000&r= |
| By: | Harutyunyan, Artur; Janda, Karel |
| Abstract: | In this paper we deal with an issue of healthy environmentally responsible attitude to nutrition. We focus on the question how large multinational companies influence this aspects of sustainable development. We provide literature overview and we outline the main assumptions to be used in the empirical research on this issue. We first describe the role of multinational companies on the food market and the current global trends on this market. Then we focus on the fast food subset of the food market and on the issues of overweight and obesity. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:261282&r= |
| By: | Krebs, Tom |
| Abstract: | This policy report studies the effects of a sudden stop of natural gas imports from Russia on the German economy. The analysis focuses on the supply-side effects that arise when a gas shortage affects production in the gas-intensive manufacturing sectors, with a corresponding production disruption that propagates along the value chain and through the entire economy. In a baseline scenario, a hypothetical gas embargo implemented in May 2022 leads to a short-run decline in aggregate output between 3.2 percent and 8 percent of GDP. In an alternative scenario, in which Germany can easily replace Russian gas imports by alternative imports, the short-run decline in aggregate output following the embargo is between 1.2 percent and 3 percent of GDP. In addition to the supply-side effects, an embargo causes a reduction in output via the demand-side channel. According to recent simulation studies, the demand-side effects of an energy embargo (coal, oil, natural gas) reduce GDP between 2 percent and 4 percent in the short run. These results underscore the high degree of uncertainty regarding the economic consequences of a sudden stop of Russian gas imports in the short run. Finally, an immediate gas embargo also causes permanent economic damage and has significant social implications. In policy terms, the results show the need for the German government to act as swiftly as possible to ensure independence from Russian energy imports. In addition, Germany's future energy system needs to be more resilient to macroeconomic and geopolitical shocks. |
| Keywords: | energy,sanctions,network effects |
| JEL: | D2 E1 Q4 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22021&r= |